Standex International - Value

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Earnings momentum for Standex International Corp. ( SXI ) has been increasing since this provider of industrial equipment and components reported solid fourth quarter and fiscal year 2012 results, including an earnings surprise of 5.2% in the quarter. Furthermore, shares for this Zacks #1 Rank (Strong Buy) are nearing its 52-week high, and it has a price-to-earnings (P/E) ratio of just 10.8.

Driving Catalyst

On August 28, Standex International reported fiscal fourth quarter 2012 earnings per share of $1.02, up 12.1% year over year and 5.2% above the Zacks Consensus Estimate of 97 cents.


Revenue advanced 5% to $170 million on the back of healthy growth in the Food Service Equipment, Engraving, Electronics Products and Hydraulics Products segments. However, the company's fifth segment - Engineering Technologies - posted weak revenue results.

In fiscal 2012, earnings per share came in at $3.39 versus $2.97 in fiscal 2011, while revenue settled at $634.6 million compared with $581.4 million in 2011.

Earnings Estimates Move Higher

Over the last 7 days, one of 3 earnings estimates moved higher for Standex, raising the Zacks Consensus Estimate for the fiscal year 2013 by 2.7% to $4.12. A similar trend followed for fiscal 2014, as one of 3 estimates increased and helped the Zacks Consensus Estimate advance by 3.1% to $4.64. These outlooks represent year-over-year earnings growth of 21.4% for fiscal 2013 and 12.7% for fiscal 2014.

A Value Play

In addition to an attractive P/E multiple of 10.8 versus the peer group average of 12.4, Standex International Corp. is currently trading at a P/S ratio of 0.9 and at a P/B ratio of 2.3. A P/E ratio below 15.0, P/B ratio under 3.0 and P/S ratio below 1.0 generally indicate value.

The chart below clearly shows that the stock gained momentum beginning calendar year 2009 and has reached new highs since then.

Standex International Corp. is headquartered in Salem, New Hampshire, and was founded in 1955. Operating in the Industrial Goods sector, the company provides a variety of products and services to diverse industrial market segments. Currently, the company has a market capitalization of approximately $552.0 million.


 
STANDEX INTL CO (SXI): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

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