Tenbagger my dear, my Moat scythes are sharpened. Are you ready for the execution?
Standex is currently undergoing the transformation from a traditional industrial conglomerate to a specialized high-tech supplier.
1st growth driver:
- Focus markets: Over 30% of sales by 2026 will come from high-growth areas such as space, defense, electric vehicles (EV) and the smart grid.
- Innovation: New products are expected to account for around 8.5% of total sales by 2026 (compared to 4.2% in 2023)
- M&A strategy: Acquisitions such as Amran/Nelster (electronics) and McStarlite (aerospace) drive profitability as they have higher margins than the legacy business.
2. financial development:
- Sales & EBIT: Sales are expected to break the billion mark by 2028. The operating leverage is particularly impressive: EBIT is growing significantly faster than revenue (forecast jump from $150M to $234M by 2028).
- De-risking: net debt is falling massively (from 2.63x EBITDA in 2025 to less than 1.0x in 2027). This makes the company crisis-proof.
- EPS momentum: Earnings per share (EPS) growth is the "star". After a transition year in 2025, an acceleration is expected, which visually pushes the P/E ratio from 33x to 20x.
3. the risks
- M&A execution: The story is heavily dependent on successful acquisitions. If an integration goes wrong, the momentum breaks.
- Free cash flow (FCF): As mentioned in your screenshot, FCF is the only "shaky point". 2025 was burdened by investments. As long as the cash flow does not show stable double-digit growth, the share will remain difficult to grasp for pure value investors.
- Cyclicality: Despite high-tech, SXI remains an industrial stock. A hard recession would also affect the defense and EV cycles.
My verdict: An excellent "hidden champion" for the backbone of the portfolio. If you are patient, you will probably see the revaluation you predicted.
Status: Watch
Reaper score: 6.5/10
Standex is currently undergoing the transformation from a traditional industrial conglomerate to a specialized high-tech supplier.
1st growth driver:
- Focus markets: Over 30% of sales by 2026 will come from high-growth areas such as space, defense, electric vehicles (EV) and the smart grid.
- Innovation: New products are expected to account for around 8.5% of total sales by 2026 (compared to 4.2% in 2023)
- M&A strategy: Acquisitions such as Amran/Nelster (electronics) and McStarlite (aerospace) drive profitability as they have higher margins than the legacy business.
2. financial development:
- Sales & EBIT: Sales are expected to break the billion mark by 2028. The operating leverage is particularly impressive: EBIT is growing significantly faster than revenue (forecast jump from $150M to $234M by 2028).
- De-risking: net debt is falling massively (from 2.63x EBITDA in 2025 to less than 1.0x in 2027). This makes the company crisis-proof.
- EPS momentum: Earnings per share (EPS) growth is the "star". After a transition year in 2025, an acceleration is expected, which visually pushes the P/E ratio from 33x to 20x.
3. the risks
- M&A execution: The story is heavily dependent on successful acquisitions. If an integration goes wrong, the momentum breaks.
- Free cash flow (FCF): As mentioned in your screenshot, FCF is the only "shaky point". 2025 was burdened by investments. As long as the cash flow does not show stable double-digit growth, the share will remain difficult to grasp for pure value investors.
- Cyclicality: Despite high-tech, SXI remains an industrial stock. A hard recession would also affect the defense and EV cycles.
My verdict: An excellent "hidden champion" for the backbone of the portfolio. If you are patient, you will probably see the revaluation you predicted.
Status: Watch
Reaper score: 6.5/10
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@Aktienhauptmeister Thank you my dear. Are you already looking forward to the upcoming championship? As the Bundesliga is about to take a break, we'll continue here. I'm curious to see which fan club you'll join
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•@Tenbagger2024 Bundesliga goes into the break, but the World Cup starts a few weeks later my dear 😂
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•@Aktienhauptmeister And the industry championship
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•@Tenbagger2024 varied in case my Tipico ticket catches fire 😂
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•@Aktienhauptmeister Which company do you and Jack recommend?
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@Tenbagger2024 we haven't even looked at yet. We'll do that later ✌️
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