LSE:OXIG

Stock Analysis Report

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Executive Summary

Oxford Instruments plc, through its subsidiaries, researches, develops, manufactures, rents, sells, and services tools and systems in the United Kingdom, China, Japan, the United States, Germany, rest of Europe, rest of Asia, and internationally. More Details

Rewards

Earnings are forecast to grow 6.38% per year

Earnings grew by 14.9% over the past year

Risk Analysis

No risks detected for OXIG from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


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

Stable Share Price: OXIG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.0%

OXIG

-4.2%

GB Electronic

-3.4%

GB Market


1 Year Return

17.6%

OXIG

20.0%

GB Electronic

-19.7%

GB Market

Return vs Industry: OXIG underperformed the UK Electronic industry which returned 20% over the past year.

Return vs Market: OXIG exceeded the UK Market which returned -19.7% over the past year.


Shareholder returns

OXIGIndustryMarket
7 Day-9.0%-4.2%-3.4%
30 Day-4.9%1.6%-4.5%
90 Day11.2%6.5%-5.1%
1 Year17.6%17.6%21.0%20.0%-16.6%-19.7%
3 Year59.6%55.4%37.3%31.9%-12.8%-23.6%
5 Year191.9%175.1%141.1%124.1%9.9%-14.9%

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?

27.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OXIG (£15.24) is trading above our estimate of fair value (£4.57)

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


Price To Earnings Ratio

PE vs Industry: OXIG's PE Ratio (27.3x) is in line with the GB Electronic industry average.

PE vs Market: OXIG is poor value based on its PE Ratio (27.3x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: OXIG is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: OXIG is overvalued based on its PB Ratio (3.5x) compared to the GB Electronic industry average (2.3x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OXIG's forecast earnings growth (6.4% per year) is above the savings rate (1.2%).

Earnings vs Market: OXIG's earnings (6.4% per year) are forecast to grow slower than the UK market (23.9% per year).

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

Revenue vs Market: OXIG's revenue (1.3% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: OXIG's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OXIG's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Oxford Instruments performed over the past 5 years?

56.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OXIG has high quality earnings.

Growing Profit Margin: OXIG's current net profit margins (10.1%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: OXIG has become profitable over the past 5 years, growing earnings by 56.1% per year.

Accelerating Growth: OXIG's earnings growth over the past year (14.9%) is below its 5-year average (56.1% per year).

Earnings vs Industry: OXIG earnings growth over the past year (14.9%) exceeded the Electronic industry -2.1%.


Return on Equity

High ROE: OXIG's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Oxford Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: OXIG's short term assets (£226.4M) exceed its short term liabilities (£169.8M).

Long Term Liabilities: OXIG's short term assets (£226.4M) exceed its long term liabilities (£18.5M).


Debt to Equity History and Analysis

Debt Level: OXIG's debt to equity ratio (11.1%) is considered satisfactory.

Reducing Debt: OXIG's debt to equity ratio has reduced from 114.9% to 11.1% over the past 5 years.

Debt Coverage: OXIG's debt is well covered by operating cash flow (197.8%).

Interest Coverage: OXIG's interest payments on its debt are well covered by EBIT (41.5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.95%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OXIG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OXIG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OXIG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OXIG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OXIG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OXIG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

  • Explore strong dividend paying companies in the Tech industry.

Management

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

4.5yrs

Average board tenure


CEO

Ian Barkshire (54 yo)

4.42yrs

Tenure

UK£1,839,000

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 ($USD2.39M) is above average for companies of similar size in the UK market ($USD1.15M).

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


Board Members

NamePositionTenureCompensationOwnership
Ian Barkshire
Chief Executive & Executive Director4.42yrsUK£1.84m0.022%
£ 191.5k
Gavin Hill
Group Finance Director & Executive Director4.42yrsUK£1.39m0.011%
£ 92.7k
Richard Friend
Independent Non-Executive Director6.08yrsUK£50.00kno data
Thomas Geitner
Independent Non-Executive Director7.75yrsUK£57.00kno data
Neil Andrew Carson
Independent Chairman of the Board1.83yrsUK£180.00k0.014%
£ 121.9k
W. L. L. Alison Wood
Independent Non-Executive Director0.083yrno datano data
Stephen Blair
Senior Independent Non-Executive Director3.25yrsUK£57.00kno data
Mary Waldner
Independent Non-Executive Director4.67yrsUK£57.00k0.0017%
£ 15.2k

4.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: OXIG's board of directors are considered experienced (4.5 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

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£874.411m
  • Shares outstanding: 57.38m
  • 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, China, Japan, the United States, Germany, rest of E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 22:28
End of Day Share Price2020/10/28 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.