Standex International (SXI) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: 0.87%
• Average Volume (3M): 80.77K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.98
• Revenue Growth: -2.46%
• EPS Growth: -60.60%
• Country: US
• Employees: 3,700
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Machinery
• EPS (TTM): 4.58
• Shares Outstanding: 11,898,080
• 10 Day Avg. Volume: 98,836
• 30 Day Avg. Volume: 80,770
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.73
• Price to Cash Flow (P/CF): 54.10
• P/FCF Ratio: 109.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $206.33
• Price Target Upside: 44.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Standex International's overall score of 68 reflects its strong financial performance and positive earnings call outlook, tempered by current technical weaknesses and high valuation. The company shows resilience with a robust balance sheet and efficient operations. However, the high P/E ratio and technical indicators suggest caution in the short term. Ongoing challenges in revenue growth and cash flow management will be crucial areas to watch.

Positive Factors

Financial Performance

Standex International reported better-than-expected Q2/25 financial results with increased sales and adjusted EBITDA, indicating strong performance.

Market Demand

Sales to fast growth markets were significant, driven by sectors like electrical grid and defense applications, showing a strong market demand for Standex International's products.

Strategic Acquisitions

The acquisition of Amran/Narayan is seen as having strategic moats, synergies, and a promising growth outlook.

Negative Factors

Engraving Segment Challenges

Revenue in the Engraving segment decreased 18.2% reflecting a 17.5% organic decline due to delays in new platform rollouts in North America and market softness in Europe.

Revenue Decline

Revenue in the Electronics segment decreased 4.8% year-over-year reflecting an organic decline of 13.7% due to continued softness in industrial end markets in Europe.

Sales Decline

SXI reported a sales decline of 7.7% to $170.5 million with a 4.2% decline in adjusted EBITDA.

Standex International Business Overview & Revenue Model

Company Description

Standex International Corporation (SXI) is a diversified global manufacturing company that operates across multiple sectors, including Food Service Equipment, Engraving, Engineering Technologies, Electronics, and Scientific. The company provides a wide range of products and services, from commercial food service equipment and custom fluid handling devices to highly engineered components for industrial applications. Standex is known for its commitment to innovation and quality, serving a diverse array of industries such as aerospace, automotive, and medical.

How the Company Makes Money

Standex International makes money through the design, manufacture, and sale of specialized products and services across its five business segments. The Food Service Equipment segment generates revenue by supplying commercial kitchen equipment to restaurants and foodservice providers. The Engraving segment earns revenue by providing mold texturizing services and related products to automotive and consumer goods industries. The Engineering Technologies segment focuses on manufacturing engineered components for aerospace and defense industries, contributing to its revenue. The Electronics segment generates income by producing electronic components for various applications, including industrial and medical markets. The Scientific segment adds to the revenue through the sale of temperature-controlled products for laboratory and medical storage. Standex's revenue streams are bolstered by its strategic acquisitions and partnerships, which expand its market reach and enhance its product offerings.

Standex International Financial Statement Overview

Summary

Standex International exhibits strong operational margins and a balanced debt profile. While revenue growth has faced challenges, the company remains profitable with efficient cash management. The balance sheet is robust, underpinned by a solid equity base and controlled leverage. Continued focus on revenue growth and cash flow stability could enhance financial performance further.

Income Statement

Standex International has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is strong at approximately 38.9%, indicating efficient cost management. However, revenue has declined from the previous year, showing a negative growth rate of about -3.1%. The net profit margin for the TTM is around 7.6%, which is moderate. The EBIT and EBITDA margins also demonstrate good operational efficiency at 12.2% and 15.1%, respectively.

Balance Sheet

The balance sheet of Standex International reflects a solid financial position with a debt-to-equity ratio of approximately 0.87, suggesting a balanced approach to leveraging. The return on equity (ROE) for the TTM is about 8.3%, indicating a moderate return to shareholders. The company maintains a strong equity ratio of 44.2%, which highlights financial stability and a solid asset base supported by equity.

Cash Flow

The cash flow statement shows a stable free cash flow with a slight decrease compared to the previous year. The operating cash flow to net income ratio stands at 1.46, indicating healthy cash generation relative to profit. The free cash flow to net income ratio is approximately 1.25, suggesting effective cash conversion from profits. However, the free cash flow growth rate has declined, reflecting potential challenges in cash flow generation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
717.74M	720.63M	741.05M	735.34M	656.23M	604.53M
	Gross Profit
279.31M	282.00M	285.10M	269.95M	241.26M	215.46M
	EBIT
87.53M	101.74M	171.09M	88.29M	59.16M	60.53M
	EBITDA
116.29M	121.92M	191.45M	116.63M	91.98M	99.25M
	Net Income Common Stockholders
54.44M	73.07M	138.99M	61.39M	36.47M	41.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.40K	154.20M	195.71M	104.84M	136.37M	118.81M
	Total Assets
424.04K	1.01B	1.02B	934.44M	962.22M	930.88M
	Total Debt
64.80K	187.89M	199.22M	214.08M	228.53M	235.44M
	Net Debt
52.40K	33.69M	3.51M	109.23M	92.16M	116.63M
	Total Liabilities
222.84K	383.55M	417.48M	435.10M	455.80M	469.25M
	Stockholders Equity
201.20K	621.50M	607.45M	499.34M	506.43M	461.63M
Cash Flow		Free Cash Flow
54.14M	72.36M	66.53M	53.83M	61.83M	25.72M
	Operating Cash Flow
79.54M	92.66M	90.80M	77.72M	83.58M	47.24M
	Investing Cash Flow
-453.52M	-61.63M	41.56M	-31.04M	-39.09M	-617.00K
	Financing Cash Flow
358.15M	-69.20M	-40.04M	-69.43M	-31.73M	-18.98M

Standex International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXI, the sentiment is Negative. The current price of 142.78 is below the 20-day moving average (MA) of 157.88, below the 50-day MA of 175.26, and below the 200-day MA of 180.93, indicating a bearish trend. The MACD of -6.21 indicates Positive momentum. The RSI at 31.14 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SXI.

Standex International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAC	74 Outperform	$2.16B	23.63	23.87%	0.10%	0.43%	34.59%
TNC	69 Neutral	$1.34B	16.23	13.98%	1.62%	3.47%	-24.70%
SXI	68 Neutral	$1.70B	31.17	8.57%	0.87%	-2.46%	-60.60%
HLIO	62 Neutral	$902.32M	23.14	4.54%	1.33%	-3.55%	2.73%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
HI	51 Neutral	$1.50B	―	-14.61%	4.20%	5.88%	-324.10%
ENOV	46 Neutral	$1.82B	―	-27.69%	―	23.46%	-1552.75%

Standex International Corporate Events

Standex International Expands in Electrical Grid Market

Standex International Corporation has made significant strides in the electrical grid market by acquiring Amran Instrument Transformers and Narayan Powertech Pvt. Ltd., valued at $462 million. These strategic acquisitions are anticipated to boost Standex’s revenue growth, EBITDA margin, and presence in fast-growing markets, with expected revenues of $100 million in 2024. The integration of Amran/Narayan Group enhances Standex’s technology platform and geographic reach, contributing to its portfolio strategy of focusing on high-margin business segments. The consolidation aims to leverage cross-selling opportunities and maintain a strong market position.