Spirent Communications plc provides automated test and assurance solutions for networks, cybersecurity, and positioning applications worldwide.
Spirent Communications Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£2.86|
|52 Week High||UK£2.26|
|52 Week Low||UK£3.11|
|1 Month Change||-4.35%|
|3 Month Change||14.49%|
|1 Year Change||1.78%|
|3 Year Change||107.25%|
|5 Year Change||242.52%|
|Change since IPO||351.58%|
Recent News & Updates
|SPT||GB Communications||GB Market|
Return vs Industry: SPT underperformed the UK Communications industry which returned 9.1% over the past year.
Return vs Market: SPT underperformed the UK Market which returned 23.4% over the past year.
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.
About the Company
Spirent Communications plc provides automated test and assurance solutions for networks, cybersecurity, and positioning applications worldwide. The company operates through Networks & Security, Lifecycle Service Assurance, and Connected Devices segments. The Networks & Security segment develops performance and security test systems to accelerate the development of new devices, networks, and applications for high-speed Ethernet/IP, mobile, and global satellite navigation systems.
Spirent Communications Fundamentals Summary
|SPT fundamental statistics|
Is SPT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SPT income statement (TTM)|
|Cost of Revenue||US$147.90m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.13|
|Net Profit Margin||15.04%|
How did SPT perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Is Spirent Communications undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SPT (£2.93) 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 (29.8x) compared to the UK Communications industry average (41.6x).
PE vs Market: SPT is poor value based on its PE Ratio (29.8x) compared to the UK market (23.4x).
Price to Earnings Growth Ratio
PEG Ratio: SPT is poor value based on its PEG Ratio (3.2x)
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).
How is Spirent Communications forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
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 (13.3% 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 (5.4% 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%)
How has Spirent Communications performed over the past 5 years?
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.
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 ($58.4M).
Debt to Equity History and Analysis
Debt Level: SPT is debt free.
Reducing Debt: SPT has not had any debt for past 5 years.
Debt Coverage: SPT has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SPT has no debt, therefore coverage of interest payments is not a concern.
What is Spirent Communications's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SPT's dividend (1.53%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).
High Dividend: SPT's dividend (1.53%) is low compared to the top 25% of dividend payers in the UK market (3.93%).
Stability and Growth of Payments
Stable Dividend: SPT's dividend payments have been volatile in the past 10 years.
Growing Dividend: SPT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.6%), SPT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SPT's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Eric Updyke has been Chief Executive Officer and Director at Spirent Communications plc since May 1, 2019. He served on the Executive Management team of Amdocs reporting directly to the Chief Executive...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD2.55M) is above average for companies of similar size in the UK market ($USD1.63M).
Compensation vs Earnings: Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: SPT's management team is seasoned and experienced (6 years average tenure).
Experienced Board: SPT's board of directors are considered experienced (4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Spirent Communications plc's employee growth, exchange listings and data sources
- Name: Spirent Communications plc
- Ticker: SPT
- Exchange: LSE
- Founded: 1936
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: UK£1.740b
- Shares outstanding: 608.34m
- Website: https://corporate.spirent.com
Number of Employees
- Spirent Communications plc
- Origin One
- 108 High Street
- West Sussex
- RH10 1BD
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 21:16|
|End of Day Share Price||2021/09/27 00:00|
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.