Based on the latest analyst predictions, Spire Inc (NYSE:SR) is estimated to sizably grow its earnings by 16.60% in the upcoming three years. With the recent EPS being $3.47, expected growth will push the upcoming EPS to $4.046. I am going to look at the latest data on SR to assess whether this expected growth is reasonable. Check out our latest analysis for Spire
What can we expect from Spire Inc (NYSE:SR) in the future?
SR is covered by 7 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $3.47 to $4.046 in a few years. This indicates a relatively solid earnings per share growth rate of 16.60% over the next few years, which is an optimistic outlook in the near term. In the same period we will see the revenue increase from $1,761M to $2,037M and profits (net income) are predicted to escalate from $160M to $187M in the next couple of years, growing by 16.60%. Margins are expected to be rather acceptable at 9.58%.
Is the growth built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. The company delivered a growth rate of 19.08% over the past couple of years, which is revealing of their continued performance and value creation to current shareholders. This trend gives us conviction in analysts’ expectations as SR has already illustrated their ability to grow at this rate.
For SR, there are three key factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is SR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SR is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.