NYSE:SXI

Stock Analysis Report

Executive Summary

Standex International Corporation manufactures and sells various products and services for commercial and industrial markets in the United States and internationally.

Rewards

Trading at 38.3% below its fair value

Earnings are forecast to grow 20.09% per year

Earnings grew by 37.2% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

How has Standex International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SXI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

SXI

1.1%

US Machinery

1.2%

US Market


1 Year Return

4.9%

SXI

19.2%

US Machinery

24.2%

US Market

Return vs Industry: SXI underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: SXI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SXIIndustryMarket
7 Day2.5%1.1%1.2%
30 Day-1.8%1.0%3.5%
90 Day7.8%8.6%11.7%
1 Year6.1%4.9%21.4%19.2%26.9%24.2%
3 Year-7.3%-9.7%46.1%36.7%53.0%43.2%
5 Year12.2%7.8%77.0%55.6%75.3%56.0%

Price Volatility Vs. Market

How volatile is Standex International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Standex International undervalued compared to its fair value and its price relative to the market?

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXI ($77.46) is trading below our estimate of fair value ($125.59)

Significantly Below Fair Value: SXI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SXI is good value based on its PE Ratio (21.4x) compared to the Machinery industry average (23.4x).

PE vs Market: SXI is poor value based on its PE Ratio (21.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SXI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SXI is good value based on its PB Ratio (2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Standex International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXI's forecast earnings growth (20.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SXI's earnings (20.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SXI's revenue (3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: SXI's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SXI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Standex International performed over the past 5 years?

-7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXI has high quality earnings.

Growing Profit Margin: SXI's current net profit margins (5.7%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: SXI's earnings have declined by -7.4% per year over the past 5 years.

Accelerating Growth: SXI's earnings growth over the past year (37.2%) exceeds its 5-year average (-7.4% per year).

Earnings vs Industry: SXI earnings growth over the past year (37.2%) exceeded the Machinery industry 9.6%.


Return on Equity

High ROE: SXI's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Standex International's financial position?


Financial Position Analysis

Short Term Liabilities: SXI's short term assets ($324.4M) exceed its short term liabilities ($134.7M).

Long Term Liabilities: SXI's short term assets ($324.4M) do not cover its long term liabilities ($341.7M).


Debt to Equity History and Analysis

Debt Level: SXI's debt to equity ratio (40.3%) is considered high.

Reducing Debt: SXI's debt to equity ratio has increased from 36.7% to 40.3% over the past 5 years.

Debt Coverage: SXI's debt is well covered by operating cash flow (42.4%).

Interest Coverage: SXI's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: SXI has a high level of physical assets or inventory.

Debt Coverage by Assets: SXI's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Standex International's current dividend yield, its reliability and sustainability?

1.11%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: SXI's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SXI's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: SXI's dividend payments have been volatile in the past 10 years.

Growing Dividend: SXI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), SXI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Standex International's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

David Dunbar (57yo)

6yrs

Tenure

US$3,246,298

Compensation

Mr. David A. Dunbar has been the Chief Executive Officer and President of Standex International Corporation since January 20, 2014. Mr. Dunbar served as the President of Valves & Controls Global Business U ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.25M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

Experienced Management: SXI's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

64yo

Average Age

Experienced Board: SXI's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Len Paolillo

    President of Engineering Technologies Group

    • Sean Valashinas (48yo)

      Chief Accounting Officer & Assistant Treasurer

      • Tenure: 12.3yrs
    • Tom DeByle (59yo)

      Chief Operating Officer

      • Tenure: 0.3yrs
      • Compensation: US$1.42m
    • John Meeks

      President of Electronics Products Group

      • Flavio Maschera

        President of Engraving

        • David Dunbar (57yo)

          Chairman

          • Tenure: 6yrs
          • Compensation: US$3.25m
        • Paul Burns (46yo)

          Vice President of Strategy & Business Development

          • Tenure: 4.5yrs
          • Compensation: US$1.14m
        • Alan Glass (55yo)

          VP, Chief Legal Officer & Secretary

          • Tenure: 3.8yrs
          • Compensation: US$842.46k
        • Ademir Sarcevic (44yo)

          Chief Financial Officer

          • Tenure: 0.3yrs
        • Annemarie Bell (55yo)

          Vice President of Human Resources

          • Tenure: 1.3yrs
          • Compensation: US$265.80k

        Board Members

        • Charlie Cannon (67yo)

          Independent Director

          • Tenure: 15.3yrs
          • Compensation: US$176.16k
        • Tom Hansen (70yo)

          Lead Independent Director

          • Tenure: 3.5yrs
          • Compensation: US$221.70k
        • Daniel Hogan (76yo)

          Independent Director

          • Tenure: 37yrs
          • Compensation: US$184.82k
        • Thomas Chorman (65yo)

          Independent Director

          • Tenure: 15.3yrs
          • Compensation: US$182.49k
        • Jeff Edwards (57yo)

          Independent Director

          • Tenure: 5.3yrs
          • Compensation: US$175.74k
        • Mike Hickey (58yo)

          Independent Director

          • Tenure: 2.3yrs
          • Compensation: US$191.54k
        • David Dunbar (57yo)

          Chairman

          • Tenure: 6yrs
          • Compensation: US$3.25m
        • Barbara Edwards (63yo)

          Director

          • Tenure: 1.3yrs
          • Compensation: US$150.50k

        Company Information

        Standex International Corporation's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Standex International Corporation
        • Ticker: SXI
        • Exchange: NYSE
        • Founded: 1955
        • Industry: Industrial Machinery
        • Sector: Capital Goods
        • Market Cap: US$989.323m
        • Shares outstanding: 12.46m
        • Website: https://www.standex.com

        Number of Employees


        Location

        • Standex International Corporation
        • 11 Keewaydin Drive
        • Suite 300
        • Salem
        • New Hampshire
        • 3079
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SXINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
        9SIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

        Biography

        Standex International Corporation manufactures and sells various products and services for commercial and industrial markets in the United States and internationally. The company operates through five segments: Food Service Equipment, Engraving, Engineering Technologies, Electronics, and Hydraulics. The Food Service Equipment segment offers refrigerated cabinets, cases, display units, walk-in coolers, and freezers; cold storage equipment for use in the life sciences industry; merchandizing display cases for bakery, deli, and confectionary products; and pump systems that are used in beverage and industrial fluid handling applications. The Engraving segment provides mold texturizing products and slush molding tools; and roll engraving, hygiene product tooling, low observation vents for stealth aircraft, and process machineries, as well as project management and design, and chemical and laser texturing services to original equipment manufacturers, product designers, tier one suppliers, and toolmakers. 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 Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, hydraulic pressure differential, 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 Hydraulics segment offers telescopic and piston rod hydraulic cylinders, and pneumatic cylinders for use in construction equipment, refuse, airline support, mining, oil and gas, and other material handling applications. Standex International Corporation was founded in 1955 and is headquartered in Salem, New Hampshire. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 23:48
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2019/06/30


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.