Spok Holdings, Inc. (SPOK)
Valuation Overview•Is Spok Holdings, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 67/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
SPOK demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($18M) and minimal debt risk.
The company exhibits steady, low-single-digit revenue growth however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 13.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $0.00 | +1.5% | +1.3% | -1.2% | -3.0% | |
| EBITDA | $0.00 | — | +27.6% | — | — | |
| Net Income | $0.00 | +6.1% | -10.1% | — | -15.4% | |
| EPS (Diluted) | $0.09 | +2.7% | -11.7% | — | -15.4% | |
| Free Cash Flow | $1.8M | -2.0% | +111.1% | +17.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 91.4% | 72.4% | 64.4% | 64.4% |
| Operating Margin | 13.2% | 14.5% | 8.1% | 5.5% |
| Net Margin | 10.3% | 11.2% | 6.8% | -0.4% |
| FCF Margin | 24.7% | 17.7% | 10.0% | 8.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.18 | $0.09 | -50.0% | ||
| Q1'26 | $0.18 | $0.14 | -22.2% | ||
| Q4'25 | $0.19 | $0.15 | -21.1% | ||
| Q3'25 | $0.18 | $0.22 | +22.2% | ||
| Q2'25 | $0.18 | $0.25 | +38.9% | ||
| Q1'25 | $0.20 | $0.18 | -10.0% | ||
| Q4'24 | $0.18 | $0.18 | +0.0% | ||
| Q3'24 | $0.19 | $0.17 | -10.5% |
Total return is -34.7% (1Y), lagging the benchmark by -52.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -14.6% | -22.1% | — |
| 1Y | -34.7% | -52.8% | +7.0% |
| 3YCAGR | +3.2% | -16.1% | +31.5% |
| 5YCAGR | +11.2% | -0.3% | +63.9% |
| 10YCAGR | -0.0% | -13.5% | — |
The S&P 500 is at 31.4x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Spok Holdings, Inc. (SPOK) valuation, health, and returns.
Spok Holdings, Inc. valuation is being assessed using available models.
Spok Holdings, Inc. has multiple valuation anchors: Wall Street Analyst Target: $15.00 (implying +43.1% upside). A convergence of these signals offers higher conviction.
Spok Holdings, Inc. displays good financial health with a composite quality score of 67/100, supported by a Altman Z-Score of 3.3 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 11.3%.
Spok Holdings, Inc. pays a 12.3% dividend yield, covered by a 172% payout ratio with 0 years of growth, supplemented by a 1.3% buyback yield.
Spok Holdings, Inc.'s current growth trajectory is Stable. The company achieved +1.5% 1Y revenue growth and +2.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.3%.
Wall Street consensus is Hold based on 1 analysts, beating EPS expectations in 33% of recent quarters with a -3-quarter streak. The consensus price target represents a +43.1% change from current levels.
Investment risks for Spok Holdings, Inc. include: -45.4% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.29x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.