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Standex International (SXI)
NYSE:SXI
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Standex International
(NYSE:SXI)
68Neutral
Positive Factors
Acquisition Impact
The acquisition of Amran/Narayan is seen as having strategic moats, synergies, and a promising growth outlook.
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.
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
Standex International reported a sales decline of 7.7% to $170.5 million with a 4.2% decline in adjusted EBITDA.
Segment Performance
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.
Standex International (SXI) vs. S&P 500 (SPY)
Market Cap
$1.77B
Dividend Yield0.83%
Average Volume (3M)69.50K
Price to Earnings (P/E)32.5
Beta (1Y)1.03
Revenue Growth-2.46%
EPS Growth-60.60%
CountryUS
Employees3,700
SectorIndustrials
Sector Strength68
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.58
Shares Outstanding11,898,080
10 Day Avg. Volume90,096
30 Day Avg. Volume69,500
Financial Highlights & Ratios
PEG RatioN/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 Ratio109.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$222.00Price Target Upside58.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Standex International Business Overview & Revenue Model
Company DescriptionStandex 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 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 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.75
Positive
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.80
Positive
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.70
Positive
| 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
Negative
139.74
Price Trends
179.91
Negative
188.57
Negative
181.44
Negative
Market Momentum
-6.21
Positive
31.14
Neutral
21.72
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 139.74 is below the 20-day moving average (MA) of 168.04, below the 50-day MA of 179.91, and below the 200-day MA of 181.44, 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 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.73B | 18.98 | 19.60% | 1.09% | 10.59% | 27.04% | |
77 Outperform | $22.30B | 8.37 | 24.30% | 1.26% | -2.99% | 159.26% | |
76 Outperform | $37.26B | 27.25 | 14.97% | 0.71% | 5.22% | 4.46% | |
73 Outperform | $9.97B | 43.52 | 8.35% | ― | 4.62% | 21.58% | |
72 Outperform | $57.46B | 24.23 | 9.66% | 2.06% | 10.29% | 22.72% | |
68 Neutral | $1.77B | 32.47 | 8.57% | 0.83% | -2.46% | -60.60% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% |
* Industrials Sector Average
Performance Comparison
SXI
Standex International
139.74
-34.72
-19.90%
AME
Ametek
152.66
-27.08
-15.07%
DOV
Dover
153.55
-20.65
-11.85%
EMR
Emerson Electric Company
94.57
-18.06
-16.03%
ITT
ITT
112.76
-18.92
-14.37%
RBC
RBC Bearings
308.82
39.28
14.57%
Standex International Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -24.97% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong adjusted operating margins and successful integration of the Amran/Narayan Group, but also noted challenges with organic revenue decline and cash flow reduction. While growth in fast-growth markets and new product sales were positive, weaknesses in the Engraving segment and automotive market softness posed challenges.Highlights
Record Adjusted Operating Margin
Achieved a record adjusted operating margin of 18.7% in the fiscal second quarter, up 170 basis points sequentially and up 150 basis points year-on-year.
Successful Amran/Narayan Acquisition
Sales from the Amran/Narayan Group exceeded expectations, contributing significantly to fast-growth markets, with integration progressing well.
Growth in Fast-Growth Markets
Sales into fast-growth markets were over 20% of total company sales, with strong performance in the electrical grid, space, and defense applications.
New Product Sales Increase
New product sales totaled $14.5 million in the fiscal second quarter, increasing approximately $3.5 million sequentially and more than doubling year-on-year.
Updated Long-term Financial Targets
Increased fiscal 2028 targets to sales greater than $1.15 billion and adjusted operating margin of higher than 23%.
Lowlights
Organic Revenue Decline
Organic revenue declined by 8.2%, with specific challenges in the electronics segment due to softness in automotive and general industrial end markets.
Cash Flow Reduction
Net cash provided by operating activities was $9.1 million in the second quarter compared to $23.8 million a year ago, due to $11 million in one-time acquisition-related expenses.
Engraving Segment Weakness
Engraving revenue decreased 23%, with an adjusted operating margin decline of 850 basis points due to lower revenue and continued softness in automotive end markets.
Company Guidance
During the Standex International fiscal second quarter 2025 financial results conference call, management provided a positive outlook on the company's performance, highlighting several key metrics. Standex achieved a record adjusted operating margin of 18.7%, a 170 basis point increase sequentially, with electronics achieving 27.6%. Sales rose by 6.4%, supported by acquisitions like the Amran/Narayan Group, which exceeded expectations with contributions to fast-growth markets, now over 20% of total sales. The book-to-bill ratio is 1.02, indicating market improvement. The company anticipates moderately to significantly higher revenue in the fiscal third quarter, driven by recent acquisitions and increasing demand in electronics. For fiscal 2025, Standex expects continued market improvement, aiming for over a dozen new product launches and projecting new product sales to add approximately 200 basis points of incremental growth. Long-term targets for fiscal 2028 were updated to over $1.15 billion in sales, with an adjusted operating margin exceeding 23% and a return on invested capital over 15.5%.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.