LSE:SXS

Stock Analysis Report

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Executive Summary

Spectris plc manufactures and sells measuring instruments and controls worldwide. More Details


Snowflake Analysis

Flawless balance sheet established 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

Stable Share Price: SXS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SXS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

SXS

-5.6%

GB Electronic

-0.3%

GB Market


1 Year Return

-4.4%

SXS

6.1%

GB Electronic

-11.0%

GB Market

Return vs Industry: SXS underperformed the UK Electronic industry which returned 6.1% over the past year.

Return vs Market: SXS exceeded the UK Market which returned -11% over the past year.


Shareholder returns

SXSIndustryMarket
7 Day-0.8%-5.6%-0.3%
30 Day9.3%-2.9%10.2%
90 Day5.7%4.9%6.4%
1 Year-2.0%-4.4%7.0%6.1%-7.4%-11.0%
3 Year18.1%9.8%33.5%28.3%0.9%-11.5%
5 Year74.6%54.6%135.5%118.3%26.5%-2.5%

Long-Term 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?

14.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SXS (£26.81) is trading above our estimate of fair value (£12.18)

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


Price To Earnings Ratio

PE vs Industry: SXS is good value based on its PE Ratio (14.4x) compared to the GB Electronic industry average (32x).

PE vs Market: SXS is good value based on its PE Ratio (14.4x) compared to the UK market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: SXS is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SXS's PB Ratio (2.4x) is in line with the GB Electronic industry average.


Next Steps

Future Growth

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

36.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXS's forecast earnings growth (36% per year) is above the savings rate (1.2%).

Earnings vs Market: SXS's earnings (36% per year) are forecast to grow faster than the UK market (27.3% per year).

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

Revenue vs Market: SXS's revenue (4.9% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: SXS's revenue (4.9% 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 (11.9%).


Next Steps

Past Performance

How has Spectris performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXS has a large one-off gain of £208.0M impacting its June 30 2020 financial results.

Growing Profit Margin: SXS's current net profit margins (14.7%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: SXS's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: SXS's earnings growth over the past year (340.7%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: SXS earnings growth over the past year (340.7%) exceeded the Electronic industry -2.2%.


Return on Equity

High ROE: SXS's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Spectris's financial position?


Financial Position Analysis

Short Term Liabilities: SXS's short term assets (£812.5M) exceed its short term liabilities (£451.2M).

Long Term Liabilities: SXS's short term assets (£812.5M) exceed its long term liabilities (£210.6M).


Debt to Equity History and Analysis

Debt Level: SXS's debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: SXS's debt to equity ratio has reduced from 20.4% to 14.7% over the past 5 years.

Debt Coverage: SXS's debt is well covered by operating cash flow (129.7%).

Interest Coverage: SXS's interest payments on its debt are well covered by EBIT (21x coverage).


Balance Sheet


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SXS's dividend (2.43%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: SXS's dividend (2.43%) is low compared to the top 25% of dividend payers in the UK market (5.01%).


Stability and Growth of Payments

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 reasonably low payout ratio (34.9%), SXS's dividend payments are 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 (48.7% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Andrew Heath (56 yo)

2.17yrs

Tenure

UK£1,163,000

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's total compensation ($USD1.55M) is about average for companies of similar size in the UK market ($USD2.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Heath
CEO & Executive Director2.17yrsUK£1.16m0.019%
£ 573.0k
Derek Harding
CFO & Executive Director1.67yrsUK£816.20k0.0035%
£ 108.4k
Mark Serfözo
Company Secretary & General Counsel3.08yrsno datano data
Judith Wettach
Head of Corporate Development0.42yrno datano data
Andrew Harvey
Group Human Resources Director3.83yrsno datano data
Siobhán Andrews
Head of Corporate Affairsno datano datano data
Rebecca Dunn
Head of Sustainability (ES&G)0.50yrno datano data
Joseph Vorih
President of HBKno datano datano data
Mark Fleiner
President of Malvern Panalytical0.50yrno datano data
Amit Agarwal
President of OMEGA Engineering Inc0.083yrno datano data
Robert Martin
Deputy Company Secretaryno datano datano data
Crister Dalen
Assistant Company Secretaryno datano datano data

1.0yrs

Average Tenure

54yo

Average Age

Experienced Management: SXS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Heath
CEO & Executive Director2.17yrsUK£1.16m0.019%
£ 573.0k
Derek Harding
CFO & Executive Director1.67yrsUK£816.20k0.0035%
£ 108.4k
Kjersti Wiklund
Independent Non-Executive Director & Workforce Engagement Director3.83yrsUK£55.00kno data
Martha Wyrsch
Independent Non-Executive Director8.42yrsUK£70.00k0.0026%
£ 79.4k
Mark Williamson
Independent Non-Executive Chairman3.5yrsUK£220.00k0.014%
£ 444.0k
Catherine Turner
Independent Non-Executive Director1.17yrsUK£18.00k0.0020%
£ 62.2k
William Seeger
Senior Independent Director0.67yrUK£80.00k0.0026%
£ 79.4k
Karim Bitar
Independent Non-Executive Director3.33yrsUK£55.00k0.0011%
£ 35.1k
Ulf Quellmann
Independent Non-Executive Director5.83yrsUK£70.00k0.0018%
£ 54.2k

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SXS's board of directors are considered experienced (3.3 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

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£3.079b
  • Shares outstanding: 116.19m
  • 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: Malvern Panalytical, HBK, and Omega, and Industrial Solutions. The company provides prod...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 19:09
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.