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Spectris PLC (GB:SXS)
LSE:SXS

Spectris (SXS) AI Stock Analysis

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GB

Spectris

(LSE:SXS)

64Neutral
Spectris exhibits strong valuation metrics with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, technical indicators suggest caution due to bearish trends. The company's solid profitability margins are offset by declining revenue and cash flow, necessitating operational improvements for future growth.
Positive Factors
Earnings Performance
Spectris' FY24 Prelims are ahead of consensus forecasts, with the group ending the year better than expected.
Market Demand
Order intake in the fourth quarter showed a 6% increase, indicating signs of end-market demand recovery.
Negative Factors
Debt Levels
Net Debt was higher than forecasted, with a Net Debt to EBITDA ratio of 2.3x considered unhelpfully high.
Earnings Guidance
Spectris has today issued a disappointing update with regard to the current year, with management guiding to FY24F EBITA of approximately £200m, which is around 10% below consensus.
Trading Challenges
Spectris has issued its 3Q24 trading update, with underlying trading challenges continuing from 1H24.

Spectris (SXS) vs. S&P 500 (SPY)

Spectris Business Overview & Revenue Model

Company DescriptionSpectris plc manufactures and sells measuring instruments and controls worldwide. It operates through Malvern Panalytical, HBK, Omega and Industrial Solutions segments. The Malvern Panalytical segment provides measurement and materials characterization and efficiency in R&D and manufacturing sectors. The HBK segment offers differentiated sensing, testing, modelling and simulation solutions for product development. The Omega segment provides process improvement, specialist sensors, and omni-channel distribution services. The Industrial Solutions segment operates high-value precision in-line sensing and monitors businesses. It also provides particle measuring systems, a solution to measure and monitor contamination levels in clean and controlled environments. In addition, the company offers red lion controls, an industrial automation tool that provides solutions to connect, monitor, and control disparate assets, as well as provides servomex, a specialist in gas and moisture analysis solutions. Further, it provides data and insights, test equipment and software for industrial applications. Additionally, the company offers sensor, instrument, software, and services technology, as well as provides training, technical support, spare parts, calibration, and maintenance services. It serves pharmaceutical, automotive, electronics, semiconductors, technology-LED, and primary and advanced materials industries. Spectris plc was incorporated in 1986 and is based in London, the United Kingdom.
How the Company Makes MoneySpectris makes money primarily through the sale of its precision instrumentation and control systems. These products are sold to a diverse range of industries that rely on high-quality, precise measurements and controls to optimize their production processes. The company generates revenue through direct sales of its hardware and software solutions as well as through service contracts and maintenance agreements. Key revenue streams include the provision of testing and measurement systems, analytical instruments for material characterization, and advanced industrial control solutions. Spectris also benefits from strategic partnerships and collaborations with industry leaders and research institutions, which help to drive innovation and open new markets for their products.

Spectris Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
1.34B1.45B1.33B1.16B1.34B1.63B
Gross Profit
754.90M813.20M730.00M652.20M698.00M869.00M
EBIT
169.50M188.60M191.40M164.40M148.50M229.50M
EBITDA
204.40M247.20M214.70M430.00M97.80M376.50M
Net Income Common Stockholders
274.20M145.40M125.00M346.90M-17.00M234.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
73.10M138.50M228.10M167.80M222.20M213.10M
Total Assets
2.09B1.82B1.95B1.77B1.80B1.97B
Total Debt
370.20M62.70M65.20M65.90M156.50M240.10M
Net Debt
297.10M-75.80M-162.90M-101.90M-65.70M27.00M
Total Liabilities
860.30M501.80M511.10M506.80M576.50M652.30M
Stockholders Equity
1.23B1.32B1.44B1.26B1.22B1.32B
Cash FlowFree Cash Flow
119.60M170.50M75.60M121.20M178.40M145.00M
Operating Cash Flow
148.40M195.20M120.50M156.50M221.50M231.60M
Investing Cash Flow
164.40M-70.20M216.30M201.30M-44.30M180.00M
Financing Cash Flow
-229.50M-210.70M-286.40M-394.60M-180.10M-261.40M

Spectris Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2084.00
Price Trends
50DMA
2639.96
Negative
100DMA
2614.58
Negative
200DMA
2689.72
Negative
Market Momentum
MACD
-112.33
Positive
RSI
23.81
Positive
STOCH
5.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SXS, the sentiment is Negative. The current price of 2084 is below the 20-day moving average (MA) of 2310.30, below the 50-day MA of 2639.96, and below the 200-day MA of 2689.72, indicating a bearish trend. The MACD of -112.33 indicates Positive momentum. The RSI at 23.81 is Positive, neither overbought nor oversold. The STOCH value of 5.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SXS.

Spectris Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£9.02B31.3716.90%0.93%11.94%20.48%
75
Outperform
£5.66B18.9513.99%2.59%6.10%33.05%
GBIMI
73
Outperform
£4.07B16.7323.50%1.82%0.64%4.92%
GBRS1
67
Neutral
£2.34B13.7812.54%4.49%-1.15%-28.00%
66
Neutral
£4.88B37.7314.50%1.63%13.59%6.14%
GBSXS
64
Neutral
£1.89B8.1917.33%4.22%-11.09%65.87%
57
Neutral
$20.24B9.51-13.28%2.72%5.43%-24.54%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SXS
Spectris
2,084.00
-1,060.23
-33.72%
GB:DPLM
Diploma
3,820.00
301.24
8.56%
GB:RS1
RS Group PLC
510.00
-178.37
-25.91%
GB:HLMA
Halma plc
2,526.00
317.18
14.36%
GB:IMI
IMI plc
1,666.00
-69.40
-4.00%
GB:SMIN
Smiths Group plc
1,775.00
167.97
10.45%

Spectris Corporate Events

Regulatory Filings and Compliance
Spectris Updates Shareholders on Voting Rights and Share Capital
Neutral
Apr 10, 2025

Spectris plc, a company involved in the manufacturing and technology sector, has updated its shareholders on the total voting rights and share capital as of March 31, 2025. The company has corrected the number of ordinary shares held in treasury, which now stands at 5,253,725, while the total issued share capital with voting rights is 104,446,214. This update results in a total of 99,192,489 voting rights for shareholders to use as a denominator for calculating their interests in accordance with FCA rules.

Spark’s Take on GB:SXS Stock

According to Spark, TipRanks’ AI Analyst, GB:SXS is a Neutral.

Spectris exhibits strong valuation metrics with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, technical indicators suggest caution due to bearish trends. The company’s solid profitability margins are offset by declining revenue and cash flow, necessitating operational improvements for future growth.

To see Spark’s full report on GB:SXS stock, click here.

Business Operations and Strategy
Spectris Enhances Employee Engagement with Share Incentive Plan
Positive
Apr 8, 2025

Spectris plc announced the acquisition and award of shares under its Share Incentive Plan (SIP) for individuals with managerial responsibilities. On April 7, 2025, a total of 21 ordinary shares were purchased as Partnership Shares, and 4 Matching Shares were awarded to the company’s PDMRs. This move is part of an HMRC tax-advantaged all-employee share plan, reflecting Spectris’ commitment to employee investment and engagement, potentially strengthening its market position and aligning managerial interests with company performance.

Spark’s Take on GB:SXS Stock

According to Spark, TipRanks’ AI Analyst, GB:SXS is a Neutral.

Spectris scores 61, indicating a moderate outlook. The company’s strong valuation suggests potential for investment returns, but technical indicators and declining financial performance raise caution. Insider buying reflects internal confidence, providing some positive sentiment.

To see Spark’s full report on GB:SXS stock, click here.

Other
Spectris Executive Acquires Significant Shareholding
Positive
Apr 4, 2025

Spectris plc announced that Derek Harding, President of Spectris Scientific, acquired 4,796 ordinary shares of the company at a total price of £99,986.05. This transaction, conducted on the London Stock Exchange, highlights a significant investment by a key executive, potentially signaling confidence in the company’s future prospects.

Regulatory Filings and Compliance
Spectris Updates on Total Voting Rights and Capital Structure
Neutral
Apr 1, 2025

Spectris plc has announced an update regarding its total voting rights and capital as of March 31, 2025. The company has an issued share capital of 104,446,214 ordinary shares with voting rights, and 5,523,725 shares held in treasury, resulting in a total of 99,192,489 voting rights. This figure is crucial for shareholders to determine notification requirements under the FCA’s rules, impacting how they manage their interests in the company.

Business Operations and Strategy
Spectris Executives Acquire Shares, Indicating Confidence in Company
Positive
Mar 27, 2025

Spectris plc, a company involved in the scientific and industrial instrumentation sector, announced that its Chief Executive, Andrew Heath, and President of Spectris Scientific, Derek Harding, have acquired significant shares in the company. On March 26, 2025, Heath and Harding exercised options under the Spectris Long Term Incentive Plan, acquiring 61,399 and 47,808 ordinary shares respectively. Both executives sold a portion of their shares to cover costs and tax liabilities, retaining the remainder in nominee accounts. This transaction reflects ongoing confidence in the company’s strategic direction and financial health.

Regulatory Filings and Compliance
Spectris PLC Announces Change in Voting Rights Structure
Neutral
Mar 21, 2025

Spectris PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal by Wellington Management Group LLP, a Boston-based investment management firm. The notification indicates that Wellington Management Group LLP now holds 5.01% of the voting rights in Spectris, crossing a significant threshold. This change in voting rights could potentially impact Spectris’s governance and decision-making processes, reflecting Wellington’s increased influence within the company.

Shareholder MeetingsFinancial Disclosures
Spectris Publishes 2024 Annual Report and Announces 2025 AGM
Neutral
Mar 21, 2025

Spectris plc has released its 2024 Annual Report and Accounts, along with the 2025 Notice of the Annual General Meeting, which are now available on the company’s website and have been distributed to shareholders. This release marks an important step in the company’s annual governance process, providing stakeholders with insights into its financial performance and strategic direction. The upcoming AGM, scheduled for May 22, 2025, will further outline the company’s future plans and allow shareholders to vote on key issues.

Business Operations and Strategy
Spectris Executives Acquire Shares, Reflecting Confidence in Company
Positive
Mar 19, 2025

Spectris plc, a company involved in precision instrumentation and controls, announced that its Chief Executive, Andrew Heath, and President of Spectris Scientific, Derek Harding, have acquired shares in the company through the exercise of options under the Spectris Deferred Bonus Plan. The transactions involved the sale of a portion of the shares to cover associated costs and taxes, with the remaining shares transferred to nominee accounts. This move reflects internal confidence in the company’s prospects and aligns with strategic financial management practices, potentially impacting stakeholder perceptions positively.

Executive/Board ChangesBusiness Operations and Strategy
Spectris Grants Share Awards to Executive Directors
Positive
Mar 10, 2025

Spectris plc, a company involved in the development of precision instrumentation and controls, has announced the granting of share awards to its executive directors under its Long Term Incentive Plan (LTIP) and Deferred Bonus Plan (DBP). The awards, which involve nominal-cost share options over ordinary shares, were accepted by the company’s Chief Executive, Chief Financial Officer, and President of Spectris Scientific. These awards are part of the company’s strategy to align the interests of its leadership with long-term shareholder value. The LTIP awards are subject to performance conditions and a vesting period, while the DBP awards have a simpler vesting schedule. This move reflects Spectris’s commitment to incentivizing its leadership team and could have implications for the company’s market positioning and stakeholder confidence.

Business Operations and StrategyRegulatory Filings and Compliance
Spectris plc Announces Share Incentive Plan Transactions for Key Executives
Positive
Mar 10, 2025

Spectris plc announced the acquisition of Partnership Shares and the award of Matching Shares under its Share Incentive Plan (SIP) for its directors and persons discharging managerial responsibilities (PDMRs). This move, conducted under the EU Market Abuse Regulation, involves purchasing shares at a set price and awarding additional shares at no cost, reflecting the company’s commitment to employee investment and retention. The transactions were executed on the London Stock Exchange, indicating a strategic alignment with regulatory compliance and shareholder value enhancement.

Business Operations and StrategyRegulatory Filings and Compliance
Spectris PLC Announces Change in Voting Rights Structure
Neutral
Mar 10, 2025

Spectris PLC, a company involved in the acquisition or disposal of voting rights and financial instruments, has announced a change in the distribution of its voting rights. Lancaster Investment Management LLP, based in London, has crossed a threshold in its holdings, now possessing a total of 3.022% of Spectris’s voting rights as of March 4, 2025. This development could impact the company’s governance and stakeholder dynamics, as it reflects a significant shift in the ownership structure.

Regulatory Filings and Compliance
Spectris Updates on Voting Rights and Capital Structure
Neutral
Mar 3, 2025

Spectris plc has announced an update on its voting rights and capital structure as of February 28, 2025. The company has 104,446,214 ordinary shares issued, with 5,528,031 held in treasury, resulting in a total of 98,918,183 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

Business Operations and StrategyFinancial Disclosures
Spectris Sees Signs of Recovery Amidst Challenging 2024
Neutral
Feb 28, 2025

Spectris reported a challenging year in 2024 with a 7% decrease in sales on a like-for-like basis due to weakness across multiple end markets. Despite this, the company ended the year with a strong fourth quarter, showing signs of recovery with a 6% order growth. Spectris has implemented a Profit Improvement Programme expected to deliver £50 million in benefits over the next two years, supported by strategic acquisitions and operational improvements. The company remains optimistic about returning to growth in 2025, focusing on cash generation and leverage reduction.

Business Operations and Strategy
Spectris Boosts Employee Engagement with Share Incentive Plan
Positive
Feb 10, 2025

Spectris plc announced the acquisition of partnership shares and the awarding of matching shares under its Share Incentive Plan (SIP) to persons discharging managerial responsibilities (PDMRs). The transaction involved the purchase of 15 ordinary shares and the awarding of 3 matching shares, highlighting the company’s commitment to employee participation through share ownership. This move by Spectris aligns with its strategy to incentivize and retain key personnel, potentially enhancing stakeholder value and reinforcing its position in the market.

Regulatory Filings and Compliance
Spectris Updates Market on Voting Rights and Capital Structure
Neutral
Feb 3, 2025

Spectris plc has updated its shareholders regarding its voting rights and capital structure. As of January 31, 2025, the company has 104,446,214 ordinary shares issued, with 98,905,780 shares having voting rights. This information assists shareholders in determining their disclosure obligations under the FCA’s rules.

Business Operations and StrategyFinancial Disclosures
Spectris Reports Strong Q4 Performance, Exceeding Expectations
Positive
Jan 23, 2025

Spectris announced a strong performance in the fourth quarter of 2024, with adjusted operating profit expected to exceed consensus and reach the upper range of analyst expectations. The company’s solid operational execution highlights its competitive positioning and potential for continued growth in its market segments.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.