Is Standex International Corporation (NYSE:SXI) potentially undervalued?

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Standex International Corporation (NYSE:SXI), is not the biggest company in the market, but it has received a lot of attention due to a substantial price movement on the NYSE over the past few months, rising to $120 at some point, and falling to the low of US$99.42. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to answer is whether Standex International’s current price of US$99.42 reflects the true value of the small cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at Standex International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Is Standex International still cheap?

Good news, investors! Standex International is still good business right now. By my valuation, the intrinsic value of the stock is $162.47, which is higher than what the market is currently pricing for the company. This indicates a potential opportunity to buy low. What is more interesting is that the Standex International stock price is quite volatile, which gives us more of a chance to buy since the stock price may go down (or up) in the future. This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.

What type of growth will Standex International generate?

NYSE: SXI Earnings and Revenue Growth January 27, 2022

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Although value investors argue that it is intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. Over the coming year, Standex International’s profits are expected to increase by 52%, indicating a very optimistic future. This should lead to more robust cash flow, fueling higher share value.

What does this mean to you :

Are you a shareholder? Given that the SXI is currently undervalued, now may be the time to increase your stock holdings. With an optimistic outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, other factors such as capital structure must also be taken into account, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SXI for a while, it might be time to take a leap. Its dynamic future outlook is not yet fully reflected in the current share price, which means it is not too late to buy SXI. But before making investment decisions, consider other factors such as the track record of its management team, so you can make an informed purchase.

If you want to learn more about Standex International as a business, it is important to be aware of the risks it faces. At Simply Wall St, we found 2 warning signs for Standex International and we think they deserve your attention.

If you are no longer interested in Standex International, you can use our free platform to see our list of more 50 other stocks with high growth potential.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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