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Spirent Communications

LSE:SPT
Snowflake Description

Flawless balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPT
LSE
£907M
Market Cap
  1. Home
  2. GB
  3. Tech
Company description

Spirent Communications plc provides solutions to develop devices and equipment and to operate networks worldwide. The last earnings update was 196 days ago. More info.


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SPT Share Price and Events
7 Day Returns
0.7%
LSE:SPT
-2.5%
GB Communications
-0.4%
GB Market
1 Year Returns
50.1%
LSE:SPT
14.6%
GB Communications
-2.3%
GB Market
SPT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spirent Communications (SPT) 0.7% 4.2% 26.1% 50.1% 96.8% 45.8%
GB Communications -2.5% 7% 6.2% 14.6% 31.9% 17.2%
GB Market -0.4% 3.9% 1.5% -2.3% 19% -4%
1 Year Return vs Industry and Market
  • SPT outperformed the Communications industry which returned 14.6% over the past year.
  • SPT outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.3% over the past year.
Price Volatility
SPT
Industry
5yr Volatility vs Market

Value

 Is Spirent Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Spirent Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Spirent Communications.

LSE:SPT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SPT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Communications Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.752 (1 + (1- 19%) (0%))
0.752
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 8.77%)
8.25%

Discounted Cash Flow Calculation for LSE:SPT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spirent Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SPT DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 61.16 63.01 63.90 64.81 65.74
Source Analyst x4 Analyst x3 Est @ 1.42% Est @ 1.42% Est @ 1.42%
Present Value
Discounted (@ 8.25%)
56.50 53.77 50.38 47.21 44.23
Present value of next 5 years cash flows $252.10
LSE:SPT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $65.74 × (1 + 1.23%) ÷ (8.25% – 1.23%)
$948.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $948.10 ÷ (1 + 8.25%)5
$637.98
LSE:SPT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $252.10 + $637.98
$890.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $890.08 / 610.64
$1.46
LSE:SPT Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:SPT)
0.783
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $1.46 x 0.783
£1.14
Value per share (GBP) From above. £1.14
Current discount Discount to share price of £1.49
= -1 x (£1.49 - £1.14) / £1.14
-30.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Spirent Communications is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Spirent Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spirent Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SPT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $0.05
LSE:SPT Share Price ** LSE (2019-02-14) in GBP £1.49
LSE:SPT Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.278 $1.9
Europe Communications Industry PE Ratio Median Figure of 22 Publicly-Listed Communications Companies 19.44x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 814 Publicly-Listed Companies 15.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Spirent Communications.

LSE:SPT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SPT Share Price ÷ EPS (both in USD)

= 1.9 ÷ 0.05

36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spirent Communications is overvalued based on earnings compared to the Europe Communications industry average.
  • Spirent Communications is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Spirent Communications's expected growth come at a high price?
Raw Data
LSE:SPT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
10.7%per year
Europe Communications Industry PEG Ratio Median Figure of 11 Publicly-Listed Communications Companies 1.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 579 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

LSE:SPT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 36x ÷ 10.7%

3.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spirent Communications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Spirent Communications's assets?
Raw Data
LSE:SPT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $0.54
LSE:SPT Share Price * LSE (2019-02-14) in GBP £1.49
LSE:SPT Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.278 $1.9
United Kingdom of Great Britain and Northern Ireland Communications Industry PB Ratio Median Figure of 10 Publicly-Listed Communications Companies 1.6x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,361 Publicly-Listed Companies 1.52x
LSE:SPT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SPT Share Price ÷ Book Value per Share (both in USD)

= 1.9 ÷ 0.54

3.53x

* Primary Listing of Spirent Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spirent Communications is overvalued based on assets compared to the GB Communications industry average.
X
Value checks
We assess Spirent Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Spirent Communications has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Spirent Communications expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spirent Communications expected to grow at an attractive rate?
  • Spirent Communications's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Spirent Communications's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Spirent Communications's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SPT Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SPT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 10.7%
LSE:SPT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 5.9%
United Kingdom of Great Britain and Northern Ireland Communications Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United Kingdom of Great Britain and Northern Ireland Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SPT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SPT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 530 79 59 8
2019-12-31 501 75 56 9
2018-12-31 473 65 53 9
LSE:SPT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 450 48 32
2018-03-31 453 59 31
2017-12-31 455 69 29
2017-09-30 456 65 -2
2017-06-30 458 60 -32
2017-03-31 458 51 -37
2016-12-31 458 43 -42
2016-09-30 465 52 -13
2016-06-30 472 61 16
2016-03-31 475 61 14
2015-12-31 477 60 13
2015-09-30 474 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Spirent Communications's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • Spirent Communications's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SPT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Spirent Communications Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SPT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.09 0.13 0.07 4.00
2019-12-31 0.09 0.12 0.06 5.00
2018-12-31 0.08 0.11 0.06 4.00
LSE:SPT Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.05
2017-09-30 -0.00
2017-06-30 -0.05
2017-03-31 -0.06
2016-12-31 -0.07
2016-09-30 -0.02
2016-06-30 0.03
2016-03-31 0.02
2015-12-31 0.02
2015-09-30 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Spirent Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Spirent Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Spirent Communications has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Spirent Communications performed over the past 5 years?

  • Spirent Communications's last earnings update was 196 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Spirent Communications's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Spirent Communications's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Spirent Communications has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Spirent Communications has become profitable in the last year making it difficult to compare the Europe Communications industry average.
Earnings and Revenue History
Spirent Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Spirent Communications Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SPT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 450.40 32.20 167.90 97.80
2018-03-31 452.60 30.60 166.70 100.40
2017-12-31 454.80 29.00 165.50 103.00
2017-09-30 456.40 -1.50 164.85 105.55
2017-06-30 458.00 -32.00 164.20 108.10
2017-03-31 457.95 -37.15 165.90 109.90
2016-12-31 457.90 -42.30 167.60 111.70
2016-09-30 464.90 -13.35 165.60 113.65
2016-06-30 471.90 15.60 163.60 115.60
2016-03-31 474.50 14.45 168.15 116.95
2015-12-31 477.10 13.30 172.70 118.30
2015-09-30 474.00 14.00 174.05 119.90
2015-06-30 454.90 8.70 180.50 120.20
2015-03-31 454.65 13.75 174.70 117.95
2014-12-31 457.20 20.50 168.30 115.40
2014-09-30 446.50 22.10 168.30 111.90
2014-06-30 444.10 29.80 155.10 107.80
2014-03-31 428.60 33.30 152.40 105.00
2013-12-31 413.50 32.70 144.30 100.50
2013-09-29 422.70 48.80 143.10 96.10
2013-06-30 426.70 56.70 140.30 91.90
2013-03-31 451.80 67.40 143.00 87.50
2012-12-31 472.40 79.40 143.00 86.10
2012-09-30 473.10 85.60 139.40 84.30
2012-07-01 476.80 87.70 136.20 84.00
2012-04-01 465.10 89.40 130.90 83.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Spirent Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Spirent Communications used its assets more efficiently than the Europe Communications industry average last year based on Return on Assets.
  • Spirent Communications has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Spirent Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Spirent Communications has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Spirent Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Spirent Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spirent Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Spirent Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Spirent Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Spirent Communications has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Spirent Communications Company Filings, last reported 7 months ago.

LSE:SPT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 328.10 0.00 95.40
2018-03-31 328.10 0.00 95.40
2017-12-31 353.30 0.00 128.40
2017-09-30 353.30 0.00 128.40
2017-06-30 337.10 0.00 110.20
2017-03-31 337.10 0.00 110.20
2016-12-31 341.60 0.00 96.10
2016-09-30 341.60 0.00 96.10
2016-06-30 392.50 0.00 96.10
2016-03-31 392.50 0.00 96.10
2015-12-31 412.10 0.00 102.00
2015-09-30 412.10 0.00 102.00
2015-06-30 414.20 0.00 97.00
2015-03-31 414.20 0.00 97.00
2014-12-31 434.40 0.00 99.80
2014-09-30 443.70 0.00 168.40
2014-06-30 443.70 0.00 168.40
2014-03-31 452.40 0.00 216.20
2013-12-31 452.40 0.00 216.20
2013-09-29
2013-06-30 496.80 0.00 246.90
2013-03-31 495.60 0.00 248.60
2012-12-31 495.60 0.00 248.60
2012-09-30
2012-07-01 450.90 0.00 234.70
2012-04-01 422.20 0.00 236.50
  • Spirent Communications has no debt.
  • Spirent Communications has not taken on any debt in the past 5 years.
  • Spirent Communications has no debt, it does not need to be covered by operating cash flow.
  • Spirent Communications has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Spirent Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Spirent Communications has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.15%
Current annual income from Spirent Communications dividends. Estimated to be 2.62% next year.
If you bought £2,000 of Spirent Communications shares you are expected to receive £43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Spirent Communications's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Spirent Communications's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SPT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Europe Communications Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 709 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SPT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.05 8.00
2019-12-31 0.05 9.00
2018-12-31 0.05 9.00
LSE:SPT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-03-08 0.041 2.540
2017-03-02 0.039 2.787
2016-03-23 0.039 3.461
2015-02-26 0.039 3.228
2014-02-27 0.035 2.453
2013-08-01 0.034 1.859
2013-02-28 0.032 1.571
2012-03-29 0.059 2.363
2012-03-01 0.029 1.198
2011-03-03 0.028 1.346
2010-03-31 0.017 0.920
2010-03-04 0.018 1.005
2009-08-04 0.016 1.187
2009-03-10 0.017 2.057
2009-02-16 0.014 2.421

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Spirent Communications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Spirent Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Spirent Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spirent Communications has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric Hutchinson
COMPENSATION $1,017,800
AGE 63
TENURE AS CEO 5.4 years
CEO Bio

Mr. Eric G. Hutchinson has been the Chief Executive Officer of Spirent Communications PLC. (formerly, Spirent PLC) since September 3, 2013. Mr. Hutchinson has been the Chief Financial Officer of Spirent Communications Inc. since January 1, 2000. He served as the Chief Financial Officer of Spirent Communications PLC. since January 1, 2000. He served as Finance Director of Spirent Communications PLC since January 1, 2000 and which he joined in 1983 and served as its Chief Accountant since 1987. Since 1997, Mr. Hutchinson served as the Head of Financial Reporting and Control with responsibility for all financial reporting and control within Spirent PLC, for 12 years. Mr. Hutchinson trained as an Accountant with Thomas McLintock & Co. (now KPMG) in 1977 went to Trinity College Oxford to undertake post graduate research and worked in the Treasurer's department for South Oxfordshire District Council. He joined the Economic Forestry Group as Group Accountant before joining Bowthorpe Group as a Financial Accountant in one of its manufacturing subsidiaries. He has been a Director at Spirent Communications PLC since January 2000. He served as a Non-Executive Director of Trifast PLC from June 21, 2004 to March 2009 and served as Senior Independent Non Executive Director until March 2009. He is a Fellow of the Chartered Association of Certified Accountants. Mr. Hutchinson studied BA with honors from Leicester University and undertook post-graduate research in Contemporary History at Trinity College, Oxford.

CEO Compensation
  • Eric's compensation has increased in line with Spirent Communications recently becoming profitable.
  • Eric's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Spirent Communications management team in years:

4.9
Average Tenure
63
Average Age
  • The tenure for the Spirent Communications management team is about average.
Management Team

Eric Hutchinson

TITLE
CEO & Executive Director
COMPENSATION
$1M
AGE
63
TENURE
5.4 yrs

Paula Bell

TITLE
CFO & Executive Director
COMPENSATION
$723K
AGE
51
TENURE
2.4 yrs

Angus Iveson

TITLE
Company Secretary & General Counsel
TENURE
4.3 yrs

R. Chenhall

TITLE
Managing Director of PG Drives Technology
AGE
65
TENURE
25.1 yrs

Nigel Wright

TITLE
Executive Vice President of Global Sales

Michelle Balch

TITLE
Deputy Company Secretary
Board of Directors Tenure

Average tenure and age of the Spirent Communications board of directors in years:

2.2
Average Tenure
61
Average Age
  • The average tenure for the Spirent Communications board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bill Gennydd Thomas

TITLE
Non-Executive Chairman
COMPENSATION
$114K
AGE
58
TENURE
1.8 yrs

Eric Hutchinson

TITLE
CEO & Executive Director
COMPENSATION
$1M
AGE
63
TENURE
19.1 yrs

Paula Bell

TITLE
CFO & Executive Director
COMPENSATION
$723K
AGE
51
TENURE
2.4 yrs

Jonathan Silver

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$51K
AGE
61
TENURE
2.3 yrs

Gary Bullard

TITLE
Independent Non-Executive Director
COMPENSATION
$46K
AGE
61
TENURE
2.2 yrs

Edgar Masri

TITLE
Non-Executive Director
AGE
61
TENURE
1.1 yrs

Wendy Koh

TITLE
Non-Executive Director
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
18. May 18 Buy Edgar Masri Individual 18. May 18 18. May 18 20,000 £1.18 £23,514
04. May 18 Buy William Gennydd Thomas Individual 04. May 18 04. May 18 21,323 £1.17 £24,858
02. May 18 Buy Gary Bullard Individual 02. May 18 02. May 18 10,000 £1.17 £11,686
X
Management checks
We assess Spirent Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Spirent Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Spirent Communications plc (LON:SPT): A Fundamentally Attractive Investment

Help shape the future of investing tools and you could win a $250 gift card! … Spirent Communications plc (LON:SPT) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

How Did Spirent Communications plc's (LON:SPT) 9.8% ROE Fare Against The Industry?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.098. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Spirent Communications plc (LON:SPT): Is Growth Priced In?

Spirent Communications plc (LON:SPT) closed yesterday at £1.224, which left some investors asking whether the high earnings potential can still be justified at this price. … Check out our latest analysis for Spirent Communications? … Analysts are predicting good growth prospects for Spirent Communications over the next couple of years

Simply Wall St -

Is Spirent Communications plc (LON:SPT) Excessively Paying Its CEO?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Eric Hutchinson's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Spirent Communications plc has a market cap of UK£689m, and is paying total annual CEO compensation of US$1.0m.

Simply Wall St -

Does Spirent Communications plc (LON:SPT)'s Capital Return Make The Cut?

and looking to gauge the potential return on investment in Spirent Communications plc (LON:SPT). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Spirent Communications is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Is Spirent Communications plc (LON:SPT) A Great Dividend Stock?

Historically, Spirent Communications plc (LON:SPT) has paid a dividend to shareholders. … Does Spirent Communications tick all the boxes of a great dividend stock? … Check out our latest analysis for Spirent Communications

Simply Wall St -

What You Must Know About Spirent Communications plc's (LON:SPT) Financial Strength

However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is financial flexibility worth the lower cost of capital. … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital

Simply Wall St -

What Spirent Communications plc's (LON:SPT) ROE Can Tell Us

To keep the lesson grounded in practicality, we'll use ROE to better understand Spirent Communications plc (LON:SPT). … Over the last twelve months Spirent Communications has recorded a ROE of 9.8%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Have Investors Priced In Spirent Communications plc's (LON:SPT) Growth?

Spirent Communications plc (LON:SPT) closed yesterday at £1.15, which left some investors asking whether the high earnings potential can still be justified at this price. … See our latest analysis for Spirent Communications? … Investors in Spirent Communications have been patiently waiting for the uptick in earnings.

Simply Wall St -

Estimating The Intrinsic Value Of Spirent Communications plc (LON:SPT)

I am going to run you through how I calculated the intrinsic value of Spirent Communications plc (LON:SPT). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Company Info

Map
Description

Spirent Communications plc provides solutions to develop devices and equipment and to operate networks worldwide. The company operates through three segments: Networks & Security, Lifecycle Service Assurance, and Connected Devices. 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. The Lifecycle Service Assurance segment develops active test and analytics solutions for service turn-up, network performance improvement, and customer experience management. The Connected Devices develops automated test systems; and offers services to test new devices in the lab or on networks. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.

Details
Name: Spirent Communications plc
SPT
Exchange: LSE
Founded: 1936
£907,413,845
610,641,888
Website: http://www.spirent.com
Address: Spirent Communications plc
Northwood Park,
Gatwick Road,
Crawley,
West Sussex, RH10 9XN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SPT Ordinary Shares London Stock Exchange GB GBP 11. Jan 1980
OTCPK SPNU.F Ordinary Shares Pink Sheets LLC US USD 11. Jan 1980
DB BW8 Ordinary Shares Deutsche Boerse AG DE EUR 11. Jan 1980
BATS-CHIXE SPTL Ordinary Shares BATS 'Chi-X Europe' GB GBP 11. Jan 1980
OTCPK SPMY.Y SPONS ADR NEW Pink Sheets LLC US USD 10. Jul 2001
Number of employees
Current staff
Staff numbers
1,477
Spirent Communications employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/14 20:44
End of day share price update: 2019/02/14 00:00
Last estimates confirmation: 2019/02/08
Last earnings filing: 2018/08/02
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.