As of May 31, 2025, Spirax-Sarco Engineering PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of -28.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -32.7% |
| Potential Upside (10-year) | -28.9% |
| Discount Rate (WACC) | 8.6% - 11.6% |
Revenue is projected to grow from $1665 million in 12-2024 to $2701 million by 12-2034, representing a compound annual growth rate of approximately 5.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 1665 | 1% |
| 12-2025 | 1747 | 5% |
| 12-2026 | 1858 | 6% |
| 12-2027 | 1988 | 7% |
| 12-2028 | 2070 | 4% |
| 12-2029 | 2111 | 2% |
| 12-2030 | 2175 | 3% |
| 12-2031 | 2274 | 5% |
| 12-2032 | 2412 | 6% |
| 12-2033 | 2574 | 7% |
| 12-2034 | 2701 | 5% |
Net profit margin is expected to improve from 11% in 12-2024 to 11% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 191 | 11% |
| 12-2025 | 201 | 11% |
| 12-2026 | 214 | 11% |
| 12-2027 | 229 | 11% |
| 12-2028 | 238 | 11% |
| 12-2029 | 243 | 11% |
| 12-2030 | 250 | 11% |
| 12-2031 | 261 | 11% |
| 12-2032 | 277 | 11% |
| 12-2033 | 296 | 11% |
| 12-2034 | 310 | 11% |
with a 5-year average of $82 million. Projected CapEx is expected to maintain at approximately 5% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 91 |
| 12-2026 | 99 |
| 12-2027 | 97 |
| 12-2028 | 100 |
| 12-2029 | 104 |
| 12-2030 | 109 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 72 |
| Days Inventory | 179 |
| Days Payables | 53 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 408 | 71 | 93 | (220) | 465 |
| 2026 | 436 | 75 | 99 | 9 | 252 |
| 2027 | 459 | 81 | 106 | 27 | 245 |
| 2028 | 476 | 84 | 110 | 19 | 263 |
| 2029 | 488 | 86 | 113 | 5 | 285 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -32.7% |
| 10-Year DCF (Growth) | 0.00 | -28.9% |
| 5-Year DCF (EBITDA) | 5055.03 | +Inf% |
| 10-Year DCF (EBITDA) | 5042.68 | +Inf% |
Is Spirax-Sarco Engineering PLC (SPX.L) a buy or a sell? Spirax-Sarco Engineering PLC is definitely a sell. Based on our DCF analysis, Spirax-Sarco Engineering PLC (SPX.L) appears to be overvalued with upside potential of -28.9%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.00.