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Idex Corporation (IEX)
NYSE:IEX
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IDEX
(NYSE:IEX)
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Rating:77Outperform
Price Target:
$213.00
▲(15.69% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by strong financial quality (high cash generation and a near-zero-debt balance sheet). Earnings call commentary supports a steady, cash-rich outlook led by HST, but overall growth guidance is modest and some segments remain soft. Technicals are strong but overbought, and valuation is the main headwind with a high P/E and only a modest dividend yield.
Positive Factors
Very strong balance sheet / near‑zero debt
Near‑zero debt materially reduces financial risk and increases strategic optionality. A conservative capital structure supports sustained dividend and buyback programs, provides dry powder for bolt‑on M&A, and cushions the business through cyclical industry downturns.
High cash generation and strong FCF conversion
Consistent, high free cash flow and operating cash flow exceeding net income indicate durable earnings quality. Strong cash conversion funds dividends, disciplined repurchases, and targeted R&D or tuck‑in M&A without relying on external financing.
HST segment momentum & proven bolt‑on execution
Sustained HST demand, backlog growth and margin expansion reflect structural exposure to advantaged end markets (data centers, semiconductors, defense). Successful integration of bolt‑ons (Microlam) shows the 8020 platform can scale and diversify durable revenue streams.
Negative Factors
Modest companywide organic growth outlook
Low single‑digit companywide growth constrains operating‑leverage upside and limits how quickly margin and earnings per share can expand. Reliance on a few faster pockets (HST) leaves overall performance sensitive to segment timing and cyclical shifts.
Softness and volume deleverage in FMT and FSDP
Large exposure (>30% in FMT) to weak end markets and declining FSDP volumes drive volume deleverage and mix headwinds. These structural demand weaknesses pressure margins and create uneven revenue contributions across the portfolio over the medium term.
Margin compression and partly temporary cost savings
Profitability has softened from prior peaks and a meaningful portion of recent savings is temporary. If volumes remain weak or temporary savings reverse, margin recovery will be harder, limiting sustainable EPS and return improvement over time.
IDEX (IEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.93B
Dividend Yield1.56%
Average Volume (3M)755.99K
Price to Earnings (P/E)25.9
Beta (1Y)0.98
Revenue Growth7.09%
EPS Growth-2.29%
CountryUS
Employees9,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.10
Shares Outstanding74,347,824
10 Day Avg. Volume673,097
30 Day Avg. Volume755,990
Financial Highlights & Ratios
PEG Ratio-7.11
Price to Book (P/B)3.33
Price to Sales (P/S)3.88
P/FCF Ratio21.72
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue4.39
Enterprise Value/Gross Profit9.86
Enterprise Value/Ebitda16.79
Forecast
1Y Price Target
$237.00Price Target Upside28.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)8.26
Revenue Forecast (FY)$3.56B
IDEX Business Overview & Revenue Model
Company DescriptionIDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as offers flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction and drying systems, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, precision photonic solutions, and precision gear and peristaltic pump technologies. This segment serves food and beverage, pharmaceutical and biopharmaceutical, cosmetics, marine, chemical, wastewater and water treatment, life sciences, research, and defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.
How the Company Makes MoneyIDEX makes money primarily by selling engineered products—such as pumps, valves, flow meters, precision fluidics components, and dispensing/measurement systems—to OEMs, distributors, and end users across industrial and life science-related markets. Revenue is generated mostly from (1) new equipment/product sales, where IDEX earns a margin on manufactured components and integrated subsystems, and (2) aftermarket revenue, which typically includes replacement parts, consumables, and service/repair for installed equipment (when applicable to the product line). The company’s earnings are supported by its portfolio of specialized, often mission-critical components that can carry differentiated pricing due to performance requirements, regulatory validation (notably in life-science or medical-related applications), and customer integration into larger systems. IDEX also expands and refreshes its revenue base through acquisitions of niche engineered-product businesses that add new product lines, technologies, and distribution channels; however, specific acquisition-related revenue contributions are null.
IDEX Key Performance Indicators (KPIs)
IDEX Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The call highlights clear, concentrated strength: HST delivered robust order momentum (organic orders +34% in Q4), backlog expansion and margin improvement, alongside solid cash generation ($617M FCF) and disciplined capital returns (nearly $250M repurchases, $213M dividends). However, that positive performance sits alongside persistent softness in other core industrial end markets—particularly within FMT (chemical, energy, ag) and FSDP (outside U.S. and dispensing)—volume deleverage/mix headwinds, and a conservative companywide growth outlook (FY2026 organic ~1–2%). Management expects to continue investing in growth platforms and bolt‑on M&A while allowing some temporary cost savings to be redeployed. Overall, the results show strong execution in targeted growth areas and excellent cash/return metrics, but balanced by mixed end‑market dynamics and modest aggregated growth guidance.Q4-2025 Updates
Positive Updates
HST Orders and Backlog Momentum
HST delivered strong demand with organic orders up ~34% in Q4, record quarterly orders of ~$493M, a year‑over‑year backlog build of over ~$100M and revenue growth in the segment (reported ~+5% in remarks). HST adjusted EBITDA margin expanded ~60 basis points year‑over‑year driven by price, cost and productivity.
Overall Order Strength and Selective Organic Growth
Companywide organic order growth was +16% in the quarter and full‑year organic revenue grew ~+1% in 2025, driven by advantaged markets (data center, semiconductor, space & defense, municipal water, food & pharma).
Margin Expansion and Productivity Savings
Adjusted EBITDA margin expanded ~40 basis points year‑over‑year in the reported quarter. Platform optimization and cost containment produced ~ $60M of full‑year savings (about $40M structural, ~$20M temporary). Adjusted gross margin was flat in the quarter as price/cost/productivity offset volume deleverage and mix.
Strong Cash Generation and Capital Returns
Free cash flow for FY2025 was $617M (up ~2% year‑over‑year) with free cash flow conversion ~103% of adjusted net income. Q4 free cash flow was ~$190M. Liquidity remained strong at ~ $1.1B. Management returned capital with ~$73M repurchased in Q4 (nearly $250M total for the year), paid dividends of ~$213M, and reduced gross leverage from ~2.2x to ~2.0x.
Pricing Contribution and Pricing Discipline
Price was a positive contributor: ~3% price on average for FY2025 (Q4 ~3.5%). Management expects price contribution to moderate to ~1–2% in FY2026 but to remain additive to growth.
Platform / M&A Execution and Bolt‑on Integration
Execution of the 8020 growth platform is highlighted as working: the Microlam bolt‑on acquisition closed in 2025 and integrated successfully with strong early growth. Management emphasized cross‑business collaboration (HST platforms, water analytics, materials/optics) driving new wins tied to AI/data‑center and semiconductor ecosystems.
2026 Guidance (Conservative but Positive for HST)
Full‑year 2026 guidance: organic growth ~1–2% (company balances mid‑single‑digit HST growth with flat/slightly down FMT and FSDP), adjusted EBITDA margin targeted at ~26–27% for the year, adjusted EPS guidance $8.15–$8.35 (low‑ to mid‑single‑digit growth YoY). Q1 seasonal metrics: organic ~1%, adjusted EBITDA ~24.5% and adjusted EPS $1.73–$1.78.
Negative Updates
Softness in FMT (Chemical, Energy, Agriculture)
FMT saw mixed demand: organic orders +4% and organic sales +1% in the quarter, but the segment faces pronounced softness in chemical, oil & gas and agricultural end markets (which represent >30% of FMT). FMT's adjusted EBITDA margin declined ~20 basis points YoY due to volume deleverage, higher employee costs and unfavorable mix.
FSDP Revenue Decline and Geographic Pressures
FSDP experienced ongoing weakness: organic orders were flat while organic sales declined ~5% (second consecutive quarter of decline). Growth in North American fire & rescue was more than offset by weakness outside the U.S. and subdued capital spending in dispensing. Volume deleverage pressured the segment despite a ~50 bps margin improvement from productivity and mix.
Volume Deleverage and Mix Headwinds
While price and productivity helped, volumes were flat at HST and declined year‑over‑year at FMT and FSDP, producing volume deleverage and unfavorable mix that limited gross margin improvement (adj. gross margin flat in Q4) and informed a conservative overall guidance posture.
Temporary Nature of Some Cost Savings
Of the ~$60M cost savings realized in FY2025, approximately ~$20M is considered temporary; management expects some of that to be allowed to flow back into the business in 2026 to resource growth areas, partially offsetting sustained savings.
No Clear Broad Industrial Inflection Yet
Despite a PMI tick above 50, management reported that several near‑consumption businesses and leading indicators remained steady through January with no confirmed sustained inflection in broader industrial demand as of the start of 2026.
Modest Companywide Organic Growth Outlook
Company guidance for FY2026 is conservative with modest companywide organic growth of ~1–2% (HST expected to outpace, while FMT and FSDP are expected to be flat to slightly down), reflecting continued macro uncertainty and limited near‑term visibility for some rapid‑fulfillment businesses.
Company Guidance
IDEX guided fiscal 2026 organic revenue growth of 1–2%, driven by mid‑single‑digit growth at HST offset by flat to slightly down outlooks for FMT and FSDP; full‑year adjusted EBITDA margin was guided to 26–27% (with ~50 bps of margin expansion expected at HST), adjusted EPS of $8.15–$8.35 (low‑ to mid‑single‑digit y/y growth), an effective tax rate of ~24%, and an expected price contribution of roughly 1–2%; they noted Q1 is seasonally soft and gave a Q1 outlook of ~1% organic growth, ~24.5% adjusted EBITDA margin and adjusted EPS of $1.73–$1.78, while capital allocation priorities include dividends at 30–35% of adjusted net income, a base repurchase cadence near ~$75M/quarter, continued tuck‑in M&A, and a free cash flow conversion target of at least 100%.IDEX Financial Statement Overview
Summary
Strong overall fundamentals: solid profitability and cash conversion (FCF close to net income; operating cash flow exceeds net income) plus a materially de-risked balance sheet with near-zero debt. The key offset is margin and net income step-down versus 2021–2023 levels, which remains the main watch item.Income Statement
TTM (Trailing-Twelve-Months) revenue grew ~5.8% versus the prior year, showing a return to modest top-line growth after a flat 2024. Profitability remains solid (TTM gross margin ~44.5% and net margin ~14.0%), but margins have compressed versus 2021–2023 levels and net income is down versus 2024 and 2023, suggesting weaker operating leverage and/or higher costs. Overall, the business still generates healthy earnings, but the recent margin trajectory is the key watch item.78
Positive
Balance Sheet
Leverage improved dramatically in TTM (Trailing-Twelve-Months), with total debt near zero and debt-to-equity essentially negligible, which meaningfully reduces financial risk and increases flexibility. Equity has grown steadily over time, supporting a stronger capital base, and returns on equity remain healthy (TTM ~12%), albeit below the stronger 2021–2023 levels. The main trade-off is that while the balance sheet is now very conservative, profitability (returns) has moderated from prior peaks.90
Very Positive
Cash Flow
Cash generation is strong: TTM (Trailing-Twelve-Months) operating cash flow is ~$680M and free cash flow is ~$637M, with free cash flow close to net income (~0.94x), indicating good earnings quality. Free cash flow growth is strong in the TTM period (per provided data), and operating cash flow modestly exceeds net income (~1.18x), supporting sustainability. The primary weakness is variability year-to-year (e.g., free cash flow softness in 2024), though overall cash conversion remains consistently solid across the period.82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.46B | 3.27B | 3.27B | 3.18B | 2.76B |
| Gross Profit | 1.54B | 1.52B | 1.62B | 1.59B | 1.36B |
| EBITDA | 903.50M | 859.40M | 964.10M | 909.80M | 720.50M |
| Net Income | 483.20M | 505.00M | 596.10M | 586.90M | 449.40M |
Balance Sheet | |||||
| Total Assets | 6.93B | 6.75B | 5.87B | 5.51B | 4.92B |
| Cash, Cash Equivalents and Short-Term Investments | 580.00M | 620.80M | 534.30M | 430.20M | 900.70M |
| Total Debt | 1.82B | 1.99B | 1.45B | 1.59B | 1.30B |
| Total Liabilities | 2.90B | 2.95B | 2.32B | 2.47B | 2.11B |
| Stockholders Equity | 4.03B | 3.79B | 3.54B | 3.04B | 2.80B |
Cash Flow | |||||
| Free Cash Flow | 616.80M | 603.00M | 626.80M | 489.40M | 492.60M |
| Operating Cash Flow | 680.40M | 668.10M | 716.70M | 557.40M | 565.30M |
| Investing Cash Flow | -137.60M | -1.01B | -283.80M | -917.20M | -698.10M |
| Financing Cash Flow | -632.60M | 465.90M | -344.70M | -37.80M | -9.50M |
IDEX Technical Analysis
Negative
184.11
Price Trends
199.73
Negative
186.22
Positive
177.45
Positive
Market Momentum
-3.90
Positive
30.85
Neutral
21.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IEX, the sentiment is Negative. The current price of 184.11 is below the 20-day moving average (MA) of 200.00, below the 50-day MA of 199.73, and above the 200-day MA of 177.45, indicating a neutral trend. The MACD of -3.90 indicates Positive momentum. The RSI at 30.85 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IEX.
IDEX Risk Analysis
IDEX disclosed 17 risk factors in its most recent earnings report. IDEX reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IDEX Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $13.93B | 26.59 | 20.38% | 1.32% | 2.85% | 3.09% | |
78 Outperform | $15.72B | 28.23 | 16.15% | 0.79% | 8.01% | 2.67% | |
77 Outperform | $13.93B | 25.94 | 12.11% | 1.56% | 7.09% | -2.29% | |
74 Outperform | $14.66B | 28.71 | 17.30% | 1.64% | 3.78% | 4.85% | |
65 Neutral | $9.69B | 28.93 | 19.12% | 0.49% | -0.37% | 21.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $11.79B | 50.02 | 6.19% | ― | 5.52% | 9.03% |
* Industrials Sector Average
IEX
IDEX
184.11
5.00
2.79%
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ITT
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182.69
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36.41%
NDSN
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262.73
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CR
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10.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.