LSE:OXIG

Stock Analysis Report

Executive Summary

Oxford Instruments plc, through its subsidiaries, researches, develops, manufactures, rents, sells, and services tools and systems in the United Kingdom and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

OXIG

-0.6%

GB Electronic

1.7%

GB Market


1 Year Return

35.6%

OXIG

5.8%

GB Electronic

2.9%

GB Market

Return vs Industry: OXIG exceeded the UK Electronic industry which returned 5.8% over the past year.

Return vs Market: OXIG exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

OXIGIndustryMarket
7 Day2.4%-0.6%1.7%
30 Day-0.5%-5.6%-0.7%
90 Day-3.7%-5.8%-1.8%
1 Year37.2%35.6%7.6%5.8%8.0%2.9%
3 Year86.2%78.9%47.1%40.4%18.2%3.8%
5 Year30.4%20.4%119.8%101.3%35.6%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: OXIG (£12.88) is trading above our estimate of fair value (£7.33)

Significantly Undervalued: OXIG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OXIG is poor value based on its PE Ratio (25.7x) compared to the Electronic industry average (19.8x).

PE vs Market: OXIG is poor value based on its PE Ratio (25.7x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: OXIG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: OXIG is overvalued based on its PB Ratio (3.6x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Oxford Instruments forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OXIG's forecast earnings growth (15.4% per year) is above the savings rate (1.2%).

Earnings vs Market: OXIG's earnings (15.4% per year) are forecast to grow faster than the UK market (12.9% per year).

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

Revenue vs Market: OXIG's revenue (3.1% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: OXIG's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OXIG's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Oxford Instruments performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OXIG's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: OXIG's earnings growth over the past year (46.4%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: OXIG earnings growth over the past year (46.4%) exceeded the Electronic industry -7.7%.


Return on Equity

High ROE: OXIG's Return on Equity (14.2%) is considered low.


Return on Assets

ROA vs Industry: OXIG has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: OXIG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Oxford Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: OXIG's short term assets (£177.8M) exceeds its short term liabilities (£133.5M)

Long Term Liabilities: OXIG's short term assets (177.8M) exceeds its long term liabilities (47.8M)


Debt to Equity History and Analysis

Debt Level: OXIG's debt to equity ratio (14.1%) is considered satisfactory

Reducing Debt: OXIG's debt to equity ratio has reduced from 112% to 14.1% over the past 5 years.

Debt Coverage: OXIG's debt is well covered by operating cash flow (154.7%).

Interest Coverage: OXIG's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: OXIG's debt is covered by short term assets (assets are 6.238590x debt).


Next Steps

Dividend

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

1.12%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OXIG's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: OXIG's dividend (1.12%) is low compared to the top 25% of dividend payers in the UK market (5.41%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), OXIG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OXIG's dividends in 3 years are forecast to be well covered by earnings (21.8% payout ratio).


Next Steps

Management

What is the CEO of Oxford Instruments's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average board tenure


CEO

Ian Barkshire (53yo)

3.4yrs

Tenure

UK£1,757,000

Compensation

Dr. Ian Barkshire has been the Chief Executive of Oxford Instruments plc since May 11, 2016 and its Executive Director since November 10, 2015. Dr. Barkshire served as the Chief Operating Officer of Oxford ...


CEO Compensation Analysis

Compensation vs. Market: Ian's total compensation ($USD2.26M) is about average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Ian's compensation has increased by more than 20% in the past year.


Board Age and Tenure

3.7yrs

Average Tenure

59yo

Average Age

Experienced Board: OXIG's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: OXIG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£103,18411 Sep 19
Neil Andrew Carson
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares8,000
Max PriceUK£12.90

Ownership Breakdown


Management Team

  • Charles John Holroyd (63yo)

    Group Business Development Director

    • Tenure: 0yrs
    • Compensation: UK£132.00k
  • Susan Johnson-Brett

    Company Secretary

    • Tenure: 0yrs
  • Gavin Hill (51yo)

    CFO & Director

    • Tenure: 3.4yrs
    • Compensation: UK£1.33m
  • Ian Barkshire (53yo)

    Chief Executive & Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£1.76m
  • Victoria Gault

    Group Director of Communications

    • Tenure: 0yrs

Board Members

  • Richard Friend (66yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£48.00k
  • Thomas Geitner (64yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£56.00k
  • Neil Andrew Carson (62yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: UK£60.00k
  • Gavin Hill (51yo)

    CFO & Director

    • Tenure: 3.4yrs
    • Compensation: UK£1.33m
  • Steve Blair (59yo)

    Senior Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£82.00k
  • Mary Waldner (49yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£56.00k
  • Ian Barkshire (53yo)

    Chief Executive & Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£1.76m

Company Information

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


Key Information

  • Name: Oxford Instruments plc
  • Ticker: OXIG
  • Exchange: LSE
  • Founded: 1959
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£737.057m
  • Shares outstanding: 57.22m
  • Website: https://www.oxinst.com

Number of Employees


Location

  • Oxford Instruments plc
  • Tubney Woods
  • Abingdon
  • Oxfordshire
  • OX13 5QX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OXIN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
OXIGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
OXIGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Oxford Instruments plc, through its subsidiaries, researches, develops, manufactures, rents, sells, and services tools and systems in the United Kingdom and internationally. It operates through Materials a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:38
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.