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Spirax-Sarco Engineering

LSE:SPX
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPX
LSE
£7B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Spirax-Sarco Engineering plc provides engineered solutions for users of industrial and commercial steam systems, electrical heating and temperature management systems, and process fluid paths and pumping systems. The last earnings update was 115 days ago. More info.


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SPX Share Price and Events
7 Day Returns
-0.5%
LSE:SPX
-2.6%
GB Machinery
-0.2%
GB Market
1 Year Returns
30.4%
LSE:SPX
-6.3%
GB Machinery
-1.4%
GB Market
SPX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spirax-Sarco Engineering (SPX) -0.5% 1.7% 10.1% 30.4% 128.6% 213.6%
GB Machinery -2.6% 0.8% -4.1% -6.3% 34.3% 4.2%
GB Market -0.2% 1.7% 0.2% -1.4% 11.7% 7.5%
1 Year Return vs Industry and Market
  • SPX outperformed the Machinery industry which returned -6.3% over the past year.
  • SPX outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.4% over the past year.
Price Volatility
SPX
Industry
5yr Volatility vs Market

SPX Value

 Is Spirax-Sarco Engineering undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Spirax-Sarco Engineering to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Spirax-Sarco Engineering.

LSE:SPX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SPX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 19%) (6.49%))
1.095
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.095 * 6.65%)
8.51%

Discounted Cash Flow Calculation for LSE:SPX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spirax-Sarco Engineering is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SPX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.51%)
2020 180.98 Analyst x6 166.79
2021 188.83 Analyst x3 160.37
2022 195.14 Est @ 3.34% 152.73
2023 200.43 Est @ 2.71% 144.56
2024 204.96 Est @ 2.26% 136.24
2025 208.96 Est @ 1.95% 128.00
2026 212.59 Est @ 1.73% 120.01
2027 215.95 Est @ 1.58% 112.34
2028 219.14 Est @ 1.48% 105.06
2029 222.21 Est @ 1.4% 98.17
Present value of next 10 years cash flows £1,324.26
LSE:SPX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £222.21 × (1 + 1.23%) ÷ (8.51% – 1.23%)
£3,087.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,087.73 ÷ (1 + 8.51%)10
£1,364.16
LSE:SPX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,324.26 + £1,364.16
£2,688.42
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,688.42 / 73.62
£36.52
LSE:SPX Discount to Share Price
Calculation Result
Value per share (GBP) From above. £36.52
Current discount Discount to share price of £88.45
= -1 x (£88.45 - £36.52) / £36.52
-142.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Spirax-Sarco Engineering is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Spirax-Sarco Engineering's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spirax-Sarco Engineering's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SPX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £3.03
LSE:SPX Share Price ** LSE (2019-07-16) in GBP £88.45
United Kingdom of Great Britain and Northern Ireland Machinery Industry PE Ratio Median Figure of 21 Publicly-Listed Machinery Companies 17.92x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Spirax-Sarco Engineering.

LSE:SPX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SPX Share Price ÷ EPS (both in GBP)

= 88.45 ÷ 3.03

29.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spirax-Sarco Engineering is overvalued based on earnings compared to the GB Machinery industry average.
  • Spirax-Sarco Engineering is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Spirax-Sarco Engineering's expected growth come at a high price?
Raw Data
LSE:SPX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
-3.9%per year
United Kingdom of Great Britain and Northern Ireland Machinery Industry PEG Ratio Median Figure of 14 Publicly-Listed Machinery Companies 2.5x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:SPX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.18x ÷ -3.9%

-7.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spirax-Sarco Engineering earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Spirax-Sarco Engineering's assets?
Raw Data
LSE:SPX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £10.40
LSE:SPX Share Price * LSE (2019-07-16) in GBP £88.45
United Kingdom of Great Britain and Northern Ireland Machinery Industry PB Ratio Median Figure of 24 Publicly-Listed Machinery Companies 1.9x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
LSE:SPX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SPX Share Price ÷ Book Value per Share (both in GBP)

= 88.45 ÷ 10.40

8.5x

* Primary Listing of Spirax-Sarco Engineering.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spirax-Sarco Engineering is overvalued based on assets compared to the GB Machinery industry average.
X
Value checks
We assess Spirax-Sarco Engineering's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Spirax-Sarco Engineering has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SPX Future Performance

 How is Spirax-Sarco Engineering expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spirax-Sarco Engineering expected to grow at an attractive rate?
  • Spirax-Sarco Engineering's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Spirax-Sarco Engineering's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Spirax-Sarco Engineering's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SPX Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SPX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts -3.9%
LSE:SPX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 5.2%
United Kingdom of Great Britain and Northern Ireland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 7.5%
United Kingdom of Great Britain and Northern Ireland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SPX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SPX Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,537 317 1
2022-12-31 1,433 301 2
2021-12-31 1,348 254 193 11
2020-12-31 1,294 240 184 15
2019-12-31 1,217 224 168 15
LSE:SPX Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 1,153 205 223
2018-09-30 1,136 186 199
2018-06-30 1,118 166 174
2018-03-31 1,058 163 166
2017-12-31 999 159 158
2017-09-30 920 162 144
2017-06-30 842 165 131
2017-03-31 800 162 126
2016-12-31 757 158 121
2016-09-30 724 149 115
2016-06-30 691 139 109
2016-03-31 679 135 103

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Spirax-Sarco Engineering's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Spirax-Sarco Engineering's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SPX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Spirax-Sarco Engineering Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SPX Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.59 3.59 3.59 1.00
2022-12-31 3.37 3.37 3.37 1.00
2021-12-31 2.74 3.15 2.42 7.00
2020-12-31 2.59 2.95 2.29 8.00
2019-12-31 2.35 2.67 2.14 9.00
LSE:SPX Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 3.03
2018-09-30 2.70
2018-06-30 2.37
2018-03-31 2.26
2017-12-31 2.14
2017-09-30 1.96
2017-06-30 1.78
2017-03-31 1.71
2016-12-31 1.65
2016-09-30 1.57
2016-06-30 1.48
2016-03-31 1.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Spirax-Sarco Engineering is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Spirax-Sarco Engineering's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Spirax-Sarco Engineering has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SPX Past Performance

  How has Spirax-Sarco Engineering performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Spirax-Sarco Engineering's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Spirax-Sarco Engineering's year on year earnings growth rate has been positive over the past 5 years.
  • Spirax-Sarco Engineering's 1-year earnings growth exceeds its 5-year average (41.6% vs 16.5%)
  • Spirax-Sarco Engineering's earnings growth has exceeded the GB Machinery industry average in the past year (41.6% vs 16.7%).
Earnings and Revenue History
Spirax-Sarco Engineering's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Spirax-Sarco Engineering Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SPX Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,153.30 223.10 400.20
2018-09-30 1,135.50 198.65 374.25
2018-06-30 1,117.70 174.20 348.30
2018-03-31 1,058.20 165.90 348.65
2017-12-31 998.70 157.60 349.00
2017-09-30 920.35 144.05 307.00
2017-06-30 842.00 130.50 265.00
2017-03-31 799.70 125.80 264.80
2016-12-31 757.40 121.10 264.60
2016-09-30 724.30 114.80 247.75
2016-06-30 691.20 108.50 230.90
2016-03-31 679.20 102.50 230.90
2015-12-31 667.20 96.50 230.90
2015-09-30 673.16 95.98 232.08
2015-06-30 679.12 95.46 233.25
2015-03-31 678.70 97.89 233.30
2014-12-31 678.28 100.33 233.35
2014-09-30 677.63 100.19 234.29
2014-06-30 676.99 100.05 235.23
2014-03-31 683.19 101.08 235.20
2013-12-31 689.39 102.10 235.17
2013-09-30 684.60 100.58 232.96
2013-06-30 679.80 99.06 230.76
2013-03-31 670.76 93.25 230.84
2012-12-31 661.72 87.44 230.92
2012-09-30 658.74 86.70 225.91

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Spirax-Sarco Engineering has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Spirax-Sarco Engineering used its assets more efficiently than the GB Machinery industry average last year based on Return on Assets.
  • Spirax-Sarco Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Spirax-Sarco Engineering's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Spirax-Sarco Engineering has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SPX Health

 How is Spirax-Sarco Engineering's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Spirax-Sarco Engineering's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spirax-Sarco Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Spirax-Sarco Engineering's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Spirax-Sarco Engineering's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Spirax-Sarco Engineering Company Filings, last reported 6 months ago.

LSE:SPX Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 766.90 422.60 187.10
2018-09-30 766.90 422.60 187.10
2018-06-30 644.30 549.30 176.30
2018-03-31 644.30 549.30 176.30
2017-12-31 609.50 525.40 152.10
2017-09-30 609.50 525.40 152.10
2017-06-30 550.10 273.50 159.70
2017-03-31 550.10 273.50 159.70
2016-12-31 524.40 91.40 119.20
2016-09-30 524.40 91.40 119.20
2016-06-30 430.50 87.90 109.00
2016-03-31 430.50 87.90 109.00
2015-12-31 398.30 94.50 99.80
2015-09-30 398.30 94.50 99.80
2015-06-30 342.88 32.51 86.63
2015-03-31 342.88 32.51 86.63
2014-12-31 441.88 89.10 142.42
2014-09-30 441.88 89.10 142.42
2014-06-30 407.01 110.98 110.42
2014-03-31 407.01 110.98 110.42
2013-12-31 403.53 99.85 117.32
2013-09-30 403.53 99.85 117.32
2013-06-30 475.99 51.47 108.83
2013-03-31 475.99 51.47 108.83
2012-12-31 436.55 46.74 99.83
2012-09-30 436.55 46.74 99.83
  • Spirax-Sarco Engineering's level of debt (55.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25% vs 55.1% today).
  • Debt is well covered by operating cash flow (48.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.8x coverage).
X
Financial health checks
We assess Spirax-Sarco Engineering's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Spirax-Sarco Engineering has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SPX Dividends

 What is Spirax-Sarco Engineering's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.13%
Current annual income from Spirax-Sarco Engineering dividends. Estimated to be 1.31% next year.
If you bought £2,000 of Spirax-Sarco Engineering shares you are expected to receive £23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Spirax-Sarco Engineering's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • Spirax-Sarco Engineering's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SPX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SPX Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.44 1.00
2022-12-31 1.31 2.00
2021-12-31 1.23 11.00
2020-12-31 1.16 15.00
2019-12-31 1.07 15.00
LSE:SPX Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-25 1.000 1.198
2018-04-03 0.875 1.352
2018-03-15 0.875 1.504
2017-03-27 0.760 1.376
2017-03-09 0.760 1.603
2016-03-21 0.690 1.713
2016-03-03 0.690 2.004
2015-03-05 0.669 2.083
2014-08-08 0.627 2.076
2014-05-20 0.612 2.123
2013-11-08 0.570 1.882
2013-03-07 0.571 1.930
2012-03-08 0.528 2.307
2012-03-07 0.528 2.375
2011-03-08 0.463 2.274
2010-03-04 0.389 2.219
2009-08-20 0.364 2.974
2009-03-09 0.359 3.917
2008-08-27 0.215 2.262

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Spirax-Sarco Engineering's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Spirax-Sarco Engineering's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Spirax-Sarco Engineering afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spirax-Sarco Engineering has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SPX Management

 What is the CEO of Spirax-Sarco Engineering's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Anderson
COMPENSATION £2,323,478
AGE 58
TENURE AS CEO 5.5 years
CEO Bio

Mr. Nicholas J. Anderson, also known as Nick, BSc Civil Engineering, MBA, has been the Group Chief Executive, and Executive Director of Spirax-Sarco Engineering plc since January 16, 2014 and March 15, 2012 respectively and served as its Chief Operating Officer since August 7, 2013. Mr. Anderson served as an Executive Director of EMEA at Spirax-Sarco Engineering plc since 2011 and was responsible for its steam business operations in Europe, the Middle East and Africa (EMEA). He joined Spirax-Sarco Engineering plc in September 2011. He has broad experience in the industrial engineering industry to the Group, with an emphasis on international business operations and sales management. He served as Vice president of John Crane Asia Pacific, part of the Smiths Group plc. He served as the President of John Crane Latin America. He served for Alcoa Aluminio in Argentina and Foseco Minsep Group plc in Brazil. Mr. Anderson served as a Member of John Crane's Global Executive Board.

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Spirax-Sarco Engineering management team in years:

5.5
Average Tenure
57
Average Age
  • The average tenure for the Spirax-Sarco Engineering management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Nick Anderson

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£2M
AGE
58
TENURE
5.5 yrs

Kevin Boyd

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
54
TENURE
3.2 yrs

Neil Daws

TITLE
MD of Steam Specialties Business & Executive Director
COMPENSATION
£1M
AGE
57

Jay Whalen

TITLE
Executive Director
COMPENSATION
£2M
AGE
63

Andy Robson

TITLE
General Counsel & Company Secretary
AGE
56
TENURE
7.1 yrs

Jim Devine

TITLE
Group Human Resources Director

Shaun Laubscher

TITLE
Head of Talent & Organisational Development

Dan Harvey

TITLE
Head of Internal Audit

Charles Song

TITLE
President & GM of Spirax Sarco Engineering(China) Ltd

John Senior

TITLE
Group Financial Controller
Board of Directors Tenure

Average tenure and age of the Spirax-Sarco Engineering board of directors in years:

2.1
Average Tenure
58.5
Average Age
  • The average tenure for the Spirax-Sarco Engineering board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jamie Pike

TITLE
Chairman of the Board
COMPENSATION
£155K
AGE
64
TENURE
1.2 yrs

Nick Anderson

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£2M
AGE
58
TENURE
7.3 yrs

Kevin Boyd

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
54
TENURE
3.2 yrs

Neil Daws

TITLE
MD of Steam Specialties Business & Executive Director
COMPENSATION
£1M
AGE
57
TENURE
16.1 yrs

Jay Whalen

TITLE
Executive Director
COMPENSATION
£2M
AGE
63
TENURE
7.3 yrs

Jane Kingston

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
61
TENURE
2.8 yrs

Kevin Thompson

TITLE
Independent Non-Executive Director
AGE
59
TENURE
0.2 yrs

Trudy Schoolenberg

TITLE
Senior Independent Director
COMPENSATION
£50K
AGE
61
TENURE
0.5 yrs

Peter France

TITLE
Independent Non-Executive Director
COMPENSATION
£41K
AGE
50
TENURE
1.3 yrs

Caroline Johnstone

TITLE
Independent Non-Executive Director
AGE
58
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
31. Oct 18 Buy G. Schoolenberg Individual 29. Oct 18 29. Oct 18 900 £65.03 £58,530
09. Aug 18 Buy James Robert Pike Individual 09. Aug 18 09. Aug 18 2,856 £70.02 £199,977
X
Management checks
We assess Spirax-Sarco Engineering's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Spirax-Sarco Engineering has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SPX News

Simply Wall St News

Spirax-Sarco Engineering plc (LON:SPX) Insiders Increased Their Holdings

So before you buy or sell Spirax-Sarco Engineering plc (LON:SPX), you may well want to know whether insiders have been buying or selling. … Spirax-Sarco Engineering insiders own about UK£10m worth of shares. … Insiders own shares in Spirax-Sarco Engineering and we see no evidence to suggest they are worried about the future.

Simply Wall St -

Is Spirax-Sarco Engineering (LON:SPX) Using Too Much Debt?

LSE:SPX Historical Debt, July 4th 2019 How Strong Is Spirax-Sarco Engineering's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Spirax-Sarco Engineering's balance sheet over time. … Over the most recent three years, Spirax-Sarco Engineering recorded free cash flow worth 59% of its EBIT, which is around normal, given free cash flow excludes interest and tax.

Simply Wall St -

Here's What Spirax-Sarco Engineering plc's (LON:SPX) P/E Is Telling Us

Spirax-Sarco Engineering has a price to earnings ratio of 30.73, based on the last twelve months. … Check out our latest analysis for Spirax-Sarco Engineering How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Spirax-Sarco Engineering: P/E of 30.73 = £93.15 ÷ £3.03 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

A Close Look At Spirax-Sarco Engineering plc’s (LON:SPX) 23% ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Spirax-Sarco Engineering: 0.23 = UK£297m ÷ (UK£1.6b - UK£253m) (Based on the trailing twelve months to December 2018.) So, Spirax-Sarco Engineering has an ROCE of 23%. … View our latest analysis for Spirax-Sarco Engineering Is Spirax-Sarco Engineering's ROCE Good? … What Are Current Liabilities, And How Do They Affect Spirax-Sarco Engineering's ROCE?

Simply Wall St -

Is Spirax-Sarco Engineering's (LON:SPX) Share Price Gain Of 179% Well Earned?

Over half a decade, Spirax-Sarco Engineering managed to grow its earnings per share at 17% a year. … This EPS growth is slower than the share price growth of 23% per year, over the same period. … A Different Perspective It's nice to see that Spirax-Sarco Engineering shareholders have received a total shareholder return of 36% over the last year.

Simply Wall St -

Why Spirax-Sarco Engineering plc (LON:SPX) Is A Top Dividend Stock

Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Spirax-Sarco Engineering has grown its earnings per share at 17% per annum over the past five years. … Conclusion To summarise, shareholders should always check that Spirax-Sarco Engineering's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Next, growing earnings per share and steady dividend payments is a great combination.

Simply Wall St -

Is Spirax-Sarco Engineering plc's (LON:SPX) CEO Overpaid Relative To Its Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Spirax-Sarco Engineering How Does Nick Anderson's Compensation Compare With Similar Sized Companies? … Our data indicates that Spirax-Sarco Engineering plc is worth UK£6.3b, and total annual CEO compensation is UK£2.3m.

Simply Wall St -

Top Bear Market Investment: Spirax-Sarco Engineering plc (LON:SPX)

Longstanding stocks such as Spirax-Sarco Engineering plc has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … LSE:SPX Historical Debt, May 13th 2019 Spirax-Sarco Engineering currently has UK£423m debt on its books which requires regular servicing. … The intrinsic value infographic in our free research report helps visualize whether SPX is currently mispriced by the market.

Simply Wall St -

What Do Investors Need To Know About The Future Of Spirax-Sarco Engineering plc's (LON:SPX)?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … After Spirax-Sarco Engineering plc's (LON:SPX) recent earnings announcement in December 2018,

Simply Wall St -

A Look At Spirax-Sarco Engineering plc's (LON:SPX) Exceptional Fundamentals

I've been keeping an eye on Spirax-Sarco Engineering plc (LON:SPX) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe SPX has a lot to offer. … , dividend-paying company with a

Simply Wall St -

SPX Company Info

Description

Spirax-Sarco Engineering plc provides engineered solutions for users of industrial and commercial steam systems, electrical heating and temperature management systems, and process fluid paths and pumping systems. It offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating and curing, cleaning and sterilising, hot water generation, space heating, and humidification; electrical process heating and temperature management solutions, such as industrial heaters and systems, heat tracing, and various component technologies; and peristaltic and niche pumps and associated fluid path technologies, including pumps, tubing, and specialty filling systems and products for single-use applications. The company serves food, beverage, pharmaceutical and biotechnology, oil, gas, chemical, healthcare, power generation, mining, precious metal processing, water and wastewater, pulp and paper, rubber and plastic, textile, and other sectors; and original equipment manufacturers. Its products are also used to provide space heating, humidification, and hot water in public and private buildings. The company sells its products directly, as well as through distributors. It operates in Europe, the Middle East, and Africa; the Asia Pacific; and the Americas. The company was founded in 1888 and is headquartered in Cheltenham, the United Kingdom.

Details
Name: Spirax-Sarco Engineering plc
SPX
Exchange: LSE
Founded: 1888
£6,511,724,114
73,620,397
Website: http://www.spiraxsarcoengineering.com
Address: Spirax-Sarco Engineering plc
Charlton House,
Cirencester Road,
Cheltenham,
Gloucestershire, GL53 8ER,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SPX Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK SPXS.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB 1LNB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BMV SPX N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE SPXL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK SPXS.Y ADR Pink Sheets LLC US USD 09. May 2011
Number of employees
Current staff
Staff numbers
7,520
Spirax-Sarco Engineering employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 20:35
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/03/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.