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Spire Inc. (SR-PA)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$103.27 - $258.29$155.02
Multi-Stage$80.23 - $87.32$83.71
Blended Fair Value$119.36
Current Price$81.52
Upside46.42%
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 Rate9.10%9.10%9.10%
Growth Rate5.32%6.32%7.32%
Fair Value$103.27$155.02$258.29
Upside / Downside26.68%90.16%216.84%

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 Rate9.10%9.10%9.10%
Growth Rate5.32%6.32%7.32%
Year 1 PV (M)254.10256.52258.93
Year 2 PV (M)240.94245.54250.18
Year 3 PV (M)228.38234.95241.64
Year 4 PV (M)216.41224.75233.32
Year 5 PV (M)204.99214.91225.21
PV of Terminal Value (M)3,558.653,730.843,909.63
Equity Value (M)4,703.484,907.505,118.91
Shares Outstanding (M)58.6358.6358.63
Fair Value$80.23$83.71$87.32
Upside / Downside-1.58%2.69%7.11%

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