SR Stock Analysis — Spire Inc.
Sector: Utilities
AI Verdict
SR trades at 16.7x next year's earnings with 11.9% expected EPS growth, which is cheap for a stable utility if regulatory protections hold, but the fair PEG means there's little margin for disappointment.
Competitive Moat
Spire operates regulated natural gas utilities, giving it a local monopoly and predictable returns due to rate-setting by public commissions. This regulatory protection and high switching costs for infrastructure make its earnings relatively stable.
Summary
Spire's regulated utility status means its earnings are shielded from most competitive threats, making its 16.7x forward P/E notable for the sector.
Where It Stands
SR has delivered 2.5% revenue growth and trades at 16.7x forward earnings, slightly below the 18x sector median for utilities.
Key Metrics
- Trailing P/E: 18.7x
- Forward P/E: 16.7x
- PEG Ratio: 1.57
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Dividend Yield: 0.04%
- 52-Week High: $95.31
- 52-Week Low: $69.94
Analyst Consensus
12 Buy · 4 Hold · 0 Sell (16 analysts)
Bull Case
With analysts expecting 11.9% forward EPS growth, SR offers more earnings expansion than most utilities at a lower-than-average forward P/E of 16.7x.
Bear Case
If the P/E reverts to the sector median of 18x, upside is limited, and if growth stalls, the 1.57 PEG signals the stock could see a valuation pullback.
Catalyst to Watch
Watch for regulatory decisions on rate increases — approval could support the 11.9% EPS growth consensus, while denial would undermine the current valuation.