Spire Inc. (SR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Spire Inc. (SR) Utility Operations & Dividend Profile

Spire Inc. (SR) is a U.S.-based natural gas company focused on regulated gas distribution and marketing. With a history dating back to 1857, Spire serves a diverse customer base across multiple states. The company's operations are divided into Gas Utility and Gas Marketing segments, positioning it as a key player in the utilities sector.

What Is the Investment Thesis for SR?

Spire Inc. presents a stable investment opportunity within the utilities sector, driven by its regulated gas distribution business. With a current P/E ratio of 9.06 and a dividend yield of 3.76%, Spire offers a blend of value and income. The company’s consistent profitability, demonstrated by a 14.1% profit margin, supports its dividend payouts. Growth catalysts include infrastructure modernization projects and potential expansion into new service territories. However, investors may want to evaluate regulatory risks and fluctuations in natural gas prices, which could impact profitability. The company's beta of 0.62 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

SR Key Highlights

Market capitalization of $4.82B, reflecting its established position in the utilities sector.

• P/E ratio of 9.06, indicating a potentially undervalued stock compared to its earnings.
• Dividend yield of 3.76%, providing a steady income stream for investors.
• Profit margin of 14.1%, showcasing efficient operations and profitability.
• Beta of 0.62, suggesting lower volatility compared to the overall market.

Who Are SR's Competitors?

SR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are SR's Key Strengths?

Stable revenue stream due to regulated utility operations.

• Essential service with consistent demand.
• Established infrastructure and distribution network.
• Experienced management team.

What Are SR's Weaknesses?

Vulnerability to fluctuations in natural gas prices.

• Dependence on regulatory approvals and policies.
• Exposure to environmental regulations and compliance costs.
• Limited growth opportunities outside of regulated service territories.

What Could Drive SR Stock Higher?

Infrastructure modernization projects aimed at enhancing safety and reliability.

• Regulatory approvals for rate increases in key service territories.
• Integration of renewable natural gas (RNG) into the distribution system.
• Potential acquisitions of smaller utility companies to expand service areas.

What Are the Key Risks for SR?

Fluctuations in natural gas prices impacting profitability.

• Regulatory changes affecting rate structures and environmental compliance.
• Cybersecurity threats targeting critical infrastructure.
• Economic downturns reducing demand for natural gas.
• Increased competition from alternative energy sources.

What Are the Growth Opportunities for SR?

• Infrastructure Modernization: Spire has the opportunity to invest in modernizing its natural gas infrastructure, replacing aging pipelines and upgrading distribution systems. These investments enhance safety, reduce methane emissions, and improve service reliability. These improvements can lead to higher regulatory returns and increased operational efficiency. The company can capitalize on government incentives and funding programs aimed at modernizing energy infrastructure. Timeline: Ongoing.
• Service Territory Expansion: Spire can pursue strategic acquisitions and expansions into new service territories to increase its customer base and revenue. Expanding into adjacent markets allows Spire to leverage its existing infrastructure and expertise. Identifying underserved or rapidly growing areas presents a significant growth opportunity. Timeline: Medium-term.
• Renewable Natural Gas (RNG) Integration: Spire can integrate renewable natural gas (RNG) into its distribution system, reducing its carbon footprint and meeting growing demand for cleaner energy sources. RNG, derived from organic waste, offers a sustainable alternative to traditional natural gas. Investing in RNG projects and partnerships can enhance Spire’s environmental profile and attract environmentally conscious customers. Timeline: Medium-term.
• Enhanced Customer Service Technologies: Investing in advanced customer service technologies, such as smart meters and online portals, can improve customer satisfaction and reduce operational costs. These technologies provide customers with real-time usage data, allowing them to better manage their energy consumption. Enhanced customer service can lead to higher customer retention rates and positive word-of-mouth referrals. Timeline: Ongoing.
• Data Analytics and Operational Efficiency: Utilizing data analytics to optimize its operations, predict maintenance needs, and improve resource allocation. Analyzing customer usage patterns, weather data, and system performance can help Spire make informed decisions and reduce costs. Implementing predictive maintenance programs can minimize downtime and improve system reliability. Timeline: Ongoing.

What Are SR's Competitive Advantages?

• Regulated Monopoly: Spire operates as a regulated utility in its service territories, providing a natural monopoly and limiting competition.
• Essential Service: Natural gas is an essential service for heating and cooking, creating a stable and consistent demand.
• Infrastructure: The company's extensive natural gas pipeline and distribution infrastructure represent a significant barrier to entry for potential competitors.
• Long-Term Contracts: Spire has long-term contracts with its customers and suppliers, providing revenue stability.

What Does SR Do?

Spire Inc., founded in 1857 and headquartered in St. Louis, Missouri, is a public utility holding company that provides natural gas services through its subsidiaries. Originally known as The Laclede Group, Inc., the company rebranded as Spire Inc. in April 2016. Spire's core business involves the purchase, retail distribution, and sale of natural gas to a diverse customer base, including residential, commercial, and industrial users, primarily within the United States. The company operates through two main segments: Gas Utility and Gas Marketing. The Gas Utility segment focuses on regulated natural gas distribution, ensuring reliable service to its customers. The Gas Marketing segment engages in the marketing of natural gas, transportation of propane via pipeline, compression of natural gas, risk management, and physical natural gas storage services. Spire’s operations are geographically concentrated, with a significant presence in Missouri and Alabama. The company's strategic focus includes investing in infrastructure modernization, expanding its service territories, and enhancing customer service to maintain its competitive edge in the regulated gas utility market.

What Products and Services Does SR Offer?

• Purchases natural gas from various sources.
• Distributes natural gas to residential customers.
• Distributes natural gas to commercial customers.
• Distributes natural gas to industrial customers.
• Transports propane through its propane pipeline.
• Provides natural gas storage services.
• Markets natural gas to end-users.

How Does SR Make Money?

• Generates revenue through the regulated distribution of natural gas to residential, commercial, and industrial customers.
• Earns revenue from gas marketing activities, including the sale and transportation of natural gas.
• Profits from providing natural gas storage services.
• Revenue is also generated from transporting propane through its pipeline.

What Industry Does SR Operate In?

Spire Inc. operates within the regulated gas utility industry, a sector characterized by stable demand and regulated pricing. The industry is undergoing modernization, with companies investing in infrastructure upgrades to enhance safety and reliability. The competitive landscape includes other major players like NiSource Inc. (NI) and Southwest Gas Holdings, Inc. (SWX). These companies compete for market share within their respective service territories and through strategic acquisitions. The industry is also influenced by environmental regulations and the increasing focus on reducing carbon emissions.

Who Are SR's Key Customers?

• Residential customers who use natural gas for heating, cooking, and water heating.
• Commercial customers, including businesses and institutions, that use natural gas for heating, cooling, and other processes.
• Industrial customers that use natural gas as a fuel source or feedstock in their manufacturing processes.
• Other end-users of natural gas.

Spire Inc. Financial Trajectory

Spire Inc. (SR) reported $420.2M in revenue for Q3 FY2026, a decline of 58.8% compared to the prior quarter. The company recorded net income of $210.9M, with diluted EPS of $3.57. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, SR averaged $2.32 in diluted EPS.

Company Profile

Spire Inc. operates in the Regulated Gas industry within the Utilities sector. It is headquartered in St. Louis, US. The company is led by CEO Scott E. Doyle. SR has traded publicly since 1973.

How Spire Inc. Is Valued

Spire Inc. carries a market capitalization of $4.82B, placing it in the mid-cap category. Analyst price targets span from $85.00 to $103.00, with a consensus of $96.20. At the current price of $81.47, that implies approximately 18% upside potential. Relative to its peer group, SR's quantitative score of 93/100 is above the peer average of 58/100.

Return on equity for Spire Inc. stands at 21.4%, a gauge of how efficiently it converts shareholder capital into profit. SR trades at a trailing price-to-earnings ratio of 9.06, below the Utilities sector average of ~16.60x. Its free cash flow yield is -4.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.37 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 11.2%, the inverse of the P/E and a quick read on earnings relative to price.

Spire Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile.

Spire Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 13.5% above estimates on average.

Over the past six months, Spire Inc. insiders filed 6 SEC Form 4 transactions — 1 sales and 5 purchases. On net that is roughly 2K shares acquired (about $130K) — insiders putting money in tends to read as conviction.

SR Financials

SR Latest News

SR Analyst Consensus

SR MoonshotScore

Spire Inc. Utilities Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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