Is Spirax Worth Buying

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Is Spirax Worth Buying

Spirax (Spx) - Is It Worth Buying In 2025?

Spirax (SPX) was among the worst blue-chip stocks on the FTSE 100, with a 33% decline in 2024. But does this mean an opportunity for investors to buy Spirax (SPX) at a cheap price? Another scenario is that Spirax (SPX) will repeat the same performance in 2025 as well.

The Spirax (SPX) is an interesting company that's involved in making commercial/industrial steam systems. There's nothing groundbreaking or AI-related here, as is the case for many big gainers in 2024.

Spirax (Spx) Is Down -55% In 3 Years

If we look at the bigger picture, Spirax (SPX) has lost almost 55% during the last 3 years. So it's just 2024, but Spirax (SPX) is showing a history of consistent losses (3 in a row).

But what's weighing down the Spirax (SPX)? The sales are down due to weak Chinese demand and a general slowdown in the global industry.

Despite the decline in sales and share prices, analysts are still optimistic about Spirax (SPX). Right now, the median target set by the analysts for Spirax (SPX) is 7,825p. Based on the current price of Spirax (SPX), that's an upside of almost 18%.

However, the Spirax (SPX) share looks expensive with its 21.46 P/E ratio. For reference, the P/E ratio of the FTSE 100 is around 15.

But, the one thing that is in favor of Spirax (SPX) is its dividends. The company has been paying dividends for 55 years without any miss!

But even the almost guaranteed dividend isn't enough to buy Spirax (SPX) shares. After all, the company has a 1bn of net debt while the company's market cap is 5bn.

Right now, the FTSE 100 has a lot of better options, so it doesn't make sense to go with Spirax (SPX) at this time. But, if things pick pace and the company sees an uptick in sales, a case could be made based on the dividend history.

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