Latest news with #SpiraxGroup
Yahoo
2 days ago
- Business
- Yahoo
Spirax Group (LON:SPX) Has Announced A Dividend Of £0.489
Spirax Group plc's (LON:SPX) investors are due to receive a payment of £0.489 per share on 14th of November. This makes the dividend yield about the same as the industry average at 2.3%. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Spirax Group's Projected Earnings Seem Likely To Cover Future Distributions While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. Prior to this announcement, Spirax Group's dividend made up quite a large proportion of earnings but only 52% of free cash flows. In general, cash flows are more important than earnings, so we are comfortable that the dividend will be sustainable going forward, especially with so much cash left over for reinvestment. Looking forward, earnings per share is forecast to rise by 51.7% over the next year. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 54% which brings it into quite a comfortable range. View our latest analysis for Spirax Group Spirax Group Has A Solid Track Record Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of £0.669 in 2015 to the most recent total annual payment of £1.65. This implies that the company grew its distributions at a yearly rate of about 9.4% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. Dividend Growth May Be Hard To Achieve Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Unfortunately things aren't as good as they seem. Unfortunately, Spirax Group's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year. Our Thoughts On Spirax Group's Dividend Overall, we always like to see the dividend being raised, but we don't think Spirax Group will make a great income stock. The company is generating plenty of cash, but we still think the dividend is a bit high for comfort. Overall, we don't think this company has the makings of a good income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for Spirax Group that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Reuters
7 days ago
- Business
- Reuters
UK manufacturing firm Spirax jumps on forecast for faster second-half sales growth
Aug 12 (Reuters) - Shares of Spirax Group (SPX.L), opens new tab rose more than 15% on Tuesday after the British manufacturing company said it expects organic sales growth to accelerate in the second half of the year, following a 3% rise in the first half.
Yahoo
10-08-2025
- Business
- Yahoo
Shareholders in Spirax Group (LON:SPX) are in the red if they invested three years ago
Explore Spirax Group's Fair Values from the Community and select yours For many investors, the main point of stock picking is to generate higher returns than the overall market. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Spirax Group plc (LON:SPX) shareholders, since the share price is down 46% in the last three years, falling well short of the market return of around 62%. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Spirax Group saw its EPS decline at a compound rate of 6.6% per year, over the last three years. The share price decline of 19% is actually steeper than the EPS slippage. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Spirax Group's earnings, revenue and cash flow. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Spirax Group the TSR over the last 3 years was -43%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective While the broader market gained around 22% in the last year, Spirax Group shareholders lost 18% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Spirax Group has 1 warning sign we think you should be aware of. Spirax Group is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
01-06-2025
- Business
- Yahoo
Down 35% in a year, is this FTSE 100 stock a once-in-a-decade opportunity?
Shares in Spirax Group (LSE:SPX) have fallen 35% in the last 12 months. But that puts the FTSE 100 stock in unusually attractive territory and there are some familiar themes emerging. A combination of increased debt, higher interest costs, and a cyclical downturn have been weighing on the business. But that looks a lot like the position Rolls-Royce was in at the end of the pandemic… Spirax manufactures equipment that helps industrial operations like factories manage temperatures throughout their manufacturing processes. That might involve heating, cooling, or regulating. Its systems are often highly technical and mission-critical for its customers. This means the business benefits from resilient strong demand while also being difficult for other companies to disrupt. Acquisitions have been key to Spirax's growth over the last 10 years. By buying other businesses, it has expanded from steam-based solutions to include electric-based systems. Doing so has allowed the firm to expand its installed base of systems significantly. And the servicing and maintenance of these has provided the company with long-term, high-margin revenues. All of this sounds good, so the obvious question is why's the stock been falling? The answer is Spirax's revenues, margins, and profits have all come under pressure over the last few years. Most recently, demand from China – a key industrial market – has faltered. That's caused the FTSE 100 firm's sales to decline in the last couple of years. Over the longer term, the company's acqusitions have proved expensive. Spirax's long-term debt's gone from below £100m in 2016 to over £870m in 2024, which has caused interest costs to rise. As a result, margins have contracted and earnings growth has slowed and that's a sign of the ongoing risks with the business. But I think investors might have room for optimism. The falling Spirax share price has put the stock in interesting territory. On a price-to-earnings (P/E) basis, it trades at a multiple of around 22. That's unusually low for the company, though it's not meaningfully below where it was in 2018. But earnings have been volatile and that can make the P/E ratio an unreliable guide to valuation. In these situations, price-to-sales (P/S) and price-to-book (P/B) can be much more accurate metrics. And based on either of these, the stock's trading at some of its lowest multiples in the last 10 years. In other words, I think Spirax shares are unusually cheap at the moment. More importantly though, I think there are clear similarities the FTSE 100's top-performing stock of the last five years. At the end of the pandemic, Rolls-Royce had gone through a sharp drop in demand that had caused its debt to shoot up and its interest costs to surge. And we all know what's happened since then. I think it's striking how similar the situation with Spirax is at the moment. To some extent, the firm's problems are of its own making, but I think there could be similar opportunities ahead. The stock's a reminder of the risks that come with growth by acquisitions. But with its debt already starting to come down, investors should seriously consider whether now might be the time to buy. The post Down 35% in a year, is this FTSE 100 stock a once-in-a-decade opportunity? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
At UK£57.85, Is It Time To Put Spirax Group plc (LON:SPX) On Your Watch List?
Spirax Group plc (LON:SPX), is not the largest company out there, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£79.15 and falling to the lows of UK£54.45. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Spirax Group's current trading price of UK£57.85 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Spirax Group's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. We've discovered 1 warning sign about Spirax Group. View them for free. According to our valuation model, Spirax Group seems to be fairly priced at around 5.8% below our intrinsic value, which means if you buy Spirax Group today, you'd be paying a fair price for it. And if you believe the company's true value is £61.40, then there isn't much room for the share price grow beyond what it's currently trading. What's more, Spirax Group's share price may be more stable over time (relative to the market), as indicated by its low beta. View our latest analysis for Spirax Group Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 22% over the next couple of years, the future seems bright for Spirax Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? SPX's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on SPX, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. In terms of investment risks, we've identified 1 warning sign with Spirax Group, and understanding this should be part of your investment process. If you are no longer interested in Spirax Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
