Spirax Sarco Engineering (SPX) AI Stock Analysis

• Market Cap: £5.18B
• Dividend Yield: 2.36%
• Average Volume (3M): 169.83K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.46
• Revenue Growth: 0.10%
• EPS Growth: -15.33%
• Country: UK
• Employees: 9,960
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 73,776,050
• 10 Day Avg. Volume: 195,337
• 30 Day Avg. Volume: 169,833
• PEG Ratio: 6.59
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 21.23
• 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: £8,116.25
• Price Target Upside: 15.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 7,539.00p ▲(7.01% Upside)

Spirax Sarco Engineering's overall stock score reflects strong financial performance and positive earnings call insights, which are slightly offset by technical indicators suggesting short-term bearish momentum and a high valuation. The company's strategic initiatives and restructuring efforts are key strengths, positioning it well for future growth despite some regional and currency challenges.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation supports financial flexibility and investment in growth opportunities, ensuring long-term sustainability.

Successful Restructuring Efforts

Restructuring efforts enhance operational efficiency and cost savings, positioning the company for improved profitability and competitiveness.

Strong Market Position in Biopharm and Semicon

Strong demand in biopharm and semicon sectors indicates a robust market position, driving future revenue growth and market share.

Negative Factors

Rising Leverage

Increased leverage can strain financial resources, potentially impacting the company's ability to invest in growth and manage economic downturns.

Challenges in China and Korea

Economic and political challenges in key markets like China and Korea can hinder revenue growth and affect the company's global expansion plans.

Currency Impact on Financial Performance

Adverse currency movements can erode profitability and complicate financial planning, affecting long-term financial performance.

Spirax Sarco Engineering Business Overview & Revenue Model

Company Description

Spirax Sarco Engineering (SPX) is a global leader in the provision of engineered solutions for the management of steam, air, and thermal energy. Operating primarily in the industrial sector, the company specializes in the manufacturing of products such as steam traps, valves, and heat exchangers, as well as offering services related to steam system efficiency and energy management. With a strong focus on innovation and sustainability, Spirax Sarco serves a diverse range of industries, including food and beverage, pharmaceuticals, and manufacturing.

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. The balance sheet shows a good mix of equity and debt, though 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	1.67B	1.68B	1.61B	1.34B	1.19B
Gross Profit	332.40M	333.90M	1.28B	576.70M	492.30M	398.50M
EBITDA	378.90M	378.30M	390.60M	402.10M	392.00M	324.30M
Net Income	162.70M	191.20M	183.60M	224.70M	234.60M	173.60M
Balance Sheet
Total Assets	2.58B	2.65B	2.71B	2.78B	1.86B	1.74B
Cash, Cash Equivalents and Short-Term Investments	303.20M	334.20M	359.70M	328.90M	274.60M	246.20M
Total Debt	1.05B	1.03B	1.12B	1.08B	465.20M	509.10M
Total Liabilities	1.45B	1.44B	1.55B	1.62B	853.20M	889.10M
Stockholders Equity	1.14B	1.21B	1.16B	1.17B	1.01B	851.30M
Cash Flow
Free Cash Flow	248.30M	238.50M	193.20M	113.70M	204.20M	202.40M
Operating Cash Flow	317.20M	312.80M	298.60M	231.20M	268.30M	252.00M
Investing Cash Flow	-85.90M	-65.30M	-95.70M	-576.60M	-62.10M	-52.50M
Financing Cash Flow	-174.10M	-215.00M	-219.20M	362.20M	-204.80M	-143.90M

Spirax Sarco Engineering Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7045.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7045 is above the 20-day moving average (MA) of 6960.04, above the 50-day MA of 6978.10, and above the 200-day MA of 6555.06, indicating a bullish trend. The MACD of 54.74 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 is Neutral, 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	£8.20B	29.52	12.85%	1.83%	-6.93%	18.57%
IMI	75 Outperform	£5.79B	25.13	23.79%	1.29%	-0.32%	-3.96%
WEIR	74 Outperform	£7.42B	24.23	17.68%	1.24%	-1.97%	40.55%
SPX	71 Outperform	£5.18B	31.85	14.19%	2.36%	0.10%	-15.33%
ROR	66 Neutral	£2.80B	28.71	16.97%	1.95%	1.93%	-15.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRO	57 Neutral	£7.82B	25.25	10.69%	1.04%	-0.38%	―

Spirax Sarco Engineering Corporate Events

Spirax Group Appoints Andrew Kemp to Board in Strategic Move

Spirax Group has announced the appointment of Andrew Kemp as an Independent Non-Executive Board Director and member of the Audit Committee, effective from November 1, 2025. This appointment is part of the company’s succession planning to support its ‘Together for Growth Strategy.’ Andrew Kemp, who will succeed Kevin Thompson as Chair of the Audit Committee in April 2026, brings extensive experience from his roles in various companies and as a former PwC executive. This strategic move is expected to bolster Spirax Group’s governance and support its ongoing growth and development.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7539.00 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 a series of transactions involving key managerial personnel under the company’s employee share schemes. The transactions, which include the acquisition of Partnership Shares and the award of Matching Shares, were conducted on the London Stock Exchange and are part of the company’s Share Incentive Plan. These transactions reflect the company’s ongoing commitment to aligning the interests of its management with those of its shareholders, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (GB:SPX) stock is a Sell with a £6000.00 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 Employee Share Scheme Transactions

Spirax Group plc, a company involved in the engineering sector, has announced transactions related to its employee share schemes. The announcement details acquisitions of shares by key personnel under the company’s Share Incentive Plan, reflecting ongoing commitment to employee engagement and retention strategies.

The most recent analyst rating on (GB:SPX) stock is a Sell with a £6000.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Sarco’s Earnings Call Highlights Resilience and Growth

The recent earnings call of Spirax Sarco Engineering conveyed a generally positive sentiment, underscored by robust organic growth and profitability. The company showcased strong performance in the biopharmaceutical and semiconductor sectors, alongside effective restructuring and strategic sales initiatives. However, challenges such as those in China and Korea, legacy order impacts, and currency headwinds were noted as significant hurdles. Despite these obstacles, Spirax Sarco’s strategic initiatives and restructuring efforts have positioned the company well for future growth.

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.