LSE:SPX

Stock Analysis Report

Spirax-Sarco Engineering

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.

Snowflake

Fundamentals

Solid 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


Market Performance


7 Day Return

0.06%

LSE:SPX

2.2%

GB Machinery

1.6%

GB Market


1 Year Return

13.5%

LSE:SPX

-4.0%

GB Machinery

0.3%

GB Market

SPX outperformed the Machinery industry which returned -4% over the past year.

SPX outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

SPXIndustryMarket
7 Day0.06%2.2%1.6%
30 Day4.4%10.6%5.7%
90 Day-6.8%-0.2%1.3%
1 Year15.1%13.5%-1.3%-4.0%5.1%0.3%
3 Year92.3%84.1%36.2%26.1%23.7%9.0%
5 Year204.2%169.4%20.0%3.7%29.9%2.5%

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

Valuation

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

27.07x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Spirax-Sarco Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Spirax-Sarco Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Spirax-Sarco Engineering is poor value based on expected growth next year.


Price Based on Value of Assets

Spirax-Sarco Engineering is overvalued based on assets compared to the GB Machinery industry average.


Next Steps

Future Growth

How is Spirax-Sarco Engineering expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Spirax-Sarco Engineering's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Spirax-Sarco Engineering's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Spirax-Sarco Engineering's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Spirax-Sarco Engineering's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Spirax-Sarco Engineering's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Spirax-Sarco Engineering is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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


Past Earnings Growth Analysis

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 (27% vs 19.7%)

Spirax-Sarco Engineering's earnings growth has exceeded the GB Machinery industry average in the past year (27% vs 8%).


Return on Equity

Spirax-Sarco Engineering has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Spirax-Sarco Engineering used its assets more efficiently than the GB Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Spirax-Sarco Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Spirax-Sarco Engineering's financial position?


Financial Position Analysis

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 long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Spirax-Sarco Engineering's level of debt (71.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (27.2% vs 71.7% today).

Debt is well covered by operating cash flow (35.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 39.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.44%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Spirax-Sarco Engineering before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

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 (1.99%).

Spirax-Sarco Engineering's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

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

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Nick Anderson (58yo)

5.7yrs

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

Nick's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Nick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

57yo

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.


Board Age and Tenure

2.3yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Spirax-Sarco Engineering board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Spirax-Sarco Engineering individual insiders in the past 3 months.


Recent Insider Transactions

BuyUK£101,12509 Aug 19
James Robert Pike
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,250
Max PriceUK£80.90
BuyUK£58,53031 Oct 18
G. Schoolenberg
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares900
Max PriceUK£65.03

Ownership Breakdown


Management Team

  • Neil Daws (57yo)

    MD of Steam Specialties Business & Executive Director

    • Tenure: 16.3yrs
    • Compensation: UK£1.28m
  • Kevin Boyd (54yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£1.44m
  • Nick Anderson (58yo)

    Group Chief Executive & Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£2.32m
  • Jay Whalen (63yo)

    Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£1.86m
  • Charles Song

    President & GM of Spirax Sarco Engineering(China) Ltd

    • Tenure: 0yrs
  • Jim Devine

    Group Human Resources Director

    • Tenure: 0yrs
  • John Senior

    Group Financial Controller

    • Tenure: 0yrs
  • Andy Robson (56yo)

    General Counsel & Company Secretary

    • Tenure: 7.3yrs
  • Shaun Laubscher

    Head of Talent & Organisational Development

    • Tenure: 0yrs
  • Dan Harvey

    Head of Internal Audit

    • Tenure: 0yrs

Board Members

  • Jamie Pike (64yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: UK£154.53k
  • Kevin Thompson (59yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Jane Kingston (61yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£60.30k
  • Neil Daws (57yo)

    MD of Steam Specialties Business & Executive Director

    • Tenure: 16.3yrs
    • Compensation: UK£1.28m
  • Kevin Boyd (54yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£1.44m
  • Trudy Schoolenberg (61yo)

    Senior Independent Director

    • Tenure: 0.7yrs
    • Compensation: UK£50.30k
  • Nick Anderson (58yo)

    Group Chief Executive & Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£2.32m
  • Jay Whalen (63yo)

    Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£1.86m
  • Caroline Johnstone (58yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Peter France (50yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£41.40k

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£5.985b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPXLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SPXS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SPXLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
1LNBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SPX NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
SPXS.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 20:36
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.