Standex International Corporation Common Stock (SXI)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Generates $64 million in annual free cash flow (1.9% yield on market cap)
• Solid return on equity of 10.5% above cost of capital
• Revenue growth of 16.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($76) with negative 259% margin of safety—limited downside protection

AI Analysis

Standex International Corporation Common Stock is a small-cap industrials company valued at $3.3 billion. The business generates $869 million in annual revenue with a 0.2% net margin and $64 million in free cash flow. From a quality standpoint, Standex shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 4.0. On valuation, the stock is commanding a steep 61.6x multiple, with trades far above its Graham Number ($76) with no margin of safety. Growth dynamics show revenue growing at 16.6% and profit growth of 147.4%. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Standex's 17% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $64 million in annual free cash flow (1.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 62x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer