LSE:SXS

Stock Analysis Report

Executive Summary

Spectris plc manufactures and sells measuring instruments and controls worldwide.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

SXS

-2.4%

GB Electronic

-0.4%

GB Market


1 Year Return

19.1%

SXS

8.4%

GB Electronic

2.9%

GB Market

Return vs Industry: SXS exceeded the UK Electronic industry which returned 8.4% over the past year.

Return vs Market: SXS exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

SXSIndustryMarket
7 Day-0.8%-2.4%-0.4%
30 Day-4.1%-5.0%-1.4%
90 Day-13.5%-6.0%-2.1%
1 Year22.2%19.1%10.2%8.4%8.0%2.9%
3 Year19.2%11.1%47.4%40.7%18.0%3.6%
5 Year58.9%40.9%122.7%103.4%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXS (£23.79) is trading below our estimate of fair value (£24.3)

Significantly Below Fair Value: SXS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SXS is poor value based on its PE Ratio (57.4x) compared to the Electronic industry average (19.6x).

PE vs Market: SXS is poor value based on its PE Ratio (57.4x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: SXS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SXS is overvalued based on its PB Ratio (2.4x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Spectris forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

42.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXS's forecast earnings growth (42.9% per year) is above the savings rate (1.2%).

Earnings vs Market: SXS's earnings (42.9% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SXS's revenue (1.9% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: SXS's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SXS's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Spectris performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SXS's earnings have grown by 8.1% per year over the past 5 years.

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

Earnings vs Industry: SXS had negative earnings growth (-83.5%) over the past year, making it difficult to compare to the Electronic industry average (-7.7%).


Return on Equity

High ROE: SXS's Return on Equity (4.2%) is considered low.


Return on Assets

ROA vs Industry: SXS's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: SXS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Spectris's financial position?


Financial Position Analysis

Short Term Liabilities: SXS's short term assets (£661.9M) exceeds its short term liabilities (£427.7M)

Long Term Liabilities: SXS's short term assets (661.9M) exceeds its long term liabilities (495.5M)


Debt to Equity History and Analysis

Debt Level: SXS's debt to equity ratio (33.8%) is considered satisfactory

Reducing Debt: SXS's debt to equity ratio has increased from 16.1% to 33.8% over the past 5 years.

Debt Coverage: SXS's debt is well covered by operating cash flow (50.8%).

Interest Coverage: SXS's interest payments on its debt are well covered by EBIT (26.2x coverage).


Balance Sheet

Inventory Level: SXS has a high level of physical assets or inventory.

Debt Coverage by Assets: SXS's debt is covered by short term assets (assets are 1.728190x debt).


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SXS's dividend (2.56%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: SXS's dividend (2.56%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: SXS's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (150.6%), SXS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXS's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Andrew Heath (55yo)

1.1yrs

Tenure

UK£848,353

Compensation

Mr. Andrew Heath has been the Director of Spectris plc since September 3, 2018 and has been its Chief Executive Officer since September 28, 2018. He served as the Chief Executive Officer of Imagination Tec ...


CEO Compensation Analysis

Compensation vs. Market: Andrew has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.


Management Age and Tenure

0.9yrs

Average Tenure

53yo

Average Age

Experienced Management: SXS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: SXS's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£15018 Dec 18
Karim Bitar
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares680
Max PriceUK£0.22

Ownership Breakdown


Management Team

  • Siobhán Andrews

    Head of Corporate Affairs

    • Tenure: 0yrs
  • Joe Vorih (51yo)

    President of HBK

    • Tenure: 0yrs
  • Paolo Carmassi

    President of Malvern Panalytical

    • Tenure: 0.8yrs
  • Derek Harding (46yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Andrew Heath (55yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£848.35k
  • Andrew Harvey (55yo)

    Group Human Resources Director

    • Tenure: 2.8yrs
  • Rebecca Dunn

    Deputy Company Secretary

    • Tenure: 0yrs
  • Robert Martin

    Deputy Company Secretary

    • Tenure: 0yrs
  • Mark Serfözo

    Company Secretary & General Counsel

    • Tenure: 2yrs
  • Greg Wright

    President of Omega

    • Tenure: 0.8yrs

Board Members

  • Kjersti Wiklund (56yo)

    Non Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£55.00k
  • Martha Wyrsch (61yo)

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: UK£70.00k
  • Mark Williamson (61yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: UK£220.00k
  • Cathy Turner (56yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Russell King (62yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£75.00k
  • Bill Seeger (67yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£80.00k
  • Derek Harding (46yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Karim Bitar (54yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£55.00k
  • Andrew Heath (55yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£848.35k
  • Ulf Quellmann (53yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£61.00k

Company Information

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


Key Information

  • Name: Spectris plc
  • Ticker: SXS
  • Exchange: LSE
  • Founded: 1915
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£2.752b
  • Shares outstanding: 115.95m
  • Website: https://www.spectris.com

Number of Employees


Location

  • Spectris plc
  • Heritage House
  • Church Road
  • Egham
  • Surrey
  • TW20 9QD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEPJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SXSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SXSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
FA9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SXS NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
SEPJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2011

Biography

Spectris plc manufactures and sells measuring instruments and controls worldwide. It operates through four segments: Materials Analysis, Test and Measurement, In-line Instrumentation, and Industrial Contro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:40
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.