Standex International (SXI:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Standex International(SXI:NYS)

Industrials:Specialty Industrial Machinery

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$58.00 (USD) 09/03/2020

Weighted Valuation
$71.60 (USD)

Overall Rating
Undervalued by 23.5%

Valuation Models Discounted Cash Flow: $75.98 (USD)
(in order of importance) Comparables: $46.67 (USD)
Multiples: $68.99 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation
According to Analyst consensus at $77.00 this stock is Undervalued

Company Overview (SXI:NYS USD)

Price 58.00
Range 57.21 – 59.04
52 week 38.39 – 80.92
Open 58.54
Vol / Avg. 62558/48776
Mkt cap 718.09M
P/E 17.52
Div/yield 0.86/0.02
EPS 1.63
Shares 12.38M
Beta 1.44

Company Description

Standex International Corp is a US-based firm. It engages in manufacturing a variety of products and services for several commercial and industrial markets. It has five segments that include Food Service Equipment, Engraving, Engineering Technologies, Electronics, and Hydraulics. With its business spread majorly in the US most of the company revenues come from Food Service Equipment business that primarily offering refrigeration solutions, cooking solutions, and specialty solutions.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for SXI:NYS

Using a discounted cash flow model we generated an intrinsic value of $75.98 (USD) for SXI:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

SXI:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $75.98 1% 5% 1% 5%
WACC (or Ke) 10.02 $90.24 $65.28
Terminal Growth Rate 3.00 $66.52 $88.58
Tax Rate 0.24 $82.26 $69.70
Cash Flow 125,915,981 $71.01 $80.95
Capital Expenditures -7,991,600 $75.69 $76.27
Long Term Debt 104,208,000 $76.40 $75.56

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $46.67 (USD) for SXI:NYS. We also generated a valuation of $73.65 (USD) using other metrics and comparables.
The comparable companies were Circor International (CIR:NYS), EnPro Industries (NPO:NYS), Franklin Electric (FELE:NAS), Gorman-Rupp (GRC:NYS) and Lydall (LDL:NYS).

Company SXI:NYS End Date Value
Earnings/Share $1.63 (USD)
Book Value/Share $37.29 (USD)
Sales/Share $48.80 (USD)
Cash Flow/Share $3.81 (USD)
EBITDA/Share $7.58 (USD)
Price Based on Comps Adjustment Factor (%)
$48.71 (USD) -33.2
$79.63 (USD) -46.6
$64.80 (USD) -36.2
$18.64 (USD) -15.0
$125.47 (USD) -20.1
SXI:NYS Ratios Used Average Values CIR:NYS NPO:NYS FELE:NAS GRC:NYS LDL:NYS
17.52 PE Ratio 29.89 0.00 0.00 31.28 28.49 0.00
1.56 PB Ratio 2.14 2.09 1.09 3.53 2.66 1.32
1.19 PS Ratio 1.33 0.66 1.07 2.22 2.25 0.44
15.21 PCF Ratio 9.87 0.00 7.58 12.55 15.79 3.57
8.89 EV to EBITDA 42.96 122.17 17.01 18.37 14.30 0.00

Multiples

Using a multiples approach we generated a valuation of  $68.99 (USD) for SXI:NYS

Company SXI:NYS End Date Value
Earnings/Share $1.63 (USD)
Book Value/Share $37.29 (USD)
Sales/Share $48.80 (USD)
Cash Flow/Share $3.81 (USD)
EBITDA/Share $7.58 (USD)
Price Based on Comps Adjustment Factor
$35.53 (USD) 0
$101.66 (USD) 0
$66.85 (USD) 0
$56.31 (USD) 0
$84.62 (USD) 0
Ratios Ratio Average
PE Ratio 21.80
PB Ratio 2.73
PS Ratio 1.37
PCF Ratio 14.77
EV to EBITDA 11.17

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  SXI:NYS for the last 10 years was  2.77

We ran the Adjusted Book Value for  SXI:NYS and generated a book value of  $37.73 (USD)
By multiplying these we get an adjusted valuation of  $104.58 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for SXI:NYS. The 1 analysts have a concensus valuation for SXI:NYS for 2021 of $77.00 (USD).

SXI:NYS Standex International

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2020-9-2

Current Price: 58 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 3.56 4.61
# EPS Analysts 1 1
Mean Revenue 611.50 640.80
# Revenue Analysts 1 1
Mean Target Price 77.00
Mean Cash Flow
Mean EBITDA 98.40 116.90
Mean Net Income 43.50 55.70
Mean Debt Outstanding
Mean Tax Rate 26.50 26.50
Mean Growth Rate 14.00
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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