Why is Spirax-Sarco Engineering Plc ?
1
High Management Efficiency with a high ROCE of 20.52%
2
Poor long term growth as Operating profit has grown by an annual rate 4.60% of over the last 5 years
3
With a growth in Net Profit of 60.61%, the company declared Very Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at GBP 533.8 MM
- DIVIDEND PAYOUT RATIO(Y) Highest at 88.69%
- DIVIDEND PER SHARE(HY) Highest at GBP 4.52
4
With ROE of 15.73%, it has a very expensive valuation with a 4.26 Price to Book Value
- Over the past year, while the stock has generated a return of 20.62%, its profits have risen by 1% ; the PEG ratio of the company is 27.1
How much should you hold?
- Overall Portfolio exposure to Spirax-Sarco Engineering Plc should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Spirax-Sarco Engineering Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Spirax-Sarco Engineering Plc
-100.0%
-1.00
29.45%
FTSE 100
17.87%
1.52
11.77%
Quality key factors
Factor
Value
Sales Growth (5y)
7.37%
EBIT Growth (5y)
4.60%
EBIT to Interest (avg)
20.13
Debt to EBITDA (avg)
1.18
Net Debt to Equity (avg)
0.51
Sales to Capital Employed (avg)
0.81
Tax Ratio
25.87%
Dividend Payout Ratio
76.68%
Pledged Shares
0
Institutional Holding
0.30%
ROCE (avg)
20.52%
ROE (avg)
19.51%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
4.26
EV to EBIT
18.95
EV to EBITDA
14.30
EV to Capital Employed
3.21
EV to Sales
3.40
PEG Ratio
27.08
Dividend Yield
2.41%
ROCE (Latest)
16.92%
ROE (Latest)
15.72%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 533.8 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 88.69%
DIVIDEND PER SHARE(HY)
Highest at GBP 4.52
INTEREST COVERAGE RATIO(Q)
Highest at 949.78
CASH AND EQV(HY)
Highest at GBP 369 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 53.59 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.53 times
NET SALES(Q)
Highest at GBP 880.7 MM
PRE-TAX PROFIT(Q)
Highest at GBP 144.2 MM
-2What is not working for the Company
ROCE(HY)
Lowest at 13.44%
Here's what is working for Spirax-Sarco Engineering Plc
Interest Coverage Ratio
Highest at 949.78
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at GBP 4.52 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Operating Cash Flow
Highest at GBP 533.8 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Dividend Payout Ratio
Highest at 88.69% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Net Sales
Highest at GBP 880.7 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Pre-Tax Profit
Highest at GBP 144.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Cash and Eqv
Highest at GBP 369 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 53.59 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.53 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio






