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Spire Inc (SR)
NYSE:SR

Spire (SR) AI Stock Analysis

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SR

Spire

(NYSE:SR)

Rating:71Outperform
Price Target:
$81.00
▲(10.05%Upside)
Spire's overall score reflects a solid financial foundation, supported by strong cash flows and profitability metrics. The company's strategic investments and stable dividend yield enhance its attractiveness. Technical analysis reveals some short-term challenges, but long-term prospects remain stable. The balanced earnings call sentiment suggests resilience amidst challenges.
Positive Factors
Earnings Growth
Spire is well positioned to both raise earnings and narrow its valuation gap due to improvements in MO regulation and benefits from the SB4 legislation.
Regulatory Environment
Recent legislative efforts, such as SB4, support future test years, indicating an improving regulatory environment in Missouri.
Negative Factors
Earnings Volatility
Spire Inc faces headwinds from EPS volatility driven by weather, regulatory lag in Missouri, and dilution from equity and debt financing.
Weather Impact
Lower utility earnings contribution indicates continued impediments to growth at the utility from weather, financing, and dilution headwinds.

Spire (SR) vs. SPDR S&P 500 ETF (SPY)

Spire Business Overview & Revenue Model

Company DescriptionSpire Inc., together with its subsidiaries, engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company operates in two segments, Gas Utility and Gas Marketing. It is also involved in the marketing of natural gas. In addition, the company engages in the transportation of propane through its propane pipeline; compression of natural gas; risk management; and other activities. Further, it provides physical natural gas storage services. The company was formerly known as The Laclede Group, Inc. and changed its name to Spire Inc. in April 2016. Spire Inc. was founded in 1857 and is based in St. Louis, Missouri.
How the Company Makes MoneySpire generates revenue primarily through the sale of its data and analytics services. The company offers subscription-based models for access to its data platforms, which provide insights into maritime, aviation, and weather patterns. Key revenue streams include selling data services to sectors such as shipping, logistics, aviation, and government agencies. Spire also engages in strategic partnerships and collaborations to expand its market reach and enhance its service offerings. These partnerships often involve integrating Spire's data with other technologies to provide comprehensive solutions to clients. Additionally, Spire may engage in bespoke projects and consulting services that cater to specific customer needs, further contributing to its revenue.

Spire Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q2-2025)
|
% Change Since: -4.49%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
Spire's earnings call presented a mix of positive achievements and challenges. While earnings increased and strategic investments were highlighted, weather-related issues and higher costs posed challenges. The sentiment is balanced, with significant positive developments offset by notable lowlights.
Q2-2025 Updates
Positive Updates
Adjusted Earnings Increase
Spire announced adjusted earnings of $3.60 per share, compared to $3.45 per share a year ago, driven by strong growth in Utility and Midstream segments.
Capital Investment Increase
Spire increased its fiscal 2025 capital investment target by $50 million to $840 million, focusing on infrastructure improvements and expansion projects.
Midstream Segment Performance
The Midstream segment saw strong earnings growth due to new contracts, higher rates on renewals, and asset optimization.
Legislative Advancement
Missouri passed Senate Bill 4, which allows utilities to set rates based on projected costs, expected to enhance system reliability and economic growth.
Renewed Labor Agreement
Spire renewed a three-year labor agreement with Local 548 union, providing stability to the workforce and focusing on operational excellence.
Negative Updates
Weather-Related Margin Headwinds
Spire lowered its gas utility segment earnings guidance due to weather-related margin headwinds, resulting in approximately $9 million of lower margins from residential customers.
Higher Corporate Costs
Corporate costs increased primarily due to higher interest expenses from higher short-term borrowing balances.
Ineffective Weather Mitigation Adjustment
The weather mitigation adjustment in Missouri was not effective, leading to lower-than-expected revenues.
Company Guidance
During Spire Inc.'s Q2 FY 2025 earnings call, the company reaffirmed its long-term EPS growth target of 5% to 7%, supported by a 10-year $7.4 billion capital investment plan. For fiscal 2025, Spire provided an earnings guidance range of $4.40 to $4.60 per share. Year-to-date capital expenditures totaled $479 million, with a significant focus on utility infrastructure, as well as $84 million invested in the Midstream segment. The company also announced adjusted earnings of $3.60 per share for the quarter, up from $3.45 per share a year ago, driven by growth in the Utility and Midstream segments. Additionally, Spire addressed regulatory developments, including a Missouri Public Service Commission staff recommendation for a $19 million revenue increase under the Infrastructure System Replacement Surcharge. The company is actively working on regulatory engagements, including a Missouri rate case proposing a $246 million annual revenue increase.

Spire Financial Statement Overview

Summary
Spire demonstrates solid financial health characterized by strong cash flow generation and stable profitability metrics. While leverage is carefully managed, the company should focus on boosting revenue growth and maintaining margins to ensure sustained long-term performance. The regulated nature of the utilities industry provides stability, though continuous monitoring of debt levels is advisable.
Income Statement
75
Positive
Spire shows a stable gross profit margin, indicating strong control over cost of goods sold relative to revenue. However, revenue growth has been slightly inconsistent, with a decline in the latest TTM period compared to the previous annual figure. Net profit margin is healthy, though there was a slight decrease in comparison to the prior annual period.
Balance Sheet
70
Positive
The company's debt-to-equity ratio appears moderate, showing a balanced approach to leverage. Return on equity is satisfactory, reflecting decent profitability relative to shareholder investments. However, the equity ratio suggests a substantial portion of assets are financed by liabilities, which could pose risks if not managed carefully.
Cash Flow
80
Positive
Operating cash flow is strong relative to net income, indicating efficient cash generation from operations. Free cash flow growth has been positive in the TTM period, a significant improvement from previous years, highlighting better cash management and potential for reinvestment or debt reduction.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
2.43B2.59B2.67B2.20B2.24B1.86B
Gross Profit
1.71B982.30M887.90M825.00M823.40M700.70M
EBIT
505.70M488.30M418.60M408.20M450.20M355.10M
EBITDA
795.40M789.10M694.40M636.80M659.90M403.80M
Net Income Common Stockholders
252.10M250.90M217.50M220.80M271.70M88.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.50M4.50M5.60M6.50M4.30M4.10M
Total Assets
11.28B10.86B10.31B10.08B9.36B8.24B
Total Debt
1.20B4.69B4.67B4.28B3.67B3.13B
Net Debt
1.19B4.69B4.66B4.27B3.66B3.13B
Total Liabilities
7.96B7.62B7.40B7.25B6.70B5.72B
Stockholders Equity
3.31B3.23B2.92B2.82B2.66B2.52B
Cash FlowFree Cash Flow
-605.90M51.10M-222.30M-497.20M-375.00M-168.50M
Operating Cash Flow
305.80M912.40M440.20M55.00M249.80M469.90M
Investing Cash Flow
-733.50M-1.03B-695.50M-546.70M-622.00M-631.60M
Financing Cash Flow
113.40M123.90M260.60M500.90M379.40M160.00M

Spire Technical Analysis

Technical Analysis Sentiment
Negative
Last Price73.60
Price Trends
50DMA
75.64
Negative
100DMA
74.26
Negative
200DMA
69.79
Positive
Market Momentum
MACD
-0.33
Negative
RSI
45.27
Neutral
STOCH
44.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SR, the sentiment is Negative. The current price of 73.6 is below the 20-day moving average (MA) of 73.92, below the 50-day MA of 75.64, and above the 200-day MA of 69.79, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 44.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SR.

Spire Risk Analysis

Spire disclosed 29 risk factors in its most recent earnings report. Spire reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Spire Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SRSR
71
Outperform
$4.44B18.567.30%4.09%-7.10%2.54%
NJNJR
71
Outperform
$4.62B11.1617.83%3.95%20.30%63.69%
NWNWN
71
Outperform
$1.64B16.157.36%4.92%3.88%11.80%
CPCPK
67
Neutral
$2.86B22.709.04%2.09%20.41%13.64%
OGOGS
67
Neutral
$4.51B18.198.08%3.62%7.73%2.36%
SWSWX
65
Neutral
$5.30B23.636.49%3.45%-10.78%16.27%
64
Neutral
$8.53B10.254.70%4.38%4.14%-13.04%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SR
Spire
73.60
16.16
28.13%
CPK
Chesapeake Utilities
119.45
12.19
11.36%
NJR
New Jersey Resources
44.65
2.82
6.74%
NWN
Northwest Gas
39.81
4.97
14.27%
SWX
Southwest Gas
71.48
-1.16
-1.60%
OGS
ONE Gas
73.41
14.93
25.53%

Spire Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
Spire Files New Shelf Registration for Equity Offering
Neutral
May 7, 2025

On May 7, 2025, Spire Inc. filed a new shelf registration statement with the SEC, replacing a previous one from 2022. This filing includes a prospectus supplement for an ‘at-the-market’ equity offering program, allowing the company to issue and sell up to $123,613,839 in common stock, enhancing its financial flexibility.

Business Operations and StrategyFinancial Disclosures
Spire Reports Strong Q2 2025 Financial Results
Positive
Apr 30, 2025

On April 30, 2025, Spire Inc. reported its fiscal 2025 second quarter results, showing a net income of $209.3 million and adjusted earnings of $214.4 million, reflecting growth in gas utility and midstream earnings. The company highlighted its commitment to operational excellence and infrastructure investments, expecting fiscal 2025 earnings to remain within the guidance range of $4.40 to $4.60 per share.

Executive/Board ChangesBusiness Operations and Strategy
Spire Appoints Scott Doyle as New CEO
Neutral
Apr 25, 2025

On April 24, 2025, Spire Inc. announced the appointment of Scott Doyle as its new President and CEO, effective immediately, following the termination of Steve Lindsey’s employment. Doyle, who previously served as the company’s COO, brings extensive experience from his tenure at CenterPoint Energy. This leadership transition is expected to support Spire’s strategy of operational excellence and customer service, with no material financial events prompting the change.

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.