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 and internationally.


Snowflake Analysis

Flawless balance sheet with solid 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

OXIG

-0.03%

GB Electronic

1.8%

GB Market


1 Year Return

-0.2%

OXIG

9.3%

GB Electronic

-12.2%

GB Market

Return vs Industry: OXIG underperformed the UK Electronic industry which returned 9% over the past year.

Return vs Market: OXIG exceeded the UK Market which returned -14.4% over the past year.


Shareholder returns

OXIGIndustryMarket
7 Day2.9%-0.03%1.8%
30 Day-0.3%7.3%6.5%
90 Day-14.4%3.1%-9.9%
1 Year0.7%-0.2%10.6%9.3%-8.0%-12.2%
3 Year12.5%8.6%35.6%29.6%-5.6%-17.2%
5 Year19.7%10.9%101.1%84.5%11.2%-13.7%

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?

20.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OXIG (£11.98) is trading above our estimate of fair value (£4.78)

Significantly Below Fair Value: 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 (20.2x) compared to the Electronic industry average (19x).

PE vs Market: OXIG is poor value based on its PE Ratio (20.2x) compared to the UK market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: OXIG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OXIG is overvalued based on its PB Ratio (3.2x) compared to the GB Electronic industry average (2x).


Next Steps

Future Growth

How is Oxford Instruments forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OXIG's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: OXIG's earnings are forecast to decline over the next 3 years (-2.1% per year).

High Growth Earnings: OXIG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OXIG's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: OXIG's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OXIG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Oxford Instruments performed over the past 5 years?

47.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OXIG has high quality earnings.

Growing Profit Margin: OXIG's current net profit margins (9.6%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: OXIG's earnings have grown significantly by 47.3% per year over the past 5 years.

Accelerating Growth: OXIG's earnings growth over the past year (83.8%) exceeds its 5-year average (47.3% per year).

Earnings vs Industry: OXIG earnings growth over the past year (83.8%) exceeded the Electronic industry 6.9%.


Return on Equity

High ROE: OXIG's Return on Equity (15.8%) 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 (£184.4M) exceed its short term liabilities (£134.5M).

Long Term Liabilities: OXIG's short term assets (£184.4M) exceed its long term liabilities (£41.3M).


Debt to Equity History and Analysis

Debt Level: OXIG's debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: OXIG's debt to equity ratio has reduced from 123.1% to 12.9% over the past 5 years.

Debt Coverage: OXIG's debt is well covered by operating cash flow (152.7%).

Interest Coverage: OXIG's interest payments on its debt are well covered by EBIT (35.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.14%

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

Management

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

4.3yrs

Average board tenure


CEO

Ian Barkshire (53yo)

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 ($USD2.15M) is above average for companies of similar size in the UK market ($USD1.23M).

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


Board Members

NamePositionTenureCompensationOwnership
Ian Barkshire
Chief Executive & Executive Director4yrsUK£1.76m0.022% £149.9k
Gavin Hill
CFO & Director4yrsUK£1.33m0.011% £72.3k
Richard Friend
Independent Non-Executive Director5.67yrsUK£48.00kno data
Thomas Geitner
Independent Non-Executive Director7.33yrsUK£56.00kno data
Neil Andrew Carson
Independent Chairman of the Board1.42yrsUK£60.00k0.014% £95.9k
Stephen Blair
Senior Independent Non-Executive Director2.83yrsUK£82.00kno data
Mary Waldner
Independent Non-Executive Director4.25yrsUK£56.00k0.0018% £12.0k

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: OXIG's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

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£686.264m
  • Shares outstanding: 57.28m
  • 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 and Characterisation, Research and Discovery, and Service and Healthcare segments. The company offers atomic force microscopy products; tools for use in research and development across a range of applications, including semiconductors, renewable energy, mining, metallurgy, and forensics; etch and deposition tools, such as clustered cassette-to-cassette platforms for high-throughput production processing and compact stand-alone systems for research and development; and low temperature systems comprising dilution refrigerators, high field magnets, and cryostats. It also provides OPTICAL IMAGING products, such as cameras, confocal microscopy products, and 3D and 4D visualization software; and nuclear magnetic resonance (NMR) instruments, including NMR spectrometers, QC/QA analyzers, and rock core analyzers for use in applications, such as agriculture and food, automotive and aviation, building and construction, chemicals, environment, illicit drugs testing, mining and minerals, pharma, polymers, rock core analysis, textiles, and teaching NMR. In addition, the company is involved in the CT and MRI equipment sales, maintenance services, parts, and mobile imaging solutions; development and manufacture of scientific cameras spectroscopy solutions, microscopy systems, and software for applications comprising advanced manufacturing, astronomy, bio imaging and life science, energy generation and storage, forensics and environment, photonics, quantum technology, semiconductors, microelectronics, and data storage; and manufacture of x-ray tubes, power supplies, and integrated x-ray sources, as well as service, sale, and rental of third party healthcare imaging systems. Oxford Instruments plc was founded in 1959 and is headquartered in Abingdon, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 22:14
End of Day Share Price2020/05/27 00:00
Earnings2019/09/30
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.