Spark Energy, Inc. operates as an independent retail energy services company in the United States. It operates through two segments, Retail Natural Gas and Retail Electricity across 16 states. The company was founded in 1999 and is based in Houston, Texas.
SPKE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SPKE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Spark Energy Inc ranked in the 98th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. The most interesting components of our discounted cash flow analysis for Spark Energy Inc ended up being:
The company's compound free cash flow growth rate over the past 5.36 years comes in at 0.98%; that's greater than 90.31% of US stocks we're applying DCF forecasting to.
Spark Energy Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 3.19% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 11.61% of stocks in its sector (Utilities).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Utilities that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SPKE, try EOCCY, GNE, CREG, ENIC, and VST.
7.9% Div Yield, 15% EBITDA Growth, FCF to EV of 16% Spark Energy (NASDAQ: SPKE) delivers electricity and natural gas to its customer base which includes residential and commercial customers across 19 different states in the US. With significant room for organic growth and the company’s strategy of acquisitions over...
Value Investment Principals on Seeking Alpha | August 28, 2020
Spark Energy, Inc. (SPKE) Q2 2020 Earnings Conference Call August 5, 2020 11:00 ET Company Participants Mike Barajas - Investor Relations Keith Maxwell - Chief Executive Officer & President James Jones - Chief Financial Officer & Chief Risk Officer Conference Call Participants Presentation Operator Good morning, ladies and gentlemen. Welcome...
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