SPXC

SPX Corp

Industrial/Transportation


Presented:06/01/2018
Price:$34.22
Cap:$1.52B
Current Price:$169.16
Cap:$7.83B

Presented

Date06/01/2018
Price$34.22
Market Cap$1.52B
Ent Value$1.69B
P/E Ratio17.69x
Book Value$7.76
Div Yield1.12%
Shares O/S44.35M
Ave Daily Vol232,545
Short IntN/A

Current

Price$169.16
Market Cap$7.83B
SPX Corp. is the supplier of infrastructure equipment and products. It operates through the following segments: HVAC, Detection and Measurement, and Engineered Solutions. The HVAC segment engineers, designs, manufactures installs and services cooling products for the HVAC and industrial markets, as well as heating and ventilation products for the residential and commercial markets. The Detection & Measurement segment engineers, designs, manufactures and installs underground pipe and cable locators and inspection equipment, bus fare collection systems, communication technologies, and specialty lighting. The Engineered Solutions segment engineers, designs, manufactures, installs and services transformers for the power transmission and distribution market, as well as process cooling equipment and rotating and stationary heat exchangers for the power generation and industrial markets. The company was founded on December 20, 1911 and is headquartered in Charlotte, NC.

Publicly traded companies mentioned herein: SPX Corp (SPXC), SPX Flow Inc (FLOW)

Highlights

The presenter is long shares of SPX Corp (SPXC), describing the company as underfollowed, but focused on creating shareholder value following the break-up of its “poorly managed” predecessor, SPW. The presenter identifies solid organic growth in SPX’s core segments as lower quality segments are shut down. This paves the road for accretive capital deployment, through a combination of acquisitions, share buybacks, and other value-creating allocation strategies. The presenter thinks SPX shares could appreciate into the $50 - $60 range as the story becomes clearer and multiples expand.

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Idea Discussion

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