Spirent (SPMYY) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 100.95%
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: 5.55%
• EPS Growth: -44.92%
• Country: US
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: N/A
• EPS (TTM): 0.06
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.24
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 6.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $11.50 ▲(9.32% Upside)

Spirent's overall stock score is primarily influenced by its mixed financial performance and positive technical indicators. The company's strong cash flow and balance sheet are offset by declining revenue and high valuation concerns. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates effective cash management, providing the company with the ability to reinvest in growth opportunities and maintain financial stability.

Solid Balance Sheet

A solid balance sheet with low leverage enhances financial flexibility, allowing the company to withstand economic downturns and invest in strategic initiatives.

Acquisition by Keysight Technologies

The acquisition by Keysight Technologies could enhance Spirent's market position and product offerings, leveraging combined expertise to drive long-term growth and innovation.

Negative Factors

Declining Revenue Trend

A declining revenue trend suggests challenges in market demand or competitive pressures, which could impact long-term growth prospects and profitability if not addressed.

Decreasing Net Profit Margins

Decreasing net profit margins indicate rising costs or pricing pressures, which could reduce profitability and limit the company's ability to reinvest in growth.

Decreasing Total Assets

A decrease in total assets and equity could signal potential long-term financial challenges, affecting the company's ability to fund operations and growth initiatives.

Spirent Business Overview & Revenue Model

Company Description

Spirent Communications plc is a leading provider of test and assurance solutions for networks, applications, and devices. Operating primarily in the telecommunications, automotive, and aerospace sectors, Spirent focuses on delivering high-performance testing solutions that ensure the reliability and performance of networked systems and services. Their core products include network testing equipment, cybersecurity solutions, and performance analytics, which help organizations optimize their technology infrastructure and improve service delivery.

How the Company Makes Money

Spirent generates revenue through the sale of its hardware and software solutions, alongside recurring revenue from maintenance and support services. The company's key revenue streams include direct sales of testing equipment and software licenses, subscription-based services, and consulting engagements that assist customers in deploying and optimizing their technology environments. Spirent also benefits from strategic partnerships with major telecommunications companies and technology vendors, which enhances its market reach and credibility. Additionally, the increasing demand for network reliability and security solutions due to the rise of 5G, IoT, and cloud computing trends contributes significantly to its earnings.

Spirent Financial Statement Overview

Summary

Spirent exhibits a mixed financial performance. While the company maintains strong gross profit margins and a solid balance sheet with low leverage, it faces challenges with declining revenue and net profit margins. Cash flow generation has improved significantly, which is a positive indicator for liquidity.

Income Statement

The company shows a declining revenue trend with a revenue decrease from $607.5M in 2022 to $460.2M in 2024, indicating a challenging market environment. However, the gross profit margin remains strong at approximately 72% for 2024, demonstrating effective cost management. Net profit margins have decreased significantly from previous years, falling to 2.8% in 2024, which is a concern. EBIT and EBITDA margins also show a declining trend, reflecting operational challenges.

Balance Sheet

The company maintains a solid balance sheet with a favorable debt-to-equity ratio of approximately 0.05 in 2024, indicating low leverage. The equity ratio stands at about 63.9%, reflecting strong equity backing. However, there is a decreasing trend in total assets and stockholders' equity over the years, which could indicate potential long-term concerns if not addressed.

Cash Flow

The company exhibits strong free cash flow generation, with a significant increase in free cash flow from $25.4M in 2023 to $49.1M in 2024, reflecting improved cash management. The operating cash flow to net income ratio is robust at approximately 4.38 in 2024, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting that net income is not translating as effectively into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	471.00M	460.20M	474.30M	607.50M	576.00M	522.40M
Gross Profit	339.75M	331.50M	343.60M	437.10M	424.70M	383.40M
EBITDA	34.28M	35.20M	46.30M	139.20M	130.10M	112.60M
Net Income	7.00M	12.90M	25.20M	99.90M	89.20M	84.40M
Balance Sheet
Total Assets	596.50M	614.20M	583.80M	705.30M	691.30M	649.80M
Cash, Cash Equivalents and Short-Term Investments	157.30M	141.80M	108.10M	209.60M	174.80M	241.20M
Total Debt	17.80M	20.30M	21.40M	22.10M	29.80M	28.20M
Total Liabilities	199.60M	221.70M	208.00M	240.10M	243.80M	207.00M
Stockholders Equity	396.90M	392.50M	375.80M	465.20M	447.50M	442.80M
Cash Flow
Free Cash Flow	31.11M	49.10M	25.40M	109.40M	92.70M	111.70M
Operating Cash Flow	38.83M	56.40M	31.90M	117.80M	102.90M	121.20M
Investing Cash Flow	-11.23M	-7.00M	-7.90M	-6.10M	-60.20M	-7.00M
Financing Cash Flow	-9.14M	-9.20M	-126.90M	-72.40M	-109.20M	-57.10M

Spirent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPMYY, the sentiment is Positive. The current price of 10.52 is above the 20-day moving average (MA) of 10.51, above the 50-day MA of 10.40, and above the 200-day MA of 9.80, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPMYY.

Spirent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.24B	25.24	23.88%	1.39%	10.27%	3.52%
NTCT	72 Outperform	$1.94B	21.87	5.91%	―	9.60%	―
RDWR	65 Neutral	$996.38M	61.19	5.09%	―	10.40%	―
SPMYY	64 Neutral	―	―	1.84%	100.95%	5.55%	-44.92%
VRNT	62 Neutral	$1.24B	31.11	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BASE	60 Neutral	―	―	―	―	10.98%	11.62%

Spirent Corporate Events

Spirent Communications Reports Resilient H1 2025 Performance

Spirent Communications Plc is a leading global provider of automated test and assurance solutions in the telecommunications and cybersecurity sectors, known for its innovative products and services that address the challenges of emerging technologies such as 5G and AI. In its half-year 2025 financial report, Spirent Communications demonstrated a resilient performance despite challenging market conditions, with significant progress in strategic priorities and customer engagement. Key financial highlights include a 5% increase in revenue to $208.1 million, a gross margin rise to 71.3%, and an adjusted operating profit of $7.5 million, up from $5.0 million in the previous year. The company also reported a strong order book and increased demand for its AI Data Centre testing solutions and high-speed Ethernet solutions. Looking ahead, Spirent Communications remains focused on execution, innovation, and diversification, positioning itself well for future recovery as market conditions improve.