Spark Energy, Inc.
Spark Energy, Inc. Fundamental Analysis
Spark Energy, Inc. (SPKE) shows moderate financial fundamentals with a PE ratio of 1.19, profit margin of 7.68%, and ROE of 42.02%. The company generates $4.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SPKE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSPKE demonstrates superior asset utilization.
Valuation Score
ExcellentSPKE trades at attractive valuation levels.
Growth Score
ModerateSPKE shows steady but slowing expansion.
Financial Health Score
ExcellentSPKE maintains a strong and stable balance sheet.
Profitability Score
ModerateSPKE maintains healthy but balanced margins.
Key Financial Metrics
Is SPKE Expensive or Cheap?
P/E Ratio
SPKE trades at 1.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPKE's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Spark Energy, Inc. at 0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.84 times EBITDA. This is generally considered low.
How Well Does SPKE Make Money?
Net Profit Margin
For every $100 in sales, Spark Energy, Inc. keeps $7.68 as profit after all expenses.
Operating Margin
Core operations generate 11.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.02 in profit for every $100 of shareholder equity.
ROA
Spark Energy, Inc. generates $10.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spark Energy, Inc. generates limited operating cash flow of $428.62M, signaling weaker underlying cash strength.
Free Cash Flow
Spark Energy, Inc. produces free cash flow of $398.44M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.50 in free cash annually.
FCF Yield
SPKE converts 9.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How SPKE Stacks Against Its Sector Peers
| Metric | SPKE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.19 | 19.72 | Better (Cheaper) |
| ROE | 42.02% | 908.00% | Weak |
| Net Margin | 7.68% | 8804.00% | Weak |
| Debt/Equity | 0.00 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 2.55 | 1.50 | Strong Liquidity |
| ROA | 10.74% | -6152.00% (disorted) | Strong |
SPKE outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spark Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income