Spire Global: Same Buy Price With No Debt

Joseph Parrish
2.41K Followers
(12min)

Summary

  • Spire Global sold its maritime segment for $233.5M, eliminating $98M in high-interest debt, significantly reducing risk.
  • The company's balance sheet now suggests $200M in common equity and $270M in net cash, with potential for substantial free cash flow growth.
  • Despite market hesitance due to NOAA contract uncertainties and SEC filing issues, Spire's long-term value proposition remains strong, especially in weather and climate data.
  • With a $300M market cap and potential for $30M in near-term free cash flow, a growth story makes this stock undervalued.
Pink piggy bank riding on a toy rocket on the starry background. Illustration of the concept of the growth of investment

Dragon Claws/iStock via Getty Images

I covered Spire Global (NYSE:SPIR) about a month ago and rated it a Buy. This was ahead of news that it might sell its maritime business segment and eliminate its debt. That "might" has since materialized. The maritime segment was sold, Spire

This article was written by

2.41K Followers
I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPIR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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