SPX Technologies Inc. Common Stock (SPXC)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $165 million in annual free cash flow (1.5% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.26, providing financial flexibility
• Altman Z-Score of 5.6 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($71) with negative 214% margin of safety—limited downside protection

AI Analysis

SPX Technologies Inc. Common Stock is a mid-cap industrials company valued at $11.3 billion. The business generates $2.3 billion in annual revenue with a 3.5% net margin and $165 million in free cash flow. From a quality standpoint, SPX shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 5.6 confirms fortress-level solvency. On valuation, the stock is commanding a steep 44.4x multiple, with trades far above its Graham Number ($71) with no margin of safety. Growth dynamics show revenue growing at 19.4% and profit growth of 36.4%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

SPX's 19% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $165 million in annual free cash flow (1.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 44x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer