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Here's Why Spire Stock Deserves a Spot in Your Portfolio Right Now
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Key Takeaways
SR's fiscal 2026 EPS estimate implies y/y growth of 14.64%, with revenues expected to grow 1.85% y/y.
The company plans $11.2B in 10-year capital investments to support 5-7% long-term EPS growth.
SR has a stronger debt profile than its sector, supported by a 2.6 times interest earned ratio coverage.
Spire, Inc. (SR - Free Report) is focused on strategic investments to enhance operational reliability and better serve its customers. The company is leveraging new technologies to advance its operations, improve service quality and reduce costs. Given its strong growth and better debt management, the stock makes a strong case for investment in the Zacks Utility- Gas distribution industry space.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
SR’s Growth Outlook
The Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) implies an increase of 14.64% year over year to $5.09.
The Zacks Consensus Estimate for SR’s fiscal 2026 revenues is pegged at $2.52 billion, which indicates year-over-year growth of 1.85%.
Spire projects its long-term earnings per share to improve in the range of 5-7% annually. Our projection for SR’s long-term (three to five years) earnings growth rate is 7.77%.
SR’s Return to Shareholders
Spire has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 82.5 cents per share, resulting in an annualized dividend of $3.30. SR’s current dividend yield is 3.61%, better than the Zacks S&P 500 composite's average of 1.1%.
SR’s Investments Focus
SR expects its 10-year capital investment to be $11.2 billion. Of the planned investments for fiscal 2026 through fiscal 2035, 70% will be allocated to the safety and improvement of operational reliability, 19% will be used for customer expansion, and 11% will go toward other essential activities. These investments will enable the company to serve its customers more efficiently and meet rising demand from its expanding customer base.
SR’s Debt Structure
Currently, SR’s total debt to capital is 53.23%, better than the sector’s average of 60.90%. This implies that the company is using lower debts to run operations compared with its peers in the sector.
Spire’s times interest earned ratio (TIE) at the end of the fourth quarter of fiscal 2025 was 2.6. The TIE ratio, being greater than one, suggests that the company will be able to make its interest payment obligations in the near term without difficulty.
SR Stock Price Performance
Over the past year, SR’s shares have risen 27.6% compared with the industry’s growth of 8.3%.
ATO’s long-term earnings growth rate is 7.49%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $8.01, which calls for year-over-year growth of 7.37%.
AEE’s long-term earnings growth rate is 8.01%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which implies a year-over-year rise of 7.78%.
AWR’s long-term earnings growth rate is 5.65%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.32, which suggests year-over-year growth of 4.73%.
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Here's Why Spire Stock Deserves a Spot in Your Portfolio Right Now
Key Takeaways
Spire, Inc. (SR - Free Report) is focused on strategic investments to enhance operational reliability and better serve its customers. The company is leveraging new technologies to advance its operations, improve service quality and reduce costs. Given its strong growth and better debt management, the stock makes a strong case for investment in the Zacks Utility- Gas distribution industry space.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
SR’s Growth Outlook
The Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) implies an increase of 14.64% year over year to $5.09.
The Zacks Consensus Estimate for SR’s fiscal 2026 revenues is pegged at $2.52 billion, which indicates year-over-year growth of 1.85%.
Spire projects its long-term earnings per share to improve in the range of 5-7% annually. Our projection for SR’s long-term (three to five years) earnings growth rate is 7.77%.
SR’s Return to Shareholders
Spire has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 82.5 cents per share, resulting in an annualized dividend of $3.30. SR’s current dividend yield is 3.61%, better than the Zacks S&P 500 composite's average of 1.1%.
SR’s Investments Focus
SR expects its 10-year capital investment to be $11.2 billion. Of the planned investments for fiscal 2026 through fiscal 2035, 70% will be allocated to the safety and improvement of operational reliability, 19% will be used for customer expansion, and 11% will go toward other essential activities. These investments will enable the company to serve its customers more efficiently and meet rising demand from its expanding customer base.
SR’s Debt Structure
Currently, SR’s total debt to capital is 53.23%, better than the sector’s average of 60.90%. This implies that the company is using lower debts to run operations compared with its peers in the sector.
Spire’s times interest earned ratio (TIE) at the end of the fourth quarter of fiscal 2025 was 2.6. The TIE ratio, being greater than one, suggests that the company will be able to make its interest payment obligations in the near term without difficulty.
SR Stock Price Performance
Over the past year, SR’s shares have risen 27.6% compared with the industry’s growth of 8.3%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Atmos Energy (ATO - Free Report) , Ameren (AEE - Free Report) and American States Water (AWR - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ATO’s long-term earnings growth rate is 7.49%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $8.01, which calls for year-over-year growth of 7.37%.
AEE’s long-term earnings growth rate is 8.01%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which implies a year-over-year rise of 7.78%.
AWR’s long-term earnings growth rate is 5.65%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.32, which suggests year-over-year growth of 4.73%.