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Spire Healthcare Group PLC (GB:SPI)
LSE:SPI

Spire Healthcare (SPI) AI Stock Analysis

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GB

Spire Healthcare

(LSE:SPI)

Rating:74Outperform
Price Target:
229.00p
▲(10.10%Upside)
Spire Healthcare's stock score is driven by strong financial performance, particularly in revenue growth and operational efficiency, despite high leverage and modest net margins. Technical indicators show positive momentum, supporting a favorable outlook. Corporate events contribute positively with strategic initiatives and strong governance, but the high P/E ratio suggests a need for valuation caution.

Spire Healthcare (SPI) vs. iShares MSCI United Kingdom ETF (EWC)

Spire Healthcare Business Overview & Revenue Model

Company DescriptionSpire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics. It offers various treatments in the areas of allergy and infectious diseases, blood tests, bones and joints, bowel treatments, breast screening, cancer investigations and treatments, cosmetic surgery, cyst removal, and dental surgery, as well as ear, nose, and throat treatments. The company also provides eye surgery and treatments, family planning, gastroenterology, general medicine, general surgery, haematology, hand surgery, hip and knee treatment, and heart and kidney treatments. In addition, it offers treatments in the areas of men's health, neurosurgery and neurology, paediatrics, pain management, rehabilitation, sports, physiotherapy, podiatry, respiratory care, and rheumatology; and scans and investigations, skin treatments, spinal care, sports science, urology care, vascular surgery, weight loss, and women's health. Further, the company offers various tests and scans, which include cardiac CT, CT, MRI, ultrasound, and X-ray scans. It offers diagnostics, in-patient, daycase, and out-patient care services through 40 hospitals and eight clinics across England, Wales, and Scotland. Spire Healthcare Group plc was founded in 2007 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySpire Healthcare generates revenue primarily through the provision of private healthcare services. The company earns income from patients who pay for treatments directly, as well as through partnerships with private medical insurers who cover healthcare costs for their policyholders. In addition, Spire Healthcare receives revenue from the National Health Service (NHS) by providing certain medical services under contracts. Key revenue streams include surgical procedures, diagnostic services, consultations, and outpatient treatments. The company's financial performance is influenced by factors such as patient volume, service mix, pricing strategies, and its ability to maintain strong relationships with insurers and the NHS.

Spire Healthcare Financial Statement Overview

Summary
Spire Healthcare shows strong revenue growth and operational efficiency with improved gross and EBIT margins. However, net profitability is modest, and high leverage poses a risk. Cash flow generation is solid, supporting investments and liquidity needs. Overall, the financial health is stable with areas for improvement in profitability and leverage.
Income Statement
75
Positive
Spire Healthcare has demonstrated consistent revenue growth over recent years, with a significant increase from £919.9M in 2020 to £1.51B in 2024. Gross profit margin improved to 45.23% in 2024, indicating strong cost management. However, the net profit margin remains modest at 1.68%, suggesting room for improvement in overall profitability. EBIT and EBITDA margins show stable operational efficiency, with the latter at 14.06% in 2024.
Balance Sheet
65
Positive
The company maintains a relatively high debt-to-equity ratio of 1.71, reflecting substantial leverage. However, return on equity (ROE) is modest at 3.39%, indicating efficient use of equity. The equity ratio at 31.94% suggests a balanced capital structure, though increasing equity could mitigate leverage risks.
Cash Flow
70
Positive
Spire Healthcare's cash flow from operations has shown a positive trend, reaching £235.7M in 2024, supporting its capital expenditures and free cash flow generation. Free cash flow growth is steady, though the operating to net income ratio of 9.28 indicates reliance on operating performance for cash generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.51B1.36B1.20B1.11B919.90M
Gross Profit
683.60M520.60M440.50M394.10M361.80M
EBIT
137.50M126.50M104.20M81.20M69.00M
EBITDA
250.40M231.20M202.10M182.20M-51.90M
Net Income Common Stockholders
25.40M27.30M8.60M-9.70M-233.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
43.70M49.60M74.20M202.60M106.30M
Total Assets
2.34B2.29B2.16B2.24B2.10B
Total Debt
1.28B1.26B1.19B1.27B1.17B
Net Debt
1.24B1.21B1.12B1.06B1.06B
Total Liabilities
1.60B1.55B1.43B1.53B1.40B
Stockholders Equity
748.40M739.90M731.00M709.60M706.60M
Cash FlowFree Cash Flow
123.60M115.50M72.80M101.30M95.10M
Operating Cash Flow
235.70M199.90M160.50M170.60M141.70M
Investing Cash Flow
-99.00M-157.20M-98.00M-48.30M-46.40M
Financing Cash Flow
-145.10M-82.90M-190.90M-26.00M-79.80M

Spire Healthcare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price208.00
Price Trends
50DMA
189.29
Positive
100DMA
200.96
Positive
200DMA
213.77
Negative
Market Momentum
MACD
4.38
Negative
RSI
66.42
Neutral
STOCH
89.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPI, the sentiment is Positive. The current price of 208 is above the 20-day moving average (MA) of 198.04, above the 50-day MA of 189.29, and below the 200-day MA of 213.77, indicating a neutral trend. The MACD of 4.38 indicates Negative momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 89.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPI.

Spire Healthcare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSPI
74
Outperform
£840.96M33.173.41%1.10%11.20%-6.80%
GBAMS
72
Outperform
£461.60M64.652.93%1.14%40.66%-55.09%
GBCRW
69
Neutral
£721.40M61.824.50%1.43%6.74%54.83%
65
Neutral
£333.86M8.5411.74%38.80%
GBAPH
59
Neutral
$355.92M-5.04%-1.02%67.70%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
GBTLY
53
Neutral
£471.71K-3.66%-23.61%-30.61%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SPI
Spire Healthcare
208.00
-36.12
-14.80%
GB:AMS
Advanced Medical Solutions
213.00
-0.75
-0.35%
GB:APH
Alliance Pharma
64.70
29.35
83.03%
GB:CRW
Craneware
2,040.00
-306.73
-13.07%
GB:PRTC
PureTech Health
139.80
-84.20
-37.59%
GB:TLY
Totally
0.24
-8.51
-97.26%

Spire Healthcare Corporate Events

Regulatory Filings and Compliance
Spire Healthcare Announces Change in Major Holdings
Neutral
Jun 4, 2025

Spire Healthcare Group PLC has announced a change in its major holdings, with FIL Limited acquiring or disposing of voting rights and financial instruments. The transaction resulted in FIL Limited holding 9.105% of the voting rights in Spire Healthcare. This change in holdings could impact the company’s governance and influence decision-making processes, potentially affecting stakeholders and market perceptions.

The most recent analyst rating on (GB:SPI) stock is a Buy with a £321.00 price target. To see the full list of analyst forecasts on Spire Healthcare stock, see the GB:SPI Stock Forecast page.

Shareholder Meetings
Spire Healthcare’s 2025 AGM Resolutions Passed with Strong Support
Positive
May 14, 2025

Spire Healthcare Group PLC announced the successful passage of all resolutions at its 2025 Annual General Meeting, held on May 14, 2025. The results indicate strong shareholder support, with most resolutions receiving near-unanimous approval. This outcome reflects positively on the company’s governance and may enhance its position in the healthcare sector, potentially influencing investor confidence and future strategic decisions.

The most recent analyst rating on (GB:SPI) stock is a Buy with a £321.00 price target. To see the full list of analyst forecasts on Spire Healthcare stock, see the GB:SPI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Spire Healthcare Reports Steady Performance and Strategic NHS Partnership
Positive
May 14, 2025

Spire Healthcare Group PLC reported that its performance from January to April 2025 aligned with expectations and the 2025 guidance, with a transformation program on track to deliver significant efficiencies. The company, which has full UK revenue exposure, does not foresee any major cost or supply chain issues due to recent tariff announcements. Additionally, Spire Healthcare has been named a founding supplier in the Government’s National Strategic Supplier Relationship programme, enhancing its collaboration with the NHS for sustainable NHS commissioning.

The most recent analyst rating on (GB:SPI) stock is a Buy with a £321.00 price target. To see the full list of analyst forecasts on Spire Healthcare stock, see the GB:SPI Stock Forecast page.

Business Operations and Strategy
Spire Healthcare Executives Exercise Share Awards, Retain Shares
Positive
Apr 10, 2025

Spire Healthcare Group PLC announced that its Executive Directors, Justin Ash and Harbant Samra, have exercised their vested Executive Share Plan awards. Justin Ash exercised both his Long Term Incentive Plan and Deferred Share Bonus Plan awards, retaining a significant number of shares after tax satisfaction, while Harbant Samra exercised his Long Term Incentive Plan award, also retaining shares. This move reflects the directors’ confidence in the company’s future and their commitment to its growth, potentially impacting stakeholder perceptions positively.

Shareholder MeetingsFinancial Disclosures
Spire Healthcare Releases 2024 Annual Report and Announces 2025 AGM
Positive
Apr 8, 2025

Spire Healthcare Group plc has published its 2024 Annual Report and 2025 Notice of Annual General Meeting, with documents available on its website and the National Storage Mechanism. The company encourages shareholders to attend the AGM on 14 May 2025 in London and submit questions via email, with resolutions and voting results to be shared post-meeting. This announcement underscores Spire Healthcare’s commitment to transparency and shareholder engagement, potentially strengthening its market position and stakeholder trust.

M&A TransactionsBusiness Operations and Strategy
Spire Healthcare Acquires Acorn to Boost Occupational Health Services
Positive
Apr 1, 2025

Spire Healthcare has announced the acquisition of Acorn Occupational Health Limited for an initial consideration of £3.3 million, aiming to expand its footprint in the Occupational Health Services sector. This acquisition is part of Spire’s strategy to grow its Primary Care Business, which saw a 15% revenue increase in 2024, and is expected to enhance Spire’s ability to secure nationwide contracts and support organic growth, with the Occupational Health market in the UK valued at £1.5-2 billion and growing at 6% annually.

Executive/Board ChangesBusiness Operations and Strategy
Spire Healthcare Announces LTIP Awards for Executive Directors
Neutral
Mar 28, 2025

Spire Healthcare Group PLC has announced the grant of Long Term Incentive Plan (LTIP) awards to its Executive Directors, Justin Ash and Harbant Samra, with performance share awards over the company’s ordinary shares. These awards, representing 200% of their current base salary, are contingent upon meeting specific performance conditions related to shareholder return, ROCE, hospital EBIT margin, and operational excellence. This move aims to align the directors’ interests with those of shareholders and drive the company’s performance over the coming years.

Executive/Board ChangesBusiness Operations and Strategy
Spire Healthcare Grants Deferred Share Bonus Awards to Executives
Positive
Mar 14, 2025

Spire Healthcare Group PLC announced the grant of Deferred Share Bonus Plan (DSBP) awards to its Executive Directors, requiring them to defer a portion of their 2024 bonuses into company shares for three years. This move aligns the interests of the management with shareholders and is expected to enhance long-term company performance by incentivizing key executives.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.