Does Standex Offer Opportunity After Strategic Acquisitions and a 28.5% Price Surge in 2025?

• Curious whether Standex International's stock is priced for opportunity or risk? You are not alone, and today we are diving into what the numbers really say.
• The stock has seen a 28.5% gain year-to-date and boasts a 217.5% return over the past five years, reflecting a record of long-term growth.
• Recent announcements around strategic acquisitions and expansion into new markets have caught investor attention, supporting both recent price momentum and optimism for the company's future direction. This uptick in news coverage is highlighting Standex's evolving position in the industrial sector.
• Currently, Standex International has a valuation score of 0 out of 6 on our six-point undervaluation checklist. This result suggests the stock may be fully valued by traditional metrics. However, there are more ways to assess value than simply these checks.

Standex International scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Standex International Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's intrinsic value by projecting its future cash flows and discounting them to reflect their value in today’s dollars. This approach depends on how much free cash the business can generate, both now and in the future.

For Standex International, the latest reported Free Cash Flow is $41.76 million. Analysts only provide cash flow forecasts for up to five years, and projections beyond that rely on extrapolations designed to reflect potential long-term trends. According to these long-range estimates, Standex International’s Free Cash Flow is expected to reach $24.20 million in 2035, with some fluctuations and a general downward trend over the next decade.

Based on the DCF approach, Standex International's estimated intrinsic value is $29.40 per share. When compared to the current market price, this implies the stock is trading roughly 723.1% above its intrinsic value. In practical terms, the stock appears significantly overvalued by this analysis.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Standex International may be overvalued by 723.1%. Discover 928 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Standex International.

Approach 2: Standex International Price vs Earnings (PE)

The Price-to-Earnings (PE) ratio is a reliable valuation measure for profitable companies such as Standex International, as it directly compares the company’s current share price to its earnings. Investors often look to the PE ratio to gauge how much they are paying for each dollar of earnings, especially when the company has consistent profits.

Growth prospects and perceived risk both influence what a “normal” or “fair” PE ratio should be. Rapidly growing companies with stable outlooks tend to justify higher PE ratios, while companies with more uncertainties or slower growth are ascribed lower ones.

Standex International currently trades at a PE of 55.6x, which stands significantly above both the machinery industry average of 24.5x and the average for its selected peers at 33.3x. This suggests that, at face value, the market is expecting Standex International to outperform or it is pricing in some unique advantages.

However, Simply Wall St's proprietary "Fair Ratio" for Standex International is calculated as 41.8x. Unlike basic benchmarks, the Fair Ratio goes deeper by factoring in projected earnings growth, profit margins, risk, market cap, and the unique traits of its industry. This holistic approach provides a clearer perspective of what represents “fair value” for the business rather than relying solely on comparisons with peers or the sector average.

With Standex International’s current PE notably above its Fair Ratio, this analysis suggests the stock may be overvalued based on earnings multiples.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Standex International Narrative

Earlier, we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is a simple yet powerful tool that lets you connect Standex International’s numbers to your own story about the company, combining your perspective on market trends, company strengths, and risks with actual financial forecasts and fair value estimates.

Narratives bridge the gap between what a business does and what you believe it could achieve in the future. This approach turns your view of Standex International’s opportunities and challenges into a dynamic valuation that moves as new facts arrive. On Simply Wall St's Community page, millions of investors use Narratives to easily create, adjust, and share their outlook, helping them see not just if a stock is under- or overvalued today, but why and what could change that in the near future.

With Narratives, the gap between Standex International’s fair value and market price is always updated as earnings come in or news breaks, letting you know when your investment thesis holds or needs to be reconsidered. For example, some investors see rapid margin growth and estimate a fair value over $260, while others focus on acquisition risks and suggest a more conservative worth closer to $155. This demonstrates how Narratives accommodate both optimism and caution in a single glance.

Do you think there's more to the story for Standex International? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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