Spirent Communications plc
Spirent Communications plc Fundamental Analysis
Spirent Communications plc (SPNUF) shows weak financial fundamentals with a PE ratio of 234.30, profit margin of 1.40%, and ROE of 1.67%. The company generates $0.5B in annual revenue with weak year-over-year growth of -2.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SPNUF's fundamental strength across five key dimensions:
Efficiency Score
WeakSPNUF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPNUF shows balanced valuation metrics.
Growth Score
WeakSPNUF faces weak or negative growth trends.
Financial Health Score
ExcellentSPNUF maintains a strong and stable balance sheet.
Profitability Score
ModerateSPNUF maintains healthy but balanced margins.
Key Financial Metrics
Is SPNUF Expensive or Cheap?
P/E Ratio
SPNUF trades at 234.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SPNUF's PEG of -5.04 indicates potential undervaluation.
Price to Book
The market values Spirent Communications plc at 3.89 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 51.12 times EBITDA. This signals the market has high growth expectations.
How Well Does SPNUF Make Money?
Net Profit Margin
For every $100 in sales, Spirent Communications plc keeps $1.40 as profit after all expenses.
Operating Margin
Core operations generate 3.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.67 in profit for every $100 of shareholder equity.
ROA
Spirent Communications plc generates $1.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spirent Communications plc generates limited operating cash flow of $38.84M, signaling weaker underlying cash strength.
Free Cash Flow
Spirent Communications plc produces free cash flow of $31.06M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
SPNUF converts 1.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
234.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SPNUF Stacks Against Its Sector Peers
| Metric | SPNUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 234.30 | 35.62 | Worse (Expensive) |
| ROE | 1.67% | 1160.00% | Weak |
| Net Margin | 1.40% | -136515.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 1.96 | 4.79 | Neutral |
| ROA | 1.11% | -311498.00% (disorted) | Weak |
SPNUF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spirent Communications plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.00%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-82.45%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-53.82%
Industry Style: Growth, Innovation, High Beta
Declining