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IDEX Corporation (IEX)
NYSE:IEX

IDEX (IEX) AI Stock Analysis

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IE

IDEX

(NYSE:IEX)

Rating:76Outperform
Price Target:
$204.00
â–²(12.55%Upside)
IDEX's overall stock score is 76, driven primarily by strong financial performance and a positive earnings call. While valuation and technical indicators suggest some caution, the company's proactive cost-saving measures and strategic market positioning provide resilience against industry challenges.
Positive Factors
Earnings
The company reported a 4Q adjusted EPS of $2.04, which beat both the analyst's expectation and the consensus estimate.
Financial Performance
Adjusted EBITDA margins increased to 26.4% from the prior 25.8%, with FMT and HST contributing positively to the margin expansion.
Negative Factors
Earnings Guidance
The guidance for 2025 suggests an adjusted EPS range that is below market expectations, indicating potential challenges ahead.
Investor Sentiment
Investor confidence is low due to the substantial ramp required from weak 1Q.
Sales Outlook
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 (IEX) vs. SPDR S&P 500 ETF (SPY)

IDEX Business Overview & Revenue Model

Company DescriptionIDEX (IEX) is a leading technology company focused on developing innovative solutions in the fields of decentralized finance and cryptocurrency. It operates a decentralized cryptocurrency exchange platform that facilitates secure and efficient peer-to-peer trading of digital assets. IDEX aims to provide a seamless and user-friendly trading experience while maintaining the highest standards of security and transparency.
How the Company Makes MoneyIDEX generates revenue primarily through transaction fees charged on trades executed on its decentralized exchange platform. These fees are typically a small percentage of the total transaction value, providing the company with a steady stream of income as trading volumes increase. Additionally, IDEX may engage in partnerships with other blockchain projects and service providers, further enhancing its revenue potential. The company's focus on maintaining a robust and efficient trading platform contributes significantly to its earnings, as it attracts more traders seeking trustworthy and cost-effective trading solutions.

IDEX Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 4.58%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
IDEX Corporation reported a strong first quarter with revenue and profitability exceeding expectations and strategic growth platforms performing well. However, challenges such as tariff impacts, organic sales decline, and semiconductor headwinds present potential risks. Overall, the company demonstrates resilience with proactive cost-saving measures and strategic market positioning.
Q1-2025 Updates
Positive Updates
Better-than-Expected Results
IDEX delivered better-than-expected results in the first quarter of 2025, with revenue and profitability slightly above plan in each business segment, and orders increased to record levels.
Strategic Growth Platforms
IDEX is focusing on five strategic growth platforms with strong market positioning in space, defense, energy transition, municipal water, and North American Fire & Safety.
Cost Savings Initiatives
IDEX has identified an additional $20 million in savings targets for 2025, supporting a cumulative $80 million in savings, enhancing financial resilience.
Strong Performance in Fire & Safety
Fire & Safety business reported a 5% increase in organic sales and a 2% increase in organic orders, benefiting from strong OEM demand and integrated solutions.
Mott Acquisition Success
Mott, IDEX's latest acquisition, secured a $40 million multiyear agreement for a custom wastewater filtration solution, with significant future revenue potential.
Negative Updates
Organic Sales Decline
Organic sales declined by 1% in the first quarter due to challenges in the semiconductor, agriculture, chemical, and energy businesses.
Tariff Impact
Tariffs are expected to drive a $100 million annualized impact, adding 5% to 6% inflation to cost of goods sold, with two-thirds of this impact expected in 2025.
Volume Deleverage
Adjusted EBITDA margin declined by 50 basis points to 25.5% due to year-over-year volume deleverage and near-term margin dilution from the Mott acquisition.
Semiconductor Industry Headwinds
IDEX continues to face headwinds in semiconductor businesses, particularly in solutions supporting wafer fabrication, with recovery pushed out.
Company Guidance
During IDEX Corporation's first quarter 2025 earnings call, the company provided an optimistic outlook with several notable metrics. The company reported a better-than-expected performance with revenue and profitability slightly exceeding plans across all segments. For the quarter, organic sales saw a 1% decline due to difficulties in semiconductor, agriculture, chemical, and energy sectors, but orders increased by 1%, bolstering a $60 million backlog. Despite these sector challenges, IDEX maintained its full-year organic growth guidance of 1% to 3% and adjusted earnings per share (EPS) of $8.10 to $8.45, buoyed by robust demand in space, defense, and municipal water markets. The company also identified an additional $20 million in cost savings for 2025, bringing the total to $80 million, to counteract potential headwinds including tariffs, expected to add 5% to 6% in cost inflation. For the second quarter, IDEX projects organic revenue growth between flat to 2% and adjusted EPS ranging from $1.95 to $2.05.

IDEX Financial Statement Overview

Summary
IDEX demonstrates strong financial performance with robust profitability and low leverage. The income statement reflects solid profit margins, although operational efficiency has slightly declined. The balance sheet is stable with low debt, and cash flow management is efficient despite a minor decrease in free cash flow.
Income Statement
81
Very Positive
IDEX has shown solid performance in the TTM with a slight revenue increase of 0.42% from last year. The gross profit margin is strong at 44.35%, and the net profit margin is healthy at 14.60%. However, the EBIT margin has slightly decreased to 20.16%, and the EBITDA margin stands at 24.27%, indicating stable profitability but a slight decline in operational efficiency.
Balance Sheet
77
Positive
The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.03, suggesting low leverage and reduced financial risk. The equity ratio is robust at 57.49%, indicating financial stability. However, the return on equity is moderate at 12.26%, suggesting room for improvement in generating returns for shareholders.
Cash Flow
75
Positive
IDEX's cash flow is stable with an operating cash flow to net income ratio of 1.29, indicating strong cash generation relative to income. However, the free cash flow decreased slightly by 7.49% from the previous year, and the free cash flow to net income ratio is 1.16, showing efficient cash flow management despite the decline.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.28B3.27B3.27B3.18B2.76B2.35B
Gross Profit1.46B1.45B1.45B1.43B1.22B1.03B
EBITDA796.70M859.40M964.10M909.80M720.50M604.60M
Net Income479.10M505.00M596.10M586.90M449.40M377.80M
Balance Sheet
Total Assets6.80B6.75B5.87B5.51B4.92B4.41B
Cash, Cash Equivalents and Short-Term Investments594.10M620.80M534.30M430.20M855.40M1.03B
Total Debt1.97B1.96B1.45B1.49B1.19B1.04B
Total Liabilities2.89B2.95B2.32B2.47B2.11B1.87B
Stockholders Equity3.91B3.79B3.54B3.04B2.80B2.54B
Cash Flow
Free Cash Flow557.80M603.00M626.80M489.40M492.60M517.73M
Operating Cash Flow617.20M668.10M716.70M557.40M565.30M569.27M
Investing Cash Flow-996.50M-1.01B-283.80M-917.20M-698.10M-172.58M
Financing Cash Flow373.60M465.90M-344.70M-37.80M-9.50M-42.60M

IDEX Technical Analysis

Technical Analysis Sentiment
Positive
Last Price181.25
Price Trends
50DMA
180.01
Positive
100DMA
180.94
Positive
200DMA
197.97
Negative
Market Momentum
MACD
-0.42
Negative
RSI
55.04
Neutral
STOCH
84.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IEX, the sentiment is Positive. The current price of 181.25 is above the 20-day moving average (MA) of 178.63, above the 50-day MA of 180.01, and below the 200-day MA of 197.97, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PNPNR
78
Outperform
$17.58B27.5618.59%0.94%-0.42%3.23%
GGGGG
77
Outperform
$14.84B31.3320.28%1.24%-0.40%-2.50%
77
Outperform
$12.59B28.6615.54%1.40%1.98%-7.66%
IEIEX
76
Outperform
$13.69B28.7112.73%1.57%1.66%-17.18%
ITITT
76
Outperform
$12.68B25.6419.27%0.87%6.99%23.25%
AOAOS
69
Neutral
$9.65B19.0027.97%2.00%-1.60%-7.12%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IEX
IDEX
181.25
-11.74
-6.08%
GGG
Graco
88.79
11.29
14.57%
ITT
ITT
161.13
35.40
28.16%
NDSN
Nordson
222.78
-0.54
-0.24%
PNR
Pentair
106.87
32.47
43.64%
AOS
A. O. Smith Corporation
67.92
-11.66
-14.65%

IDEX Corporate Events

Executive/Board Changes
IDEX Announces CFO Resignation and Interim Appointment
Neutral
May 21, 2025

IDEX Corporation announced the resignation of its Senior Vice President and Chief Financial Officer, Abhishek Khandelwal, effective May 30, 2025. The company has appointed Akhil Mahendra as the interim CFO, who has been with IDEX for two years and previously worked at Rivian Automotive and Morgan Stanley. This transition is not due to any disagreements within the company, and an external search firm has been engaged to find a permanent replacement. The board has approved a restricted stock award for Mahendra, which will vest after three years, contingent on his continued service.

The most recent analyst rating on (IEX) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on IDEX stock, see the IEX Stock Forecast page.

Executive/Board ChangesShareholder Meetings
IDEX Elects Directors at Annual Stockholder Meeting
Neutral
May 12, 2025

On May 8, 2025, IDEX Corporation held its Annual Meeting of Stockholders where key decisions were made. Three Class III directors, Eric D. Ashleman, Stephanie J. Disher, and Matthijs Glastra, were elected for a three-year term. Additionally, the compensation of named executive officers was approved, and Deloitte & Touche LLP was ratified as the independent public accounting firm for 2025. However, a stockholder proposal for a report on hiring practices related to individuals with arrest or incarceration records did not pass.

The most recent analyst rating on (IEX) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on IDEX stock, see the IEX Stock Forecast page.

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.Date of analysis: Jul 02, 2025