Standex International Corporation - A Speculative Analysis NYSE: $SXI

Introduction: Welcome back to my weekly stock analysis. Disclaimer: I am not invested in this one. Standex International Corporation (NYSE: SXI) Sector: Specialty Industrial Machinery (Industrials) Company Strengths & Risks: Standex International is a food service equipment manufacturer with segments in engravings, engineering, electronics, and hydraulics. The most recent news from SXI was the 2020 acquisition of Renco Electronics. Standex International is headquartered in New Hampshire, but has obvious international roots. Strengths: - strong dividend growth rate - 11 years of growth - ok ebitda growth Risks: - very low yield - moderately high PE ratio - Low debt to equity but slightly high debt to ebitda - revenue rises and falls every 7ish years Financial History and numbers SXI: Numbers from Seeking Alpha as of Nov 07, 2021 Numbers from Macro Trends as of Nov 07, 2021 Stock SXI P/E Ratio 20.99 Stock price $118.2 Current Annual Payout/Share $1.04 Yield 0.88% 5 Yr Div Growth Rate 11.06% 3 Yr Div Growth Rate 9.82% 1 Yr Div Growth Rate 8.89% Years Of Growth 11 Current Payout Ratio 18.47% Free Cash Flow / Share 2.9626 Revenue (ttm) 0.655B Debt / Equity Ratio 0.3932806324110672 Debt / EBITDA 2.1397849462365595 EPS 5.63 ROI 6.20% ROA 3.78% Looking at this, I would probably pass over it. Sure it has 11 years of growth and good dividend growth rates, but the returns and revenue are lacking. The debt ratios are off, with the redeeming quality of a very low payout ratio. This just seems like an ok company. I will now use the 3 year dividend growth rate to project further. Year SXI 2022 1.14 2023 1.25 2024 1.38 2025 1.51 For another way, let's use historical payout ratio to project out. YEAR SXI EPS estimate 2021 5.63 EPS estimate 2022 5.88 2021 dividend 1.04 2022 dividend 1.09 Final Thoughts: With how negative this company looks, why am I even bringing this up? Well for one, I think it's unusual for no real news to come out of this company outside of the 2020 acquisition. The Torotel acquisition and the selling Refrigerated Solutions Group should have impacted the stock. But the only dips I can see are on March 1, 2020, and July 1 2021. The divesting happened March 13, 2020. Even with the pandemic, this should have caused a drop. But no, the stock seemed to only go up. The company has recently made steps to further growth, so I am excited to see where that direction goes. Perhaps this is due to 91.5% institutional holdings, but something just doesn't seem right to me. Weekly price estimate for a future date, via consulting the crystal ball: Predicted price for SXI for Dec 19, 2021: $128.26. There is no factual basis that I will give. I hope someone out there found this post interesting. Please supplement this with your own research. Thank you for reading, please give me feedback so that I can increase my standards for future analysis posts. If I have made a mistake, please correct me. Or if you have one that you want an analysis on, I might pick a comment to do an analysis of if I don't have any spice stored for the week.

back
scot-tagscot-icon

chaosumbreon87

Nov 8, 2021

-10.93%

Change % Since Posting

118.20

Price When Posted

-12.92

Change Since Posting

Is this your Reddit account?

Claim this username to collect earnings from this post, and the portfolio!

portfolio reddit logoportfolio utradea logo

Standex International Corporation - A Speculative Analysis NYSE: $SXI

bullish

Introduction:

Welcome back to my weekly stock analysis. Disclaimer: I am not invested in this one.

Standex International Corporation (NYSE: SXI)

Sector: Specialty Industrial Machinery (Industrials)

Company Strengths & Risks:

Standex International is a food service equipment manufacturer with segments in engravings, engineering, electronics, and hydraulics. The most recent news from SXI was the 2020 acquisition of Renco Electronics. Standex International is headquartered in New Hampshire, but has obvious international roots.

Strengths: - strong dividend growth rate - 11 years of growth - ok ebitda growth

Risks: - very low yield - moderately high PE ratio - Low debt to equity but slightly high debt to ebitda - revenue rises and falls every 7ish years

Financial History and numbers

SXI: Numbers from Seeking Alpha as of Nov 07, 2021

Numbers from Macro Trends as of Nov 07, 2021

Stock SXI
P/E Ratio 20.99
Stock price $118.2
Current Annual Payout/Share $1.04
Yield 0.88%
5 Yr Div Growth Rate 11.06%
3 Yr Div Growth Rate 9.82%
1 Yr Div Growth Rate 8.89%
Years Of Growth 11
Current Payout Ratio 18.47%
Free Cash Flow / Share 2.9626
Revenue (ttm) 0.655B
Debt / Equity Ratio 0.3932806324110672
Debt / EBITDA 2.1397849462365595
EPS 5.63
ROI 6.20%
ROA 3.78%

Looking at this, I would probably pass over it. Sure it has 11 years of growth and good dividend growth rates, but the returns and revenue are lacking. The debt ratios are off, with the redeeming quality of a very low payout ratio. This just seems like an ok company.

I will now use the 3 year dividend growth rate to project further.

Year SXI
2022 1.14
2023 1.25
2024 1.38
2025 1.51

For another way, let's use historical payout ratio to project out.

YEAR SXI
EPS estimate 2021 5.63
EPS estimate 2022 5.88
2021 dividend 1.04
2022 dividend 1.09

Final Thoughts:

With how negative this company looks, why am I even bringing this up? Well for one, I think it's unusual for no real news to come out of this company outside of the 2020 acquisition. The Torotel acquisition and the selling Refrigerated Solutions Group should have impacted the stock. But the only dips I can see are on March 1, 2020, and July 1 2021. The divesting happened March 13, 2020. Even with the pandemic, this should have caused a drop. But no, the stock seemed to only go up. The company has recently made steps to further growth, so I am excited to see where that direction goes. Perhaps this is due to 91.5% institutional holdings, but something just doesn't seem right to me.

Weekly price estimate for a future date, via consulting the crystal ball: Predicted price for SXI for Dec 19, 2021: $128.26. There is no factual basis that I will give.

I hope someone out there found this post interesting. Please supplement this with your own research.

Thank you for reading, please give me feedback so that I can increase my standards for future analysis posts. If I have made a mistake, please correct me. Or if you have one that you want an analysis on, I might pick a comment to do an analysis of if I don't have any spice stored for the week.

Comments

Write your comment....

Sign in to comment

read-time
3 min

128.26

Target Price

9/ 10

Confidence

1-2 Months

Timeframe
Share
catalyst icon
Earnings Release
catalyst icon
News
catalyst icon
SEC Filing
catalyst icon
Sentiment
catalyst icon
Other Catalyst

SXI Channel

Start new chat
aiodd-ad
next