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Standex International (SXI)
NYSE:SXI

Standex International (SXI) AI Stock Analysis

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SXI

Standex International

(NYSE:SXI)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
$268.00
▲(10.77% Upside)
The score is driven primarily by steady financial performance and a supportive uptrend with constructive momentum. Positive earnings-call guidance and order strength add support, but the overall rating is held back by a rich valuation (high P/E) and some ongoing profitability/segment and debt-related risks.
Positive Factors
New product pipeline & fast‑growth markets
A growing new‑product pipeline and concentrated push into fast‑growth end markets create a multi‑quarter structural revenue tailwind. This supports durable organic growth, diversifies revenue mix, and increases addressable markets while enabling higher ASPs and better customer lock‑in over time.
High‑margin Electronics segment
A materially higher‑margin, fast‑growing Electronics business improves consolidated profitability resilience. Strong orders and a >1 book‑to‑bill signal backlog conversion prospects, enabling scalable margin expansion and cash generation that support long‑term investment and returns.
Improving cash flow and liquidity
Rising operating cash flow and stronger free cash flow enhance financial flexibility for capex, debt paydown, or M&A without relying on external funding. Sustained cash conversion supports the dividend track record and funds strategic investments over the coming quarters.
Negative Factors
Elevated absolute debt and interest burden
Substantial outstanding debt creates persistent interest expense and constrains flexibility for opportunistic investments or aggressive buybacks. Even with gradual paydown, elevated leverage raises refinancing and macro sensitivity risks that could pressure margins and cash available for growth.
Segment‑level demand and margin weaknesses
Meaningful declines in Specialty Solutions reflect end‑market cyclicality and concentrated exposure to weaker North American demand. Persistent underperformance in niches can erode consolidated margins and requires time and investment to restore profitable volumes and pricing power.
Near‑term margin dilution from capacity investments
Aggressive capacity buildouts across Croatia, Mexico, Houston and India are strategic but will consume cash and depress near‑term margins as facilities ramp. Execution risk on timing and utilization could delay expected economies of scale and keep returns subdued during the multi‑year build phase.

Standex International (SXI) vs. SPDR S&P 500 ETF (SPY)

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 generates revenue through multiple key streams across its diverse business segments. The Food Service segment earns money by selling commercial cooking, refrigeration, and food warming equipment to restaurants, hotels, and foodservice operations. The Engraving segment derives income from providing engraving materials and services, primarily to manufacturers needing custom solutions. The Electronics segment generates revenue through the sale of electronic components and devices used in various industries, including automotive and aerospace. Additionally, the Specialty Solutions segment earns from niche markets by offering specialized manufacturing services. Partnerships with major retailers, distributors, and manufacturers enhance Standex's market reach and contribute to steady revenue growth. Overall, the company’s diverse portfolio enables it to mitigate risks and capitalize on various market opportunities.

Standex International Earnings Call Summary

Earnings Call Date:Jan 29, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized clear inflection in growth: record orders, double‑digit segment growth (notably Electronics), stronger margins, improved free cash flow and continued investment in new products and fast‑growth end markets (grid, defense, space). Offsetting items include concentrated segment weaknesses (Specialty Solutions, Scientific organically), timing variability in Engineering Technologies, a sizeable purchase‑accounting adjustment related to the Narayan minority stake, and substantial outstanding debt/ongoing capacity investments that could temper near‑term margin expansion. On balance the progress in core growth drivers and improved cash generation outweigh the challenges, though execution and macro timing remain watch items.
Q2-2026 Updates
Positive Updates
Strong Consolidated Revenue Growth and Record Orders
Total revenue increased 16.6% year‑over‑year to $221.3M; organic growth was 6.4%. Quarterly orders were approximately $231M — the highest ever — and overall book‑to‑bill was 1.04.
Electronics Segment Outperformance
Electronics revenue reached a record $115.7M, up 20.6% YoY (organic +11.1%, acquisition +9.1%), with a book‑to‑bill of 1.08 and adjusted operating margin of 28.8% (up 120 bps YoY). Orders in Electronics were ~ $125M.
New Product and Fast‑Growth Market Momentum
New product sales grew ~13% to $16.3M; management raised expected FY‑2026 new product sales to $85M (from $78M) and plans to launch >15 new products in FY‑2026. Sales into fast‑growth markets were ~$61M (28% of total) and are expected to grow >45% YoY to exceed $270M.
Improving Margins and Earnings
Adjusted gross margin improved to 42.1% (up 120 bps YoY) and adjusted operating margin rose to 19.0% (up 30 bps YoY). Adjusted EPS increased 8.9% YoY to $2.08.
Stronger Cash Generation and Liquidity
Net cash provided by operations was $20.7M vs. $9.1M a year ago; free cash flow was $13.0M vs. $2.2M a year ago. Available liquidity was ~$213M and cash & equivalents totaled $97M.
Progress on Leverage Reduction and Shareholder Returns
Paid down approximately $10M of debt in the quarter, reducing net leverage ratio to 2.3x. Declared the 246th consecutive quarterly dividend of $0.34/share, a ~6.3% increase YoY.
Negative Updates
Specialty Solutions Revenue and Margin Decline
Specialty Solutions revenue decreased 7.2% YoY to $19.8M and operating margin fell ~600 bps to 10.7%, driven by weak North American end markets; segment expects sequential improvement but near‑term pressure remains.
Scientific Segment Organic Weakness and Margin Pressure
Scientific revenue rose 5.5% to $19.5M, but this included an 8.1% acquisition benefit — organic sales declined ~2.6% (lower academic/research demand due to NIH cuts) and adjusted operating margin decreased ~270 bps to 24.2%.
Engineering Technologies Organic Growth Suppressed by Timing
Engineering Technologies revenue increased 35.3% to $30.6M driven largely by acquisition (33.4%); organic growth was only ~1.2%, suppressed by delays in customer project timing (timing risk may shift results between quarters).
Balance Sheet and Ongoing Debt Levels
Net debt increased YoY to $437.7M (from $413.2M), long‑term debt was $534.7M. Although leverage improved to 2.3x and management is focused on paydown, debt levels and interest expense (guidance $7.0–7.5M next quarter) remain notable considerations.
Purchase‑Accounting / Noncontrolling Interest Accounting Volatility
Recorded a $17.98M redeemable noncontrolling interest adjustment related to the remaining 10% Narayan minority stake valuation (12x trailing EBITDA mechanism). The liability will be revalued until executed, adding periodic accounting volatility.
Margin and Capacity Investment Dilution Risks
Management plans capacity expansions (Croatia, Mexico, Houston, India) to more than double grid capacity in 3–5 years. Near term, investments to stand up sites and ramp capacity will partially offset margin expansion in Electronics despite the segment's high margins.
Macro / End‑market and Timing Risks
North American demand softness (impacting Specialty and parts of legacy Electronics) and customer project timing (affecting ETG) are ongoing risks that could moderate the forecasted mid‑ to high‑single digit organic growth if conditions deteriorate.
Company Guidance
Standex reiterated its fiscal 2026 sales outlook, expecting revenue to grow by more than $110 million versus 2025, driven by new product sales (now forecast at $85 million, up from $78 million, contributing ~300 basis points of incremental growth) and fast‑growth markets (expected to grow over 45% YoY and exceed $270 million); the company launched 4 new products in Q2 (9 to date) and plans >15 for FY2026. For Q3 management expects mid‑ to high‑single‑digit organic growth year‑over‑year and slightly to moderately higher revenue sequentially, with slightly higher adjusted operating margin (Q2 adjusted operating margin was 19%, up 30 bps YoY; adjusted gross margin 42.1%, up 120 bps). Liquidity is ~$213 million, net debt $437.7 million (net leverage 2.3x after ~$10 million debt paydown in Q2), long‑term debt $534.7 million, cash $97 million; FY2026 capex is expected to be $33–38 million and Q3 interest expense $7.0–7.5 million.

Standex International Financial Statement Overview

Summary
Solid TTM revenue growth (5.94%) and healthy gross margin (39.54%) support a stable base, and free cash flow growth is positive (9.76%). Offsetting this, profitability is under some pressure with a lower net margin (6.29% vs. 7.06% previously) and declining EBIT/EBITDA margins, while leverage is moderate (D/E 0.82) and ROE (8.22%) leaves room for improvement.
Income Statement
75
Positive
Standex International shows a solid revenue growth rate of 5.94% in the TTM, indicating positive sales momentum. The gross profit margin of 39.54% is healthy, reflecting effective cost management. However, the net profit margin has decreased to 6.29% from 7.06% in the previous annual report, suggesting pressure on profitability. The EBIT and EBITDA margins have also declined, indicating potential challenges in operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio of 0.82 in the TTM is moderate, suggesting a balanced approach to leverage. Return on equity stands at 8.22%, showing a slight improvement, but still below the industry average, indicating room for enhancing shareholder returns. The equity ratio of 45.52% reflects a stable financial structure, though slightly lower than previous periods.
Cash Flow
68
Positive
Free cash flow growth of 9.76% in the TTM is a positive sign, indicating improved cash generation. The operating cash flow to net income ratio of 0.41 suggests moderate cash conversion efficiency. The free cash flow to net income ratio of 0.97 indicates strong cash flow relative to earnings, although the operating cash flow has slightly decreased compared to previous periods.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue790.11M720.63M741.05M735.34M656.23M
Gross Profit300.64M282.00M285.10M269.95M241.26M
EBITDA128.18M121.92M141.85M129.71M111.44M
Net Income55.76M73.07M138.99M61.39M36.47M
Balance Sheet
Total Assets1.57B1.01B1.02B934.44M962.22M
Cash, Cash Equivalents and Short-Term Investments104.54M154.20M195.71M104.84M136.37M
Total Debt603.70M187.89M207.25M214.08M236.46M
Total Liabilities827.29M383.55M417.48M435.10M455.80M
Stockholders Equity711.68M621.50M607.45M499.34M506.43M
Cash Flow
Free Cash Flow41.25M72.36M66.53M53.83M61.83M
Operating Cash Flow69.60M92.66M90.80M77.72M83.58M
Investing Cash Flow-503.43M-61.63M41.56M-31.04M-39.09M
Financing Cash Flow380.49M-69.20M-40.04M-69.43M-31.73M

Standex International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price241.94
Price Trends
50DMA
237.58
Positive
100DMA
230.81
Positive
200DMA
199.32
Positive
Market Momentum
MACD
2.66
Positive
RSI
50.69
Neutral
STOCH
49.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXI, the sentiment is Neutral. The current price of 241.94 is below the 20-day moving average (MA) of 243.79, above the 50-day MA of 237.58, and above the 200-day MA of 199.32, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 49.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.19B24.9021.75%0.10%3.91%1.48%
68
Neutral
$2.93B54.157.72%0.57%18.51%-28.69%
67
Neutral
$2.34B69.763.75%0.64%-1.46%-10.03%
65
Neutral
$2.25B52.373.07%2.85%-16.00%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
55
Neutral
$3.11B-48.37-21.46%22.40%-18.99%
49
Neutral
$1.30B-0.90-51.11%11.57%-1016.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SXI
Standex International
239.71
48.11
25.11%
EPAC
Enerpac Tool Group
41.87
-3.81
-8.34%
ENOV
Enovis
21.79
-22.95
-51.30%
HI
Hillenbrand
31.88
1.54
5.08%
HLIO
Helios Technologies
70.02
27.01
62.80%
XMTR
Xometry
60.36
24.15
66.69%

Standex International Corporate Events

Executive/Board ChangesShareholder Meetings
Standex International Holds Annual Stockholders Meeting
Neutral
Oct 31, 2025

Standex International held its Annual Meeting of Stockholders on October 21, 2025, with 11,304,234 common shares represented. During the meeting, stockholders voted to elect two directors, Thomas E. Chorman and Andy L. Nemeth, to three-year terms ending in 2028. Additionally, there was an advisory vote on executive compensation, which was approved, and the appointment of Deloitte & Touche, LLP as Independent Public Accountants for the fiscal year ending June 30, 2026, was ratified.

The most recent analyst rating on (SXI) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on Standex International stock, see the SXI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jan 30, 2026