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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.8%
Sector: 9.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SPIRE INC (SR) receives a "Hold" rating with a composite score of 49.2/100, ranked #466 out of 4446 stocks. Key factor scores: Quality 50/100, Value 54/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
SPIRE INC (SR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SPIRE INC Do?
Spire 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. SPIRE INC (SR) is classified as a mid-cap stock in the Utilities sector. The company is led by CEO Suzanne Sitherwood and employs approximately 3,580 people, headquartered in Saint Louis, Missouri. With a market capitalization of $5.4B, SR is one of the notable companies in the Utilities sector.
SPIRE INC (SR) Stock Rating — Hold (April 2026)
As of April 2026, SPIRE INC receives a Hold rating with a composite score of 49.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SR ranks #466 out of 4,446 stocks in our coverage universe. Within the Utilities sector, SPIRE INC ranks #45 of 112 stocks, placing it in the upper half of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SR Stock Price and 52-Week Range
SPIRE INC (SR) currently trades at $95.19. The 52-week high for SR is $94.27, which means the stock is currently trading 1.0% from its annual peak. The 52-week low is $69.94, putting the stock 36.1% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is SR Overvalued or Undervalued? — Valuation Analysis
SPIRE INC (SR) carries a value factor score of 54/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 13.63x, compared to the Utilities sector average of 23.47x — a discount of 42%. The price-to-book ratio stands at 1.61x, versus the sector average of 1.98x. The price-to-sales ratio is 1.91x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, SR trades at 5.53x EV/EBITDA, versus 4.75x for the sector.
Overall, SR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
SPIRE INC Profitability — ROE, Margins, and Quality Score
SPIRE INC (SR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.8%, compared to the Utilities sector average of 9.9%, which is within a healthy range. Return on assets (ROA) comes in at 3.4% versus the sector average of 3.1%.
On a margin basis, SPIRE INC reports gross margins of 55.0%, compared to 53.1% for the sector. The operating margin is 22.6% (sector: 21.5%). Net profit margin stands at 12.4%, versus 12.8% for the average Utilities stock. Revenue growth is running at 84.1% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
SR Debt, Balance Sheet, and Financial Health
SPIRE INC has a debt-to-equity ratio of 246.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.61x, which may signal near-term liquidity tightness.
SR has a beta of 0.13, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SPIRE INC is 95/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
SPIRE INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, SPIRE INC reported revenue of $2.90B and earnings per share (EPS) of $1.55. Net income for the quarter was $407M. Gross margin was 55.0%. Operating income came in at $698M.
In Q1 2026, SPIRE INC reported revenue of $762M and earnings per share (EPS) of $1.55. Net income for the quarter was $95M. Gross margin was 55.0%. Revenue grew 13.9% year-over-year compared to Q1 2025. Operating income came in at $174M.
In FY 2025, SPIRE INC reported revenue of $2.48B and earnings per share (EPS) of $4.39. Net income for the quarter was $272M. Gross margin was 58.8%. Revenue grew -4.5% year-over-year compared to FY 2024. Operating income came in at $524M.
In Q3 2025, SPIRE INC reported revenue of $422M and earnings per share (EPS) of $0.29. Net income for the quarter was $21M. Revenue grew 1.9% year-over-year compared to Q3 2024. Operating income came in at $69M.
Over the past 8 quarters, SPIRE INC has demonstrated a growth trajectory, with revenue expanding from $414M to $2.90B. Investors analyzing SR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SR Dividend Yield and Income Analysis
SPIRE INC (SR) does not currently pay a dividend. This is common among smaller companies in the Utilities industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Utilities dividend stocks may want to explore other Utilities stocks or use the stock screener to filter by dividend yield.
SR Momentum and Technical Analysis Profile
SPIRE INC (SR) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 21/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 10/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SR vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing SR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SR vs S&P 500 (SPY) comparison to assess how SPIRE INC stacks up against the broader market across all factor dimensions.
SR Next Earnings Date
No upcoming earnings date has been announced for SPIRE INC (SR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SR? — Investment Thesis Summary
SPIRE INC presents a balanced picture with arguments on both sides. Low volatility (stability score 95/100) reduces downside risk.
In summary, SPIRE INC (SR) earns a Hold rating with a composite score of 49.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SR stock.
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Institutional Research Dossier
SPIRE INC (SR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Spire Inc. (SR). While Spire operates in the relatively stable and regulated natural gas utility sector, providing essential services, its current valuation appears stretched relative to its growth prospects and sector peers. The company's high P/E ratio and debt levels raise concerns about future returns, offsetting the positive aspects of its consistent profitability and operational efficiency.
The primary concern lies in Spire's valuation, which does not adequately compensate investors for the risks associated with its debt burden and the potential for regulatory headwinds. Although the company demonstrates strong revenue growth and operational efficiency, these factors are already priced into the stock, leaving limited upside potential. Therefore, a Hold rating is warranted until a more attractive entry point emerges or the company demonstrates a clear path to sustainable, above-average growth.
Business Strategy & Overview
Spire Inc. operates primarily as a natural gas utility, distributing natural gas to residential, commercial, and industrial customers in the United States. The company's core business revolves around purchasing and delivering natural gas through its extensive pipeline network. This regulated utility segment provides a relatively stable and predictable revenue stream, as demand for natural gas remains consistent across various economic cycles. Spire also engages in gas marketing activities, which involve buying and selling natural gas to capture arbitrage opportunities and optimize its gas supply portfolio.
A key aspect of Spire's strategy is its focus on infrastructure investments to modernize and expand its pipeline network. These investments aim to enhance the reliability and safety of its gas delivery system, while also supporting future growth by connecting new customers and expanding service territories. The company also pursues strategic acquisitions to increase its customer base and geographic footprint, further solidifying its position in the natural gas distribution market. These acquisitions are typically accretive to earnings and provide synergies that improve operational efficiency.
Spire's business model is heavily influenced by regulatory oversight, as utility rates are subject to approval by state regulatory commissions. These commissions determine the allowed rate of return on invested capital, which directly impacts the company's profitability. Spire actively engages with regulators to advocate for fair and reasonable rates that allow it to recover its costs and earn a reasonable return on its investments. The regulatory environment can be both a source of stability and a potential risk, as changes in regulations can impact the company's revenue and profitability.
The company also participates in the transportation of propane and the compression of natural gas, diversifying its revenue streams and leveraging its existing infrastructure. These activities contribute to the overall profitability of the company and provide additional opportunities for growth. Spire's risk management activities are crucial for mitigating the volatility of natural gas prices and ensuring a stable supply of gas for its customers. The company uses various hedging strategies to manage its exposure to price fluctuations and protect its earnings.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
84.1%
Sector: 20.1%
+319% VS SCTR
Economic Moat Analysis
Spire possesses a Narrow economic moat, primarily derived from its regulated utility operations and the essential nature of its services. The natural gas distribution business benefits from high barriers to entry due to the significant capital investments required to build and maintain pipeline infrastructure. Furthermore, the regulatory environment creates a protected market, as new entrants must obtain regulatory approval to operate, which is a lengthy and complex process. This limits competition and allows Spire to maintain a dominant position in its service territories.
The essential nature of natural gas as a heating and energy source also contributes to Spire's moat. Demand for natural gas remains relatively stable regardless of economic conditions, providing a consistent revenue stream for the company. This inelastic demand allows Spire to pass through cost increases to customers, protecting its profitability. The company's established customer base and long-standing relationships with regulators further strengthen its competitive position.
However, Spire's moat is not as wide as some of its peers due to the potential for regulatory changes and the increasing adoption of alternative energy sources. Regulatory commissions can adjust allowed rates of return, which can impact the company's profitability. Additionally, the growing focus on renewable energy and electrification poses a long-term threat to the demand for natural gas, potentially eroding Spire's competitive advantage.
While Spire benefits from efficient scale within its service territories, this advantage is limited by the geographic constraints of its operations. The company's ability to expand its moat is dependent on its ability to successfully navigate the regulatory environment and adapt to the changing energy landscape. Investments in renewable energy infrastructure and diversification into other energy-related services could help to strengthen its moat over time.
The company's brand recognition and reputation for reliability also contribute to its moat, but these factors are less significant than the regulatory barriers and essential nature of its services. Overall, Spire's Narrow moat provides a degree of protection from competition, but it is not impenetrable and is subject to potential erosion from regulatory and technological changes.
Financial Health & Profitability
Spire's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a TTM revenue of $762.20 million and a significant 84.1% revenue growth compared to the sector average of 20.1%. This growth is primarily driven by increased demand for natural gas and strategic acquisitions. However, the company's net income of $95.00 million translates to a net margin of 12.4%, slightly below the sector average of 12.8%, indicating potential inefficiencies in cost management.
The company's profitability metrics, such as ROE (11.8%) and gross margin (55.1%), are slightly above the sector averages of 10.0% and 53.3%, respectively. This suggests that Spire is effectively managing its assets and generating profits from its operations. However, the operating margin of 22.6% is only marginally higher than the sector average of 21.7%, indicating limited room for improvement in operational efficiency.
A significant concern is Spire's high debt-to-equity ratio of 246.00, which is substantially higher than the sector average of 165.00. This indicates a high level of financial leverage, which increases the company's vulnerability to interest rate fluctuations and economic downturns. The current ratio of 0.61 suggests potential liquidity issues, as the company's current liabilities exceed its current assets. This could pose challenges in meeting short-term obligations.
Analyzing the quarterly financial history reveals some volatility in net income and EPS. While the company has consistently generated positive net income, there have been fluctuations from quarter to quarter. For example, Q3 FY2024 saw a net loss of $12.60 million, while Q2 FY2024 saw a net income of $204.30 million. These fluctuations could be attributed to seasonal variations in demand for natural gas and changes in gas prices. The absence of free cash flow data makes it difficult to assess the company's ability to generate cash from its operations and fund future investments.
Overall, Spire's financial health is characterized by strong revenue growth and profitability, but also by high debt levels and potential liquidity issues. The company needs to focus on reducing its debt burden and improving its cash flow generation to ensure long-term financial stability. The high debt-to-equity ratio warrants close monitoring, as it could limit the company's ability to invest in future growth opportunities and withstand economic shocks.
Valuation Assessment
Spire's valuation metrics indicate that the stock is currently trading at a premium compared to its sector peers. The company's P/E ratio of 57.1x is significantly higher than the sector average of 22.7x, suggesting that investors are paying a high price for each dollar of earnings. This premium valuation could be attributed to the company's strong revenue growth and stable utility operations, but it also raises concerns about potential overvaluation.
The EV/EBITDA ratio of 5.1x is slightly higher than the sector average of 4.8x, indicating that the company is also trading at a premium based on its enterprise value relative to its earnings before interest, taxes, depreciation, and amortization. This premium valuation suggests that investors are optimistic about the company's future growth prospects and its ability to generate cash flow.
Given the absence of free cash flow data, it is difficult to assess the company's valuation based on its ability to generate cash. However, the high P/E ratio and EV/EBITDA ratio suggest that the stock is currently expensive relative to its earnings and enterprise value. This expensive valuation could limit the potential for future price appreciation, as the stock may already be pricing in future growth.
Compared to its historical valuation, Spire's current P/E ratio is higher than its historical average, indicating that the stock is trading at a premium compared to its past performance. This premium valuation could be justified if the company is expected to generate significantly higher growth in the future, but the company's growth prospects are limited by the regulated nature of its utility operations and the increasing adoption of alternative energy sources.
Overall, Spire's valuation appears stretched relative to its sector peers and its historical performance. The high P/E ratio and EV/EBITDA ratio suggest that the stock is currently expensive, and the absence of free cash flow data makes it difficult to assess the company's valuation based on its ability to generate cash. Investors should exercise caution when considering an investment in Spire at its current valuation, as the potential for future price appreciation may be limited.
Risk & Uncertainty
Spire faces several risks and uncertainties that could impact its financial performance and stock price. One of the most significant risks is regulatory risk, as the company's utility rates are subject to approval by state regulatory commissions. Changes in regulations or adverse regulatory decisions could impact the company's revenue and profitability. For example, regulatory commissions could reduce the allowed rate of return on invested capital, which would directly impact the company's earnings.
Another significant risk is commodity price risk, as the company is exposed to fluctuations in natural gas prices. While the company uses hedging strategies to mitigate this risk, these strategies may not fully protect the company from price volatility. Unexpected increases in natural gas prices could increase the company's costs and reduce its profitability. Additionally, the company faces competition from alternative energy sources, such as renewable energy and electricity. The increasing adoption of these alternative energy sources could reduce the demand for natural gas and impact the company's revenue.
Spire's high debt levels also pose a significant risk, as the company's debt-to-equity ratio is substantially higher than the sector average. This high level of financial leverage increases the company's vulnerability to interest rate fluctuations and economic downturns. Increases in interest rates could increase the company's borrowing costs and reduce its profitability. Additionally, the company's current ratio of 0.61 suggests potential liquidity issues, which could pose challenges in meeting short-term obligations.
The company also faces operational risks, such as pipeline leaks, equipment failures, and cybersecurity threats. These operational risks could disrupt the company's operations and result in significant costs. Additionally, the company is subject to environmental regulations, which could require it to invest in costly upgrades to its infrastructure. Failure to comply with these regulations could result in fines and penalties.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSpire's regulated utility business provides a stable and predictable revenue stream, making it a safe haven investment in uncertain economic times.
BULL VIEWThe company's ongoing infrastructure investments will enhance the reliability and safety of its gas delivery system, supporting future growth and increasing shareholder value.
BULL VIEWSpire's strategic acquisitions will expand its customer base and geographic footprint, further solidifying its position in the natural gas distribution market.
The Bear Case
BEAR VIEWSpire's high P/E ratio and debt levels make it an overvalued stock with limited upside potential.
BEAR VIEWThe increasing adoption of alternative energy sources poses a long-term threat to the demand for natural gas, potentially eroding Spire's competitive advantage.
BEAR VIEWAdverse regulatory decisions could impact Spire's revenue and profitability, as the company's utility rates are subject to approval by state regulatory commissions.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SR and 4,400+ other equities.
SPIRE INC exhibits a 22% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.4%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
55.0%
Sector: 53.1%
Operating Margin
Core business profitability
22.6%
Sector: 21.5%
Net Margin
Bottom-line profitability
12.4%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
