Spirax-Sarco Engineering
Market Cap
UK£6.8b
Last Updated
2020/02/16 20:38 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record average dividend payer.
Similar Companies
Share Price & News
How has Spirax-Sarco Engineering's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SPX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.0%
SPX
0.09%
GB Machinery
-0.2%
GB Market
1 Year Return
38.8%
SPX
10.8%
GB Machinery
6.1%
GB Market
Return vs Industry: SPX exceeded the UK Machinery industry which returned 10.8% over the past year.
Return vs Market: SPX exceeded the UK Market which returned 6.1% over the past year.
Shareholder returns
| SPX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 0.09% | -0.2% |
| 30 Day | 1.1% | -2.4% | -2.7% |
| 90 Day | 11.3% | 4.3% | 3.9% |
| 1 Year | 40.6%38.8% | 14.0%10.8% | 11.8%6.1% |
| 3 Year | 119.2%109.9% | 26.9%17.0% | 17.5%2.6% |
| 5 Year | 212.2%177.7% | 39.1%19.5% | 34.8%3.7% |
Price Volatility Vs. Market
How volatile is Spirax-Sarco Engineering's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Here's Why I Think Spirax-Sarco Engineering (LON:SPX) Is An Interesting Stock2 weeks ago | Simply Wall St
Here's What Spirax-Sarco Engineering plc's (LON:SPX) P/E Is Telling Us1 month ago | Simply Wall St
Is Spirax-Sarco Engineering's (LON:SPX) Share Price Gain Of 188% Well Earned?Valuation
Is Spirax-Sarco Engineering undervalued compared to its fair value and its price relative to the market?
30.88x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SPX (£92.75) is trading above our estimate of fair value (£45.65)
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 (30.9x) compared to the Machinery industry average (17.5x).
PE vs Market: SPX is poor value based on its PE Ratio (30.9x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: SPX is poor value based on its PEG Ratio (6.1x)
Price to Book Ratio
PB vs Industry: SPX is overvalued based on its PB Ratio (8.8x) compared to the GB Machinery industry average (1.7x).
Next Steps
Future Growth
How is Spirax-Sarco Engineering forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
5.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SPX's forecast earnings growth (5.1% per year) is above the savings rate (0.5%).
Earnings vs Market: SPX's earnings (5.1% per year) are forecast to grow slower than the UK market (12.2% per year).
High Growth Earnings: SPX's earnings are forecast to grow, but not significantly.
Revenue vs Market: SPX's revenue (4.5% per year) is forecast to grow faster than the UK market (3.4% per year).
High Growth Revenue: SPX's revenue (4.5% 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 (22.5%)
Next Steps
Past Performance
How has Spirax-Sarco Engineering performed over the past 5 years?
19.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SPX has high quality earnings.
Growing Profit Margin: SPX's current net profit margins (18.5%) are higher than last year (15.6%).
Past Earnings Growth Analysis
Earnings Trend: SPX's earnings have grown by 19.7% per year over the past 5 years.
Accelerating Growth: SPX's earnings growth over the past year (27%) exceeds its 5-year average (19.7% per year).
Earnings vs Industry: SPX earnings growth over the past year (27%) exceeded the Machinery industry 2.6%.
Return on Equity
High ROE: SPX's Return on Equity (28.5%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Spirax-Sarco Engineering's financial position?
Financial Position Analysis
Short Term Liabilities: SPX's short term assets (£656.9M) exceed its short term liabilities (£298.9M).
Long Term Liabilities: SPX's short term assets (£656.9M) do not cover its long term liabilities (£677.9M).
Debt to Equity History and Analysis
Debt Level: SPX's debt to equity ratio (71.7%) is considered high.
Reducing Debt: SPX's debt to equity ratio has increased from 27.2% to 71.7% over the past 5 years.
Debt Coverage: SPX's debt is well covered by operating cash flow (35.6%).
Interest Coverage: SPX's interest payments on its debt are well covered by EBIT (39.6x coverage).
Balance Sheet
Inventory Level: SPX has a high level of physical assets or inventory.
Debt Coverage by Assets: SPX's debt is covered by short term assets (assets are 1.2x debt).
Next Steps
Dividend
What is Spirax-Sarco Engineering's current dividend yield, its reliability and sustainability?
1.08%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SPX's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: SPX's dividend (1.08%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
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 (34.3%), 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 (41.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Nick Anderson (58yo)
6.1yrs
Tenure
UK£2,323,478
Compensation
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, 201 ...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD3.03M) is about average for companies of similar size in the UK market ($USD3.35M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 6.1yrs | UK£2.32m | 0.049% £3.3m | |
| CFO & Executive Director | 3.8yrs | UK£1.44m | 0.012% £803.0k | |
| MD of Steam Specialties Business & Executive Director | 16.7yrs | UK£1.28m | 0.052% £3.6m | |
| General Counsel & Company Secretary | 7.7yrs | no data | 0.0023% £159.1k | |
| Group Human Resources Director | 0yrs | no data | no data | |
| Head of Talent & Organisational Development | 0yrs | no data | no data | |
| Head of Internal Audit | 0yrs | no data | no data | |
| President & GM of Spirax Sarco Engineering(China) Ltd | 0yrs | no data | no data | |
| Group Financial Controller | 0yrs | no data | no data |
6.1yrs
Average Tenure
56.5yo
Average Age
Experienced Management: SPX's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 6.1yrs | UK£2.32m | 0.049% £3.3m | |
| CFO & Executive Director | 3.8yrs | UK£1.44m | 0.012% £803.0k | |
| MD of Steam Specialties Business & Executive Director | 16.7yrs | UK£1.28m | 0.052% £3.6m | |
| Independent Chairman of the Board | 1.8yrs | UK£154.53k | 0.012% £801.6k | |
| Independent Non-Executive Director | 0.8yrs | no data | 0.0034% £232.2k | |
| Independent Non-Executive Director | 3.4yrs | UK£60.30k | 0.0035% £239.0k | |
| Independent Non-Executive Director | 1.9yrs | UK£41.40k | 0.0013% £90.8k | |
| Senior Independent Director | 1.1yrs | UK£50.30k | 0.0037% £255.4k | |
| Independent Non-Executive Director | 0.9yrs | no data | no data |
1.9yrs
Average Tenure
58yo
Average Age
Experienced Board: SPX's board of directors are not considered experienced ( 1.9 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 company bio, 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£6.828b
- Shares outstanding: 73.62m
- Website: https://www.spiraxsarcoengineering.com
Number of Employees
Location
- Spirax-Sarco Engineering plc
- Charlton House
- Cirencester Road
- Cheltenham
- Gloucestershire
- GL53 8ER
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SPX | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| SPXS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SPXL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| 1LNB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| SPX N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jan 1992 |
| SPXS.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | May 2011 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 20:38 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.