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SXS

Spectris LSE:SXS Stock Report

Last Price

UK£27.02

Market Cap

UK£2.9b

7D

-5.6%

1Y

-17.7%

Updated

03 Jul, 2022

Data

Company Financials +
SXS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends5/6

SXS Stock Overview

Spectris plc manufactures and sells measuring instruments and controls worldwide.

Spectris Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Spectris
Historical stock prices
Current Share PriceUK£27.02
52 Week HighUK£41.67
52 Week LowUK£23.71
Beta0.67
1 Month Change-9.48%
3 Month Change6.09%
1 Year Change-17.70%
3 Year Change-0.55%
5 Year Change6.13%
Change since IPO1,677.63%

Recent News & Updates

May 17
Estimating The Fair Value Of Spectris plc (LON:SXS)

Estimating The Fair Value Of Spectris plc (LON:SXS)

Does the May share price for Spectris plc ( LON:SXS ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

SXSGB ElectronicGB Market
7D-5.6%-2.0%-1.1%
1Y-17.7%-25.1%-9.7%

Return vs Industry: SXS exceeded the UK Electronic industry which returned -25.1% over the past year.

Return vs Market: SXS underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is SXS's price volatile compared to industry and market?
SXS volatility
SXS Average Weekly Movement5.0%
Electronic Industry Average Movement5.0%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: SXS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SXS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19867,788Andrew Heathhttps://www.spectris.com

Spectris plc manufactures and sells measuring instruments and controls worldwide. It operates through Malvern Panalytical, HBK, Omega and Industrial Solutions segments. The Malvern Panalytical segment provides measurement and materials characterization and efficiency in R&D and manufacturing sectors.

Spectris Fundamentals Summary

How do Spectris's earnings and revenue compare to its market cap?
SXS fundamental statistics
Market CapUK£2.86b
Earnings (TTM)UK£346.90m
Revenue (TTM)UK£1.29b

8.2x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXS income statement (TTM)
RevenueUK£1.29b
Cost of RevenueUK£553.20m
Gross ProfitUK£738.80m
Other ExpensesUK£391.90m
EarningsUK£346.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 01, 2022

Earnings per share (EPS)3.28
Gross Margin57.18%
Net Profit Margin26.85%
Debt/Equity Ratio0%

How did SXS perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SXS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SXS?

Other financial metrics that can be useful for relative valuation.

SXS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA12.8x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

How does SXS's PE Ratio compare to its peers?

SXS PE Ratio vs Peers
The above table shows the PE ratio for SXS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.3x
RSW Renishaw
20.9x2.8%UK£2.7b
OXIG Oxford Instruments
29.6x17.4%UK£1.1b
HLMA Halma
31.2x6.5%UK£7.6b
SDI SDI Group
23.4xn/aUK£147.6m
SXS Spectris
8.2x-26.8%UK£2.9b

Price-To-Earnings vs Peers: SXS is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (26.3x).


Price to Earnings Ratio vs Industry

How does SXS's PE Ratio compare vs other companies in the European Electronic Industry?

Price-To-Earnings vs Industry: SXS is good value based on its Price-To-Earnings Ratio (8.2x) compared to the UK Electronic industry average (20.9x)


Price to Earnings Ratio vs Fair Ratio

What is SXS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SXS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: SXS is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).


Share Price vs Fair Value

What is the Fair Price of SXS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SXS (£27.02) is trading below our estimate of fair value (£37.84)

Significantly Below Fair Value: SXS is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: SXS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Spectris forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-26.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXS's earnings are forecast to decline over the next 3 years (-26.8% per year).

Earnings vs Market: SXS's earnings are forecast to decline over the next 3 years (-26.8% per year).

High Growth Earnings: SXS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SXS's revenue (3.6% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: SXS's revenue (3.6% 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 (15.4%).


Discover growth companies

Past Performance

How has Spectris performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SXS has a high level of non-cash earnings.

Growing Profit Margin: SXS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SXS's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: SXS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SXS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (13.6%).


Return on Equity

High ROE: SXS's Return on Equity (27.5%) is considered high.


Discover strong past performing companies

Financial Health

How is Spectris's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SXS's short term assets (£688.0M) exceed its short term liabilities (£393.7M).

Long Term Liabilities: SXS's short term assets (£688.0M) exceed its long term liabilities (£113.1M).


Debt to Equity History and Analysis

Debt Level: SXS is debt free.

Reducing Debt: SXS has no debt compared to 5 years ago when its debt to equity ratio was 21.9%.

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

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


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SXS's dividend (2.66%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: SXS's dividend (2.66%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.5%), SXS's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.2%), SXS's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure


CEO

Andrew Heath (58 yo)

3.83yrs

Tenure

UK£2,206,000

Compensation

Mr. Andrew Heath has been an Executive 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 Imagin...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.65M) is about average for companies of similar size in the UK market ($USD3.04M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SXS's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: SXS's board of directors are considered experienced (3.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Spectris plc
  • Ticker: SXS
  • Exchange: LSE
  • Founded: 1986
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Implied Market Cap: UK£2.859b
  • Shares outstanding: 105.80m
  • Website: https://www.spectris.com

Number of Employees


Location

  • Spectris plc
  • Melbourne House
  • 5th Floor
  • London
  • Greater London
  • WC2B 4LL
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.