NYSE:SPXC

Stock Analysis Report

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.

Snowflake

Fundamentals

Reasonable growth potential with mediocre 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


Market Performance


7 Day Return

4.6%

NYSE:SPXC

1.2%

US Machinery

0.9%

US Market


1 Year Return

9.3%

NYSE:SPXC

-6.7%

US Machinery

0.3%

US Market

SPXC outperformed the Machinery industry which returned -7.6% over the past year.

SPXC outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

SPXCIndustryMarket
7 Day4.6%1.2%0.9%
30 Day10.3%-7.1%-1.9%
90 Day21.4%-2.8%1.6%
1 Year9.3%9.3%-4.8%-6.7%2.6%0.3%
3 Year104.5%104.5%37.2%28.2%41.0%31.8%
5 Year46.4%-63.8%37.3%20.3%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SPX's share price is below the future cash flow value, and at a moderate discount (> 20%).

SPX's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

SPX is overvalued based on earnings compared to the US Machinery industry average.

SPX is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

SPX is good value based on expected growth next year.


Price Based on Value of Assets

SPX is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SPX's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

SPX's earnings are expected to grow significantly at over 20% yearly.

SPX's revenue growth is positive but not above the United States of America market average.

SPX's earnings growth is expected to exceed the United States of America market average.

SPX's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SPX is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has SPX performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SPX's year on year earnings growth rate has been positive over the past 5 years.

SPX's 1-year earnings growth is negative, it can't be compared to the 5-year average.

SPX's 1-year earnings growth is negative, it can't be compared to the US Machinery industry average.


Return on Equity

SPX has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SPX used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

SPX has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is SPX's financial position?


Financial Position Analysis

SPX is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SPX's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SPX's level of debt (91.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (53.3% vs 91.4% today).

Debt is well covered by operating cash flow (33.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate SPX's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate SPX's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as SPX has not reported any payouts.

Unable to verify if SPX's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as SPX has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of SPX's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Gene Lowe (51yo)

3.9yrs

Tenure

US$5,294,522

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

Gene's remuneration is about average for companies of similar size in United States of America.

Gene's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

49yo

Average Age

The tenure for the SPX management team is about average.


Board Age and Tenure

3.9yrs

Average Tenure

61yo

Average Age

The tenure for the SPX board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$384,94726 Feb 19
John Swann
EntityIndividual
Role
Senior Key Executive
President of Heating
Shares10,435
Max PriceUS$36.89
SellUS$488,54413 Nov 18
John Nurkin
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares16,800
Max PriceUS$29.08

Ownership Breakdown


Management Team

  • Gene Lowe (51yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$5.29m
  • Michael Reilly

    Chief Accounting Officer

    • Tenure: 14.7yrs
  • Randy Data (53yo)

    President of South Africa & Global Operations

    • Tenure: 4.0yrs
    • Compensation: US$1.53m
  • Ross Skelton

    Chief Commercial Officer

    • Tenure: 6.0yrs
  • Scott Sproule (49yo)

    VP, CFO & Treasurer

    • Tenure: 3.9yrs
    • Compensation: US$1.64m
  • John Nurkin (49yo)

    VP, General Counsel & Secretary

    • Tenure: 3.9yrs
    • Compensation: US$1.20m
  • John Swann (48yo)

    President of Heating

    • Tenure: 0.0yrs
    • Compensation: US$1.41m
  • Tausha White (47yo)

    VP & Chief Human Resources Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.16m
  • Paul Clegg

    Vice President of Investor Relations & Communications

    • Tenure: 0.0yrs
  • Vivek Dhir

    Vice President of Global Marketing & Business Development

    • Tenure: 0.0yrs

Board Members

  • Gene Lowe (51yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$5.29m
  • Patrick O'Leary (61yo)

    Non-Executive Chairman

    • Tenure: 3.9yrs
    • Compensation: US$340.02k
  • Bob Toth (58yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$207.62k
  • Ruth Shaw (71yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$225.02k
  • Dave Roberts (71yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$220.02k
  • Rick Puckett (66yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$235.02k
  • Tana Utley (55yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$205.02k

Company Information

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


Key Information

  • Name: SPX Corporation
  • Ticker: SPXC
  • Exchange: NYSE
  • Founded: 1911
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.671b
  • Shares outstanding: 44.03m
  • 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 Analysis2019/08/19 23:48
End of Day Share Price2019/08/19 00:00
Earnings2019/06/29
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.