Spark Story

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SPKE -- USA Stock  

USD 10.06  0.07  0.70%

Spark Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 32.39 Million. The current year Earnings before Tax is expected to grow to about 6.9 M, whereas Free Cash Flow is forecasted to decline to about 45.9 M. Spark Energy is scheduled to announce its earnings today. As many risky investors are excited about utilities space, it is only fair to digest Spark Energy based on its current volatility. We will analyze why it could be a much better year for Spark Energy shareholders. Will shareholders continue to hold, or should we expect a sell-off?
Published over three weeks ago
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Does Spark Energy (NASDAQ:SPKE) have sound forward looking signals based on the latest surge?
Spark Energy is OVERVALUED at 8.66 per share with modest projections ahead. Spark Energy appears to be somewhat reliable, given 1 month investment horizon. Spark Energy owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.11, which indicates the firm had 0.11% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Spark Energy, which you can use to evaluate future volatility of the company. Please operate Spark Energy Coefficient Of Variation of 1052.21, semi deviation of 2.37, and Risk Adjusted Performance of 0.1111 to confirm if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Spark Energy income statement, its balance sheet, and the statement of cash flows. Potential Spark Energy investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Spark Energy investors may use each financial statement separately, they are all related. The changes in Spark Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Spark Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Spark Energy fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Spark Energy performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Spark Energy shares is the value that is considered the true value of the share. If the intrinsic value Spark is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Spark Energy. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of Spark Energy earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Spark Energy dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Spark one year expected dividend income is about $0.48 per share.
As of November 28, 2020, Payment of Dividends and Other Cash Distributions is expected to decline to about (5.5 M). In addition to that, Dividend Yield is expected to decline to 0.05.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-5.1 M-5.5 M
Dividend Yield 0.06  0.05 
Dividends per Basic Common Share 1.31  1.05 
Investing in dividend-paying stocks, such as Spark Energy is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Spark Energy must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Spark Energy. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Spark Energy's Liquidity

Spark Energy financial leverage refers to using borrowed capital as a funding source to finance Spark Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Spark Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Spark Energy's total debt and its cash.

How Spark utilizes its cash?

To perform a cash flow analysis of Spark Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Spark Energy is receiving and how much cash it distributes out in a given period. The Spark Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Spark Energy Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 91.73 Million

Spark Energy Gross Profit

Spark Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Spark Energy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Spark Energy Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

A Deeper Perspective On Spark Energy

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Spark Energy is not uncomon. Institutional investor usually refers to an organization that invests money in Spark Energy on behalf of clients or other money managers. Buying and selling of large positions of Spark Energy stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Spark Energy stock. Let's take a look at how the ownership of Spark is distributed among investors.

Ownership Allocation

The market capitalization of Spark Energy is $341.66 Million. The majority of Spark Energy outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Spark Energy to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Spark Energy. Please pay attention to any change in the institutional holdings of Spark Energy as this could imply that something significant has changed or about to change at the company. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the company is less than the current market value, you may not be able generate positive returns on investment in the long run.

Retail Investors
6.67%
Insiders
20.94%
Institutions
72.39%
Retail Investors6.67
Insiders20.94
Institutions72.39
 2014 2015 2019 2020 (projected)
Interest Expense1.58 M2.28 M2.62 M2.67 M
Gross Profit322.88 M358.15 M411.88 M416.11 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Spark Energy has an asset utilization ratio of 203.86 percent. This indicates that the company is making $2.04 for each dollar of assets. An increasing asset utilization means that Spark Energy is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
199.9 M
Current Assets199.91 Million63.16
Assets Non Current57.83 Million18.27
Goodwill30.89 Million9.76
Tax Assets27.88 Million8.81

The case for Spark Energy dip maybe to hold

Latest expected short fall indicator falls down to -2.5. Possible price growth? Spark Energy currently demonstrates below-verage downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.27. However, we do advice investors to further question Spark Energy expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Although some firms under the utilities?regulated electric industry are still a bit expensive, Spark Energy may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Spark valuation and our trade advice on Spark Energy is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Spark Energy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Spark Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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