Updated 3/26
Standex International is a company built on precision and specialization, with operations that span across a handful of highly engineered product lines—from engraving and electronics to refrigeration and pumps. It’s not flashy, but it is quietly consistent. And for dividend investors who care about quality and sustainability, that’s worth paying attention to.
Over time, Standex has carved out a reputation for stable operations, sound financial management, and a growing, reliable dividend. While it may not offer the kind of eye-popping yield that grabs headlines, it does deliver a compelling blend of income potential and capital appreciation, especially for long-term investors who prefer a steady hand at the wheel.
Recent Events
The past year hasn’t been the smoothest for Standex shareholders, at least from a stock performance angle. Shares are down a little over 8% year-over-year, lagging the broader market. But the real story is unfolding under the hood.
Standex posted some eye-opening earnings results recently, with year-over-year growth in quarterly earnings north of 600%. That’s not a typo. The jump appears to be driven by operational efficiency and smart execution across its portfolio. Revenue is also trending in the right direction—up 26.6% compared to the prior year.
The company continues to carry a clean balance sheet, and its cash flow generation remains strong. Dividend payments continue to grow incrementally, and with a recent $0.32 per share payout, shareholders are being rewarded for their patience.
Key Dividend Metrics
📈 Dividend Yield: 0.77%
💸 Annual Dividend: $1.28 per share
🛡️ Payout Ratio: 26.64%
📊 Five-Year Average Yield: 0.98%
🌱 Dividend Growth Trend: Slow but steady
📅 Dividend Schedule: Quarterly
💰 Most Recent Dividend: February 28, 2025
⚠️ Ex-Dividend Date: February 14, 2025
Dividend Overview
Standex doesn’t chase high-yield status. Instead, it plays the long game with careful, calculated increases. The current dividend yield sits at 0.77%, slightly below the five-year average. That’s not surprising given the stock’s appreciation over the past few years.
The payout ratio is comfortably low, under 27%, which gives the company plenty of breathing room to reinvest in growth or weather downturns. It’s a dividend that’s built to last—conservative in size, but backed by consistent fundamentals.
For investors looking for reliability over flash, it’s a dividend that fits snugly into a patient, income-oriented strategy.
Dividend Growth and Safety
One of the biggest positives for SXI is the safety of its dividend. The company doesn’t just pay its dividend—it builds around it. Recent hikes have been modest, moving from $1.22 to $1.28 annually, but they’re part of a broader pattern of gradual increases.
That restraint is exactly what makes the dividend feel dependable. Standex isn’t stretching to maintain payments. Cash flow is strong, with nearly $80 million in operating cash and almost $25 million in free cash flow over the past twelve months. That’s more than enough to cover the roughly $15 million needed for dividend payouts.
With $136 million in cash on the books and total debt around $229 million, the company is in a comfortable spot. The debt load is well within reason, and liquidity is solid. From a safety standpoint, the dividend looks rock steady.
Chart Analysis
Wyckoff Cycle Context
The chart of Standex International (SXI) appears to be transitioning through the markdown phase of the Wyckoff market cycle. After a steady rise that peaked around December and early January, we’ve seen price action break down, especially as the 50-day moving average began to slope downward and crossed below the 200-day moving average—a classic death cross signal that often reflects deteriorating momentum and a shift in sentiment.
The markup phase can be seen clearly from August through early January, where price moved up with strength and conviction, forming higher highs and supported by volume on up days. But once distribution began—visible between mid-January and late February—the highs started becoming more erratic, with price failing to convincingly push above the $210 range.
Moving Averages Breakdown
Currently, SXI is trading below both its 50-day and 200-day moving averages. The 50-day has rolled over and is now trending lower, which is a key signal that short-term sentiment is bearish. The 200-day is starting to flatten, which shows longer-term momentum is also beginning to lose its upward trajectory.
When price decisively broke below both moving averages in mid-March, it confirmed weakness. This kind of price behavior is typical of a markdown phase, where institutions have likely finished distribution, and the market now lacks support from larger hands.
Volume Signals
Volume has spiked noticeably during sharp down days—particularly in mid-February, early March, and again near the end of March. These volume bursts on red candles are signs of aggressive selling pressure. It’s not just individual investors trimming positions—this kind of volume suggests broader liquidation or rotation out of the stock.
By contrast, rallies have come on much lighter volume, signaling weak buying conviction. That divergence between heavy volume on down moves and weak volume on up moves is a hallmark of markdown behavior.
RSI and Momentum
The Relative Strength Index (RSI) has been trending in a downward channel since late January, recently dipping into the oversold territory before ticking up slightly. This bounce doesn’t yet indicate a reversal—it’s more reflective of a short-term relief bounce after a sharp selloff. RSI remains below the midline, and until that changes, the overall momentum is still pointing south.
Recent Candlestick Behavior
Looking at the latest five candles, the story is clear. Sellers are still dominating. We’re seeing long upper wicks, especially on attempted bounce days, which signals that every push higher is being met with selling pressure. The most recent candle closed near its low of the day with very little wick on either end—a strong close for sellers, suggesting continued weakness.
Prior to that, there was a sharp down candle on above-average volume, followed by a small-bodied candle with long wicks, showing indecision but still favoring the downside. The failed rebound attempts and lack of follow-through reflect a market not yet ready to support higher prices.
Analyst Ratings
📊 In recent months, Standex International Corporation (SXI) has caught the attention of Wall Street analysts, leading to a few updated ratings and price target adjustments. The general tone has leaned positive, although not overwhelmingly so—more of a cautious optimism.
👍 Over the last 90 days, five analysts have weighed in on the stock. One analyst expressed a fully bullish stance, while the other four leaned somewhat bullish. Notably, there were no neutral or bearish ratings during this stretch. That tells us there’s a collective view that the company’s fundamentals are heading in the right direction, even if the enthusiasm is tempered.
🎯 The 12-month price targets range from $220 to $224, with an average target sitting at $220.80. That implies a decent upside from current trading levels, especially given the recent pullback in price. The tight spread between the high and low targets also shows that analysts are fairly aligned in their expectations, suggesting confidence in the company’s earnings trajectory.
💡 Several reasons are driving the positive sentiment. Analysts have pointed to Standex’s margin expansion, successful cost control, and disciplined capital allocation as key strengths. The company’s acquisitions in niche industrial spaces are also seen as well-timed, adding value without overextending the balance sheet. Their ability to generate consistent cash flow in a fragmented sector stands out in the current environment.
📈 Despite some softness in recent price action, the underlying business remains solid. While no analyst is shouting from the rooftops just yet, the consensus seems to be that SXI is on steady footing, with room to grow—especially if industrial demand remains stable through the next few quarters.
Earnings Report Summary
Top Line Growth and Operational Strength
Standex International’s latest quarterly report showed a mixed but overall solid performance. Revenue came in at $189.8 million for the second quarter of fiscal 2025, up about 6.4% from the same time last year. A big part of that growth came from acquisitions, which helped offset some softness in organic sales. It’s a familiar story for a company that’s been strategically expanding its footprint in specialized markets.
Gross margins ticked higher to 40.9%, while adjusted operating margin reached a record 18.7%. That’s a meaningful improvement year over year and speaks to better cost control and operational execution. Management pointed to stronger efficiency across the business, as well as benefits from integrating the new acquisitions.
Earnings Dip Despite Margin Expansion
Despite the top-line and margin gains, net income was down sharply. The company posted $0.857 million in net income for the quarter, a steep drop from the $18.87 million reported in the same quarter last year. Earnings per share landed at $0.07, down from $1.59. The decline was mostly tied to one-time charges, including restructuring costs and acquisition-related expenses, which weighed heavily on the bottom line.
Segment Highlights
The Electronics segment was the standout performer. It brought in $95.9 million in revenue, up over 20% year over year, thanks in large part to the contributions from recent deals. Operating income in this segment jumped more than 50%, and the margin expanded to an impressive 27.6%.
Things weren’t as strong in the Engraving segment, where revenue dropped 23% to $31.5 million. The softness in the auto sector, particularly in North America and Europe, played a role in the downturn. That segment’s operating income was cut in half, and the margin slid to 14.3%.
Engineering Technologies had a much better showing. Revenue climbed 34% to $24.2 million, helped by project work in aerospace and space markets. That segment’s income was up over 60%, with a margin of 15.5%.
Strategic Moves and Outlook
One of the big moves last quarter was the acquisition of Amran Instrument Transformers and Narayan Powertech. It’s the largest deal Standex has ever made and adds serious weight to their presence in the electrical grid market. That acquisition is expected to be a key growth driver going forward.
Looking ahead, the company sees stronger revenue in the next quarter, largely due to the newly acquired businesses and ongoing demand in electronics. They also expect margins to improve slightly, continuing the trend of operational progress.
Financial Health and Stability
There’s a lot to like when you dive into Standex’s financials. Gross margin is near 39%, and operating margin sits at 13.3%, a reflection of the company’s tight control over costs and pricing power in its niche markets. Return on equity is solid at 8.5%, with a return on assets of 5.4%.
Liquidity is a non-issue here. The current ratio is 3.37, which shows that near-term obligations are easily covered. Overall, this is a company with a healthy balance sheet, disciplined capital management, and a clear focus on shareholder value.
Management has shown a knack for making smart, strategic moves—whether that’s reinvesting in R&D, pursuing bolt-on acquisitions, or allocating capital to dividends. It’s a measured approach that tends to reward shareholders over the long haul.
Valuation and Stock Performance
From a valuation perspective, SXI doesn’t look cheap at first glance. The trailing price-to-earnings ratio is over 36, but that’s skewed by recent earnings surges. Looking forward, the P/E comes down to a more reasonable 18.4, which aligns better with peers in the industrial sector.
Enterprise value to EBITDA is currently at 22.3—again, not bargain-basement levels, but not excessive either for a company with consistent margins and growing earnings. Price-to-sales is just under 2.8, and price-to-book comes in at 3.03, giving a fairly balanced picture of valuation.
Shares have pulled back from their 52-week high of $212.66 and now hover around $167. That’s just above the 52-week low of $154.45. Technically, the stock is trading below both its 50-day and 200-day moving averages, which might catch the attention of investors looking for entry points or signals of reversal.
Risks and Considerations
There are a few things that income investors should keep in mind here.
First, the yield is modest. For those who are building a portfolio focused on higher-income plays, SXI may not provide the kind of immediate cash flow they’re after.
Second, the company’s focus on specialized industrial segments, while a strength in many respects, does introduce a certain level of market cyclicality. If demand dips in one of its niche categories, the impact could show up quickly in earnings.
Lastly, the valuation does carry some expectations. Standex needs to continue executing well to justify its premium metrics. If growth slows, some multiple contraction could follow.
Final Thoughts
Standex International doesn’t scream for attention, but it continues to quietly reward shareholders who value consistency over flash. Its dividend is modest in size but high in quality—backed by strong cash flow, low payout ratios, and a management team that clearly understands long-term value creation.
For dividend investors with a long-term mindset, SXI offers a refreshing combination: a steady income stream, reliable financial health, and a business model that thrives on doing a few things exceptionally well. It might not be the highest-yielding name on the board, but it has the kind of foundation that holds up well over time.