Standex International Corp (SXI) stock analysis

P/E below its 5-year median

Standex International's P/E of 26.2 is below its own 5-year median of 28.3.

P/E below the industry

Standex International's P/E of 26.2 is below the Industrial and Commercial Machinery and Computer Equipment median of 27.5.

EV/EBITDA below its 5-year median

Standex International's EV/EBITDA of 13.9 is below its 5-year median of 13.9.

P/B above the industry

Standex International's price-to-book of 3.82 is above the Industrial and Commercial Machinery and Computer Equipment median of 2.86.

Trading below fair value

The share price of $245.63 is below our fair value estimate of $250.30.

Margin of safety under 20%

The price is 1.9% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -9.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 116% over the last twelve months, against a 5-year average of 23.5% a year.

Growing faster than the industry

Revenue grew 8.3% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 7.8%.

Guidance lowered

Standex International lowered its fiscal year 2026 revenue to grow by outlook on May 5, 2026.

Gross margin improving

Gross margin was 42.4% over the last twelve months, against 40.1% a year earlier.

Return on equity under 15%

Return on equity was 15.3% over the last twelve months and averaged 14.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 13.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Standex International's return on equity of 15.3% is above the Industrial and Commercial Machinery and Computer Equipment median of 3.1%.

Earnings grew over 5 years

Net income grew 23.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.5% over the last twelve months, against a 5-year average of 11.2%.

Net margin above the industry

Standex International's net margin of 12.5% is above the Industrial and Commercial Machinery and Computer Equipment median of 5.3%.

High debt

Debt is 66.6% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 39.4% five years ago to 66.6%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.0% of total debt; we look for at least 20%.

Interest well covered

Operating income covers interest expense 7.0 times.

Short-term assets cover short-term debts

Current assets are 3.19 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.77; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Standex International paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Standex International yields 0.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 14.4% of net income.

Covered by free cash flow

Dividends take 26.0% of free cash flow.