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Spire Forward Rate of Return (Yacktman) %

: -6.79% (As of Jun. 2021)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Spire's forward rate of return for was -6.79%.

The historical rank and industry rank for Spire's Forward Rate of Return (Yacktman) % or its related term are showing as below:

NYSE:SR' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -7.84   Med: 6.11   Max: 12.08
Current: -7.32

-7.84
12.08

During the past 13 years, Spire's highest Forward Rate of Return was 12.08. The lowest was -7.84. And the median was 6.11.

NYSE:SR's Forward Rate of Return (Yacktman) % is ranked higher than
58% of the 97 Companies
in the Utilities - Regulated industry.

( Industry Median: 0.28 vs. NYSE:SR: -7.32 )

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Spire Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Spire's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Spire Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.48 10.76 8.31 1.48 -7.72

Spire Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.34 -7.72 -7.49 -6.59 -6.79

Competitive Comparison

For the Utilities - Regulated Gas subindustry, Spire's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Spire Forward Rate of Return (Yacktman) % Distribution

For the Utilities - Regulated industry and Utilities sector, Spire's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Spire's Forward Rate of Return (Yacktman) % falls into.



Spire Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Spire's Forward Rate of Return of Jun. 2021 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=-3.98228571/72.27+-0.0128
=-6.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Spire  (NYSE:SR) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Spire Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Spire's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Spire Business Description

Spire logo
Industry
Utilities » Utilities - Regulated NAICS : 221210 SIC : 4924
Traded in Other Exchanges
Address
700 Market Street, Saint Louis, MO, USA, 63101
Spire Inc is a public utility holding company with two key business segments: Gas Utility and Gas Marketing. The Gas Utility segment includes the regulated operations of Laclede Gas, Alabama Gas Corporation (Alagasco), and EnergySouth Inc. The Utilities businesses operations include the purchase, retail, distribution, and sale of natural gas in Missouri, Alabama, and Mississippi. The Gas Utility segment generates a majority of the company's revenue but is subject to seasonal fluctuations. The Gas Marketing segment includes Laclede Energy Resources, Inc, whose operations include the marketing of natural gas and related activities on a non-regulated basis.
Executives
Hampton Joseph B. officer: President, AL & MS 700 MARKET STREET ST. LOUIS MO 63101
Woodard Adam W. officer: Treasurer 700 MARKET STREET ST. LOUIS MO 63101
Rasche Steven P officer: Executive Vice President 12442 CINEMA LANE SAINT LOUIS MO 63127
Van Lokeren Mary Ann director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: VAN LOKEREN MARY ANN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Fogarty Maria V. director 720 OLIVE ST. LOUIS MO 63101
Jones Rob L. director 555 EAST AIRTEX DRIVE HOUSTON TX 77073
Borer Mark A director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BORER MARK A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Glotzbach Edward L director C/O VISUAL NETWORKS INC 2092 GAITHER ROAD ROCKVILLE MD 20850
Newberry Brenda D director 720 OLIVE STREET ST. LOUIS MO 63101
Schwartz Stephen S director 46897 BAYSIDE PARKWAY FREMONT CA 94538
Stupp John P Jr director STUPP JOHN P JR 120 SOUTH CENTRAL AVE STE 1650 ST LOUIS MO 63105
Carter Scott B. officer: SVP, COO of Distribution Ops 700 MARKET STREET ST. LOUIS MO 63101
Sitherwood Suzanne director, officer: President & CEO 700 MARKET STREET SAINT LOUIS MO 63101
Darrell Mark C officer: Senior Vice President 720 OLIVE STREET SAINT LOUIS MO 63101
Geiselhart Michael C officer: Senior Vice President 720 OLIVE STREET SAINT LOUIS MO 63101

Spire Headlines

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