Idex Corporation
Exchange: NYSESector: IndustrialsIndustry: Specialty Industrial Machinery
IDEX Corporation (IDEX) is an applied solutions business that sells an array of pumps, flow meters and other fluidics systems and components and engineered products to customers in a variety of markets worldwide. IDEX operates in three business segments: Fluid & Metering Technologies, Health & Science Technologies and Fire & Safety/Diversified Products. Fluid & Metering Technologies segment consist of Banjo; Energy and Fuels; Chemical, Food & Process and Water & Waste Water. Health & Science Technologies segment consist of IDEX Health & Science; IDEX Optics and Photonics; Precision Polymer Engineering; Gast; Micropump and Materials Process Technologies. Fire & Safety/Diversified Products segment consist of Fire Suppression; Rescue Tools and Band-It. In July 20, 2012, it acquired Matcon Group Limited. In March 2013, it announced the acquisition of FTL Seals Technology, Ltd. On April 11, 2012, it acquired the stock of PPC. On April 30, 2012, it acquired the stock of ERC.
Current Price
$216.92
+0.95%GoodMoat Value
$125.48
42.2% overvaluedProfile
Valuation (TTM)
Market Cap$16.13B
P/E31.77
EV$15.36B
P/B4.00
Shares Out74.35M
P/Sales4.57
Revenue$3.53B
EV/EBITDA18.52
Idex Corporation (IEX) Stock Analysis
GoodMoat Analysis
Idex Corporation is a high-quality industrial machinery business with a moderate moat, but it is currently priced at a significant premium to its estimated fair value. The stock fails the valuation gate of the GoodMoat framework, indicating an unfavourable risk/reward profile for a value investor.
Read full analysis
Idex Corporation operates in the specialty industrial machinery sector, designing and manufacturing highly engineered products like pumps, meters, and dispensing equipment for diverse end markets. Applying the GoodMoat framework, the company demonstrates a moderate competitive moat, likely scoring in the 5-6 range based on criteria like niche dominance in mission-critical applications, switching costs, and a long history of strategic execution. Its financial quality is adequate, with a strong 20.2% operating margin and manageable debt, though its 4.2% YoY revenue growth and 12.0% ROE are not exceptional.
The critical issue is valuation. At a price of $191.63, the stock trades at a P/E of 29.7x, which is high for its single-digit revenue growth profile. More decisively, the provided GoodMoat Target price of $125.48 implies the stock is trading at a 53% premium to its estimated intrinsic value. According to the Decision Framework (Section 6), a stock must first pass the 'Moat & Quality Gate' and then show a favourable valuation with a margin of safety of at least 20%. While Idex may pass the first gate, it fails the second spectacularly; a 53% premium represents a deeply unfavourable valuation with a negative margin of safety. This places the stock in the 'Unfavourable' category for further value-oriented investigation at its current price.
Analysis based on data as of 2024-05-15.
Market Cap$16.13B
Current Price$216.92
P/E Ratio31.77
Forward P/E—
PEG Ratio1.14
EPS$6.41
Book Value$54.17
P/B Ratio4.00
IEX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 1.2B
Revenue
2.5B
FY19
2.4B
FY20
2.8B
FY21
3.2B
FY22
3.3B
FY23
3.3B
FY24
3.5B
FY25
Net Income
426M
FY19
378M
FY20
449M
FY21
587M
FY22
596M
FY23
505M
FY24
483M
FY25
IEX 52-Week Range
$156.28
$218.19
50-Day MA: $200.34200-Day MA: $181.54
Did you know?
Trading 42% above its estimated fair value of $125.48.
Idex Corporation (IEX) Financial Summary
Idex Corporation (IEX) is a Industrials company in the Specialty Industrial Machinery industry, listed on NYSE. The stock currently trades at $216.92 with a market capitalization of $16.13B.
Key valuation metrics include a P/E ratio of 31.77, price-to-book ratio of 4.00, and EPS of $6.41. The company reports a profit margin of 14.4% and return on equity of 12.6%.
IEX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $16.13B |
| P/E Ratio | 31.77 |
| EPS | $6.41 |
| P/B Ratio | 4.00 |
| P/S Ratio | 4.57 |
| EV/EBITDA | 18.52 |
| Dividend Yield | 1.32% |
| Profit Margin | 14.4% |
| Return on Equity | 12.6% |
| Debt/Equity | 0.45 |
IEX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.49B | $425.50M |
| FY20 | $2.35B | $377.80M |
| FY21 | $2.76B | $449.40M |
| FY22 | $3.18B | $586.90M |
| FY23 | $3.27B | $596.10M |
| FY24 | $3.27B | $505.00M |
| FY25 | $3.46B | $483.20M |
Idex Corporation (IEX) Valuation
Based on GoodMoat's DCF model, Idex Corporation has a fair value estimate of $125.48. At the current price of $216.92, the stock appears 72.9% overvalued relative to our intrinsic value estimate.
IEX Quality Indicators
Idex Corporation maintains a profit margin of 14.4% and an operating margin of 20.2%. Return on equity stands at 12.6%. The current ratio is 2.86. Debt-to-equity ratio is 0.45.
About Idex Corporation
IDEX Corporation (IDEX) is an applied solutions business that sells an array of pumps, flow meters and other fluidics systems and components and engineered products to customers in a variety of markets worldwide. IDEX operates in three business segments: Fluid & Metering Technologies, Health & Science Technologies and Fire & Safety/Diversified Products. Fluid & Metering Technologies segment consist of Banjo; Energy and Fuels; Chemical, Food & Process and Water & Waste Water. Health & Science Technologies segment consist of IDEX Health & Science; IDEX Optics and Photonics; Precision Polymer Engineering; Gast; Micropump and Materials Process Technologies. Fire & Safety/Diversified Products segment consist of Fire Suppression; Rescue Tools and Band-It. In July 20, 2012, it acquired Matcon Group Limited. In March 2013, it announced the acquisition of FTL Seals Technology, Ltd. On April 11, 2012, it acquired the stock of PPC. On April 30, 2012, it acquired the stock of ERC.
IEX Free Cash Flow
Idex Corporation generated $616.80M in trailing twelve-month free cash flow, representing an FCF yield of 3.82%. This moderate FCF yield indicates reasonable cash generation.
IEX Shares Outstanding
Idex Corporation has 0.07 billion shares outstanding at a share price of $216.92, giving it a market capitalization of $16.13B.