Spirax-Sarco Engineering plc (SPX.L) stock analysis

In our weekly check, Spirax-Sarco Engineering plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 6, red flags: 3.

About Spirax-Sarco Engineering plc

Spirax-Sarco Engineering plc is an Industrials company (Industrial - Machinery) based in the United Kingdom, listed on LSE as SPX.L.

What our checks show for SPX.L

Red flags

• The net margin fell by 7.9 points over 5 years, to 9.6%: the company keeps less of each sale as profit.
• The gross margin fell by 4.9 points, to 31.7%: costs are rising faster than prices.
• The stock has fallen as much as 68% from a peak. Would you have held through that?

Warning signs

• Revenue grew only 1.9% a year over the last 3 years.
• Earnings per share fell 10% a year over the last 3 years.
• Net profit fell 10.1% a year over the last 3 years.
• The net margin is only 9.6%: little room if costs rise.
• The stock is still below its previous peak.
• Thinly traded (about 206 thousand shares a day): buying and selling can move the price.

Strengths

• Operating profit covers interest 8.9 times over.
• Operating cash flow is 1.59x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.4% a year over the next years.
• Analysts expect the net margin to improve by 5.3 points from today's 9.6%.
• Free cash flow is 12.4% of revenue: cash for dividends, buybacks or growth.
• Return on capital (ROCE) is 15.8%: the business earns well on the money put into it.

Similar companies

MIDD · JBTM · NPO · AAON · TEX · ACLN.SW

Questions

What grade does Spirax-Sarco Engineering plc (SPX.L) have?

In our weekly check, Spirax-Sarco Engineering plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 6, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SPX.L stock?

This week's biggest flags for Spirax-Sarco Engineering plc: Margins falling, Gross margin falling, Deep past fall. In total 9 of 25 checks show a warning or a red flag.

What does Spirax-Sarco Engineering plc do?

Spirax-Sarco Engineering plc is an Industrials company (Industrial - Machinery) based in the United Kingdom, listed on LSE as SPX.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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