SR Spire stock Story

SR -  USA Stock  

USD 72.52  3.49  4.59%

It seems Spire may not recover as fast as we have hopped for as its price went down 0.75% today. The company's current daily volatility is 1.91 percent, with a beta of 0.02 and an alpha of 0.08 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to sum up Spire Inc a little further to understand its historical price patterns. I will address the reasons why this entity does not get much respect from retail investors under the current market uncertainty.
Published over six months ago
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Chances of Spire to fall after the volatility advances
Spire Inc reports roughly 7.4 M in cash with 464.1 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.14. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Spire has an asset utilization ratio of 152.15 percent. This connotes that the company is making $1.52 for each dollar of assets. An increasing asset utilization means that Spire Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Spire, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Spire along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Spire's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Spire in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Spire. Your research has to be compared to or analyzed against Spire's peers to derive any actionable benefits. When done correctly, Spire's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Spire Inc.

How important is Spire's Liquidity

Spire financial leverage refers to using borrowed capital as a funding source to finance Spire Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Spire 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 Spire's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Spire, but it might be worth checking our own buy vs. sell analysis

Spire Correlation with Peers

Investors in SR Spire can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Spire Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Spire and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities SR Spire is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of SR Spire for more details

A Deeper Perspective

We consider Spire very steady. Spire Inc owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.07, which indicates the firm had 0.07% 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 Spire Inc, which you can use to evaluate future volatility of the company. Please validate Spire Coefficient Of Variation of 2085.94, risk adjusted performance of 0.0634, and Semi Deviation of 1.65 to confirm if the risk estimate we provide is consistent with the expected return of 0.13%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Spire has 95 percent likelihood to fall below $62 in December

The semi variance is down to 2.72 as of today. As of the 18th of November 2020, Spire has the Semi Deviation of 1.65, coefficient of variation of 2085.94, and Risk Adjusted Performance of 0.0634. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Spire Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Spire Inc, which can be compared to its competition. Please validate Spire Inc coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Spire is priced more or less accurately, providing market reflects its prevalent price of 63.28 per share. Given that Spire Inc has jensen alpha of 0.0782, we advise you to double-check Spire Inc's current market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While some companies within the utilities—regulated gas industry are still a little expensive, even after the recent corrections, Spire may offer a potential longer-term growth to retail investors. The bottom line, as of the 18th of November 2020, our actual 30 days 'Buy-Sell' recommendation on the enterprise is Strong Buy. However, we believe Spire is currently overvalued with below average probability of financial unrest for the next two years.

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 Ellen Johnson do not own shares of Spire Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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