Spirax Group (SPX) AI Stock Analysis

• Market Cap: £4.90B
• Dividend Yield: 2.5%
• Average Volume (3M): 169.83K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.41
• 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: £7,955.56
• Price Target Upside: 19.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 7,645.00p ▲(14.88% Upside)

Spirax Sarco Engineering's strong financial performance and positive earnings call sentiment are the most significant factors contributing to its score. Technical analysis indicates a neutral trend, while valuation suggests the stock may be overvalued. The company's strategic initiatives and restructuring efforts provide a positive outlook despite some regional 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 Group Business Overview & Revenue Model

Company Description

Spirax Sarco Engineering plc (SPX) is a global leader in steam and thermal energy management, specializing in the design, manufacture, and supply of products and services that optimize energy efficiency and enhance process performance. The company operates primarily in the industrial sector, offering solutions that include steam traps, heat exchangers, and control valves, along with comprehensive services for system audits and energy assessments. Spirax Sarco serves a diverse range of industries, including pharmaceuticals, food and beverage, chemicals, and manufacturing, focusing on reducing energy consumption and improving operational efficiency.

How the Company Makes Money

Spirax Sarco generates revenue primarily through the sale of its core products, including steam management equipment, heat transfer solutions, and control systems. The company benefits from a diverse revenue model that includes direct sales, aftermarket services, and maintenance contracts. Key revenue streams come from product sales, which contribute a significant portion of their income, while aftermarket services and spare parts sales provide ongoing revenue and customer retention. Spirax Sarco also engages in strategic partnerships with industry players to enhance its service offerings and expand its market reach, allowing for additional revenue opportunities. Moreover, the company's focus on energy efficiency solutions aligns with global sustainability trends, potentially increasing demand for its products and services.

Spirax Group 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 Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6655.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPX, the sentiment is Negative. The current price of 6655 is below the 20-day moving average (MA) of 6751.25, below the 50-day MA of 6873.39, and above the 200-day MA of 6457.09, indicating a neutral trend. The MACD of -49.59 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 15.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SPX.

Spirax Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£6.08B	26.36	23.79%	1.32%	-0.32%	-3.96%
WEIR	75 Outperform	£7.36B	24.05	17.68%	1.28%	-1.97%	40.55%
SPX	72 Outperform	£4.90B	30.12	14.19%	2.50%	0.10%	-15.33%
ROR	66 Neutral	£2.69B	27.61	16.97%	2.07%	1.93%	-15.07%
SMIN	66 Neutral	£7.43B	27.14	12.85%	1.97%	-6.93%	18.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRO	50 Neutral	£6.93B	22.38	10.69%	1.16%	-0.38%	―

Spirax Group Corporate Events

Spirax Group Announces DRIP Transactions for Key Executives

Spirax Group plc has announced the completion of several DRIP (Dividend Reinvestment Plan) transactions involving key managerial personnel. These transactions, conducted on the Main Market of the London Stock Exchange, involved the award of ordinary shares following the interim dividend payment. The transactions highlight the company’s ongoing commitment to rewarding its leadership team and maintaining transparency in its financial dealings.

Spirax Group Reports Strong Organic Growth Amid Challenging Market Conditions

Spirax Group PLC reported organic revenue growth and improved profit margins for the ten months ending October 2025, despite challenging global industrial production conditions. The company saw strong sales growth in its Electric Thermal Solutions and Watson-Marlow divisions, driven by operational improvements and increased demand in sectors like biopharmaceuticals and semiconductors. Spirax remains on track to achieve annualized savings from restructuring efforts, which are being reinvested into growth priorities. The company’s financial position has strengthened, with reduced net borrowings and a stable outlook for continued organic growth in revenues and operating profit margins.

Spirax Group Announces Managerial Share Transactions

Spirax Group plc has announced transactions involving its senior management under the company’s employee share schemes. The transactions, which include the acquisition of partnership shares and the award of matching shares, involve key figures such as the Group CEO, HR Director, Sustainability Director, and Managing Director of ETS. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning managerial interests with shareholder value through its Share Incentive Plan.

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.

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.

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.