Spirax Sarco Engineering (SPX) AI Stock Analysis

• Market Cap: £5.20B
• Dividend Yield: 2.33%
• Average Volume (3M): 158.86K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.31
• Revenue Growth: 0.10%
• EPS Growth: -15.33%
• Country: UK
• Employees: 9,960
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 73,776,050
• 10 Day Avg. Volume: 192,272
• 30 Day Avg. Volume: 158,862
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £7,454.11
• Price Target Upside: 5.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: 6,757.00p ▼(-4.36% Downside)

Spirax Sarco Engineering's overall stock score is driven by strong financial performance and positive corporate events. While technical indicators suggest a potential overbought condition, the company's strategic initiatives and solid financial health support a favorable outlook. The valuation is a concern due to a high P/E ratio, but the company's growth prospects and governance improvements provide a balanced view.

Positive Factors

Earnings

Spirax's 1H25 Interims were ahead of expectations, indicating strong performance.

Growth Opportunities

The outlook is more robust than feared, suggesting stability and potential growth.

Negative Factors

Market Reaction

The shares are down, which is considered an overly harsh reaction to the update, suggesting that the market's response might be exaggerated.

Spirax Sarco Engineering Business Overview & Revenue Model

Company Description

Spirax-Sarco Engineering plc provides engineered solutions for the users of industrial and commercial steam systems, electrical heating and temperature management systems, and pumps and fluid path technologies. It offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating and curing, cleaning and sterilizing, hot water generation, space heating, and humidification; electrical process heating and temperature management solutions, such as industrial heaters and systems, heat tracing, and various component technologies for industrial processes, heaters, and systems; and peristaltic and niche pumps and associated fluid path technologies, including pumps, tubing, and specialty filling systems and products for single-use applications. The company serves food, beverage, pharmaceutical and biotechnology, oil, gas, chemical, healthcare, power generation, buildings, mining and precious metal processing, water and wastewater, and pulp and paper, as well as original equipment manufacturers. The company sells its products directly, as well as through distributors. It operates in Europe, the Middle East, and Africa; the Asia Pacific; and the Americas. Spirax-Sarco Engineering plc was founded in 1888 and is headquartered in Cheltenham, the United Kingdom.

How the Company Makes Money

Spirax Sarco generates revenue through the sale of its core products, which include steam management equipment, control valves, and thermal energy solutions. The company has multiple revenue streams, including direct sales to end-users, distribution partnerships, and aftermarket services such as maintenance and consultancy. Additionally, Spirax Sarco benefits from long-term contracts and recurring revenue from service agreements. Strategic partnerships with key players in various industries enhance its market reach and drive consistent earnings, while a focus on research and development ensures a steady pipeline of innovative products that meet evolving customer needs.

Spirax Sarco Engineering Financial Statement Overview

Summary

Spirax Sarco Engineering demonstrates solid financial health with strong cash flow generation and profitability. While the balance sheet shows a good mix of equity and debt, rising leverage could be a concern. The company has maintained steady revenue growth and profitability, positioning it well within the industrial machinery sector.

Income Statement

Spirax Sarco Engineering shows strong profitability with a consistent EBIT margin averaging around 18% over the years. Revenue has grown steadily, albeit at a moderate pace. The net profit margin has been stable, indicating efficient cost management. However, the gross profit margin has fluctuated, suggesting some variability in cost of goods sold.

Balance Sheet

The company maintains a healthy equity ratio, consistently above 40%, which indicates a strong capital structure. However, the debt-to-equity ratio has increased, reflecting rising leverage which could pose risks if not managed carefully. Return on Equity remains robust, reflecting effective use of shareholder funds.

Cash Flow

Operating cash flow has been solid, supporting high levels of free cash flow. The free cash flow to net income ratio is strong, indicating efficient cash conversion. While capital expenditures have varied, the company has been successful in maintaining positive free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.68B	1.61B	1.34B	1.19B
Gross Profit	333.90M	1.28B	576.70M	492.30M	398.50M
EBITDA	378.30M	390.60M	402.10M	392.00M	324.30M
Net Income	191.20M	183.60M	224.70M	234.60M	173.60M
Balance Sheet
Total Assets	2.65B	2.71B	2.78B	1.86B	1.74B
Cash, Cash Equivalents and Short-Term Investments	334.20M	359.70M	328.90M	274.60M	246.20M
Total Debt	1.03B	1.12B	1.08B	465.20M	509.10M
Total Liabilities	1.44B	1.55B	1.62B	853.20M	889.10M
Stockholders Equity	1.21B	1.16B	1.17B	1.01B	851.30M
Cash Flow
Free Cash Flow	238.50M	193.20M	113.70M	204.20M	202.40M
Operating Cash Flow	312.80M	298.60M	231.20M	268.30M	252.00M
Investing Cash Flow	-65.30M	-95.70M	-576.60M	-62.10M	-52.50M
Financing Cash Flow	-215.00M	-219.20M	362.20M	-204.80M	-143.90M

Spirax Sarco Engineering Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7065.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPX, the sentiment is Positive. The current price of 7065 is above the 20-day moving average (MA) of 6345.50, above the 50-day MA of 6150.60, and above the 200-day MA of 6517.82, indicating a bullish trend. The MACD of 205.78 indicates Negative momentum. The RSI at 74.87 is Negative, neither overbought nor oversold. The STOCH value of 88.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPX.

Spirax Sarco Engineering Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMIN	77 Outperform	£7.60B	26.06	13.99%	1.91%	6.10%	33.05%
IMI	76 Outperform	£5.56B	24.14	23.79%	1.42%	-0.32%	-3.96%
ROR	74 Outperform	£2.85B	29.08	16.97%	1.93%	1.93%	-15.07%
SPX	73 Outperform	£5.20B	32.00	14.19%	2.33%	0.10%	-15.33%
WEIR	68 Neutral	£6.33B	20.66	17.68%	1.20%	-1.97%	40.55%
MRO	61 Neutral	£7.59B	24.32	10.69%	1.07%	-0.38%	―
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.72%	2.29%	-57.50%

Spirax Sarco Engineering Corporate Events

Spirax Group Reports Resilient H1 2025 Results Amid Global Challenges

Spirax Group reported its half-year results for 2025, showing a 3% organic revenue growth, despite challenging global economic conditions. The company maintained its full-year guidance, driven by strong order books and increased demand from key markets. Statutory profit margins were impacted by restructuring costs and currency headwinds, but the company achieved a 7% organic increase in adjusted operating profit. Spirax Group continues to focus on operational efficiency and strategic investments in digital and decarbonisation initiatives to drive long-term growth.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group plc Announces Strategic Board Committee Changes

Spirax Group plc announced changes to its board committee memberships, effective immediately. Maria Antoniou, who recently joined the board, will chair the Remuneration Committee and join the Colleague Engagement Committee, while Constance Baroudel will join the Audit Committee. These changes are part of the company’s ongoing efforts to strengthen its governance structure. The reorganization of board committees is expected to enhance the company’s strategic decision-making and stakeholder engagement, aligning with its commitment to sustainable growth and operational excellence.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group Aligns Executive Interests with Shareholder Value Through Share Incentive Plan

Spirax Group plc has announced transactions involving its top executives under the company’s employee share schemes. These transactions, conducted on the London Stock Exchange, involve the acquisition and awarding of shares to key personnel, including the Group CEO, HR Director, Sustainability Director, and Managing Director of ETS. This move reflects the company’s commitment to aligning executive interests with shareholder value, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group Announces DRIP Share Awards to Key Executives

Spirax Group plc has announced a series of transactions involving the award of DRIP shares to key executives following the final dividend payment in May 2025. This notification, initially omitted due to a clerical error, involves several high-ranking officials including the Group CEO, HR Director, ETS Managing Director, and Group Sustainability Director. The transactions were conducted on the London Stock Exchange, with the shares being awarded at varying prices, reflecting the company’s commitment to transparency in its financial dealings.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group Announces Managerial Share Transactions

Spirax Group plc has announced transactions involving key managerial personnel under its employee share schemes, in line with UK Market Abuse Regulation. These transactions, which include the acquisition of partnership shares and matching shares, involve the Group CEO, HR Director, Sustainability Director, and Managing Director, reflecting the company’s commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group Announces Management Share Transactions

Spirax Group plc has announced recent transactions involving its senior management under the company’s employee share schemes. These transactions, conducted in accordance with the UK Market Abuse Regulation, include acquisitions of partnership and matching shares as well as a restructuring of shareholding by one of the managing directors. The transactions were executed on the London Stock Exchange and involve key figures such as the Group CEO, HR Director, and Sustainability Director, reflecting ongoing internal financial activities within the company.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group plc AGM Results: All Resolutions Passed

At the recent Annual General Meeting of Spirax Group plc, all resolutions were successfully passed, reflecting strong shareholder support for the company’s strategic direction. The meeting’s outcomes, including the approval of special resolutions, underscore the company’s commitment to its growth and sustainability objectives, aligning with its role in advancing industrial efficiency and decarbonization efforts. The resolutions will be made available for inspection and filed with relevant authorities, ensuring transparency and compliance.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Sarco Engineering Maintains Full-Year Guidance Amid Economic Challenges

Spirax Sarco Engineering has maintained its full-year guidance despite a challenging economic environment marked by negative industrial production growth in key European markets and macroeconomic uncertainties due to trade tariffs. The company has focused on operational priorities such as consultative solution-selling, manufacturing improvements, and restructuring, which is expected to yield significant annual savings. While demand trends remain consistent with previous forecasts, the company anticipates stronger revenue growth and profit margins in the second half of the year, driven by increased MRO and solution sales and the recovery of Biopharm and Semicon sectors.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7850.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.