SPT

Spirent CommunicationsLSE:SPT Stock Report

Market Cap

UK£1.8b

7D

-1.1%

1Y

6.3%

Updated

20 Sep, 2021

Data

Company Financials +
SPT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends4/6

SPT Overview

Spirent Communications plc provides automated test and assurance solutions for networks, cybersecurity, and positioning applications worldwide.

Share Price & News

How has Spirent Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SPT's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

SPT

-1.0%

GB Communications

-2.5%

GB Market


1 Year Return

6.3%

SPT

7.8%

GB Communications

22.0%

GB Market

Return vs Industry: SPT exceeded the UK Communications industry which returned 5% over the past year.

Return vs Market: SPT underperformed the UK Market which returned 19.9% over the past year.


Shareholder returns

SPTIndustryMarket
7 Day-1.1%-1.0%-2.5%
30 Day-1.5%0.06%-2.1%
90 Day19.3%14.4%-1.4%
1 Year10.7%6.3%10.7%7.8%27.1%22.0%
3 Year141.6%122.5%95.6%85.3%14.7%1.8%
5 Year338.5%271.3%147.4%127.6%35.5%10.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Spirent Communications Fundamentals Summary

How do Spirent Communications's earnings and revenue compare to its market cap?
SPT fundamental statistics
Market CapUS$2.43b
Earnings (TTM)US$81.80m
Revenue (TTM)US$543.80m

29.7x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPT income statement (TTM)
RevenueUS$543.80m
Cost of RevenueUS$147.90m
Gross ProfitUS$395.90m
ExpensesUS$314.10m
EarningsUS$81.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin72.80%
Net Profit Margin15.04%
Debt/Equity Ratio0%

How did SPT perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

47%

Payout Ratio

Valuation

Is Spirent Communications undervalued compared to its fair value and its price relative to the market?

29.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPT (£2.92) is trading above our estimate of fair value (£2.47)

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


Price To Earnings Ratio

PE vs Industry: SPT is good value based on its PE Ratio (29.7x) compared to the UK Communications industry average (42.1x).

PE vs Market: SPT is poor value based on its PE Ratio (29.7x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: SPT is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: SPT is overvalued based on its PB Ratio (5.9x) compared to the GB Communications industry average (4x).


Future Growth

How is Spirent Communications forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPT's forecast earnings growth (9.5% per year) is above the savings rate (0.9%).

Earnings vs Market: SPT's earnings (9.5% per year) are forecast to grow slower than the UK market (14.4% per year).

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

Revenue vs Market: SPT's revenue (6% per year) is forecast to grow faster than the UK market (5.5% per year).

High Growth Revenue: SPT's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPT's Return on Equity is forecast to be high in 3 years time (20.4%)


Past Performance

How has Spirent Communications performed over the past 5 years?

49.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPT has high quality earnings.

Growing Profit Margin: SPT's current net profit margins (15%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: SPT's earnings have grown significantly by 49% per year over the past 5 years.

Accelerating Growth: SPT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SPT had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Communications industry average (18.9%).


Return on Equity

High ROE: SPT's Return on Equity (19.9%) is considered low.


Financial Health

How is Spirent Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SPT's short term assets ($306.3M) exceed its short term liabilities ($155.8M).

Long Term Liabilities: SPT's short term assets ($306.3M) exceed its long term liabilities ($58.4M).


Debt to Equity History and Analysis

Debt Level: SPT is debt free.

Reducing Debt: SPT has not had any debt for past 5 years.

Debt Coverage: SPT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SPT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Spirent Communications's current dividend yield, its reliability and sustainability?

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPT's dividend (1.53%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: SPT's dividend (1.53%) is low compared to the top 25% of dividend payers in the UK market (3.92%).


Stability and Growth of Payments

Stable Dividend: SPT's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.6%), SPT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPT's dividends in 3 years are forecast to be well covered by earnings (44.2% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Eric Updyke

2.33yrs

Tenure

US$2,549,833

Compensation

Mr. Eric Updyke has been Chief Executive Officer and Director at Spirent Communications plc since May 1, 2019. He served on the Executive Management team of Amdocs reporting directly to the Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD2.55M) is above average for companies of similar size in the UK market ($USD1.66M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: SPT's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: SPT's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SPT insiders have only sold shares 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

Spirent Communications plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spirent Communications plc
  • Ticker: SPT
  • Exchange: LSE
  • Founded: 1936
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£1.779b
  • Shares outstanding: 608.34m
  • Website: https://corporate.spirent.com

Number of Employees


Location

  • Spirent Communications plc
  • Origin One
  • 108 High Street
  • Crawley
  • West Sussex
  • RH10 1BD
  • United Kingdom

Listings


Biography

Spirent Communications plc provides automated test and assurance solutions for networks, cybersecurity, and positioning applications worldwide. The company operates through Networks & Security, Lifecycle S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 21:10
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.