Sparton Stock Analysis, Valuation (NYSE:SPA)

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$12.65 $0.06 (0.47%) SPA stock closing price Aug 14, 2018 (Closing)

Investors can watch the Amigobulls Sparton stock analysis video here. This is our analyst opinion covering the buy and sell arguments for SPA stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Sparton Corporation Stock Rating 2.3/5

Amigobulls SPA stock analysis takes into account various financial ratios like relative valuation, Sparton revenue, growth and return on equity based on latest quarter 2018 Q3 financial statements. We also check Sparton dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Sparton valuation analysis. Sparton stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SPA stock?

  • The price to earnings multiple of 12 is attractive when compared with the sector average PE ratio of 25.5.
  • The lower PS ratio 0.3 for SPA stock versus Computer and Technology sector average of 3 is a positive for the company.

Should you sell SPA stock?

  • Sparton sales shrank by -1.5% year-over-year in 2018-03.
  • Sparton registered an average TTM Net loss of -2.5%.
  • Sparton has a debt/equity ratio of 1.37, which is worse than the average in the Computer and Technology sector.
  • Operating cash flows are negative.
  • -19.2's negative ROIC of -19.2 indicates operational inefficiency.
  • Sparton has a negative return on equity of -12.5. This indicates that the firm is inefficient at generating profits.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -19.3.

Comments on this video and Sparton stock

Amigobulls Sparton stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of SPA stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Sparton revenue growth and profit or net income are two main metrics which help in identifying whether SPA stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.