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IDEX Corporation (IEX)
NYSE:IEX
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IDEX
(NYSE:IEX)
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Rating:77Outperform
Price Target:
$241.00
▲(13.55% Upside)
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
Conservative Balance Sheet
Near-zero debt and a materially de-risked balance sheet materially reduce financial risk and enhance flexibility. Over a multi-month horizon this supports consistent dividend and buyback policy, funds bolt-on M&A, and provides resilience through cyclical industrial downturns without forcing asset sales or emergency funding.
Strong Cash Generation
Sustained operating cash flow and FCF near net income indicate high earnings quality and convertibility. That durable cash generation funds a base repurchase cadence, dividends, tuck‑in M&A and reinvestment, supporting returns and strategic optionality even if organic growth remains modest.
HST Platform Momentum
HST's strong order growth and backlog build reflect durable demand in advantaged end markets (AI/data center, semiconductors, water, pharma). This platform-level strength, plus successful bolt‑on integration, drives outsized revenue and margin contribution that can offset weaker segments over the medium term.
Negative Factors
Segment Weaknesses (FMT/FSDP)
Significant exposure to cyclical FMT end markets (>30% of FMT) and persistent FSDP regional weakness create structural revenue volatility. Prolonged softness in these verticals can depress volumes, yield ongoing mix headwinds and constrain companywide organic growth for several quarters to multiple cycles.
Margin Compression vs. Prior Peaks
A multi-year step-down in margins and net income indicates reduced operating leverage, higher cost or mix pressure. Sustained margin compression limits internal funding for growth, reduces return on capital, and requires continued productivity or pricing to restore prior profitability levels over the medium term.
Modest Companywide Growth Guidance
Conservative 1–2% organic guidance signals limited broad-market inflection and implies continued reliance on HST outperformance and M&A. Over 2–6 months this constrains revenue momentum, increases pressure to deliver margin gains via cost actions, and makes growth outcomes more sensitive to single-segment performance.
IDEX (IEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.89B
Dividend Yield1.56%
Average Volume (3M)552.54K
Price to Earnings (P/E)31.4
Beta (1Y)0.99
Revenue Growth7.09%
EPS Growth-2.29%
CountryUS
Employees9,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.10
Shares Outstanding74,849,434
10 Day Avg. Volume792,788
30 Day Avg. Volume552,542
Financial Highlights & Ratios
PEG Ratio-2.04
Price to Book (P/B)4.18
Price to Sales (P/S)4.85
P/FCF Ratio26.27
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue4.45
Enterprise Value/Gross Profit10.01
Enterprise Value/Ebitda17.05
Forecast
1Y Price Target
$239.00Price Target Upside12.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of its products and services across multiple sectors. Its key revenue streams include the sale of precision instruments and components, as well as maintenance and support services for its equipment. The company benefits from a diversified client base, including healthcare providers, industrial manufacturers, and energy companies, which helps mitigate risks associated with market fluctuations. Additionally, IDEX has established significant partnerships and collaborations with leading organizations in various industries, enhancing its market reach and driving sales growth. The company's focus on innovation and product development further contributes to its revenue by allowing it to introduce new solutions that meet evolving customer needs.
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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.46B | 3.27B | 3.27B | 3.18B | 2.76B | 2.35B |
| Gross Profit | 1.54B | 1.52B | 1.62B | 1.59B | 1.36B | 1.16B |
| EBITDA | 903.50M | 859.40M | 964.10M | 909.80M | 720.50M | 604.60M |
| Net Income | 483.20M | 505.00M | 596.10M | 586.90M | 449.40M | 377.80M |
Balance Sheet | ||||||
| Total Assets | 6.93B | 6.75B | 5.87B | 5.51B | 4.92B | 4.41B |
| Cash, Cash Equivalents and Short-Term Investments | 580.00M | 620.80M | 534.30M | 430.20M | 900.70M | 1.03B |
| Total Debt | 700.00K | 1.99B | 1.45B | 1.59B | 1.30B | 1.16B |
| Total Liabilities | 2.90B | 2.95B | 2.32B | 2.47B | 2.11B | 1.87B |
| Stockholders Equity | 4.03B | 3.79B | 3.54B | 3.04B | 2.80B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 636.50M | 603.00M | 626.80M | 489.40M | 492.60M | 517.70M |
| Operating Cash Flow | 680.40M | 668.10M | 716.70M | 557.40M | 565.30M | 569.30M |
| Investing Cash Flow | -137.60M | -1.01B | -283.80M | -917.20M | -698.10M | -172.60M |
| Financing Cash Flow | -632.60M | 465.90M | -344.70M | -37.80M | -9.50M | -42.60M |
IDEX Technical Analysis
Positive
212.25
Price Trends
183.72
Positive
173.94
Positive
173.58
Positive
Market Momentum
6.13
Negative
79.58
Negative
81.46
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 212.25 is above the 20-day moving average (MA) of 194.20, above the 50-day MA of 183.72, and above the 200-day MA of 173.58, indicating a bullish trend. The MACD of 6.13 indicates Negative momentum. The RSI at 79.58 is Negative, neither overbought nor oversold. The STOCH value of 81.46 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.18B | 28.83 | 19.92% | 1.32% | 2.85% | 3.09% | |
77 Outperform | $15.89B | 31.42 | 12.21% | 1.56% | 7.09% | -2.29% | |
77 Outperform | $15.93B | 32.68 | 16.21% | 1.64% | 3.78% | 4.85% | |
72 Outperform | $15.93B | 30.90 | 17.85% | 0.79% | 8.01% | 2.67% | |
65 Neutral | $10.93B | 30.42 | 17.92% | 0.49% | -0.37% | 21.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $10.40B | 33.72 | 12.38% | ― | 5.52% | 9.03% |
* Industrials Sector Average
IEX
IDEX
212.25
17.71
9.10%
GNRC
Generac Holdings
177.18
34.98
24.60%
GGG
Graco
91.58
8.09
9.69%
ITT
ITT
185.15
36.95
24.93%
NDSN
Nordson
285.95
73.51
34.60%
CR
Crane Company
189.82
17.49
10.15%
IDEX Corporate Events
Business Operations and StrategyExecutive/Board Changes
IDEX Appoints New CFO Amid Leadership Changes
Neutral
Dec 4, 2025
On December 4, 2025, IDEX Corporation announced the appointment of Sean M. Gillen as Senior Vice President and Chief Financial Officer, effective January 5, 2026. Gillen, with extensive experience in financial performance and strategic growth, previously served as CFO at AAR CORP. His appointment is expected to bolster IDEX’s enterprise strategy and growth across key sectors. Concurrently, Melissa S. Flores, Senior Vice President and Chief Human Resources Officer, will depart on December 19, 2025, with IDEX planning to fill the role externally to enhance its talent strategy and culture.
The most recent analyst rating on (IEX) stock is a Buy with a $200.00 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.