Spire Story

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SR -- USA Stock  

USD 64.97  0.69  1.07%

Spire Inc is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of February 2021. Spire Invested Capital Average is relatively stable at the moment as compared to the past year. Spire reported last year Invested Capital Average of 5.33 Billion. As of 11/18/2020, Market Capitalization is likely to grow to about 2.8 B, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 370.8 M. Although many aggressive traders are getting into utilities space, Spire Inc may or may not be your first choice. We will analyze why Spire investors may still consider a stake in the business.
Published over two weeks ago
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How much will Spire owe in December?
The company reports 3.03 B of total liabilities with total debt to equity ratio (D/E) of 1.18, which is normal for its line of buisiness. Spire Inc has a current ratio of 0.49, implying that it has not enough working capital to pay out debt commitments in time. Spire has performance score of 4 on a scale of 0 to 100. The entity has a beta of 0.0193, which indicates not very significant fluctuations relative to the market. Let's try to break down what Spire's beta means in this case. As returns on the market increase, Spire returns are expected to increase less than the market. However, during the bear market, the loss on holding Spire will be expected to be smaller as well. Although it is extremely important to respect Spire Inc current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Spire Inc technical indicators, you can presently evaluate if the expected return of 0.12% will be sustainable into the future. Spire Inc right now has a risk of 1.91%. Please validate Spire maximum drawdown, as well as the relationship between the skewness and day typical price to decide if Spire will be following its existing price patterns.
Spire financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Spire, including all of Spire's 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 is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Spire Total Liabilities

Spire Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Spire Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Spire balance sheet include debt obligations and money owed to different Spire vendors, workers, and loan providers. Below is the chart of Spire short long-term liabilities accounts currently reported on its balance sheet.
You can use Spire Inc financial leverage analysis tool to get a better grip on understanding its financial position

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

What is driving Spire Investor Appetite?

The modest gains experienced by current holders of Spire Inc created some momentum for retail investors as it was traded today as low as 62.09 and as high as 65.36 per share. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.91. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Liabilities Breakdown

643.3 M
Tax Liabilities
1.4 B
Current Liabilities
3.1 B
Long-Term Liabilities
Deposit Liabilities33.89 Million
Total Liabilities3.74 Billion
Current Liabilities1.43 Billion
Long-Term Liabilities3.06 Billion
Tax Liabilities643.32 Million

How will Spire retail investors react to the next fall?

Latest Risk Adjusted Performance is up to 0.06. Price may fall again. Spire Inc has relatively low volatility with skewness of 1.01 and kurtosis of 4.41. However, we advise all investors to independently investigate Spire Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Spire

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 inconsistency in the assessment between current Spire valuation and our trade advice on Spire 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 Spire.

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 Vlad Skutelnik 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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