IDEX (IEX) AI Stock Analysis

• Market Cap: $13.56B
• Dividend Yield: 1.53%
• Average Volume (3M): 772.51K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.92
• Revenue Growth: 1.66%
• EPS Growth: -17.18%
• Country: US
• Employees: 9,000
• Sector: Industrials
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 1.75
• Shares Outstanding: 75,544,610
• 10 Day Avg. Volume: 815,611
• 30 Day Avg. Volume: 772,506
• 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: 1.11
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.43
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $209.50
• Price Target Upside: 13.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

IDEX Corporation demonstrates strong financial health with solid profitability and a robust balance sheet. Despite mixed technical indicators and high valuation, the company's strategic initiatives and cost savings enhance its resilience. Earnings call insights support confidence in future performance, though challenges in certain sectors and tariff impacts remain key risks.

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 displays a strong financial performance with solid profitability and low leverage, contributing to its overall financial health. The company has a strong equity position and efficient cash flow management, although there's room for improvement in operational efficiency and return on equity.

Income Statement

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

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

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.

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
859.40M	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: 184.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 184.65 is above the 20-day moving average (MA) of 171.69, above the 50-day MA of 178.18, and below the 200-day MA of 201.82, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, 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	$11.17B	22.80	19.27%	0.92%	6.99%	23.25%
PNR	78 Outperform	$15.07B	24.00	18.59%	1.04%	-0.42%	3.23%
IEX	75 Outperform	$13.56B	28.78	12.73%	1.53%	1.66%	-17.18%
GGG	74 Outperform	$13.64B	29.01	20.28%	1.29%	-0.40%	-2.50%
NDSN	71 Outperform	$10.72B	24.31	16.15%	1.60%	0.78%	-8.42%
AOS	71 Outperform	$9.59B	19.11	27.97%	2.00%	-1.60%	-7.12%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%

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.