Spirax-Sarco Engineering plc
Spirax-Sarco Engineering plc Fundamental Analysis
Spirax-Sarco Engineering plc (SPXSY) shows weak financial fundamentals with a PE ratio of 35.69, profit margin of 9.80%, and ROE of 13.88%. The company generates $1.7B in annual revenue with weak year-over-year growth of -1.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SPXSY's fundamental strength across five key dimensions:
Efficiency Score
WeakSPXSY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPXSY shows balanced valuation metrics.
Growth Score
WeakSPXSY faces weak or negative growth trends.
Financial Health Score
ExcellentSPXSY maintains a strong and stable balance sheet.
Profitability Score
WeakSPXSY struggles to sustain strong margins.
Key Financial Metrics
Is SPXSY Expensive or Cheap?
P/E Ratio
SPXSY trades at 35.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SPXSY's PEG of -3.21 indicates potential undervaluation.
Price to Book
The market values Spirax-Sarco Engineering plc at 5.11 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.57 times EBITDA. This signals the market has high growth expectations.
How Well Does SPXSY Make Money?
Net Profit Margin
For every $100 in sales, Spirax-Sarco Engineering plc keeps $9.80 as profit after all expenses.
Operating Margin
Core operations generate 15.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.88 in profit for every $100 of shareholder equity.
ROA
Spirax-Sarco Engineering plc generates $6.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spirax-Sarco Engineering plc produces operating cash flow of $316.17M, showing steady but balanced cash generation.
Free Cash Flow
Spirax-Sarco Engineering plc generates strong free cash flow of $229.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.55 in free cash annually.
FCF Yield
SPXSY converts 3.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SPXSY Stacks Against Its Sector Peers
| Metric | SPXSY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.69 | 26.49 | Worse (Expensive) |
| ROE | 13.88% | 1307.00% | Weak |
| Net Margin | 9.80% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.93 | 0.81 | Neutral |
| Current Ratio | 1.77 | 10.48 | Neutral |
| ROA | 6.29% | -1549793.00% (disorted) | Weak |
SPXSY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spirax-Sarco Engineering plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.76%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
14.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
40.68%
Industry Style: Cyclical, Value, Infrastructure
High Growth