NYSE:SPXC

Stock Analysis Report

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Executive Summary

SPX Corporation supplies infrastructure equipment serving the heating, ventilation and cooling (HVAC), detection and measurement, power transmission and generation, and industrial markets in the United States, China, South Africa, the United Kingdom, and internationally. More Details


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPXC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SPXC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

SPXC

-0.7%

US Machinery

-1.0%

US Market


1 Year Return

8.8%

SPXC

21.7%

US Machinery

19.6%

US Market

Return vs Industry: SPXC underperformed the US Machinery industry which returned 21.7% over the past year.

Return vs Market: SPXC underperformed the US Market which returned 19.6% over the past year.


Shareholder returns

SPXCIndustryMarket
7 Day0.4%-0.7%-1.0%
30 Day8.3%4.8%2.3%
90 Day16.0%16.5%13.1%
1 Year8.8%8.8%24.7%21.7%22.3%19.6%
3 Year73.4%73.4%28.0%19.0%45.3%35.7%
5 Year585.5%585.5%177.8%147.5%124.8%99.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPXC ($57.31) is trading below our estimate of fair value ($86.95)

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


Price To Earnings Ratio

PE vs Industry: SPXC is good value based on its PE Ratio (23.6x) compared to the US Machinery industry average (32.9x).

PE vs Market: SPXC is poor value based on its PE Ratio (23.6x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: SPXC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SPXC is overvalued based on its PB Ratio (4.4x) compared to the US Machinery industry average (3x).


Next Steps

Future Growth

How is SPX forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPXC's forecast earnings growth (16.4% per year) is above the savings rate (2%).

Earnings vs Market: SPXC's earnings (16.4% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: SPXC's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPXC's revenue (3.5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: SPXC's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPXC's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has SPX performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPXC has high quality earnings.

Growing Profit Margin: SPXC's current net profit margins (7%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: SPXC has become profitable over the past 5 years, growing earnings by 59.2% per year.

Accelerating Growth: SPXC's earnings growth over the past year (34.3%) is below its 5-year average (59.2% per year).

Earnings vs Industry: SPXC earnings growth over the past year (34.3%) exceeded the Machinery industry -15.5%.


Return on Equity

High ROE: SPXC's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is SPX's financial position?


Financial Position Analysis

Short Term Liabilities: SPXC's short term assets ($648.6M) exceed its short term liabilities ($562.2M).

Long Term Liabilities: SPXC's short term assets ($648.6M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: SPXC's debt to equity ratio (77.6%) is considered high.

Reducing Debt: SPXC's debt to equity ratio has reduced from 132% to 77.6% over the past 5 years.

Debt Coverage: SPXC's debt is well covered by operating cash flow (29.9%).

Interest Coverage: SPXC's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is SPX current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPXC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPXC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPXC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPXC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SPXC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPXC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Gene Lowe (52 yo)

5.33yrs

Tenure

US$7,608,668

Compensation

Mr. Eugene Joseph Lowe, III, also known as Gene, has been the Chief Executive Officer and President at SPX Corporation since September 26, 2015. Mr. Lowe is responsible for managing the day-to-day operatio...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD7.61M) is above average for companies of similar size in the US market ($USD5.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eugene Lowe
President5.33yrsUS$7.61m0.52%
$ 13.3m
J. Data
President of South Africa & Global Operations5.42yrsUS$2.06m0.13%
$ 3.3m
John Nurkin
VP, General Counsel & Secretary5.33yrsUS$1.51m0.20%
$ 5.2m
John Swann
President of Heatingno dataUS$1.68m0.17%
$ 4.3m
James Harris
CFO, VP & Treasurer0.42yrno datano data
Michael Reilly
Chief Accounting Officer16.08yrsno data0.11%
$ 3.0m
Paul Clegg
Vice President of Investor Relations & Communicationsno datano datano data
Vivek Dhir
Vice President of Global Marketing & Business Developmentno datano datano data
NaTausha White
VP & Chief Human Resources Officer5.75yrsUS$1.16m0.11%
$ 2.9m
Ross Skelton
Chief Commercial Officer7.42yrsno datano data
Eric Kaled
President of Genfare Business1.83yrsno datano data
Brian Mason
President of Transformer Solutions6yrsno data0.13%
$ 3.3m

5.4yrs

Average Tenure

52yo

Average Age

Experienced Management: SPXC's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eugene Lowe
President5.33yrsUS$7.61m0.52%
$ 13.3m
Patrick O'Leary
Independent Non-Executive Chairman5.33yrsUS$340.03k0.063%
$ 1.6m
Robert Toth
Independent Director3.5yrsUS$208.03k0.028%
$ 707.3k
Ruth Shaw
Independent Director5.33yrsUS$225.03k0.063%
$ 1.6m
David Roberts
Independent Director5.5yrsUS$220.03k0.063%
$ 1.6m
Ricky Puckett
Independent Director5.33yrsUS$235.03k0.063%
$ 1.6m
Tana Utley
Independent Director5.33yrsUS$205.03k0.063%
$ 1.6m
Meenal Sethna
Independent Director1.25yrsUS$87.77k0.0037%
$ 95.2k

5.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: SPXC's board of directors are considered experienced (5.3 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

SPX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SPX Corporation
  • Ticker: SPXC
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$2.567b
  • Shares outstanding: 44.78m
  • Website: https://www.spx.com

Number of Employees


Location

  • SPX Corporation
  • 13320-A Ballantyne Corporate Place
  • Charlotte
  • North Carolina
  • 28277
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPXCNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1998
SPWDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1998

Biography

SPX Corporation supplies infrastructure equipment serving the heating, ventilation and cooling (HVAC), detection and measurement, power transmission and generation, and industrial markets in the United Sta...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 23:10
End of Day Share Price2021/01/15 00:00
Earnings2020/09/26
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.