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SPX

Spirax-Sarco EngineeringLSE:SPX Stock Report

Market Cap

UK£11.8b

7D

-1.2%

1Y

46.4%

Updated

26 Sep, 2021

Data

Company Financials +
SPX fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends4/6

SPX Overview

Spirax-Sarco Engineering plc provides engineered solutions for the users of industrial and commercial steam systems, electrical heating and temperature management systems, and pumps and fluid path technologies.

Spirax-Sarco Engineering Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Spirax-Sarco Engineering
Historical stock prices
Current Share PriceUK£160.00
52 Week HighUK£105.20
52 Week LowUK£167.00
Beta0.41
1 Month Change-0.62%
3 Month Change17.04%
1 Year Change46.39%
3 Year Change119.18%
5 Year Change255.95%
Change since IPO6,331.68%

Recent News & Updates

Shareholder Returns

SPXGB MachineryGB Market
7D-1.2%-0.6%0.6%
1Y46.4%47.7%24.1%

Return vs Industry: SPX underperformed the UK Machinery industry which returned 47.7% over the past year.

Return vs Market: SPX exceeded the UK Market which returned 23.4% over the past year.

Price Volatility

Is SPX's price volatile compared to industry and market?
SPX volatility
SPX Beta0.41
Industry Beta0.95
Market Beta1

Stable Share Price: SPX is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SPX's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18888,200Nick Andersonhttps://www.spiraxsarcoengineering.com

Spirax-Sarco Engineering plc provides engineered solutions for the users of industrial and commercial steam systems, electrical heating and temperature management systems, and pumps and fluid path technologies. It offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating and curing, cleaning and sterilizing, 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 for industrial processes, heaters, and systems; 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, buildings, mining and precious metal processing, water and wastewater, and pulp and paper, as well as original equipment manufacturers.

Spirax-Sarco Engineering Fundamentals Summary

How do Spirax-Sarco Engineering's earnings and revenue compare to its market cap?
SPX fundamental statistics
Market CapUK£11.79b
Earnings (TTM)UK£205.70m
Revenue (TTM)UK£1.27b

57.3x

P/E Ratio

9.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPX income statement (TTM)
RevenueUK£1.27b
Cost of RevenueUK£332.10m
Gross ProfitUK£935.30m
ExpensesUK£729.60m
EarningsUK£205.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.79
Gross Margin73.80%
Net Profit Margin16.23%
Debt/Equity Ratio48.6%

How did SPX perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

44%

Payout Ratio

Does SPX pay a reliable dividends?

See SPX dividend history and benchmarks
When do you need to buy SPX by to receive an upcoming dividend?
Spirax-Sarco Engineering dividend dates
Ex Dividend DateOct 14 2021
Dividend Pay DateNov 12 2021
Days until Ex dividend16 days
Days until Dividend pay date45 days

Does SPX pay a reliable dividends?

See SPX dividend history and benchmarks

Valuation

Is Spirax-Sarco Engineering undervalued compared to its fair value and its price relative to the market?

57.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPX (£160) is trading above our estimate of fair value (£67.24)

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


Price To Earnings Ratio

PE vs Industry: SPX is poor value based on its PE Ratio (57.3x) compared to the UK Machinery industry average (29x).

PE vs Market: SPX is poor value based on its PE Ratio (57.3x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: SPX is poor value based on its PEG Ratio (9.1x)


Price to Book Ratio

PB vs Industry: SPX is overvalued based on its PB Ratio (12.9x) compared to the GB Machinery industry average (2.3x).


Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPX's forecast earnings growth (6.3% per year) is above the savings rate (0.9%).

Earnings vs Market: SPX's earnings (6.3% per year) are forecast to grow slower than the UK market (13.3% per year).

High Growth Earnings: SPX's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPX's revenue (5.1% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: SPX's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPX's Return on Equity is forecast to be high in 3 years time (21.8%)


Past Performance

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

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPX has high quality earnings.

Growing Profit Margin: SPX's current net profit margins (16.2%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: SPX's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: SPX's earnings growth over the past year (22.6%) exceeds its 5-year average (9.1% per year).

Earnings vs Industry: SPX earnings growth over the past year (22.6%) exceeded the Machinery industry 18%.


Return on Equity

High ROE: SPX's Return on Equity (22.4%) is considered high.


Financial Health

How is Spirax-Sarco Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: SPX's short term assets (£724.0M) exceed its short term liabilities (£370.0M).

Long Term Liabilities: SPX's short term assets (£724.0M) exceed its long term liabilities (£454.0M).


Debt to Equity History and Analysis

Debt Level: SPX's debt to equity ratio (48.6%) is considered high.

Reducing Debt: SPX's debt to equity ratio has increased from 20.4% to 48.6% over the past 5 years.

Debt Coverage: SPX's debt is well covered by operating cash flow (63.3%).

Interest Coverage: SPX's interest payments on its debt are well covered by EBIT (44.4x coverage).


Balance Sheet


Dividend

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

0.77%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 27 2021Ex Dividend DateOct 14 2021Dividend Pay DateNov 12 202129 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SPX's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: SPX's dividend (0.77%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.1%), SPX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPX's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Nick Anderson (60 yo)

7.67yrs

Tenure

UK£2,219,764

Compensation

Mr. Nicholas J. Anderson, also known as Nick, BSc Engineering, MBA, has been Non-Executive Director at BAE Systems plc since November 1, 2020. He has been the Group Chief Executive, and Executive Director...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD3.03M) is about average for companies of similar size in the UK market ($USD3.77M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SPX's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: SPX's board of directors are not considered experienced ( 2.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Spirax-Sarco Engineering plc's employee growth, exchange listings and data sources


Key Information

  • Name: Spirax-Sarco Engineering plc
  • Ticker: SPX
  • Exchange: LSE
  • Founded: 1888
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£11.793b
  • Shares outstanding: 73.71m
  • Website: https://www.spiraxsarcoengineering.com

Number of Employees


Location

  • Spirax-Sarco Engineering plc
  • Charlton House
  • Cirencester Road
  • Cheltenham
  • Gloucestershire
  • GL53 8ER
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 17:54
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.