Shares of Standex International Corp. (SXI) reached a new 52-week high of $52.14 after reporting a solid fiscal first quarter. This provider of industrial equipment and components also increased its quarterly dividend rate by 14.3%. With a price-to-earnings (P/E) ratio of just 11.6, this Zacks #2 Rank (Buy) presents a good investment option for value investors.
On November 1, Standex International reported fiscal first quarter earnings per share of $1.02, up 10.9% year over year and 5.2% above the Zacks Consensus Estimate.
Revenue increased 15.1% to $183 million on the back of healthy growth in the Food Service Equipment, Engraving, Engineering Technologies and Electronics Products groups.
In addition to the financial results, the recently-announced 14.3% increase in its quarterly dividend to 8 cents from 7 cents has further improved the prospects of the stock.
Earnings Momentum Moves Higher
Over the last 7 days, the Zacks Consensus Estimate for fiscal year 2013 has gained 5.9% to $4.16. The Zacks Consensus Estimate for fiscal 2014 moved higher by 0.9% to $4.48 in the same timeframe. These estimates suggest year-over-year earnings growth of 22.9% for fiscal 2013 and 7.5% for fiscal 2014.
A Value Play
In addition to an attractive P/E multiple of 11.6 versus a peer group average of 12.4, Standex International Corp. is currently trading at a P/S ratio of 0.9, compared with the peer group average of 0.7. Furthermore, its P/B ratio of 2.4 compares with 1.6 for the peer group. A P/E ratio below 15.0, P/B ratio under 3.0 and P/S ratio below 1.0 generally indicate value.
As can be observed from the chart below, the Zacks Consensus Estimates for the years ahead are rising, indicating healthy growth prospects.
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 $599.0 million.
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