IDEX (IEX) AI Stock Analysis

• Market Cap: $13.71B
• Dividend Yield: 1.57%
• Average Volume (3M): 785.27K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.92
• Revenue Growth: 1.66%
• EPS Growth: -17.18%
• Country: US
• Employees: 9,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 6.31
• Shares Outstanding: 75,544,106
• 10 Day Avg. Volume: 818,321
• 30 Day Avg. Volume: 785,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.92
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $208.00
• Price Target Upside: 18.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

IDEX Corporation demonstrates strong financial health and resilience, particularly highlighted by its earnings call where performance exceeded expectations despite sector challenges. The company's strategic growth plans and cost-saving measures enhance its outlook. While technical indicators are mixed and the valuation suggests potential overvaluation, the solid financial performance and strategic initiatives provide a balanced outlook.

Positive Factors

Demand

Orders in the HST segment are expected to continue exceeding revenues, suggesting strong demand.

Earnings

The company reported a 4Q adjusted EPS of $2.04, which beat both the analyst's expectation and the consensus estimate.

Margins

Adjusted EBITDA margins increased to 26.4% from the prior 25.8%, with FMT and HST contributing positively to the margin expansion.

Negative Factors

Guidance

The guidance for 2025 suggests an adjusted EPS range that is below market expectations, indicating potential challenges ahead.

Investor Confidence

Investor confidence is low due to the substantial ramp required from weak 1Q.

Sales

The company's 1Q outlook shows a decline in organic sales by 3-4%, which is below consensus expectations of a 3.7% increase.

IDEX Business Overview & Revenue Model

Company Description

IDEX 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 Money

IDEX Corporation generates revenue through the sale of its specialized products and services across three segments: Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products. The Fluid & Metering Technologies segment offers pumps, valves, flow meters, injectors, and other fluid-handling products for industrial and commercial applications. The Health & Science Technologies segment provides precision fluidics, optics, and life sciences tools that serve the medical, laboratory, and scientific research markets. The Fire & Safety/Diversified Products segment includes firefighting pumps, rescue tools, and engineered products for safety and emergency response. IDEX's revenue is driven by its strong portfolio of proprietary technologies, customer-oriented solutions, and strategic acquisitions that enhance its market position and product offerings.

IDEX Financial Statement Overview

Summary

IDEX is in a strong financial position, with excellent profitability and a solid balance sheet. The company manages its debt prudently, ensuring financial stability. While growth metrics show some slowing, the overall financial health remains robust, maintaining a competitive edge in the industrial goods sector.

Income Statement

The company exhibits strong profitability metrics with a consistent gross profit margin of approximately 44% and a net profit margin around 15.5% for the TTM. Revenue growth has been stable, with a slight decrease in the latest TTM compared to the prior year (2023), indicating potential challenges in maintaining growth momentum. EBIT and EBITDA margins are healthy, emphasizing operational efficiency.

Balance Sheet

IDEX demonstrates a solid financial position with a low debt-to-equity ratio of 0.03 in the TTM, highlighting prudent leverage management. The equity ratio is strong at approximately 56%, indicating substantial equity backing the company's assets. Return on equity (ROE) is notable at 13.3% for the TTM, showcasing efficient use of shareholders' equity to generate profit.

Cash Flow

The company's cash flow performance is robust, with positive free cash flow in the TTM. The operating cash flow to net income ratio stands at 1.32, indicating strong cash generation from operations relative to net income. However, the free cash flow growth rate is slightly negative, suggesting challenges in expanding cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.27B	3.27B	3.18B	2.76B	2.35B
	Gross Profit
1.45B	1.45B	1.43B	1.22B	1.03B
	EBIT
677.20M	732.50M	751.40M	637.00M	520.71M
	EBITDA
677.20M	964.10M	909.80M	720.50M	604.60M
	Net Income Common Stockholders
505.00M	596.10M	586.90M	449.40M	377.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
620.80M	534.30M	430.20M	855.40M	1.03B
	Total Assets
6.75B	5.87B	5.51B	4.92B	4.41B
	Total Debt
1.96B	1.45B	1.49B	1.19B	1.04B
	Net Debt
1.34B	911.50M	1.06B	334.90M	18.59M
	Total Liabilities
2.95B	2.32B	2.47B	2.11B	1.87B
	Stockholders Equity
3.79B	3.54B	3.04B	2.80B	2.54B
Cash Flow		Free Cash Flow
603.00M	626.80M	489.40M	492.60M	517.73M
	Operating Cash Flow
668.10M	716.70M	557.40M	565.30M	569.27M
	Investing Cash Flow
-1.01B	-283.80M	-917.20M	-698.10M	-172.58M
	Financing Cash Flow
465.90M	-344.70M	-37.80M	-9.50M	-42.60M

IDEX Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 175.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IEX, the sentiment is Neutral. The current price of 175.25 is above the 20-day moving average (MA) of 168.35, below the 50-day MA of 179.37, and below the 200-day MA of 202.33, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IEX.

IDEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	82 Outperform	$11.16B	22.52	19.60%	0.95%	10.59%	27.04%
PNR	77 Outperform	$14.93B	23.40	18.59%	1.06%	-0.42%	3.23%
IEX	75 Outperform	$13.71B	27.27	12.73%	1.57%	1.66%	-17.18%
GGG	74 Outperform	$13.65B	28.82	20.28%	1.30%	-0.40%	-2.50%
NDSN	71 Outperform	$10.83B	24.24	16.15%	1.59%	0.78%	-8.42%
AOS	71 Outperform	$9.73B	19.14	27.97%	1.99%	-1.60%	-7.12%
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%

IDEX Corporate Events

IDEX Expands Board with New Director Appointments

On February 19, 2025, IDEX Corporation announced the appointment of Stephanie Disher and Matthijs Glastra to its Board of Directors, effective February 21, 2025. These appointments expand the Board from 10 to 12 members temporarily, before it reverts to 10 following the 2025 Annual Meeting of Stockholders. Disher and Glastra bring extensive global leadership experience and expertise from their respective roles as CEOs in the filtration and advanced technology sectors. Concurrently, current directors David Parry and Livingston Satterthwaite will retire after the 2025 Annual Meeting, marking a significant transition that enhances the Board’s strategic outlook.