Assessing Standex International (SXI) Valuation After Strong Q2 Results And Reaffirmed Revenue Growth Outlook
Standex International (SXI) just paired a completed US$76.42 million share buyback program with fresh earnings and guidance, giving investors new data on profitability, capital returns, and expected revenue growth for 2026.
See our latest analysis for Standex International.
Those earnings and guidance updates have come alongside a sharp move in the share price, with Standex International closing at US$254.24 after a 6.06% 1 day share price return and a 13.07% year to date share price return. Its 5 year total shareholder return of 191.41% points to strong longer term momentum that recent results and the completed US$76.42 million buyback appear to have reinforced.
If this combination of buybacks and earnings momentum has your attention, it could be a good moment to scan 22 top founder-led companies as you look for the next set of potential ideas.
With earnings rising, revenue guidance pointing higher and a completed US$76.42 million buyback, the real question now is whether Standex International is still undervalued or if the market is already pricing in that future growth.
Most Popular Narrative: 3% Undervalued
With Standex International last closing at $254.24 against a most followed fair value estimate of $261.40, the current setup hinges on how credible that long term earnings and margin story looks.
The accelerating global shift towards automation, electrification, and grid modernization is driving persistent demand for Standex's high value electrical, sensor, and precision engineering solutions, creating a runway for double digit sales increases in fast growth end markets and supporting sustained above GDP revenue growth. Ongoing digital transformation in industrial sectors and the proliferation of IoT applications are expanding the need for custom sensors and embedded technologies; Standex's ramped up R&D and layered new product launches are expected to compound organic growth and provide higher margin revenue streams, underpinning multi year operating and net margin expansion.
Curious what kind of revenue climb and margin reset would have to play out for that fair value to hold up? The narrative leans on a step change in earnings power, a richer mix from faster growing electronics and sensor markets, and a future earnings multiple that does a lot of heavy lifting. The exact growth rates and profit assumptions are spelled out there, along with the discount rate that ties it all back to today.
Result: Fair Value of $261.40 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, those assumptions could be knocked off course if acquisition-driven growth stalls or if trade, tariff and restructuring costs erode the margin profile analysts are banking on.
Find out about the key risks to this Standex International narrative.
Another View: Rich Multiples Point The Other Way
While the narrative and fair value model point to SXI trading roughly 8.4% below its estimate of fair value, the simple P/E check tells a different story. At 57.2x earnings versus a fair ratio of 43x, the company trades well above both the US Machinery industry at 27.9x and peers at 28.8x, which raises the question of how much optimism is already in the price.
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Standex International Narrative
If you look at these numbers and come to a different conclusion, or simply want your own angle on Standex International, you can build a complete narrative around your assumptions in just a few minutes using Do it your way.
A great starting point for your Standex International research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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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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