# Spirax-Sarco Engineering plc (SPX.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Machinery. Price 7140p, market value 5.3 billionp.

## Valuation
- **P/E (trailing): 26.5×** (5-yr avg 3699.0×, 3-yr avg 3315.8×). Spirax-Sarco Engineering plc trades at 26.5× trailing earnings, well below its own five-year average of 3699.0×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 19.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.6×**. Each dollar of revenue is priced at 1.6×.
- **Price / book: 4.2×**. The shares trade at 4.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.6×**. Enterprise value is 7.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 8.9%** (5-yr avg 0.0%). Free cash flow equals 8.9% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.8%**. The inverse of the P/E: 3.8% of the price is earned each year.

## Profitability
- **Gross margin: 25.9%**. Spirax-Sarco Engineering plc keeps 25.9% of revenue after the direct cost of what it sells.
- **Operating margin: 18.0%**. 18.0% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 9.6%**. 9.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 13.4%**. 13.4% on shareholders' equity is solid.
- **Return on invested capital: 23.6%**. Return on all capital, debt included, is 23.6%: comfortably above what that capital costs.
- **Return on assets: 13.3%**. Each dollar of assets produces 13.3% of profit.

## Growth
- **Revenue growth (1 yr): 2.3%** (3-yr 1.9%/yr, 5-yr 7.4%/yr). Revenue grew 2.3% over the last year, against 7.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -14.7%** (3-yr -10.1%/yr, 5-yr -1.2%/yr). Earnings per share fell 14.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 23.0%/yr**. Free cash flow has compounded at 23.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.84**. Debt is 0.84 times equity, moderate leverage.
- **Net debt / EBITDA: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.0×**. Operating profit covers interest 6.0× over, a safe margin.
- **Current ratio: 1.85** (quick 1.41). Current assets cover the next year's liabilities 1.85 times.
- **Altman Z-score: 4.02**. A Z-score of 4.02 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.46%** (2p per share, trailing). Spirax-Sarco Engineering plc yields 2.46%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 75%** (52% of free cash flow). 75% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 9**. 9 straight years of increases.
- **Dividend growth (5 yr): 8.3%/yr** (1-yr 3.0%). The dividend has grown 8.3% a year over five years.
- **Shareholder yield: 2.4%**. Dividends plus net buybacks return 2.4% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (17 analysts). 17 analysts cover Spirax-Sarco Engineering plc; the consensus is buy, with an average price target of 8279p (+16% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -3.0%** (YTD 2.3%, 3-mo 3.0%). The shares are down 3.0% over twelve months including dividends.
- **From 52-week high: -11.3%** (20.0% above the low). Trading 11% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 1.16** (volatility 27%). Beta of 1.16 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SPX.L · Page: https://foliofundamentals.com/stocks/spx.l

Not investment advice.