SPX TECHNOLOGIES INC (SPXC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPXC - US78473E1038 - Common Stock
210.84 USD
-6.29 (-2.9%)
SPXC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making SPXC a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, SPXC is valued expensive at the moment. These ratings would make SPXC suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year SPXC was profitable.
- In the past year SPXC had a positive cash flow from operations.
- Each year in the past 5 years SPXC has been profitable.
- Of the past 5 years SPXC 4 years had a positive operating cash flow.
1.2 Ratios
- SPXC has a Return On Assets of 6.48%. This is in the better half of the industry: SPXC outperforms 68.18% of its industry peers.
- Looking at the Return On Equity, with a value of 10.39%, SPXC is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
- SPXC has a better Return On Invested Capital (8.92%) than 65.15% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SPXC is below the industry average of 10.24%.
- The last Return On Invested Capital (8.92%) for SPXC is above the 3 year average (7.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 10.39% | ||
| ROIC | 8.92% |
ROA(3y)3.69%
ROA(5y)6.3%
ROE(3y)7.34%
ROE(5y)15.21%
ROIC(3y)7.42%
ROIC(5y)6.2%
1.3 Margins
- SPXC's Profit Margin of 10.33% is fine compared to the rest of the industry. SPXC outperforms 72.73% of its industry peers.
- In the last couple of years the Profit Margin of SPXC has grown nicely.
- SPXC's Operating Margin of 15.89% is fine compared to the rest of the industry. SPXC outperforms 74.24% of its industry peers.
- In the last couple of years the Operating Margin of SPXC has grown nicely.
- The Gross Margin of SPXC (40.82%) is better than 76.52% of its industry peers.
- In the last couple of years the Gross Margin of SPXC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.89% | ||
| PM (TTM) | 10.33% | ||
| GM | 40.82% |
OM growth 3Y33.6%
OM growth 5Y16.47%
PM growth 3Y-33.83%
PM growth 5Y16.81%
GM growth 3Y4.4%
GM growth 5Y6.86%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPXC is destroying value.
- SPXC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SPXC has more shares outstanding
- SPXC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.35 indicates that SPXC is not in any danger for bankruptcy at the moment.
- SPXC has a better Altman-Z score (6.35) than 84.85% of its industry peers.
- The Debt to FCF ratio of SPXC is 1.85, which is an excellent value as it means it would take SPXC, only 1.85 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.85, SPXC is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
- SPXC has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of SPXC (0.23) is better than 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 6.35 |
ROIC/WACC0.91
WACC9.8%
2.3 Liquidity
- A Current Ratio of 2.47 indicates that SPXC has no problem at all paying its short term obligations.
- SPXC's Current ratio of 2.47 is fine compared to the rest of the industry. SPXC outperforms 65.91% of its industry peers.
- A Quick Ratio of 1.70 indicates that SPXC should not have too much problems paying its short term obligations.
- SPXC has a better Quick ratio (1.70) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.15% over the past year.
- Measured over the past years, SPXC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.24% on average per year.
- The Revenue has grown by 13.94% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.40% on average over the past years.
EPS 1Y (TTM)20.15%
EPS 3Y31.31%
EPS 5Y15.24%
EPS Q2Q%32.37%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y17.61%
Revenue growth 5Y5.4%
Sales Q2Q%22.56%
3.2 Future
- SPXC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.50% yearly.
- The Revenue is expected to grow by 8.40% on average over the next years. This is quite good.
EPS Next Y23.51%
EPS Next 2Y17.76%
EPS Next 3Y15.2%
EPS Next 5Y12.5%
Revenue Next Year13.65%
Revenue Next 2Y11.39%
Revenue Next 3Y10.31%
Revenue Next 5Y8.4%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.05, SPXC can be considered very expensive at the moment.
- SPXC's Price/Earnings is on the same level as the industry average.
- SPXC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 27.30, which means the current valuation is very expensive for SPXC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SPXC is on the same level as its industry peers.
- SPXC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 27.3 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPXC is valued a bit more expensive than 66.67% of the companies in the same industry.
- SPXC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.75 | ||
| EV/EBITDA | 24.17 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of SPXC may justify a higher PE ratio.
- A more expensive valuation may be justified as SPXC's earnings are expected to grow with 15.20% in the coming years.
PEG (NY)1.41
PEG (5Y)2.17
EPS Next 2Y17.76%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
- SPXC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SPX TECHNOLOGIES INC / SPXC FAQ
What is the fundamental rating for SPXC stock?
ChartMill assigns a fundamental rating of 6 / 10 to SPXC.
What is the valuation status for SPXC stock?
ChartMill assigns a valuation rating of 2 / 10 to SPX TECHNOLOGIES INC (SPXC). This can be considered as Overvalued.
How profitable is SPX TECHNOLOGIES INC (SPXC) stock?
SPX TECHNOLOGIES INC (SPXC) has a profitability rating of 7 / 10.
Can you provide the financial health for SPXC stock?
The financial health rating of SPX TECHNOLOGIES INC (SPXC) is 7 / 10.
What is the earnings growth outlook for SPX TECHNOLOGIES INC?
The Earnings per Share (EPS) of SPX TECHNOLOGIES INC (SPXC) is expected to grow by 23.51% in the next year.