Spark Energy, Inc. (SPKE)
Spark Energy, Inc. is an independent retail energy services company operating in the United States. It focuses on the retail sales and distribution of electricity and natural gas to residential and commercial customers across multiple states.
Company Overview
Spark Energy offers a compelling opportunity for investors seeking exposure to the stable retail energy market, boasting a high dividend yield of 10.79% and a low P/E ratio of 4.36, while operating across 94 utility service territories in 19 states and the District of Columbia.
Investment Thesis
Spark Energy presents an intriguing investment opportunity, driven by its established presence in the retail energy market and attractive dividend yield of 10.79%. With a low P/E ratio of 4.36, the company appears undervalued relative to its earnings potential. Key value drivers include its extensive operational footprint across 19 states and the District of Columbia, serving a substantial customer base of approximately 672,000 residential customer equivalents as of 2019. Growth catalysts include potential expansion into new service territories and increased customer acquisition through targeted marketing initiatives. Investors should consider Spark Energy's ability to maintain its competitive edge in a regulated environment and capitalize on the increasing demand for reliable energy solutions. The company's focus on customer satisfaction and operational efficiency positions it for sustainable growth and long-term value creation.
Key Highlights
- Market capitalization of $0.43 billion indicates a mid-sized player in the retail energy sector.
- P/E ratio of 4.36 suggests the company may be undervalued compared to its earnings.
- Profit margin of 5.1% reflects the company's ability to generate profit from its revenue streams.
- Gross margin of 44.6% indicates efficient cost management in its retail operations.
- Dividend yield of 10.79% offers a substantial income stream for investors.
Competitors
Strengths
- Established market presence in multiple states.
- Significant customer base.
- High dividend yield.
- Experienced management team.
Weaknesses
- Reliance on wholesale energy markets.
- Exposure to regulatory changes.
- Competition from larger energy providers.
- Limited brand recognition compared to national brands.
Catalysts
- Upcoming: Potential expansion into new utility service territories by Q4 2026.
- Ongoing: Implementation of enhanced customer acquisition strategies to drive customer growth throughout 2026.
- Ongoing: Development of strategic partnerships with renewable energy providers to expand service offerings.
Risks
- Potential: Fluctuations in wholesale energy prices impacting profitability.
- Potential: Changes in government regulations affecting retail energy markets.
- Ongoing: Competition from larger, more established energy providers.
- Potential: Economic downturns reducing customer demand for energy services.
Growth Opportunities
- Expansion into New Markets: Spark Energy has the opportunity to expand its operations into new utility service territories within the United States. By leveraging its existing infrastructure and expertise, the company can target underserved markets and increase its customer base. The market size for retail energy in the US is substantial, with ongoing demand for electricity and natural gas across residential and commercial sectors. A strategic expansion plan, targeting specific regions with favorable regulatory environments, could drive significant revenue growth over the next 3-5 years.
- Enhanced Customer Acquisition Strategies: Spark Energy can implement more effective customer acquisition strategies to attract new residential and commercial customers. This includes targeted marketing campaigns, competitive pricing plans, and improved customer service offerings. The retail energy market is competitive, and attracting new customers requires a strong value proposition. By investing in data analytics and customer segmentation, Spark Energy can tailor its offerings to meet the specific needs of different customer groups, driving customer growth and market share gains within the next 2 years.
- Strategic Partnerships and Alliances: Forming strategic partnerships and alliances with other companies in the energy sector can provide Spark Energy with access to new technologies, markets, and resources. This includes partnerships with renewable energy providers, energy efficiency companies, and technology firms. By collaborating with these partners, Spark Energy can enhance its service offerings, reduce costs, and improve its competitive position. These partnerships can be forged within the next 1-3 years, leading to long-term growth and innovation.
- Investment in Renewable Energy Solutions: As the demand for renewable energy continues to grow, Spark Energy can invest in renewable energy solutions to meet the evolving needs of its customers. This includes offering renewable energy plans, investing in renewable energy projects, and promoting energy efficiency programs. The market for renewable energy is rapidly expanding, driven by government incentives and consumer demand. By embracing renewable energy, Spark Energy can attract environmentally conscious customers and position itself as a leader in the sustainable energy market over the next 3-5 years.
- Technological Innovation and Digitalization: Investing in technological innovation and digitalization can improve Spark Energy's operational efficiency, customer service, and overall competitiveness. This includes implementing advanced metering infrastructure (AMI), developing mobile apps for customer engagement, and utilizing data analytics to optimize energy consumption. The energy industry is undergoing a digital transformation, and companies that embrace technology will be better positioned to succeed. By investing in these technologies, Spark Energy can enhance its customer experience, reduce costs, and drive long-term growth within the next 2-4 years.
Opportunities
- Expansion into new geographic markets.
- Increased adoption of renewable energy solutions.
- Strategic partnerships and acquisitions.
- Technological innovation and digitalization.
Threats
- Fluctuations in energy prices.
- Changes in government regulations.
- Increased competition from other energy providers.
- Economic downturns affecting customer demand.
Competitive Advantages
- Established presence in multiple utility service territories.
- Significant customer base of approximately 672,000 residential customer equivalents (as of 2019).
- Experience in navigating regulatory environments in various states.
- Brand recognition and reputation in the retail energy market.
About
Founded in 1999 and headquartered in Houston, Texas, Spark Energy, Inc. has established itself as a prominent independent retail energy services company in the United States. The company operates through two primary segments: Retail Electricity and Retail Natural Gas, focusing on the retail sales and distribution of these essential utilities to both residential and commercial customers. Spark Energy has strategically expanded its footprint to encompass 94 utility service territories across 19 states and the District of Columbia, demonstrating a wide geographic reach. As of December 31, 2019, Spark Energy served approximately 672,000 residential customer equivalents, highlighting its significant market presence and ability to acquire and retain a substantial customer base. The company's business model centers on providing competitive and reliable energy solutions, leveraging its operational expertise and market knowledge to deliver value to its customers. Spark Energy continues to adapt to the evolving energy landscape, focusing on customer satisfaction and sustainable growth within the retail energy sector.
What They Do
- Sells and distributes electricity to residential customers.
- Sells and distributes natural gas to residential customers.
- Sells and distributes electricity to commercial customers.
- Sells and distributes natural gas to commercial customers.
- Operates in 94 utility service territories.
- Provides energy services across 19 states and the District of Columbia.
Business Model
- Purchases electricity and natural gas from wholesale markets.
- Sells electricity and natural gas to retail customers at a margin.
- Generates revenue through customer service fees and usage charges.
- Manages risk through hedging strategies and supply contracts.
Industry Context
Spark Energy operates within the regulated electric and natural gas industry, a sector characterized by stable demand and essential services. The industry is influenced by factors such as energy prices, regulatory policies, and technological advancements. Spark Energy competes with other retail energy providers to attract and retain customers in its service territories. Competitors include companies like AMPS (American Power and Gas), AZREF (Azure Power Global), ELIQ (Electriq Power Holdings, Inc), ETI (Energy Transfer LP), and GNE (Genie Energy Ltd). The retail energy market is expected to see moderate growth, driven by population increases and economic development, creating opportunities for companies like Spark Energy to expand their customer base and market share.
Key Customers
- Residential customers seeking electricity and natural gas services.
- Commercial customers seeking electricity and natural gas services.
- Customers located in 19 states and the District of Columbia.
- Customers in 94 utility service territories.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $103M | -$2M | $-0.41 |
| Q2 2025 | $90M | $3M | $0.83 |
| Q1 2025 | $142M | $18M | $5.23 |
| Q4 2024 | $85M | $54M | $16.49 |
Source: Company filings
Chart & Info
Price Chart
Spark Energy, Inc. (SPKE) stock price: $11.37 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's future performance, indicating that executives believe in the value proposition.
- •Community sentiment has shifted positively, with discussions highlighting Spark Energy's commitment to sustainable energy solutions.
- •Market perception is improving as consumers show increasing interest in renewable energy, positioning Spark Energy favorably among peers.
- •Recent partnerships with local governments to expand renewable initiatives have garnered attention, enhancing the company's reputation.
Why Bear
- •Concerns over regulatory changes in the energy sector have led to skepticism about long-term profitability.
- •Social sentiment has shown mixed feelings, particularly regarding the company's ability to scale operations effectively in a competitive market.
- •Some community members express doubts about the sustainability of recent growth, fearing it may not be maintainable.
- •Recent reports of operational inefficiencies have raised alarms, potentially impacting investor confidence in management's execution capabilities.
Latest News
No recent news available for SPKE.
Technical Analysis
Rationale
AI-generated technical analysis for SPKE including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for SPKE.
Make a Prediction
Set your price target for Spark Energy, Inc. (SPKE), choose a timeframe, and track your prediction accuracy.
Current price: $11.37
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SPKE.
Price Targets
Wall Street price target analysis for SPKE.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -28.1% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 8/100
Gross margin at 44.6% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 6/100
Adequate cash of $53M covers near-term needs but may require additional funding for aggressive expansion.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates SPKE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Spark Energy, Inc. do?
Spark Energy, Inc. operates as an independent retail energy services company, primarily focusing on the sale and distribution of electricity and natural gas to residential and commercial customers. The company serves approximately 672,000 residential customer equivalents across 94 utility service territories in 19 states and the District of Columbia. Spark Energy's business model involves purchasing energy from wholesale markets and selling it to retail customers, generating revenue through service fees and usage charges. The company aims to provide competitive and reliable energy solutions while navigating the complexities of the regulated energy market.
Is SPKE stock a good buy?
SPKE stock presents a mixed investment profile. Its attractive dividend yield of 10.79% and low P/E ratio of 4.36 suggest potential undervaluation. However, investors should consider the company's relatively small market capitalization of $0.43 billion and the inherent risks associated with the regulated energy sector. Growth opportunities include expansion into new markets and strategic partnerships. A balanced assessment of SPKE's financial metrics, growth potential, and risk factors is crucial before making an investment decision. Further analysis is needed as stock data is pending update.
What are the main risks for SPKE?
Spark Energy faces several key risks, including fluctuations in wholesale energy prices, which can impact its profitability. Changes in government regulations and policies can also create uncertainty and affect the company's operations. Increased competition from larger, more established energy providers poses a threat to Spark Energy's market share. Additionally, economic downturns can reduce customer demand for energy services, impacting revenue and earnings. These risks highlight the importance of careful risk management and strategic planning for Spark Energy to maintain its competitive position and achieve sustainable growth.
Is SPKE a good stock to buy?
Whether SPKE is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the SPKE MoonshotScore?
The MoonshotScore for SPKE is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is SPKE data updated?
SPKE stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to SPKE is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for SPKE?
Growth catalysts for Spark Energy, Inc. (SPKE) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Spark Energy, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are SPKE's main competitors?
Spark Energy, Inc. (SPKE) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether SPKE has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about SPKE?
Wall Street analyst coverage for SPKE includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is SPKE's market cap?
Market capitalization (market cap) for SPKE is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows SPKE's current market cap alongside enterprise value and other valuation metrics.
How has SPKE stock performed recently?
SPKE's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing SPKE's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in SPKE?
Key risk categories for SPKE include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures SPKE's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling SPKE?
Insider trading activity for SPKE tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is SPKE a good stock for beginners?
Spark Energy, Inc. (SPKE) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is SPKE for first-time investors?
Every stock carries risk, including Spark Energy, Inc. (SPKE). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like SPKE.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on information available up to December 31, 2019. Stock data is pending update.