Spirax-sarco Engineering Share Discussion Threads

[philanderer] 07/8/2019 21:15

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 16:05

Cheers red.

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

[redartbmud] 07/8/2019 14:00

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 13:43

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 13:38

phil

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

[philanderer] 07/8/2019 12:12

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

[philanderer] 07/8/2019 12:10

this should work.....

[bathcoup] 07/8/2019 10:06

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

[philanderer] 07/8/2019 09:20

Bought a few back sub 8000p.

[philanderer] 07/8/2019 08:53

Sh1te reaction.

I'm out, stops hit.

Luck to all.

[philanderer] 06/8/2019 10:09

Interims tomorrow

[philanderer] 10/7/2019 08:54

4th july Goldmans 'sell' tp 7500p

reiterates

[philanderer] 04/7/2019 17:40

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.

[philanderer] 04/7/2019 09:04

4th july JP Morgan ' neutral'... tp 7700p up from 7500p

[philanderer] 04/7/2019 08:30

About time this happened ;-)

[philanderer] 03/7/2019 19:42

Spirax Sarco US @spiraxsarco_USA

28 minutes ago

“Risk” is not a word that #Pharmaceutical #Manufacturers like to hear. Uncover the potential types and sources of contamination. Snag your free eGuide to learn more.

[philanderer] 28/6/2019 10:04

Peel Hunt downgrading from 'add' to 'hold'... tp unchanged 8450p

[philanderer] 20/6/2019 09:54

20th june UBS 'neutral' tp 9000p up from 7100p


Just keep the rating and raise the target price if it goes up. Nice work ;-)

[philanderer] 19/6/2019 14:38

Spirax Sarco UK @Spirax_Sarco_UK


The latest edition of Connexions is out now! Download your FREE copy today

[philanderer] 14/6/2019 10:05

14th june Deutsche hold tp 8540p up from 6570p

[redartbmud] 28/5/2019 19:58

phil

Very sensible.
Looking to get them back in mid-£85's, if they come back that far.

[adrunkenmarcus] 28/5/2019 19:41

SPX's share price has got ahead of itself. However, I bought in March 2015 as a long term hold and every £1 I invested is now worth £2.70 or so. This company has paid a dividend since 1965 or so and grown it 11% CAGR. If it keeps that up, short term worries about over-valuation go away.

[philanderer] 24/5/2019 10:48

Morning red. I always run my winners and put a 10% stop-loss on.

[redartbmud] 24/5/2019 10:05

Yes phil.

I know that the share price has been re-rated now that it has entered the FTSE 100 and the MSCI, but don't you think that it is now a bit ahead of events?
Is the current rating anticipating a much higher level than is likely to be delivered?
It isn't an exotic tech company, or an Amazon, after all is said and done.

red