DB:FA9

Stock Analysis Report

Executive Summary

Spectris plc manufactures and sells measuring instruments and controls worldwide.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Spectris's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FA9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.6%

FA9

-1.9%

DE Electronic

-0.9%

DE Market


1 Year Return

18.8%

FA9

8.5%

DE Electronic

12.8%

DE Market

Return vs Industry: FA9 exceeded the German Electronic industry which returned 8.5% over the past year.

Return vs Market: FA9 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

FA9IndustryMarket
7 Day10.6%-1.9%-0.9%
30 Day11.8%8.2%-0.4%
90 Day17.1%8.8%2.3%
1 Year22.0%18.8%10.9%8.5%16.3%12.8%
3 Yearn/a49.7%44.8%15.8%5.7%
5 Yearn/a114.5%99.2%19.7%3.3%

Price Volatility Vs. Market

How volatile is Spectris's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Spectris undervalued compared to its fair value and its price relative to the market?

14.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FA9 (€35.82) is trading above our estimate of fair value (€32.34)

Significantly Below Fair Value: FA9 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FA9 is good value based on its PE Ratio (14.9x) compared to the Electronic industry average (29.8x).

PE vs Market: FA9 is good value based on its PE Ratio (14.9x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: FA9's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FA9 is overvalued based on its PB Ratio (2.6x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

How is Spectris forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FA9's earnings are forecast to decline over the next 3 years (-16% per year).

Earnings vs Market: FA9's earnings are forecast to decline over the next 3 years (-16% per year).

High Growth Earnings: FA9's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FA9's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: FA9's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FA9's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Spectris performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FA9 has a large one-off gain of £198.6M impacting its December 31 2019 financial results.

Growing Profit Margin: FA9's current net profit margins (14.3%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: FA9's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: FA9's earnings growth over the past year (26.4%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: FA9 earnings growth over the past year (26.4%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: FA9's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spectris's financial position?


Financial Position Analysis

Short Term Liabilities: FA9's short term assets (£770.5M) exceed its short term liabilities (£440.8M).

Long Term Liabilities: FA9's short term assets (£770.5M) exceed its long term liabilities (£211.5M).


Debt to Equity History and Analysis

Debt Level: FA9's debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: FA9's debt to equity ratio has reduced from 17.5% to 13.6% over the past 5 years.

Debt Coverage: FA9's debt is well covered by operating cash flow (134.1%).

Interest Coverage: FA9's interest payments on its debt are well covered by EBIT (28.1x coverage).


Balance Sheet

Inventory Level: FA9 has a high level of physical assets or inventory.

Debt Coverage by Assets: FA9's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Spectris's current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Spectris before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.2%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: FA9's dividend (2.17%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: FA9's dividend (2.17%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: FA9's dividends per share have been stable in the past 10 years.

Growing Dividend: FA9's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), FA9's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FA9's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Andrew Heath (54yo)

1.4yrs

Tenure

UK£848,353

Compensation

Mr. Andrew Heath has been the Director of Spectris plc since September 3, 2018 and has been its Chief Executive Officer since September 28, 2018. He served as the Chief Executive Officer of Imagination Tec ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.10M) is below average for companies of similar size in the German market ($USD2.28M).

Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Heath
CEO & Executive Director1.4yrsUK£848.35k0.019% £774.4k
Derek Harding
Chief Financial Officer1.1yrsno data0.0035% £145.2k
Mark Serfözo
Company Secretary & General Counsel2.3yrsno datano data
Andrew Harvey
Group Human Resources Director3.1yrsno datano data
Siobhán Andrews
Head of Corporate Affairs0yrsno datano data
Joseph Vorih
President of HBK0yrsno datano data
Greg Wright
President of Omega1.1yrsno datano data
Paolo Carmassi
President of Malvern Panalytical1.1yrsno datano data
Robert Martin
Deputy Company Secretary0yrsno datano data
Rebecca Dunn
Deputy Company Secretary0yrsno datano data

1.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: FA9's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Heath
CEO & Executive Director1.4yrsUK£848.35k0.019% £774.4k
Derek Harding
Chief Financial Officer1.1yrsno data0.0035% £145.2k
Kjersti Wiklund
Non Executive Director3.1yrsUK£55.00kno data
Martha Wyrsch
Non-Executive Director7.7yrsUK£70.00k0.0026% £107.8k
Mark Williamson
Non-Executive Chairman2.8yrsUK£220.00k0.014% £600.9k
Catherine Turner
Non-Executive Director0.4yrsno datano data
Russell King
Senior Independent Director0yrsUK£75.00k0.0026% £107.8k
William Seeger
Non-Executive Director5.1yrsUK£80.00k0.0026% £107.8k
Karim Bitar
Non-Executive Director2.6yrsUK£55.00k0.0011% £47.9k
Ulf Quellmann
Non-Executive Director5.1yrsUK£61.00k0.0017% £71.6k

2.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: FA9's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Spectris plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectris plc
  • Ticker: FA9
  • Exchange: DB
  • Founded: 1915
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£3.486b
  • Listing Market Cap: UK£4.161b
  • Shares outstanding: 116.01m
  • Website: https://www.spectris.com

Number of Employees


Location

  • Spectris plc
  • Heritage House
  • Church Road
  • Egham
  • Surrey
  • TW20 9QD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEPJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SXSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SXSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
FA9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SXS NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
SEPJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2011

Biography

Spectris plc manufactures and sells measuring instruments and controls worldwide. It operates through four segments: Materials Analysis, Test and Measurement, In-line Instrumentation, and Industrial Controls. The Materials Analysis segment provides products and services, which enable customers to determine structure, composition, quantity, and quality of particles and materials during their research and development processes, when assessing materials before production, or during the manufacturing process. It serves metal, minerals and mining, pharmaceutical, fine chemical, and semiconductor industries; and academic research institutes. The Test and Measurement segment supplies test, measurement, and analysis equipment, as well as software and services for product design optimization, manufacturing control, microseismic monitoring, and environmental noise monitoring. It serves automotive, aerospace, electronics, and energy industries, as well as academic research institutes. The In-line Instrumentation segment offers process analytical measurement, asset monitoring, and online controls, as well as associated consumables and services for primary processing and converting industries. It serves process, pulp, paper, tissue, energy, utilities, and Web and converting industries. The Industrial Controls segment provides products and solutions that measure, monitor, control, inform, and connect during the production process. It serves manufacturing, process, energy, and electronics industries. The company was formerly known as Fairey Aviation Company Ltd. and changed its name to Spectris plc in May 2001. Spectris plc was founded in 1915 and is based in Egham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:22
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.