Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 26 Jul 2026
SPXC· Industrials
SPX Technologies
SPX Technologies struggles with low returns and high valuation, failing to meet Buffett's investment criteria.
Buffett fit
Weak fit
Owner
36
Durability
55
Management
77
Price
3
Score updated 22 Oct 2026 · analysis from 26 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned SPX Technologies outright, I would be concerned about the trajectory of earnings, particularly with a 5-year EPS CAGR of -14.03%.
The full reasoning comes with a free account.
Over the next decade, SPX needs to maintain profitability, especially with a 5-year EPS decline of nearly 100%.
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Management has shown a slight increase in share count at 1.37% CAGR over 5 years, which is not ideal for shareholder value.
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The current of 39.1 and yield of 2.37% indicate a significant overvaluation compared to Buffett's target of 8-10%.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of $241.2M indicates some operational cash generation.
- 2Current ratio of 2.11 suggests strong short-term liquidity.
- 3Low ratio of 0.29 implies manageable leverage.
- 4Interest coverage of 8.8 shows good ability to meet interest obligations.
Concerns
5- 1 of 9.15% is below the sector top-quintile cutoff of 13.6%, indicating poor capital efficiency.
- 2 of 36.7% is significantly below the sector's top-quintile cutoff of 43.4%.
- 3 of 17.2% is just below the sector's 17.8% top-quintile cutoff.
- 45-year EPS CAGR of -14.03% raises concerns about future profitability.
Price history
$168+176.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
SPX Technologies provides infrastructure equipment for HVAC and detection markets, generating $2.27B in revenue. The HVAC segment accounts for a significant portion, offering engineered solutions and comfort heating products. The Detection and Measurement segment also contributes through various branded products. Overall, the unit economics are challenged by the low of 36.7%.
What other investors would say
The same company, judged by three other documented playbooks.
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