Is SPX Technologies’ (SPXC) EPS Outperformance Redefining Its Long-Term Growth Narrative?
- Recent commentary on SPX Technologies highlighted that over the past five years the company has delivered a compounded annual revenue growth rate of 10.1%, while lifting its operating margin by 8.5 percentage points to 15.8% and growing earnings per share at a 17.4% compounded rate.
- This combination of consistent top-line expansion, improving profitability, and faster earnings growth per share points to effective execution that is likely drawing fresh investor attention to SPX Technologies’ long-term growth profile.
- We’ll now examine how SPX Technologies’ strong long-term earnings per share growth record reshapes its existing investment narrative and future expectations.
Explore 28 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
SPX Technologies Investment Narrative Recap
To own SPX Technologies, you need to believe its steady revenue growth, expanding margins and strong EPS compounding can continue as the company scales HVAC and Detection & Measurement. The latest five year growth metrics reinforce that execution story but do not materially change the key near term swing factors, which still center on how successfully SPX converts its robust project backlog into profitable revenue and how it manages the risk of lumpier D&M project timing.
The most relevant recent update in this context is SPX’s latest quarterly earnings release, which showed higher year on year sales and EPS alongside improved net profit margins. When you line that up with the longer term record of a 10.1 percent revenue CAGR and 17.4 percent EPS CAGR, it gives you a clearer picture of how current project wins, capacity additions and bolt on deals could support or challenge that earnings trajectory over the next couple of years.
Yet despite this strong recent execution, investors should be aware that the rapid, project driven growth in Detection & Measurement could mean...
Read the full narrative on SPX Technologies (it's free!)
SPX Technologies' narrative projects $2.6 billion revenue and $388.1 million earnings by 2028. This requires 8.9% yearly revenue growth and about a $176.5 million earnings increase from $211.6 million today.
Uncover how SPX Technologies' forecasts yield a $230.50 fair value, a 13% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community members currently place SPX Technologies’ fair value between about US$200.72 and US$230.50, across 2 individual views that are often far apart. You can weigh those against the company’s strong earnings compounding record and the risk that several large D&M projects pulled into 2025 might leave future growth looking more uneven.
Explore 2 other fair value estimates on SPX Technologies - why the stock might be worth as much as 13% more than the current price!
Build Your Own SPX Technologies Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your SPX Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
- Our free SPX Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SPX Technologies' overall financial health at a glance.
Searching For A Fresh Perspective?
Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:
- We've found 12 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
- Find companies with promising cash flow potential yet trading below their fair value.
- Uncover the next big thing with financially sound penny stocks that balance risk and reward.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com