Spok Holdings (SPOK) AI Stock Analysis

• Market Cap: $339.24M
• Dividend Yield: 7.58%
• Average Volume (3M): 117.82K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.74
• Revenue Growth: -1.22%
• EPS Growth: -6.54%
• Country: US
• Employees: 418
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.25
• Shares Outstanding: 20,572,296
• 10 Day Avg. Volume: 92,352
• 30 Day Avg. Volume: 117,824
• PEG Ratio: -0.04
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.12
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.37
• Enterprise Value/Ebitda: 1.48
• 1Y Price Target: $20.00
• Price Target Upside: 22.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Spok Holdings scores well due to strong financial health, robust profitability, and effective cash flow management, underlined by a solid balance sheet and low leverage. The recent earnings call highlighted significant revenue and EBITDA growth, contributing positively to the score. While technical indicators show mixed signals, the company's reasonable valuation and high dividend yield add to its investment appeal. The primary risk remains the lack of revenue growth, necessitating strategic efforts to boost top-line performance.

Positive Factors

Dividends

The company generates consistent cash flow to pay its compelling dividend and drive growth in the software business.

Growth Prospects

Analyst recommends upgrading the stock rating from Neutral to Buy, with an increased price target based on the company's valuation and growth prospects.

Market Potential

Spok serves a large addressable market, with only 26% market penetration in the U.S., indicating room for growth domestically and internationally.

Negative Factors

Overall Business Performance

The overall business, which consists of wireless/pagers (down 3%) and software/Spok Care Connect (up 1%) sales, was down 1% Y/Y in 1H24.

Paging Revenue Decline

Paging revenue in the quarter declined with a decrease in wireless units in service.

Spok Holdings Business Overview & Revenue Model

Company Description

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. It delivers clinical information to care teams when and where it matters to enhance patient outcomes. The company offers subscriptions to one-way or two-way messaging services; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect platform enhance workflows for clinicians and support administrative compliance. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. The company was founded in 1986 and is headquartered in Alexandria, Virginia.

How the Company Makes Money

Spok Holdings generates revenue primarily through the sale of its communication services and solutions to healthcare organizations. The company's revenue model includes subscription fees for its secure messaging and alerting services, as well as sales of software licenses and hardware. Maintenance and support services also contribute to its revenue streams. Additionally, Spok partners with healthcare institutions to offer customized communication solutions, which can involve long-term contracts and recurring revenue through service agreements. The company's focus on the healthcare sector allows it to capitalize on the increasing demand for efficient and reliable communication systems in hospitals and other medical facilities.

Spok Holdings Financial Statement Overview

Summary

Spok Holdings presents a strong financial profile with healthy profitability and cash flow metrics, supported by a solid balance sheet with minimal leverage. While the company's financial stability is commendable, the lack of revenue growth remains a concern, indicating a need for strategic initiatives to enhance top-line expansion.

Income Statement

Spok Holdings shows a stable revenue base with minor fluctuations. The TTM gross profit margin is healthy at 74.30%, and the net profit margin stands at 11.45%, indicating efficient cost management. However, revenue growth has been stagnant, and the EBIT margin of 14.70% reflects moderate operational efficiency. Overall, profitability metrics are strong, but growth remains a concern.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05, highlighting minimal leverage and financial stability. The equity ratio of 74.22% underscores a solid capital structure. Return on Equity (ROE) is modest at 10.49%, suggesting that while the company is financially sound, it could improve in generating returns for shareholders.

Cash Flow

Spok Holdings demonstrates robust cash flow management, with a free cash flow to net income ratio of 1.64, indicating strong cash generation relative to profits. The operating cash flow to net income ratio is 1.83, reflecting efficient cash conversion. Free cash flow growth is steady, supporting the company's liquidity and ability to invest in growth opportunities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
139.04M	137.65M	139.03M	134.53M	142.15M	148.18M
	Gross Profit
103.29M	109.22M	112.21M	106.27M	109.58M	119.64M
	EBIT
20.44M	18.96M	21.23M	14.90M	3.61M	27.35M
	EBITDA
23.69M	24.18M	26.62M	11.14M	-629.00K	-12.71M
	Net Income Common Stockholders
15.93M	14.96M	15.67M	21.86M	-22.18M	-44.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.87M	29.14M	31.99M	35.75M	59.58M	78.72M
	Total Assets
204.48M	217.10M	227.68M	244.48M	248.15M	277.29M
	Total Debt
8.18M	8.77M	11.09M	15.70M	17.29M	14.72M
	Net Debt
-11.69M	-20.37M	-20.90M	-20.05M	-27.30M	-34.01M
	Total Liabilities
52.74M	62.36M	63.91M	72.40M	74.46M	76.68M
	Stockholders Equity
151.74M	154.75M	163.77M	172.08M	173.69M	200.61M
Cash Flow		Free Cash Flow
26.10M	25.71M	22.77M	2.68M	-7.27M	11.46M
	Operating Cash Flow
29.18M	28.92M	26.18M	6.46M	7.97M	26.16M
	Investing Cash Flow
-3.08M	-3.21M	-3.42M	11.26M	-225.00K	-14.57M
	Financing Cash Flow
-29.51M	-28.54M	-26.68M	-26.22M	-11.75M	-10.37M

Spok Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPOK, the sentiment is Positive. The current price of 16.3 is below the 20-day moving average (MA) of 16.30, above the 50-day MA of 15.73, and above the 200-day MA of 15.33, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 62.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPOK.

Spok Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPOK	76 Outperform	$339.24M	21.05	10.21%	7.58%	-1.22%	-6.54%
NRC	70 Outperform	$365.25M	15.57	72.68%	2.99%	-4.15%	-17.17%
TBRG	64 Neutral	$357.11M	―	-10.98%	―	3.15%	61.71%
HCAT	61 Neutral	$277.01M	―	-19.80%	―	4.88%	37.87%
DH	57 Neutral	$531.21M	―	-86.36%	―	-3.04%	-152.59%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
CTEV	50 Neutral	$620.47M	―	-198.69%	―	-3.33%	-86.58%

Spok Holdings Corporate Events

Spok Holdings Highlights Strategic Goals in Investor Presentation

On May 5, 2025, Spok Holdings, Inc. released an investor presentation highlighting its strategic goals and financial performance. The company emphasized its strong balance sheet, significant free cash flow generation, and commitment to returning capital to shareholders. Spok also outlined its growth strategy, which includes expanding its software operations and stabilizing wireless revenue. The company continues to lead in healthcare communications, earning top client satisfaction scores and a top-rated spot in a new category for critical alert messaging solutions.