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Standex International (SXI)
NYSE:SXI
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Standex International
(NYSE:SXI)
71Outperform
Positive Factors
Acquisition Impact
The acquisition of the Amran/Narayan Group is performing ahead of expectations, contributing significantly to the company's growth.
Financial Performance
Standex International achieved record sales and margins, driven by solid performance from core businesses and recent acquisitions.
Investor Sentiment
SXI shares traded up 10% following the company’s fiscal third-quarter conference call, indicating positive investor sentiment.
Negative Factors
Business Complexity
The portfolio transformation is expected to shift toward a more focused set of growing businesses, addressing investor concerns about complexity.
Revenue Challenges
Standex is nearing the end of an organic revenue slide, with a strategy that includes accretive acquisitions and emerging R&D initiatives enhancing earnings power.
Standex International (SXI) vs. S&P 500 (SPY)
Market Cap
$1.89B
Dividend Yield0.79%
Average Volume (3M)82.53K
Price to Earnings (P/E)30.9
Beta (1Y)1.02
Revenue Growth2.67%
EPS Growth-18.41%
CountryUS
Employees3,700
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.95
Shares Outstanding12,071,608
10 Day Avg. Volume84,056
30 Day Avg. Volume82,529
Financial Highlights & Ratios
PEG Ratio3.08
Price to Book (P/B)2.76
Price to Sales (P/S)0.00
P/FCF Ratio32.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$198.33Price Target Upside26.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Standex International Business Overview & Revenue Model
Company DescriptionStandex International Corporation, together with subsidiaries, manufactures and sells various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and current sense and advanced planar transformer technologies, value added assemblies, and mechanical packaging, as well as custom wound transformers and inductors for low and high frequency applications. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries. The Scientific segment offers temperature controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets. The Specialty Solutions segment manufactures and sells refrigerated, heated and dry merchandizing display cases, custom fluid pump solutions, single and double acting telescopic, and piston rod hydraulic cylinders. Standex International Corporation was founded in 1955 and is headquartered in Salem, New Hampshire.
How the Company Makes MoneyStandex 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 shows strong revenue growth but faces pressure on net profitability with declining margins. The balance sheet indicates increased leverage, and cash flow generation has slowed, raising concerns about future financial flexibility.Income Statement
Standex International has shown consistent revenue growth over the years, with a significant increase from $604.5M in 2020 to $748.3M in the TTM period. The gross profit margin is healthy at 39.2% for TTM, though it has seen some fluctuations. The net profit margin decreased to 8.1% in the TTM period from 10.2% in 2023, indicating some pressure on net profitability. The EBIT and EBITDA margins are solid, though slightly down from the previous year, reflecting stable operational efficiency but slightly reduced profitability.75
Positive
Balance Sheet
The balance sheet of Standex International is relatively strong, with a healthy equity ratio of 44.2% in the TTM period. The debt-to-equity ratio increased to 0.9, indicating higher leverage, which may pose a risk if not managed properly. The return on equity has decreased to 8.8% in the TTM period from 22.9% in 2023, suggesting reduced profitability for shareholders.70
Positive
Cash Flow
Standex International's cash flow position shows a decline in operating cash flow in the TTM period compared to 2023, with a free cash flow of $58.2M. The operating cash flow to net income ratio is reasonable at 1.07, indicating that earnings are being effectively converted to cash. However, the free cash flow growth rate has turned negative compared to the previous year, highlighting potential cash management challenges.68
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 748.25M | 720.63M | 741.05M | 735.34M | 656.23M | 604.53M | Gross Profit |
| 293.36M | 282.00M | 285.10M | 269.95M | 241.26M | 215.46M | EBIT |
| 87.25M | 101.74M | 171.09M | 88.29M | 59.16M | 60.53M | EBITDA |
| 108.95M | 121.92M | 191.45M | 116.63M | 91.98M | 99.25M | Net Income Common Stockholders |
| 60.52M | 73.07M | 138.99M | 61.39M | 36.47M | 41.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 109.81M | 154.20M | 195.71M | 104.84M | 136.37M | 118.81M | Total Assets |
| 1.55B | 1.01B | 1.02B | 934.44M | 962.22M | 930.88M | Total Debt |
| 616.02M | 187.89M | 199.22M | 214.08M | 228.53M | 235.44M | Net Debt |
| 506.21M | 33.69M | 3.51M | 109.23M | 92.16M | 116.63M | Total Liabilities |
| 867.63M | 383.55M | 417.48M | 435.10M | 455.80M | 469.25M | Stockholders Equity |
| 686.93M | 621.50M | 607.45M | 499.34M | 506.43M | 461.63M |
| Cash Flow | Free Cash Flow | ||||
| 58.22M | 72.36M | 66.53M | 53.83M | 61.83M | 25.72M | Operating Cash Flow |
| 64.76M | 92.66M | 90.80M | 77.72M | 83.58M | 47.24M | Investing Cash Flow |
| -501.01M | -61.63M | 41.56M | -31.04M | -39.09M | -617.00K | Financing Cash Flow |
| 408.07M | -69.20M | -40.04M | -69.43M | -31.73M | -18.98M |
Standex International Technical Analysis
Positive
156.34
Price Trends
154.99
Positive
171.11
Negative
177.49
Negative
Market Momentum
1.66
Negative
56.43
Neutral
41.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXI, the sentiment is Positive. The current price of 156.34 is above the 20-day moving average (MA) of 147.78, above the 50-day MA of 154.99, and below the 200-day MA of 177.49, indicating a neutral trend. The MACD of 1.66 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 41.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SXI.
Standex International Risk Analysis
Standex International disclosed 26 risk factors in its most recent earnings report. Standex International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Standex International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.46B | 26.83 | 23.87% | 0.09% | 0.43% | 34.59% | |
71 Outperform | $1.89B | 30.89 | 9.29% | 0.79% | 2.67% | -18.41% | |
65 Neutral | $1.44B | 21.52 | 11.04% | 1.49% | 1.35% | -40.63% | |
64 Neutral | $4.42B | 11.99 | 5.16% | 249.23% | 4.02% | -11.68% | |
63 Neutral | $1.09B | 29.32 | 4.27% | 1.10% | -5.39% | 12.14% | |
52 Neutral | $2.06B | ― | -27.40% | ― | 18.32% | -712.12% | |
48 Neutral | $1.53B | ― | -18.22% | 4.12% | 0.31% | -423.59% |
* Industrials Sector Average
Performance Comparison
SXI
Standex International
156.34
-16.69
-9.65%
EPAC
Enerpac Tool Group
45.40
7.55
19.95%
ENOV
Enovis
36.06
-15.09
-29.50%
HI
Hillenbrand
21.70
-21.99
-50.33%
HLIO
Helios Technologies
32.66
-20.73
-38.83%
TNC
Tennant Co
77.02
-26.13
-25.33%
Standex International Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q3-2025)
| % Change Since: 8.16%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance with record-breaking margins, significant sales increases driven by acquisitions, and growth in fast-growing markets. However, these positive aspects were offset by challenges such as organic revenue decline, cash flow reduction, and specific segment challenges in Engraving, Scientific, and Specialty Solutions.Q3-2025 Updates
Positive Updates
Record-Breaking Adjusted Margins
Standex achieved a record adjusted gross margin of 42.3% and a record adjusted operating margin of 19.4% in fiscal Q3 2025. Adjusted gross margin increased by 230 basis points year-on-year, while adjusted operating margin increased by 280 basis points year-on-year.
Significant Sales Increase
Total revenue increased by 17.2% year-on-year to $207.8 million, driven by a 26.3% benefit from recent acquisitions, despite an organic revenue decline of 8.1%.
Growth in Fast-Growth Markets
Sales into fast-growing markets increased to 29% of total company sales, primarily driven by electrical grid, commercialization of space, defense applications, and renewable energy.
Successful Acquisitions
The acquisitions of Amran/Narayan and McStarlite have been successful, with Amran/Narayan performing ahead of expectations and contributing significantly to the growth.
Expansion Plans
Standex is planning expansions in India, Europe, and the USA, with a new greenfield site in Europe expected to be operational within six months.
New Product Success
New product sales totaled $13.4 million in fiscal Q3 2025, doubling year-on-year and contributing approximately 3% to top line sales.
Negative Updates
Organic Revenue Decline
Standex experienced an organic revenue decline of 8.1% in fiscal Q3 2025, partially offsetting the gains from acquisitions.
Cash Flow Challenges
Net cash provided by operating activities was $9.6 million in fiscal Q3 2025, down from $24.4 million a year ago, impacting the free cash flow which decreased to $3.5 million from $19.3 million.
Engraving Segment Decline
Engraving revenue decreased by 15.7% to $30.6 million, driven by an organic decline of 12.6% and foreign currency impacts. Adjusted operating margin decreased by 720 basis points year-on-year.
Scientific Segment Challenges
Scientific revenue was affected by an organic decline of 8% due to lower demand from academic and research institutions, impacted by NIH funding cuts. Adjusted operating margin decreased by 780 basis points year-on-year.
Specialty Solutions Revenue Decrease
Specialty Solutions segment's revenue decreased by 13.9% year-on-year due to general market softness.
Company Guidance
During the Standex conference call for fiscal third quarter 2025, management reported several record-breaking metrics, including a record adjusted gross margin of 42.3% and a record adjusted operating margin of 19.4%. Sales increased by 17.2% year-on-year to $207.8 million, with a 26.3% contribution from recent acquisitions, although there was an organic decline of 8.1%. The electronics segment saw a revenue increase of 38.4% year-on-year, driven by a 48.1% benefit from acquisitions, despite an 8.9% organic decline. The adjusted operating margin for electronics was 29.8%. The company also highlighted that sales into fast-growing end markets rose to 29% of total sales, and new product sales contributed 3% to year-to-date sales, exceeding initial projections. Standex's net debt reached $470.4 million, with a leverage ratio of 2.8%. Looking forward, the company expects slightly to moderately higher revenue and adjusted operating margins in the fiscal fourth quarter, driven by acquisitions and sales into fast-growth markets, despite some tariff costs and strategic investments.Standex International Corporate Events
M&A TransactionsBusiness Operations and Strategy
Standex International Expands in Electrical Grid Market
Positive
Oct 29, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.