OTCPK:SEPJ.Y

Stock Analysis Report

Executive Summary

Spectris plc manufactures and sells measuring instruments and controls worldwide.

Rewards

Earnings are forecast to grow 42.79% per year

Pays a reliable dividend of 2.16%

Risk Analysis

Dividend of 2.16% is not well covered by earnings

Profit margins (2.9%) are lower than last year (18.9%)



Snowflake Analysis

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

Stable Share Price: SEPJ.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SEPJ.Y

-1.5%

US Electronic

-1.2%

US Market


1 Year Return

9.8%

SEPJ.Y

24.0%

US Electronic

22.3%

US Market

Return vs Industry: SEPJ.Y underperformed the US Electronic industry which returned 23.9% over the past year.

Return vs Market: SEPJ.Y underperformed the US Market which returned 22% over the past year.


Shareholder returns

SEPJ.YIndustryMarket
7 Day0%-1.5%-1.2%
30 Dayn/a1.2%1.6%
90 Dayn/a7.1%8.8%
1 Year12.2%9.8%25.2%24.0%25.0%22.3%
3 Year46.1%37.5%48.1%43.9%49.9%40.3%
5 Year22.6%10.6%88.1%78.6%77.6%58.0%

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

No news available

Valuation

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

68.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEPJ.Y ($18.5) is trading above our estimate of fair value ($16.39)

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


Price To Earnings Ratio

PE vs Industry: SEPJ.Y is poor value based on its PE Ratio (68.1x) compared to the Electronic industry average (21.2x).

PE vs Market: SEPJ.Y is poor value based on its PE Ratio (68.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SEPJ.Y is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SEPJ.Y is overvalued based on its PB Ratio (2.9x) compared to the US 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 14 analysts?

43.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEPJ.Y's forecast earnings growth (42.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SEPJ.Y's earnings (42.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: SEPJ.Y's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: SEPJ.Y's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEPJ.Y's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Spectris performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEPJ.Y has high quality earnings.

Growing Profit Margin: SEPJ.Y's current net profit margins (2.9%) are lower than last year (18.9%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: SEPJ.Y had negative earnings growth (-83.5%) over the past year, making it difficult to compare to the Electronic industry average (53.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spectris's financial position?


Financial Position Analysis

Short Term Liabilities: SEPJ.Y's short term assets (£661.9M) exceed its short term liabilities (£427.7M).

Long Term Liabilities: SEPJ.Y's short term assets (£661.9M) exceed its long term liabilities (£495.5M).


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: SEPJ.Y's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: SEPJ.Y's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SEPJ.Y's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: SEPJ.Y's dividends in 3 years are forecast to be well covered by earnings (43% 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?

1.2yrs

Average management tenure


CEO

Andrew Heath (55yo)

1.3yrs

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's total compensation ($USD1.10M) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

1.2yrs

Average Tenure

53yo

Average Age

Experienced Management: SEPJ.Y's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: SEPJ.Y's board of directors are not considered experienced ( 2.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Siobhán Andrews

    Head of Corporate Affairs

    • Joe Vorih (51yo)

      President of HBK

      • Paolo Carmassi

        President of Malvern Panalytical

        • Tenure: 1yrs
      • Derek Harding (46yo)

        Chief Financial Officer

        • Tenure: 1yrs
      • Andrew Heath (55yo)

        CEO & Executive Director

        • Tenure: 1.3yrs
        • Compensation: UK£848.35k
      • Andrew Harvey (55yo)

        Group Human Resources Director

        • Tenure: 3yrs
      • Rebecca Dunn

        Deputy Company Secretary

        • Robert Martin

          Deputy Company Secretary

          • Mark Serfözo

            Company Secretary & General Counsel

            • Tenure: 2.3yrs
          • Greg Wright

            President of Omega

            • Tenure: 1yrs

          Board Members

          • Kjersti Wiklund (55yo)

            Non Executive Director

            • Tenure: 3yrs
            • Compensation: UK£55.00k
          • Martha Wyrsch (61yo)

            Non-Executive Director

            • Tenure: 7.6yrs
            • Compensation: UK£70.00k
          • Mark Williamson (61yo)

            Non-Executive Chairman

            • Tenure: 2.7yrs
            • Compensation: UK£220.00k
          • Cathy Turner (56yo)

            Non-Executive Director

            • Tenure: 0.3yrs
          • Russell King (62yo)

            Senior Independent Director

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

            Non-Executive Director

            • Tenure: 5yrs
            • Compensation: UK£80.00k
          • Derek Harding (46yo)

            Chief Financial Officer

            • Tenure: 1yrs
          • Karim Bitar (54yo)

            Non-Executive Director

            • Tenure: 2.5yrs
            • Compensation: UK£55.00k
          • Andrew Heath (55yo)

            CEO & Executive Director

            • Tenure: 1.3yrs
            • Compensation: UK£848.35k
          • Ulf Quellmann (53yo)

            Non-Executive Director

            • Tenure: 5yrs
            • Compensation: UK£61.00k

          Company Information

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


          Key Information

          • Name: Spectris plc
          • Ticker: SEPJ.Y
          • Exchange: OTCPK
          • Founded: 1915
          • Industry: Electronic Equipment and Instruments
          • Sector: Tech
          • Market Cap: UK£3.271b
          • Listing Market Cap: UK£4.275b
          • Shares outstanding: 116.00m
          • 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 Controls. The Materials Analysis segment provides products and services, which enable customers to determine structure, composition, quantity, and quality of particles and materials during their research and development processes, when assessing materials before production, or during the manufacturing process. It serves metal, minerals and mining, pharmaceutical, fine chemical, and semiconductor industries; and academic research institutes. The Test and Measurement segment supplies test, measurement, and analysis equipment, as well as software and services for product design optimization, manufacturing control, microseismic monitoring, and environmental noise monitoring. It serves automotive, aerospace, electronics, and energy industries, as well as academic research institutes. The In-line Instrumentation segment offers process analytical measurement, asset monitoring, and online controls, as well as associated consumables and services for primary processing and converting industries. It serves process, pulp, paper, tissue, energy, utilities, and Web and converting industries. The Industrial Controls segment provides products and solutions that measure, monitor, control, inform, and connect during the production process. It serves manufacturing, process, energy, and electronics industries. The company was formerly known as Fairey Aviation Company Ltd. and changed its name to Spectris plc in May 2001. Spectris plc was founded in 1915 and is based in Egham, the United Kingdom. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/27 00:40
          End of Day Share Price2020/01/07 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.