Seeking Alpha: Excellence At Spectris Has Not Gone Unrewarded

The last year has not been all that great for the shares of European specialty instrumentation and controls company Spectris (OTCPK:SEPJY) (SXS.L), though the stock has done pretty well compared to peer group members like Mettler-Toledo (MTD), Danaher (DHR), and MTS Systems (MTSC) over the past two and five years. As a leader in a collection of niche specialty instrumentation markets, Spectris has not only established strong margins and returns on capital, but is also uncommonly diversified across industries and geographies.

As a play on automation, Spectris should have a pretty good long-term outlook. Spectris is still small enough to benefit from bolt-on acquisitions, but large enough to compete globally without sacrificing margins. Though the valuation on these shares isn't very cheap, companies that combine good market positions and margins seldom trade for what looks like a low valuation at the time.

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Excellence At Spectris Has Not Gone Unrewarded