SPX Corporation provides specialized engineered solutions worldwide. It engineers, designs, manufactures, installs, and services thermal heat transfer products, such as dry, evaporative, and hybrid cooling systems; rotating and stationary heat exchangers; and pollution control systems for the power generation, HVAC, and industrial markets, as well as personal comfort heating products for the residential and commercial markets. The company is based in Charlotte, North Carolina.
SPXC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SPXC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Spx Corp ranked in the 67th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 152% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Spx Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 7.13; that's higher than 66.02% of US stocks in the Industrials sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.69 years, is 0.42% -- higher than 76.02% of stocks in our DCF forecasting set.
Spx Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 24.28% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BV, WWD, HNI, HI, and CLH can be thought of as valuation peers to SPXC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Q2 GAAP EPS of $0.62; Adjusted EPS* of $0.64 Balanced Portfolio Supported Strong Q2 Results Successfully Navigating COVID-19 ChallengesCHARLOTTE, N.C., July 30, 2020 (GLOBE NEWSWIRE) -- SPX Corporation (NYSE:SPXC) today reported results for the quarter ended June 27, 2020. Gene Lowe, President and CEO, remarked, “I am very pleased with our second quarter performance, which reflects solid operational execution and highlights the strengths of our balanced portfolio and our business system, which has allowed us to quickly adapt to changing conditions. Although we experienced COVID-19 pandemic-related headwinds during Q2, we maintained stable revenues and adjusted operating income.” Mr. Lowe continued, “As we assess the key drivers of our performance for the second half of 2020,...