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IDEX Corporation (IEX)
NYSE:IEX
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IDEX
(NYSE:IEX)67Neutral
Positive Factors
Demand in HST Segment
Orders in the HST segment are expected to continue exceeding revenues, suggesting strong demand.
Financial Performance
The company reported a 4Q adjusted EPS of $2.04, which beat both the analyst's expectation and the consensus estimate.
Negative Factors
Market Softness
HST was negatively impacted by lower volumes driven by continued broad-based market softness.
IDEX (IEX) vs. S&P 500 (SPY)
Market Cap
$14.73B
Dividend Yield1.46%
Average Volume (3M)542.08K
Price to Earnings (P/E)29.2
Beta (1Y)0.86
Revenue Growth-0.16%
EPS Growth-15.42%
CountryUS
Employees8,800
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)6.65
Shares Outstanding75,784,050
10 Day Avg. Volume478,088
30 Day Avg. Volume542,078
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.51
Price to Cash Flow (P/CF)21.30
P/FCF Ratio23.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$233.88Price Target Upside25.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
IDEX Business Overview & Revenue Model
Company DescriptionIDEX Corporation (IEX) is a globally diversified company that specializes in fluid and metering technologies, health and science technologies, and fire and safety products. Headquartered in Lake Forest, Illinois, IDEX operates in various sectors including industrial, technology, and safety. The company is known for its innovative solutions that cater to niche markets, providing advanced engineering and value-added products across its diverse portfolio.
How the Company Makes MoneyIDEX 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.78
Positive
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.82
Very Positive
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.75
Positive
| 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
Negative
185.88
Price Trends
206.69
Negative
213.49
Negative
207.91
Negative
Market Momentum
-5.51
Positive
28.52
Positive
20.17
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 185.88 is below the 20-day moving average (MA) of 196.00, below the 50-day MA of 206.69, and below the 200-day MA of 207.91, indicating a bearish trend. The MACD of -5.51 indicates Positive momentum. The RSI at 28.52 is Positive, neither overbought nor oversold. The STOCH value of 20.17 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.50B | 22.43 | 18.76% | 0.93% | 10.59% | 27.04% | |
77 Outperform | $25.26B | 9.47 | 38.79% | 1.06% | -2.99% | 159.26% | |
74 Outperform | $64.30B | 27.12 | 9.14% | 1.80% | 10.29% | 22.72% | |
72 Outperform | $43.66B | 31.94 | 14.25% | 0.60% | 5.22% | 4.46% | |
67 Neutral | $14.73B | 29.21 | 13.31% | 1.46% | -0.16% | -15.42% | |
66 Neutral | $31.51B | 34.67 | 27.22% | 1.84% | -11.28% | -23.69% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
IEX
IDEX
185.88
-46.43
-19.99%
AME
Ametek
183.33
5.00
2.80%
DOV
Dover
184.06
18.58
11.23%
EMR
Emerson Electric Company
114.03
6.95
6.49%
ITT
ITT
134.24
9.08
7.25%
ROK
Rockwell Automation
267.87
-14.53
-5.15%
IDEX Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -14.99% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with significant achievements in integration and operational execution, particularly in the fire safety and diversified product segment and the successful integration of Mott. However, macroeconomic challenges and market softness in certain segments, such as semiconductor and life sciences, present ongoing challenges. The outlook for 2025 is cautiously optimistic, with expected growth in key segments.Highlights
Strong Finish to 2024
IDEX delivered innovative solutions and achieved strong product deployment. The Health and Science Technology segment drove organic orders growth across all segments, led by Health and Science Technology (HST).
Record Performance in Fire Safety
The fire safety and diversified product segment set a new quarterly sales record driven by strong growth of automation programs within integrated fire systems.
Mott Acquisition Success
Mott achieved strong results in its first quarter with IDEX, delivering a significant filtration systems project. The integration is proceeding smoothly, with accretion timing ahead of expectations.
Positive Outlook for 2025
IDEX expects organic growth of 1% to 3%, with HST as the highest growth segment. Anticipated growth in life sciences and semiconductor capital equipment in the second half of the year.
Improved Operational Productivity
Operational productivity and strong price-cost spread contributed to a positive organic flow through of 53% in Q4.
Strategic Capital Deployment
Focus on the integration of Mott and deepening collaborative connections across the portfolio to leverage Mott's filtration technologies.
Lowlights
Macroeconomic Challenges
Faced choppy and uncertain macro conditions throughout 2024, impacting growth expectations and market stability.
Semiconductor and Agriculture Market Softness
FMT segment experienced a low single-digit organic decline driven by market softness in the agricultural business and semiconductor capital equipment.
Life Sciences and Analytical Instrumentation Weakness
Broad-based softness in life sciences, analytical instrumentation, automotive, and semiconductor capital equipment verticals in Q4.
Decreased Free Cash Flow
Free cash flow for the year decreased by 4%, with a conversion rate of 101% of adjusted net income.
Company Guidance
During the IDEX Corporation Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance for 2025, projecting organic revenue growth of 1% to 3% and adjusted earnings per share (EPS) growth of 3% to 7%, targeting an EPS range of $8.10 to $8.45. The guidance reflects anticipated organic growth led by the Health and Science Technology (HST) segment, with a modest lift expected in life sciences and a second-half recovery in semiconductor capital equipment. Adjusted EBITDA margins are predicted to be between 27.5% and 28%. The company also highlighted expected cost efficiencies, with $0.43 of EPS support coming from platform optimization and deleveraging, alongside $0.20 from traditional productivity. Capital expenditures are anticipated to be around $90 million, with corporate costs increasing to approximately $110 million due to variable compensation resets and essential compliance investments.IDEX Corporate Events
Executive/Board ChangesShareholder Meetings
IDEX Expands Board with New Director Appointments
Neutral
Feb 20, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.