Spirax Share Discussion Threads

[philanderer] 10/9/2019 09:10

That's a kick in the b*ll*x this morning.

[philanderer] 19/8/2019 08:38

19th aug UBS 'neutral' tp 8370p cut from 9000p

[adrunkenmarcus] 15/8/2019 19:04

Honestly, these guys change their target prices substantially and often for little good reason. I've held SPX since 2015 and it's still up 2.5 times or so rather than 3 times. I intend to hold for as long as the business's superior operating performance continues.

What interests me is not the share price but the underlying business's generation of free cash flow; strong returns on capital employed; and maintained or expanded operating margins over the long term.

[philanderer] 15/8/2019 17:00

15th aug Berenberg 'buy' tp 9680p cut from 10510p

[philanderer] 13/8/2019 08:16

Yep, the whole portfolio getting a good kicking lately.

Almost half of my 2019 gains up in smoke

[arja] 13/8/2019 07:57

awful looking chart but so many shares are similar as dow falls further .

[philanderer] 12/8/2019 08:56

Goldmans still puting the boot in..

12th aug Goldmans sell tp 7200p cut from 7500p

[philanderer] 09/8/2019 11:39

Wife of the Chair also buying yesterday.

1250 shares @ 8090p = £101,125

[philanderer] 08/8/2019 16:52

Non-exec buying 2,500 @ £81 today = £202,500


(Kevin Thompson was Group Finance Director of Halma plc from 1998 to 2018. )

[philanderer] 08/8/2019 11:40

8th aug JP Morgan Caz 'neutral' tp 8400p up from 7700p

[philanderer] 07/8/2019 20:15

And a few more @ 8000p.


Market report:

On the downside, Spirax-Sarco Engineering was under the cosh as it said organic sales growth at its main steam specialties business is expected to halve in the second half of the year.

[philanderer] 07/8/2019 15:05

Cheers red.

I've just added a few more minutes ago. Now bought half back :-)

[redartbmud] 07/8/2019 13:00

phil

I read it that they had already taken action to improve the results of Chromalox:

Organic sales in Chromalox, which accounted for 14% of Group revenue, were up 2% against a strong performance in the same period of 2018.
Chromalox had adjusted operating profit of £8.1 million, down 37% organically on the same period in the prior year, as we continued to step up our investments for future growth and improved profitability, while responding to manufacturing inefficiencies.

Group operating profit £125.7m so Chromalox will not break the bank.

red

[philanderer] 07/8/2019 12:43

red, couldn't agree more. I've bought back about a third now.

This was the fly in the ointment I reckon..

"While the strong performance in the first half of this year was ahead of our expectations, we believe that second half trading conditions will be below our earlier estimates. ... Spirax said."The only disappointment of this period was a profitability deterioration in Chromalox

[redartbmud] 07/8/2019 12:38

phil

Long term hold for me.
CEO one of the best in the FTSE100, and a great business.

[philanderer] 07/8/2019 11:12

Peel Hunt reiterates 'hold'... previous tp 8450p

[philanderer] 07/8/2019 11:10

this should work.....

[bathcoup] 07/8/2019 09:06

The above URL doesn't work for me but I share the same concern about the dizzy p/e.

[philanderer] 07/8/2019 08:20

Bought a few back sub 8000p.

[philanderer] 07/8/2019 07:53

Sh1te reaction.

I'm out, stops hit.

Luck to all.

[philanderer] 06/8/2019 09:09

Interims tomorrow

[philanderer] 10/7/2019 07:54

4th july Goldmans 'sell' tp 7500p

reiterates

[philanderer] 04/7/2019 16:40

Goldmans downgrade this morning..

Note:

Spirax-Sarco trades at a greater than 110% premium to European Capital Goods on consensus 12m forward EV/EBIT (vs. c.20% 5Y median) and yet is near peak margins, faces a sequentially slowing growth outlook and has enjoyed some unrepeatable tailwinds. Following three years of sector-relative outperformance, we now see downside risks to consensus (5% below Visible Alpha 2020E EBIT). In our view, Spirax’s all-time-high relative-valuation multiple is at risk as growth expectations re-set. We downgrade to Sell from Neutral.

We forecast a 4% organic sales CAGR over the next three
nyears (vs. 3% for sector and 6% for SPX over the past three): This is driven by decelerating industrial production globally, slower (albeit above-group) growth in Watson Marlow, and near-term drivers unwinding. In addition, we believe that Spirax’s ability to out-grow its markets could fade.
ROIC to converge with sector average: We forecast ROIC to
nfall to 15% in 2020 (110 bp lower than 2018). All divisions (ex. Chromalox) are around peak margins, and we see limited expansion given lower volumes, increased investments and disposals/exceptionals. We note ROCE is a reduced component of management compensation.

ROIC to converge with sector average: We forecast ROIC to
nfall to 15% in 2020 (110 bp lower than 2018). All divisions (ex. Chromalox) are around peak margins, and we see limited expansion given lower volumes, increased investments and disposals/exceptionals. We note ROCE is a reduced component of management compensation.