Spirent Communications Plc (SPT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Halma Plc

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Luceco plc

Strix Group Plc

Oxford Nanopore Technologies Plc

Oxford Instruments Plc

Spirent Communications Plc

Oxford Metrics Plc

Windar Photonics Plc

Why is Spirent Communications Plc ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.79%

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at GBP 77.4 MM
ROCE(HY) Lowest at 1.92%
INTEREST COVERAGE RATIO(Q) Lowest at 1,180

With ROE of 6.05%, it has a very expensive valuation with a 4.02 Price to Book Value

Over the past year, while the stock has generated a return of 13.08%, its profits have fallen by -23.1%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Spirent Communications Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Spirent Communications Plc

13.08%

-1.47

14.80%

FTSE 100

15.94%

1.45

12.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.98%

EBIT Growth (5y)

-47.95%

EBIT to Interest (avg)

40.20

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.86

Tax Ratio

14.16%

Dividend Payout Ratio

142.05%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

25.57%

ROE (avg)

10.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.08

EV to EBIT

53.65

EV to EBITDA

26.14

EV to Capital Employed

5.97

EV to Sales

3.85

PEG Ratio

Dividend Yield

ROCE (Latest)

11.13%

ROE (Latest)

6.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.12% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -35.15 %

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 77.4 MM

ROCE(HY)

Lowest at 1.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,180

OPERATING PROFIT(Q)

Lowest at GBP 4.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.84 %

PRE-TAX PROFIT(Q)

Lowest at GBP -1.85 MM

NET PROFIT(Q)

Lowest at GBP -1.54 MM

EPS(Q)

Lowest at GBP -0.02

Here's what is working for Spirent Communications Plc

Debt-Equity Ratio

Lowest at -35.15 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Spirent Communications Plc

Pre-Tax Profit

At GBP -1.85 MM has Fallen at -360.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -1.54 MM has Fallen at -214.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Cash Flow

Lowest at GBP 77.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Lowest at 1,180

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at GBP 4.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 2.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP -1.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP -1.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)