Standex International Corporation (SXI) | Investment Case

1. Company Snapshot

1.a. Company Description

Standex 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.

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1.b. Last Insights on SXI

Standex International Corporation's recent performance was driven by strong Q4 FY25 results, with sales increasing 23.2% year-over-year to $222.0 million, fueled by new products and fast-growth markets. The company achieved a record adjusted operating margin of 20.6% and paid down $27 million of debt. Plans to release over 15 new products in FY26 are expected to contribute ~300 bps of growth. A quarterly cash dividend of $0.32 per share, a 6.7% year-on-year increase, was also declared.

1.c. Company Highlights

Last Price	242.08
Change Percentage	-0.71%
Open	243.52
Previous Close	243.82
Market Cap ( Millions)	2933
Volume	86124
Year High	249.61
Year Low	128.85
M A 50	231.14
M A 200	185.52

FCF Yield	2.07%
Dividend Yield	0.54%
ROE	7.73%
Debt / Equity	82.39%
Net Debt / EBIDTA	380.57%
Price To Book	4.11
Price Earnings Ratio	54.5
Price To FCF	48.41
Price To sales	3.5
EV / EBITDA	26.85

2. Standex International's Strong Q1 2026 Earnings: A Promising Start to the Fiscal Year

Standex International reported a robust financial performance in its fiscal first quarter 2026, with revenues increasing by 27.6% year-on-year to $217.4 million, driven by a 26.6% benefit from recent acquisitions, 0.6% organic growth, and a 0.4% benefit from foreign currency. The company's adjusted operating margin expanded by 210 basis points to 19.1%, resulting in a 43.3% increase in adjusted operating income. Earnings per share (EPS) came in at $1.99, beating estimates of $1.94. The strong top-line growth was fueled by new product sales, which rose by more than 35%, and fast growth markets, which constituted a growing portion of the company's revenue.

Publication Date: Nov -04

                                    📋 Highlights
                                    Sales Growth::
                                                27.6% YoY increase to $217.4M, driven by 26.6% acquisition impact, 0.6% organic growth, and 0.4% FX benefits.
Adjusted Operating Margin::
                                                Rose 210 bps to 19.1%, with adjusted operating income up 43.3% YoY.
Orders Momentum::
                                                $226M in orders, the highest quarterly intake, with 5-quarter growth trend continuing despite longer conversion cycles.
Electronics Momentum::
                                                New products drove 35% growth, including relays and test/measurement applications, alongside strong demand in electrification and data centers.
Revised Guidance::
                                                Raised FY2026 sales outlook to over $110M revenue growth (previously $100M), citing robust backlogs and market tailwinds.

                                

Revenue Growth Drivers

The company's revenue growth was driven by its strategic focus on faster-growing markets and new product introductions. David Dunbar, the CEO, mentioned that new products are coming out, particularly in electronics, with applications in relays and test and measurement. The end markets driving growth include electrification, modernization of the grid, and continued spend in data centers. The Grid Technologies business, formerly known as Amran/Narayan, reported a record sales quarter of over $35 million and strong orders, with a book-to-bill ratio of over 1.

Margin Expansion and Future Outlook

The company's adjusted operating margin expansion was driven by the strong top-line growth and operational efficiency. Standex is raising its fiscal year 2026 sales outlook, expecting revenue to grow by over $110 million, $10 million more than previously communicated. The company remains on track to achieve its fiscal 2028 long-term targets. Analysts estimate next year's revenue growth at 14.7%, indicating a continued strong performance.

Valuation Metrics

Standex International's current valuation metrics indicate a premium valuation. The stock trades at a P/E Ratio of 52.81, P/B Ratio of 3.98, and P/S Ratio of 3.39. The EV/EBITDA ratio is 26.09, indicating a relatively high valuation. The company's ROE (%) is 7.73, and ROIC (%) is 6.55. The Net Debt / EBITDA ratio is 3.81, indicating a moderate level of leverage. These metrics suggest that the market has priced in a significant level of growth, and the company's future performance will need to meet expectations to justify the current valuation.

3. NewsRoom

STANDEX TO PARTICIPATE IN MELIUS RESEARCH CONFERENCE

Nov -21

Source: prnewswire.com

Standex (SXI) is an Incredible Growth Stock: 3 Reasons Why

Nov -19

Source: zacks.com

Envestnet Asset Management Inc. Sells 2,901 Shares of Standex International Corporation $SXI

Nov -06

Source: defenseworld.net

Wuhan General Group (OTCMKTS:WUHN) vs. Standex International (NYSE:SXI) Head-To-Head Comparison

Nov -05

Source: defenseworld.net

3 Reasons Growth Investors Will Love Standex (SXI)

Nov -04

Source: zacks.com

Standex International Corporation (SXI) Q1 2026 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

Standex (SXI) Reports Q1 Earnings: What Key Metrics Have to Say

Oct -31

Source: zacks.com

Standex International (SXI) Q1 Earnings Surpass Estimates

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.85%)

6. Segments

Electronics

Expected Growth: 3.8%

Standex International Corporation's Electronics segment growth of 3.8% is driven by increasing demand for industrial automation, IoT devices, and electric vehicles. Additionally, the company's strategic acquisitions and investments in R&D have expanded its product offerings and improved operational efficiency, contributing to the segment's growth.

Engraving

Expected Growth: 3.5%

Standex International Corporation's Engraving segment growth of 3.5% is driven by increasing demand for precision-engineered solutions in the automotive, aerospace, and medical industries. Additionally, the company's strategic acquisitions and investments in digital technologies have enhanced its capabilities, leading to market share gains and revenue growth.

Specialty Solutions

Expected Growth: 4.2%

Standex International Corporation's Specialty Solutions segment growth of 4.2% is driven by increasing demand for customized engineering solutions, expansion into new markets, and strategic acquisitions. Additionally, the segment benefits from a strong reputation for quality and reliability, leading to long-term customer relationships and repeat business.

Engineering Technologies

Expected Growth: 3.9%

Standex International Corporation's Engineering Technologies segment growth of 3.9% is driven by increasing demand for precision engineering solutions in the aerospace, defense, and industrial markets. Additionally, the segment's focus on innovation, operational efficiency, and strategic acquisitions have contributed to its growth.

Scientific

Expected Growth: 4.1%

Standex International Corporation's Scientific segment growth of 4.1% is driven by increasing demand for precision testing and measurement solutions, expansion into emerging markets, and strategic acquisitions. Additionally, investments in R&D and innovation have enabled the company to capitalize on trends in IoT, Industry 4.0, and digitalization, further fueling growth.

7. Detailed Products

Food Service Equipment

Standex International Corporation provides a range of food service equipment, including refrigerators, freezers, and cooking appliances, designed for commercial kitchens and restaurants.

Scientific and Industrial Equipment

Standex International Corporation offers a variety of scientific and industrial equipment, including laboratory equipment, testing instruments, and industrial automation solutions.

Engineering Technologies

Standex International Corporation provides engineering technologies, including precision engineering, machining, and assembly services, for various industries such as aerospace, defense, and medical.

Engraving and Electronics

Standex International Corporation offers engraving and electronics solutions, including engraving services, nameplates, and electronic components.

8. Standex International Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Standex International Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products and services.

Bargaining Power Of Customers

Standex International Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Standex International Corporation relies on a network of suppliers to provide raw materials and components. While the company has some bargaining power due to its size and scale, suppliers still have some negotiating power due to the specialized nature of the products and services they provide.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in Standex International Corporation's markets. The company's established brand, proprietary technology, and significant capital investments required to enter the market make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The intensity of rivalry in Standex International Corporation's markets is high due to the presence of established competitors and the need to constantly innovate and improve products and services to remain competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	25.44%
Debt Cost	3.95%
Equity Weight	74.56%
Equity Cost	9.22%
WACC	7.88%
Leverage	34.12%

11. Quality Control: Standex International Corporation passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Graham

A-Score: 5.1/10

Value: 3.3

Growth: 7.9

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

Enerpac Tool

A-Score: 5.1/10

Value: 4.5

Growth: 7.8

Quality: 6.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

Thermon

A-Score: 4.6/10

Value: 5.2

Growth: 5.8

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Tennant

A-Score: 4.6/10

Value: 4.3

Growth: 4.7

Quality: 5.6

Yield: 2.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

Standex

A-Score: 4.2/10

Value: 1.5

Growth: 4.0

Quality: 5.4

Yield: 1.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Twin Disc

A-Score: 4.2/10

Value: 6.1

Growth: 4.8

Quality: 3.6

Yield: 1.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

21.46%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.88%

Standex International Corporation - US8542311076

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SXI

1.c. Company Highlights

Better Quality

Medium Volatility

Fairly Valued

Earnings Beats

Revenues Miss

Expensive

Lower Growth

Stable Momentum

Revenues Beats

Average Growth

2. Standex International's Strong Q1 2026 Earnings: A Promising Start to the Fiscal Year

Revenue Growth Drivers

Margin Expansion and Future Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.85%)

6. Segments

Electronics

Expected Growth: 3.8%

Engraving

Expected Growth: 3.5%

Specialty Solutions

Expected Growth: 4.2%

Engineering Technologies

Expected Growth: 3.9%

Scientific

Expected Growth: 4.1%

7. Detailed Products

Food Service Equipment

Scientific and Industrial Equipment

Engineering Technologies

Engraving and Electronics

8. Standex International Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Standex International Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

242.08$

Current Price

242.08$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA