STANDEX INTERNATIONAL CORP/DE/ (SXI): what the price assumes

In the published model solve dated 2026-Q2, anchored at $280.17, STANDEX INTERNATIONAL CORP/DE/ (SXI) is priced for today's economics sustained for ~5.4 years. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-07-11.

Generated: 2026-09-26 · Source: https://boothcheck.com/report/SXI

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 9.2% cost of capital; growth searched up to the 25% self-funding ceiling.

How unusual the bet is: within-range (limited comparison data)

Valuation X-Ray

The price is justified by relative-multiple and growth-DCF; asset-based/earnings-power land below the price.

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Relative, Growth Families that call it expensive: Asset, Earnings

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.1%); the inversion above states its own rate.

Per-Model Detail (n=14)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Bullet Takeaways

• Standex has quietly rebuilt itself around electrical-grid components: Electronics posted record revenue of $119.7 million in the March quarter with a book-to-bill of 1.14, and sales into grid, space, and defense markets are expected to reach roughly $270 million, about 30% of the company.
• The price is the stretch: at about 45 times operating income, the market needs growth held near the company's self-funding ceiling for roughly nine years, a persistence only about 15% of comparable fast-growers have historically delivered.
• Watch whether the acquired growth becomes organic growth: the Amran/Narayan Group "has contributed $84.4 million of net sales and $13.7 million of net income" since acquisition per the 10-K (accession 0001437749-25-024450), and the fourth-quarter print in August tests the guided mid-to-high single-digit organic pace.

Bull Case

The trajectory is the argument. Revenue rose 8% in the March quarter with 6.5% organic growth, adjusted operating margin climbed to 19.7%, and adjusted EPS grew 13.5% to $2.21, the latest step in a multi-year march that has taken the company's mix from diversified industrial odds and ends toward electrification hardware. Every line is moving the same direction at once: growth accelerating, margins expanding, leverage falling. Management even sold a slower business into the strength, divesting Federal Industries for roughly $70 million and using about $62 million to pay down debt, taking net leverage to 1.9 times.

The engine is Electronics, and the fuel is the grid buildout. Segment revenue hit a record $119.7 million with a book-to-bill of 1.14, grid-related sales grew about 20%, and the company is adding capacity in Texas, India, Croatia, and Mexico to serve demand it cannot currently satisfy. The acquisitions that positioned Standex here are producing disclosed, auditable results: the 10-K reports the Amran/Narayan Group "has contributed $84.4 million of net sales and $13.7 million of net income" since acquisition (accession 0001437749-25-024450), a 16% net margin on acquired revenue, while the November 2024 purchase of Custom Biogenic Systems added "advanced cryogenic equipment, including unique isothermal" storage technology to the Scientific segment (same accession). New products alone are expected to contribute roughly 300 basis points of fiscal 2026 growth.

The end-market map is the durability claim. Sales into fast-growing markets, grid, space, defense, are headed toward roughly $270 million, about 30% of the company, and management guided the fourth quarter to mid-to-high single-digit organic growth on those tailwinds. The filing's own outlook adds "continued stability in hybrid and electric vehicle programs despite softness in general automotive end markets" (accession 0001437749-25-024450). Transformers, relays, and cryogenics are not glamorous, but they sit directly under grid capex, defense electronics, and biotech cold chains, three demand curves with a decade of visibility. That is the compounding case the price is betting on.

Bear Case

The price has a story baked into it, and the story has a single load-bearing assumption: that the Electronics segment's grid-driven surge is a decade-long structural shift rather than a capex cycle. At about 45 times operating income, today's quote requires growth held near the company's self-funding ceiling for roughly nine years. Historically, only about 15% of comparable fast-growers sustained that pace so long. Every other part of the thesis, the margin expansion, the portfolio pruning, the capacity additions, is downstream of grid demand persisting. Utility transformer backlogs are real today, but they are the kind of demand that arrives in waves, and a company adding simultaneous capacity in Texas, India, Croatia, and Mexico is making a bet that the wave does not crest before the plants fill.

The second fragility is that recent growth is partly purchased, not compounded. The Amran/Narayan Group contributed "$84.4 million of net sales and $13.7 million of net income" in its first partial year (accession 0001437749-25-024450), flattering headline growth in exactly the segment the market is capitalizing most richly; the company's auditors singled out the valuation of Amran/Narayan customer-relationship intangibles as a critical audit matter in the same filing. Standex's own risk factors are candid about the model's dependency: "an inability to identify or complete future acquisitions could limit our future growth. We may experience difficulties in integrating acquisitions" (accession 0001437749-25-024450). A compounding story that needs continuous acquisition is a different, riskier animal than one that grows from its own products.

The supply chain adds a geopolitical hinge: the filing notes the company maintains "manufacturing facilities in China" and imports components and finished goods from them as part of its low-cost sourcing strategy (accession 0001437749-25-024450), an exposure that tariff escalation prices quickly. And the valuation methods are nearly unanimous about the premium: asset-based reads sit at roughly a third of the price, earnings-power methods lower still, peer multiples about 25% below, and only the growth-projection methods reach $315.85. Free cash flow of $54 million trailing, against a $3.8 billion market value, means the cash yield today is under 1.5%; the entire return depends on the nine-year story holding. If grid orders normalize for even a few quarters, the multiple has a long way to travel toward what the static methods can defend.

Valuation

Standex's price is a duration bet. At about 45 times operating income, the market is not paying for a rate of growth the company has never shown, the near-term pace is within what it has recently delivered, but for that pace to persist near its self-funding ceiling for roughly nine years. About 15% of comparable fast-growers historically sustained such a run. The method families tell the same story from four directions: asset-value reads land around a third of the price, earnings-power methods land lower still after averaging five years of operating income that predate the portfolio's current shape, peer multiples sit about 25% short even at a blended 24 times earnings, and only the forward-growth family reaches the quote, and then only by projecting high-teens growth with today's 18.4 times EV/EBITDA held flat over six years. When one family alone can reach the price, the premium is a durability premium: the market is paying for compounding the static methods structurally cannot see.

The filing supplies the inputs under that premium. The Electronics segment's expansion is partly acquired, with the Amran/Narayan Group contributing "$84.4 million of net sales and $13.7 million of net income" in its first reported stretch (accession 0001437749-25-024450), and partly organic, with the March quarter's 6.5% organic growth and 19.7% adjusted operating margin marking the current run rate. Solvency does not threaten the bet: $369 million of net debt runs under 2 times trailing pre-tax operating income, interest coverage is 5.8 times, the share count is flat, and the Federal Industries proceeds cut leverage further to 1.9 times on management's measure. The downside is not the balance sheet; it is the multiple. A 21.5% operating margin business with real grid tailwinds supports a premium price. What it must keep earning, quarter after quarter for most of a decade, is this particular premium.

Catalysts

The fourth-quarter report, due on the company's usual early-August cadence for the June fiscal year-end, carries the guided test: management pointed to mid-to-high single-digit organic growth in the fiscal fourth quarter, driven by new product launches and tailwinds in electrical grid, space, defense, and aviation end markets. The March quarter set the baseline with revenue of $224.6 million, adjusted operating margin of 19.7%, and adjusted EPS of $2.21, up 13.5% year over year, alongside a record $119.7 million Electronics quarter with a book-to-bill of 1.14 and grid sales up about 20%.

Capacity and portfolio moves are the structural catalysts. Grid-serving expansions in Texas, India, Croatia, and Mexico convert today's oversubscribed demand into shippable revenue as they come online, and the completed sale of Federal Industries for roughly $70 million, with about $62 million applied to debt and net leverage down to 1.9 times, leaves the balance sheet positioned for the next bolt-on. New products are expected to contribute roughly 300 basis points to fiscal 2026 growth, and the company's stated trajectory takes fast-growth market sales to about $270 million, roughly 30% of the total. The items that would move the story fastest in either direction: grid order rates and book-to-bill in Electronics, the pace at which the new plants fill, and any fresh acquisition in the transformer-components space where the Amran/Narayan integration set the template.

Peer Cohorts (Per Segment, With Filing Citations)

Electronics (reported)

• CTS (CTS CORPORATION)
• FY2025 10-K: …operations of our customers in these industries, could materially adversely affect our business, financial condition and operating results. These industries may be unionized and some of our customers have experienced labor disruptions in the past. Furthermore, these industries can be highly cyclical in nature and…
• FY2025 10-K: …marketing are accomplished through our sales engineers. We also utilize independent manufacturers' representatives and distributors to extend our sales capability. See the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K for financial information regarding the…
• LFUS (LITTELFUSE INC /DE)
• FY2025 10-K: …inorganic growth opportunities. We believe the increasing demand for high-power solutions provides a long-term runway to expand our content per platform and drive sustainable margin enhancement. 3 Table of Contents Segments The Company conducts its business through three reportable segments: Electronics,…
• FY2025 10-K: …focused on a more sustainable, connected, and safer world. The ever-increasing advancements of applications surrounding these themes continue to drive greater demand for the Company's innovative, reliable products and a higher level of product content within a broad range of applications. Technologies within the…
• BELFA (BEL FUSE INC /NJ)
• FY2025 10-K: …and the notes related thereto. The discussion of results, causes and trends should not be construed to imply any conclusion that such results, causes or trends will necessarily continue in the future. See "Cautionary Notice Regarding Forward-Looking Information" above for further information. Also, when we cross…
• FY2025 10-K: Class 2, three phase, chassis mount, and PC mount designs available. Signal SMD Power Inductors & SMPS Transformers A passive component that stores energy in a magnetic field. Widely used in analog electronic circuitry. Switchmode power supplies, DC/DC converters, LED lighting, automotive and consumer electronics.…
• MTRN (MATERION CORPORATION)
• FY2025 10-K: …or strength-to-weight applications used in a variety of industries. Our ToughMet TM alloys provide extended life for industrial bushings and bearings and tremendous wear resistance in oil and gas rig components. Our SupremEX TM products offer the industry a high quality aluminum silicon carbide metal matrix composite…
• FY2025 10-K: CONDITION AND RESULTS OF OPERATIONS OVERVIEW We are an integrated producer of high-performance advanced engineered materials used in a variety of electrical, electronic, thermal, and structural applications. Our products are sold into numerous end markets, including semiconductor, industrial, aerospace and defense,…
• ROG (Rogers Corporation)
• FY2025 10-K: …following strategic operating segments: AES and EMS. Our remaining operations, which represent our non-core businesses, are reported in the Other operating segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally. Our CODM is the…
• FY2025 10-K: …of, our information technology systems. Our forward-looking statements are expressly qualified by these cautionary statements, which you should consider carefully, along with the risks discussed under the headings "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Results of Operations and…
• VICR (VICOR CORPORATION)
• FY2025 10-K: …and are not subject to export licenses). 7 Table of Contents Despite our minor share in the overall merchant market and the competitive presence of numerous, far larger vendors in the market segments we serve with both Advanced Products and Brick Products, we believe we maintain an advantageous competitive position…
• FY2025 10-K: ," an element of our differentiation strategy, which is our approach to providing our customers the modular products, design tools, and engineering support to enable the rapid design of advanced power system solutions by customers and, thereby, accelerate their own product development cycles. Our value proposition is…

Aerospace & Defense / Engraving & Hydraulics (reported)

• SPXC (SPX TECHNOLOGIES, INC.)
• FY2025 10-K: …of ASPEQ are reflected within our HVAC reportable segment. On February 7, 2024, we completed the acquisition of Ingénia Technologies Inc. ("Ingénia"), which specializes in the design and manufacture of custom air handling units that demand high levels of precision and reliability in healthcare, pharmaceutical,…
• FY2025 10-K: …networking solutions, primarily for the defense industry. We purchased KTS for net cash consideration of $ 340.0 , inclusive of amounts related to future service obligations of certain existing employees of $ 46.5 and net of an adjustment to the purchase price of $ 2.4 received during the third quarter of 2025…
• CR (CRANE COMPANY)
• FY2025 10-K: …as well as in Part II, Item 8 under Note 4, "Segment Information," in the Notes to Consolidated Financial Statements for sales, operating profit and assets employed by each segment. Aerospace & Advanced Technologies The Aerospace & Advanced Technologies segment supplies critical components and systems, including…
• FY2025 10-K: …sales growth and a slight foreign exchange benefit. We expect an improvement in operating profit driven primarily by productivity benefits and operating leverage on higher volumes, lower transaction related expenses, higher pricing net of inflation and contributions from the Druck, Panametrics, Reuter-Stokes, and…
• WTS (WATTS WATER TECHNOLOGIES INC)
• FY2025 10-K: Automation & Controls; and Commercial Leader, GE2GE, Automation & Controls. Prior to joining General Electric, Ms. Boll held management positions at Northrop Grumman, Allied Domecq and Leo Burnett Advertising, and she served as an electronic combat officer, AWACS, in the United States Air Force. ​ 15 Table of Contents…
• FY2025 10-K: …2025-01-01 2025-12-31 0000795403 wts:AsiaPacificMiddleEastAndAfricaMember wts:OriginalEquipmentManufacturerDistributionChannelMember 2025-01-01 2025-12-31 0000795403 us-gaap:OperatingSegmentsMember wts:ReportableSegmentsAggregationMember 2025-01-01 2025-12-31 0000795403 us-gaap:IntersegmentEliminationMember…
• CECO (CECO ENVIRONMENTAL CORP.)
• FY2025 10-K: …the monitoring of budget versus actual results. During the fourth quarter of 2025, management updated the definition of the segment profit measure used by the CODM. The presentation of prior period segment information has been recast to conform to this updated measure. Asset information by segment is not reported…
• FY2025 10-K: …("ERM"). The Company's cybersecurity policies, standards, and processes are being integrated into the Company's ERM program and based on recognized frameworks and industry standards, including the National Institute of Standards and Technology, the International Organization for Standardization and other applicable…
• NVT (nVent Electric plc)
• FY2025 10-K: Network Technologies from 2004 - 2005. He served over 10 years in corporate controlling and external reporting roles in various public companies. Mr. Wacker also served as an accountant with the public accounting firm Larson, Allen, Weishair & Co., LLP (n/k/a CliftonLarsonAllen) from 1988 - 1993. Sara E. Zawoyski 51…
• FY2025 10-K: …Vice President and Chief Financial Officer since March 2025; Mr. Corona was the interim Chief Financial Officer from 2024 - 2025 and the Senior Vice President of Finance from 2023 - 2024, of Medtronic plc (a healthcare technology company). Mr. Corona previously held various finance roles of increasing responsibility…
• WWD (WOODWARD, INC.)
• FY2025 10-K: …technology and design, product performance, and conformity with customer specifications. Additional factors are customer service and support, including on-time delivery and customer partnering, product quality, price, reputation, and local presence. Both of our segments operate in uniquely competitive environments.…
• FY2025 10-K: …to new product concepts. We believe this collaboration allows us to develop technology, new systems, and products that are aligned with our customers' needs and future performance, which increases the likelihood that our systems and components will be selected for inclusion in the platforms developed by our…
• BWXT (BWX Technologies Inc)
• FY2025 10-K: …of maintenance outages and the cyclical nature of capital expenditures and major refurbishments for nuclear utility customers, principally in the Canadian market, which could cause variability in our financial results. 2 Table of Contents Acquisitions Aerojet Ordnance Tennessee, Inc. On January 3, 2025, we completed…
• FY2025 10-K: …with manufacturing integration. This segment's capabilities include: • steam generation and separation equipment design and development; • thermal-hydraulic design of reactor plant components; • in-plant inspection, maintenance and modification services; • nuclear component modification and replacement; • commercial…
• ITT (ITT INC.)
• FY2025 10-K: …engineered cable assemblies for avionics, sensors, communications and networking applications that are highly complementary to ITT's existing connector portfolio. Brands include kSARIA, Compulink, The Charles E. Gillman Company, TopFlite Components, and Co-Operative Industries Aerospace and Defense (CIA&D). Control…
• FY2025 10-K: …srt:AsiaPacificMember itt:MotionTechnologiesMember 2023-01-01 2023-12-31 0000216228 us-gaap:OperatingSegmentsMember srt:AsiaPacificMember itt:IndustrialProcessMember 2023-01-01 2023-12-31 0000216228 us-gaap:OperatingSegmentsMember srt:AsiaPacificMember itt:ConnectControlTechnologiesMember 2023-01-01 2023-12-31…

Scientific (reported)

• MMSI (MERIT MEDICAL SYSTEMS INC)
• FY2025 10-K: …inflation devices and hemostasis valves, including the BasixSKY®, BasixCompak®, basixTOUCH®, Blue Diamond® and DiamondTouch™ inflation devices, the PhD™ Hemostasis Valve, and the 10Fore™ Hemostasis Valve, the latest addition to our hemostasis valve portfolio. 6 Table of Contents Custom Procedural Solutions Our custom…
• FY2025 10-K: …us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0000856982 srt:WeightedAverageMember mmsi:CookMedicalHoldingsLlcMember 2024-11-01 0000856982 srt:WeightedAverageMember mmsi:EndoGastricSolutionsIncMember 2024-07-01 0000856982 srt:WeightedAverageMember mmsi:AngioDynamicsIncMember 2023-06-08 0000856982…
• ATRC (AtriCure, Inc.)
• FY2025 10-K: …us-gaap:SalesRevenueNetMember 2024-01-01 2024-12-31 0001323885 atrc:MedicalDevicesMember us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2023-01-01 2023-12-31 0001323885 atrc:MedicalDevicesMember us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember 2025-01-01 2025-12-31…
• FY2025 10-K: …2025 FY false 0001323885 P3Y P1Y0M0D P1Y0M0D http://www.atricure.com/20251231#FinanceAndOperatingLeaseLiabilityCurrent http://www.atricure.com/20251231#FinanceAndOperatingLeaseLiabilityCurrent http://www.atricure.com/20251231#OperatingAndFinancingLeaseLiabilitiesNoncurrent…
• ICUI (ICU MEDICAL INC/DE)
• FY2025 10-K: …0000883984 ICU MEDICAL INC/DE FALSE 12/31 2025 FY http://fasb.org/srt/2025#ChiefExecutiveOfficerMember http://fasb.org/us-gaap/2025#OtherAssets http://fasb.org/us-gaap/2025#OtherAssets http://fasb.org/us-gaap/2025#AccruedLiabilitiesCurrent http://fasb.org/us-gaap/2025#AccruedLiabilitiesCurrent…
• FY2025 10-K: -31 0000883984 icui:InfusionConsumablesMember 2024-01-01 2024-12-31 0000883984 icui:InfusionConsumablesMember 2023-01-01 2023-12-31 0000883984 icui:InfusionSystemsMember 2025-01-01 2025-12-31 0000883984 icui:InfusionSystemsMember 2024-01-01 2024-12-31 0000883984 icui:InfusionSystemsMember 2023-01-01 2023-12-31…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.