One-glance verdict
Overvalued
$120.30 our estimate vs market $191.82
Wall Street consensus: $272.17 (126.2% higher than our fair-value estimate)
59% above our estimate, beyond the bull case
Fundamentals snapshot
SPX Technologies, Inc.
SPXC · NYQ · Industrials · Building Products & Equipment
Current price
$191.82
52-week range
$179.62 - $251.08
Market cap
$9.61B
Balance sheet
Watch
7.32x Adequate
Net debt $448.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 9.3% last year.
- Reward Returns 14.7% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Net debt grew 39.0% over 3 years.
What this company does
SPX Technologies, Inc.
SPX Technologies makes and sells specialized equipment that keeps buildings and public infrastructure running. The company's money comes from two main areas: heating, ventilation, and air conditioning (HVAC) systems for buildings, and detection tools used for things like finding underground pipes or collecting bus fares. This matters because SPX provides essential, non-glamorous products that are necessary for construction projects and for maintaining critical public utilities.
How the company got here
SPX Technologies began its journey in 1912 as the Piston Ring Company, making parts for the growing automobile industry. Over many decades, it grew by acquiring other companies and expanded into various manufacturing areas. A key turning point was in 2015 when it split into two separate public companies, creating SPX FLOW and the current SPX Technologies. This move allowed SPX Technologies to focus on becoming a more specialized supplier of engineered products rather than a broad industrial conglomerate. In 2022, the company formally changed its name from SPX Corporation to SPX Technologies, Inc.
What it actually does
SPX Technologies makes highly specialized equipment that you might not see every day, but that is essential for buildings and infrastructure to function. Think of large-scale heating and cooling systems for big buildings like hospitals and data centers, not the air conditioner in your home. They also produce specialized tools for locating underground pipes and cables, equipment for inspecting sewer systems, and fare collection systems for public transportation. The company sells these engineered products to other businesses and organizations, not directly to the average consumer.
HVAC
This is the company's largest business area, making up about two-thirds of its sales. The HVAC (Heating, Ventilation, and Air Conditioning) segment creates and sells products like cooling towers, boilers for heating, and large-scale ventilation systems for commercial and industrial buildings. Customers for these products are typically businesses, institutions, and industries that need to manage the climate in large spaces efficiently. This segment includes well-known brands like Marley, Weil-McLain, and Patterson-Kelley.
Detection and Measurement
This part of the business, which accounts for about a third of the company's revenue (the money it brings in from sales), focuses on specialized tools and technologies. They make equipment used to find and inspect underground pipes and cables, which is crucial for utility and construction companies. This segment also produces fare collection systems for public transit and aids to navigation for marine and aviation safety. The customers are often municipalities, transportation authorities, and utility companies who rely on this equipment for maintenance and safety.
What management is betting on now
The company's leadership is focused on growing by acquiring other companies that fit well within its main business areas, a strategy known as bolt-on acquisitions. They are particularly concentrating on expanding their HVAC business, especially in products related to energy efficiency and air quality for commercial buildings. This strategy involves buying companies that add new technologies or give them access to new markets, as seen with recent acquisitions in Canada. The goal is to become a more focused industrial technology company rather than a general manufacturer.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$43.50M
FY2024 Q4
$156.70M
FY2025 Q1
$-16.40M
FY2025 Q2
$34.80M
FY2025 Q3
$96.10M
FY2025 Q4
$126.70M
FY2026 Q1
$12.10M
FY2026 Q2
$68.50M
Revenue
$679.00M
Net income
$78.40M
Diluted EPS
1.55
Operating cash flow
$89.60M
Free cash flow
$68.50M
Fetching…
Sources
Revenue
$566.80M
Net income
$59.90M
Diluted EPS
1.19
Operating cash flow
$30.60M
Free cash flow
$12.10M
Fetching…
Sources
Revenue
$637.30M
Net income
$77.90M
Diluted EPS
1.56
Operating cash flow
$195.20M
Free cash flow
$126.70M
Fetching…
Sources
Revenue
$592.80M
Net income
$62.70M
Diluted EPS
1.28
Operating cash flow
$106.50M
Free cash flow
$96.10M
Fetching…
Sources
Revenue
$552.40M
Net income
$52.20M
Diluted EPS
1.10
Operating cash flow
$42.50M
Free cash flow
$34.80M
Fetching…
Sources
Revenue
$482.60M
Net income
$51.20M
Diluted EPS
1.09
Operating cash flow
$-10.90M
Free cash flow
$-16.40M
Fetching…
Sources
Revenue
$533.70M
Net income
$57.10M
Diluted EPS
1.21
Operating cash flow
$166.50M
Free cash flow
$156.70M
Fetching…
Sources
Revenue
$483.70M
Net income
$50.20M
Diluted EPS
1.06
Operating cash flow
$51.40M
Free cash flow
$43.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $120.30 vs current price $191.82
Wall Street consensus is the average analyst price target: $272.17 (126.2% higher than our fair-value estimate).
Our most-likely fair value is $120.30 a share — about 37.3% below today's price of $191.82, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $448.3M. Interest coverage 7.3x.
Net debt
$448.30M
Interest coverage
7.32x
SPX Technologies, Inc.'s profit covers its interest bill about 7.3 times over.
Watch
Worse cushion
Baseline
Better cushion
SPXC
BASELINE
SPX Technologies, Inc.
Total debt $614.70M Interest coverage 7.32x This is the baseline the peer rows are being compared against.
Total debt $1.12B Interest coverage 37.54x +413% vs SPXC Carries about 5.1x more debt cushion than SPXC.
Total debt $2.32B Interest coverage 6.68x -9% vs SPXC Has roughly the same debt cushion as SPXC.
Total debt $52.21M Interest coverage 211.11x +2,783% vs SPXC Carries about 28.8x more debt cushion than SPXC.
Total debt $1.89B Interest coverage 11.18x +53% vs SPXC Carries about 1.5x more debt cushion than SPXC.
What you should know
The case for and against SPXC
3 Rewards
1 Risk
Rewards
-
Revenue grew 9.3% last year.
-
Returns 14.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 39.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
33.65x
Forward P/E
19.57x
P/B
4.09x
P/S
3.88x
EV/EBITDA
19.27x
PEG ratio
1.08x
Profitability
How much profit each dollar creates
Gross margin
40.3%
Operating margin
17.7%
Net margin
11.3%
ROE
14.7%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.82x
Quick ratio
1.14x
Total debt
$614.70M
Total cash
$166.40M
Growth
How the business has been compounding
Revenue TTM
$2.48B
Revenue 5Y CAGR
16.7%
EPS TTM
5.70
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$421.90M
Free CF TTM
$241.20M
FCF margin
9.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2015-06-12