Spirax Group: Not Cheap, But No Longer Overpriced (Rating Upgrade)

2025-05-29 07:02:26 ET

Summary

• Spirax Group's robust business model and pricing power remain intact, but shares are still not cheap despite a 34% drop.
• The company boasts a 55-year record of annual dividend growth, with coverage slightly thin but manageable and a current yield of 2.8%.
• Balance sheet risk is limited, but macroeconomic headwinds, tariffs, and weak Chinese demand pose ongoing risks to revenue and profit.
• Valuation is more reasonable at a P/E of 23; I upgrade to 'hold' but see potential for further downside before considering a buy.

Spirax Group ( SPXSF ) (SPXSY) is a British engineering group with a stellar dividend record and proven business model....

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