Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Spire Inc. (SR-PA)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$780.95 - $920.12$862.28
Multi-Stage$224.97 - $246.27$235.42
Blended Fair Value$548.85
Current Price$81.52
Upside573.27%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.32%8.72%3.112.852.572.422.272.182.031.851.641.45
YoY Growth--9.04%10.88%6.20%6.53%4.06%7.56%9.48%12.99%12.91%7.85%
Dividend Yield--3.81%4.20%4.12%3.52%3.48%3.41%2.44%2.50%2.18%2.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)271.70
(-) Cash Dividends Paid (M)267.90
(=) Cash Retained (M)3.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)54.3433.9620.38
Cash Retained (M)3.803.803.80
(-) Cash Required (M)-54.34-33.96-20.38
(=) Excess Retained (M)-50.54-30.16-16.58
(/) Shares Outstanding (M)58.6358.6358.63
(=) Excess Retained per Share-0.86-0.51-0.28
LTM Dividend per Share4.574.574.57
(+) Excess Retained per Share-0.86-0.51-0.28
(=) Adjusted Dividend3.714.064.29
WACC / Discount Rate5.19%5.19%5.19%
Growth Rate5.32%6.32%7.32%
Fair Value$780.95$862.28$920.12
Upside / Downside857.99%957.75%1,028.71%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)271.70288.86307.11326.51347.13369.06380.13
Payout Ratio98.60%96.88%95.16%93.44%91.72%90.00%92.50%
Projected Dividends (M)267.90279.85292.25305.09318.39332.16351.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.19%5.19%5.19%
Growth Rate5.32%6.32%7.32%
Year 1 PV (M)263.55266.06268.56
Year 2 PV (M)259.19264.14269.13
Year 3 PV (M)254.83262.15269.62
Year 4 PV (M)250.44260.09270.02
Year 5 PV (M)246.05257.96270.32
PV of Terminal Value (M)11,914.7512,491.2513,089.86
Equity Value (M)13,188.8213,801.6514,437.51
Shares Outstanding (M)58.6358.6358.63
Fair Value$224.97$235.42$246.27
Upside / Downside175.97%188.79%202.10%

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