Spire Current Financial Leverage

SR -  USA Stock  

USD 70.95  0.86  1.20%

Spire's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Spire's financial risk is the risk to Spire stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Additionally, take a look at the analysis of Spire Fundamentals Over Time.

Search Bonds 

 
Refresh
Spire Total Debt is relatively stable at the moment as compared to the past year. Spire reported last year Total Debt of 2.22 Billion. As of 07/30/2021, Debt Current is likely to grow to about 2.4 B, while Long Term Debt to Equity is likely to drop 0.83.

Spire Current Financial Burden

Spire's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Spire's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Spire Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Spire's stakeholders.

Asset vs Debt

Equity vs Debt

Given the importance of Spire's capital structure, the first step in the capital decision process is for the management of Spire to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Spire Inc to issue bonds at a reasonable cost.

Spire Financial Leverage Rating

Spire Inc bond ratings play a critical role in determining how much Spire have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Spire's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
7  Strong
Beneish M Score

Spire Inc Debt to Cash Allocation

As Spire Inc follows its natural business cycle, the capital allocation decisions will not magically go away. Spire's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company reports 3.46 B of total liabilities with total debt to equity ratio (D/E) of 1.26, which is normal for its line of buisiness. Spire Inc has a current ratio of 0.68, implying that it has not enough working capital to pay out debt commitments in time.

Spire Inventories Over Time

Spire Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Spire uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Spire Debt Ratio

    
  40.08   
It seems slightly above 59% of Spire's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Spire's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Spire, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Spire debt ratio should be compared their industry average or other competing firms.
Share Download
Share Download

Spire Inc Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Spire, understanding its historical liability is critical in projecting Spire's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Spire uses its financing power over time.

Understaning Spire Use of Financial Leverage

Spire financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Spire's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Spire assets, the company is considered highly leveraged. Understanding the composition and structure of overall Spire debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt2.2 B2.4 B
Debt Current2.2 B2.4 B
Issuance Repayment of Debt Securities203.1 M219.2 M
Long Term Debt to Equity 0.86  0.83 
Debt to Equity Ratio 0.89  0.86 
Spire Inc., through 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 was formerly known as The Laclede Group, Inc. and changed its name to Spire Inc. in April 2016. Spire operates under UtilitiesRegulated Gas classification in the United States and is traded on New York Stock Exchange. It employs 3583 people.

Spire Investors Sentiment

The influence of Spire's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Spire. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - SR

Spire Inc Investor Sentiment

Larger part of Macroaxis users are at this time bullish on Spire Inc. What is your outlook on investing in Spire Inc? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
Skip

Currently Active Assets on Macroaxis

Additionally, take a look at the analysis of Spire Fundamentals Over Time. Note that the Spire Inc information on this page should be used as a complementary analysis to other Spire's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Complementary Tools for Spire Stock analysis

When running Spire Inc price analysis, check to measure Spire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Spire is operating at the current time. Most of Spire's value examination focuses on studying past and present price action to predict the probability of Spire's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Spire's price. Additionally, you may evaluate how the addition of Spire to your portfolios can decrease your overall portfolio volatility.
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Fund Screener
Find activelly-traded funds from around the world traded on over 30 global exchanges
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
The market value of Spire Inc is measured differently than its book value, which is the value of Spire that is recorded on the company's balance sheet. Investors also form their own opinion of Spire's value that differs from its market value or its book value, called intrinsic value, which is Spire's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Spire's market value can be influenced by many factors that don't directly affect Spire Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Spire's value and its price as these two are different measures arrived at by different means. Investors typically determine Spire value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Spire's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.