Spirent Communications (UK) Buy Hold or Sell Recommendation
| SPT Stock | 171.50 1.00 0.59% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Spirent Communications plc is 'Cautious Hold'. Macroaxis provides Spirent Communications buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SPT positions.
Check out Spirent Communications Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Spirent and provide practical buy, sell, or hold advice based on investors' constraints. Spirent Communications plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Spirent |
Execute Spirent Communications Buy or Sell Advice
The Spirent recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Spirent Communications plc. Macroaxis does not own or have any residual interests in Spirent Communications plc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Spirent Communications' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Spirent Communications Trading Alerts and Improvement Suggestions
| Spirent Communications generated a negative expected return over the last 90 days | |
| Spirent Communications is unlikely to experience financial distress in the next 2 years | |
| Over 97.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Barclays Boosts Stake in Spirent Communications - TipRanks |
Spirent Communications Returns Distribution Density
The distribution of Spirent Communications' historical returns is an attempt to chart the uncertainty of Spirent Communications' future price movements. The chart of the probability distribution of Spirent Communications daily returns describes the distribution of returns around its average expected value. We use Spirent Communications plc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Spirent Communications returns is essential to provide solid investment advice for Spirent Communications.
| Mean Return | -0.06 | Value At Risk | -1.1 | Potential Upside | 1.17 | Standard Deviation | 0.70 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Spirent Communications historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Spirent Communications Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 7M | (1.5M) | (2.2M) | (14.4M) | (2M) | (1.9M) | |
| Change In Cash | 61.6M | 58M | (66.4M) | 34.8M | (101.5M) | (96.4M) | |
| Free Cash Flow | 106.4M | 111.2M | 92.7M | 109.4M | 25.4M | 42.4M | |
| Depreciation | 24.3M | 22M | 25.3M | 23.6M | 22.5M | 23.7M | |
| Other Non Cash Items | (1M) | (100K) | 600K | (27.1M) | (5.1M) | (5.4M) | |
| Capital Expenditures | 12.9M | 10M | 10.2M | 8.4M | 6.5M | 6.2M | |
| Net Income | 89.6M | 95.8M | 103.6M | 114.6M | 22.9M | 24.0M | |
| End Period Cash Flow | 183.2M | 241.2M | 174.8M | 209.6M | 108.1M | 107.9M | |
| Dividends Paid | 28.6M | 33.6M | 83.6M | 39.9M | 46.5M | 34.8M | |
| Investments | (10.8M) | (7M) | (60.2M) | (6.1M) | (7.9M) | (8.3M) | |
| Change To Netincome | 9.1M | 5.3M | 11.4M | (1.7M) | (1.5M) | (1.5M) |
Spirent Communications Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Spirent Communications or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Spirent Communications' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Spirent stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.07 | |
β | Beta against Dow Jones | 0.03 | |
σ | Overall volatility | 0.71 | |
Ir | Information ratio | -0.26 |
Spirent Communications Volatility Alert
Spirent Communications plc exhibits very low volatility with skewness of 0.45 and kurtosis of -0.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Spirent Communications' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Spirent Communications' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Spirent Communications Fundamentals Vs Peers
Comparing Spirent Communications' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Spirent Communications' direct or indirect competition across all of the common fundamentals between Spirent Communications and the related equities. This way, we can detect undervalued stocks with similar characteristics as Spirent Communications or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Spirent Communications' fundamental indicators could also be used in its relative valuation, which is a method of valuing Spirent Communications by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Spirent Communications to competition |
| Fundamentals | Spirent Communications | Peer Average |
| Return On Equity | 0.0356 | -0.31 |
| Return On Asset | 0.0277 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | (0) % | (5.51) % |
| Current Valuation | 886.47 M | 16.62 B |
| Shares Outstanding | 571.85 M | 571.82 M |
| Shares Owned By Insiders | 3.27 % | 10.09 % |
| Shares Owned By Institutions | 96.72 % | 39.21 % |
| Price To Book | 3.27 X | 9.51 X |
| Price To Sales | 2.19 X | 11.42 X |
| Revenue | 474.3 M | 9.43 B |
| Gross Profit | 437.1 M | 27.38 B |
| EBITDA | 46.3 M | 3.9 B |
| Net Income | 22.9 M | 570.98 M |
| Total Debt | 21.4 M | 5.32 B |
| Book Value Per Share | 0.65 X | 1.93 K |
| Cash Flow From Operations | 31.9 M | 971.22 M |
| Earnings Per Share | 0.02 X | 3.12 X |
| Target Price | 202.06 | |
| Number Of Employees | 1.53 K | 18.84 K |
| Beta | 0.57 | -0.15 |
| Market Capitalization | 980.72 M | 19.03 B |
| Total Asset | 583.8 M | 29.47 B |
| Retained Earnings | 284.3 M | 9.33 B |
| Working Capital | 138.3 M | 1.48 B |
| Net Asset | 583.8 M |
Spirent Communications Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Spirent . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Spirent Communications Buy or Sell Advice
When is the right time to buy or sell Spirent Communications plc? Buying financial instruments such as Spirent Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Other Information on Investing in Spirent Stock
Spirent Communications financial ratios help investors to determine whether Spirent Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Spirent with respect to the benefits of owning Spirent Communications security.