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what it is
Standex sells specialized sensors, engraving tools, medical lab equipment, and industrial parts to customers that do not want cheap failures.
how it gets paid
Last year Sxi made $790M in revenue. Electronics was the main engine at $196M, or 25% of sales.
why it's growing
Revenue grew 9.6% last year. Gross margin reached 41.6%, and management said electronics demand from grid modernization and renewable energy stayed strong.
what just happened
Latest quarter revenue hit $439M, up 98% vs. prior year, but EPS came in at $1.42 and the market expected more.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
28.2x trailing p/e — priced about right
0.6% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
xvary composite: 61/100 — average
What they do
Standex sells specialized sensors, engraving tools, medical lab equipment, and industrial parts to customers that do not want cheap failures.
Standex wins by living in boring corners where failure is expensive. Electronics for grid upgrades and renewable demand helped start fiscal 2026 strong, while companywide operating margin reached 11.8% and net margin hit 13.8%. That means your upside depends on customers paying for precision, not shopping for the lowest bid.
How they make money
$790M
annual revenue · their business grew +9.6% last year
Electronics
$196M
+8.5%
Scientific
$177M
+8.5%
Engraving
$150M
+0.0%
Specialty Solutions
$140M
0.5%
Engineering Technologies
$127M
+7.5%
The products that matter
magnetic sensing and power magnetics
Electronics
margin leader
this is the part of the story the market cares about most. management cited 28.8% segment profitability here, which is why grid modernization and renewable demand matter so much.
28.8% profitability
temperature-controlled lab equipment
Scientific
mission-critical demand
this business sells into labs and medical settings where uptime matters more than bargain pricing. in the latest quarter, scientific helped push total revenue to $217.4M.
$217.4M quarter
diversified industrial portfolio
Other industrial businesses
portfolio ballast
the page data is thin on the smaller businesses, so we will not pretend otherwise. what you know for sure is companywide revenue was $0.8B last year and management is leaning on acquisitions plus new products to keep that growing.
data thin
Key numbers
28.2x
trailing p/e
Valuation → what investors pay for each dollar of profit → so what: you need strong execution just to justify today’s price.
11.8%
operating margin
Operating margin → profit left after running the business → so what: this is good for an industrial, but not so high that mistakes disappear.
$900M
fy2026 sales
Fiscal 2026 revenue estimate → next year’s expected sales → so what: Wall Street is already underwriting growth from $790M to $900M.
11.5%
return on capital
Return on capital → profit earned on the money used in the business → so what: respectable, but not elite enough to excuse any price.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $545M (17% of capital)
- net profit margin 13.8% — keeps 14 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SXI 3 years ago → it's now worth $22,600.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Latest quarter revenue hit $439M, up 98% vs. prior year, but EPS came in at $1.42 and the market expected more.
Gross margin reached 41.6%, and management said electronics demand from grid modernization and renewable energy stayed strong. The problem is simpler: when a stock at 28.2x earnings misses, the multiple stops being your friend.
$439M
revenue
$1.42
eps
41.6%
gross margin
the number that mattered
41.6% gross margin mattered most because margin expansion is the cleanest evidence that this is more than an acquisition-fueled revenue story.
-
standex international began fiscal 2026 on strong footing. (year ends on june 30th.) sales for the september period came in at the high end of expectations, at $217.4 million, achieving 28% vs. prior year growth.
-
momentum in electrical grid modernization and renewable energy demand boosted electronics.meanwhile, new product launches (four in the quarter), acquisition-related benefits, and organic growth in core areas added tailwinds.
-
what’s more, operational efficiencies and site consolidations supported margin expansion.
-
overall, standex built on a record fiscal 2025, where the company achieved high margins and significant acquisition-driven growth.
-
the company is expected to do very well in the near term.we anticipate electronics demand to remain robust, supported by ongoing electrical grid investments and strong backlog. in fact, the book-to-bill ratio continued to hover above 1.0x, suggesting that business is taking in orders faster than it can ship them. meanwhile, standex is committed to launch 15 new products this fiscal year, particularly in the electric vehicle and medical sectors, which could build on recent momentum.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is paying 28.2x earnings for a company earning 8.5% on capital.
high
multiple compression
SXI trades like a higher-quality compounder than its 8.5% return on capital suggests. if growth cools or margins flatten, the whole $3B equity story gets less forgiving fast.
valuation risk applies to the entire $225.25 stock price, not one product line
high
electronics demand normalization
the bull case leans heavily on electrical-grid upgrades, renewable demand, and electronics profitability of 28.8%. if that segment cools, the premium narrative weakens first.
this threatens the segment doing the most work to justify 28.2x earnings
med
integration and execution risk
recent momentum got help from acquisition-related benefits, site consolidations, and four new product launches in the quarter. management wants 15 launches this fiscal year. that is a lot of moving pieces for a $0.8B business.
missteps would pressure the current $217.4M quarterly revenue run-rate and margin gains
med
balance sheet is fine, not bulletproof
$545M in long-term debt and a B++ balance sheet are manageable. they also mean you should not treat this like a no-drama industrial if growth initiatives disappoint.
the financial cushion exists, but it is not large enough to erase execution mistakes quietly
at this valuation, you need the current recipe to keep working: growth near the recent pace, electronics margins staying strong, and no stumble on launches or integration.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
electronics profitability holding near 28.8%
that is the cleanest proof the premium narrative is real. if it slips, the multiple probably follows.
trend
revenue moving from $0.8B toward the $900M estimate
the market already expects that step-up. meeting it keeps the story intact. missing it turns 28.2x earnings into a harder sell.
calendar
product launch cadence through fiscal 2026
four launches happened in the quarter. management is targeting 15 this fiscal year. that pipeline is now part of the investment case.
risk
book-to-bill staying above 1.0x
orders running ahead of shipments support the growth story. if that flips, you should expect the enthusiasm around electronics to cool.
Analyst rankings
short-term outlook
average
outlook rank 3 — middle of the pack. in human-speak, analysts see a normal 12-month setup, not a screaming bargain.
risk profile
average
risk rank 3 — typical risk profile. not unusually safe, not a rollercoaster either.
chart momentum
top 5%
momentum rank 1 — the chart has been stronger than almost everything else. price action is helping the story more than valuation is.
earnings predictability
85 / 100
management has been relatively reliable. you are not dealing with a business that routinely blindsides the market.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 121 buyers vs. 110 sellers in 3q2025. total institutional holdings: 11.9M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$165
$355
$225
current price
$260
target midpoint · +15% from current · 3-5yr high: $345 (+55% · 12% ann'l return)
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