Spire Global, Inc. (NYSE: SPIR)

Sector: Industrials Industry: Specialty Business Services CIK: 0001816017
Market Cap 615.58 Mn
P/B 4.62
P/E 19.85
P/S 7.95
ROIC (Qtr) -67.14
Div Yield % 0.00
Rev 1y % (Qtr) -55.65
Total Debt (Qtr) 8.35 Mn
Debt/Equity (Qtr) 0.06
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About

Investment thesis

Bull case

  • Strong tangible asset base of 199.70M provides 23.91x coverage of total debt 8.35M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 199.70M provides 3.72x coverage of working capital 53.64M, indicating strong operational backing.
  • Short-term investments of 76.44M provide solid 1.59x coverage of other current liabilities 48.03M, indicating strong liquidity.
  • Tangible assets of 199.70M provide robust 4.16x coverage of other current liabilities 48.03M, indicating strong asset backing.
  • Cash reserves of 20.31M provide solid 0.87x coverage of other non-current liabilities 23.38M, indicating strong liquidity.

Bear case

  • Operating cash flow of (74.75M) barely covers its investment activities of 145.43M, with a coverage ratio of -0.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 20.31M provide limited coverage of acquisition spending of 238.95M, which is 0.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 76.44M significantly exceed cash reserves of 20.31M, which is 3.76x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (74.75M) shows concerning coverage of stock compensation expenses of 21.02M, with a -3.56 ratio indicating potential earnings quality issues.
  • Free cash flow of (100.74M) provides weak coverage of capital expenditures of 25.98M, with a -3.88 ratio suggesting additional external financing needs for growth initiatives.

Concentration Risk Type Breakdown of Revenue (2024)

Concentration Risk Type Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.07 2.48
EV to Cash from Ops. EV/CFO -9.21 30.22
EV to Debt EV to Debt 82.45 31.08
EV to EBIT EV/EBIT 14.98 94.66
EV to EBITDA EV/EBITDA -8.32 18.37
EV to Free Cash Flow [EV/FCF] EV/FCF -6.84 -20.73
EV to Market Cap EV to Market Cap 1.12 178.66
EV to Revenue EV/Rev 8.90 8.12
Price to Book Value [P/B] P/B 4.62 5.37
Price to Earnings [P/E] P/E 19.85 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -15,800.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.35
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.65
Interest Coverage Int. cover (Qtr) 3.50 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.22 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.11 155.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.38
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 183.10 -34.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -254.59 -86.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 187.48 -22.62
EBT Growth (1y) % EBT 1y % (Qtr) 145.49 -287.35
EPS Growth (1y) % EPS 1y % (Qtr) 114.60 -118.47
FCF Growth (1y) % FCF 1y % (Qtr) -338.49 -146.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.10 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.84
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.03
Cash Ratio Cash Ratio (Qtr) 0.34 1.15
Current Ratio Curr Ratio (Qtr) 1.90 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 0.92
Interest Cover Ratio Int Coverage (Qtr) 3.50 30.46
Times Interest Earned Times Interest Earned (Qtr) 3.50 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 82.60 -33.89
EBIT Margin % EBIT Margin % (Qtr) 59.42 -43.32
EBT Margin % EBT Margin % (Qtr) 42.47 -44.88
Gross Margin % Gross Margin % (Qtr) 38.50 39.81
Net Profit Margin % Net Margin % (Qtr) 40.10 -41.60