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IDEX Corporation (IEX)
NYSE:IEX
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IDEX
(NYSE:IEX)
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Rating:71Outperform
Price Target:
$179.00
▲(11.16% Upside)
IDEX's strong financial performance and strategic initiatives are offset by bearish technical indicators and lowered earnings guidance. The stock's valuation suggests it may be overvalued, contributing to a moderate overall score.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.
Cash Flow Generation
Robust cash flow generation supports ongoing operations, strategic investments, and shareholder returns, underpinning long-term business health.
Successful M&A Activity
Strategic acquisitions enhance market position and product offerings, driving growth and competitive advantage in key sectors.
Negative Factors
Lowered Financial Projections
Reduced projections indicate potential revenue and earnings pressure, affecting investor confidence and strategic planning.
Operating Margin Pressure
Declining margins can impact profitability, necessitating cost management and efficiency improvements to sustain earnings.
Order Volatility
Order volatility due to trade policies creates uncertainty in revenue streams, challenging forecasting and operational planning.
IDEX (IEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.12B
Dividend Yield1.74%
Average Volume (3M)746.58K
Price to Earnings (P/E)26.0
Beta (1Y)0.98
Revenue Growth4.73%
EPS Growth-19.15%
CountryUS
Employees9,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.07
Shares Outstanding75,287,285
10 Day Avg. Volume811,470
30 Day Avg. Volume746,577
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 Cap1.20
Enterprise Value/Revenue4.36
Enterprise Value/Gross Profit10.04
Enterprise Value/Ebitda18.07
Forecast
1Y Price Target
$199.38Price Target Upside23.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
IDEX Business Overview & Revenue Model
Company DescriptionIDEX Corporation (IEX) is a diversified industrial company that specializes in the design and manufacture of highly engineered industrial products. Operating primarily in the sectors of fluid and metering technologies, health and science technologies, and fire and safety products, IDEX serves a wide range of markets, including aerospace, agriculture, energy, and water treatment. The company is known for its innovative solutions and strong focus on customer-centric product development.
How the Company Makes MoneyIDEX generates revenue through multiple key streams, primarily by selling a diverse portfolio of products and solutions across its various business segments. The company earns money through direct sales of its engineered products, including pumps, valves, and flow measurement devices, which are utilized in critical processes across various industries. Additionally, IDEX benefits from recurring revenue through maintenance and service contracts associated with its products. Significant partnerships with other industrial firms and suppliers enhance its market reach and product offerings, allowing IDEX to capitalize on emerging market trends. Furthermore, IDEX invests in research and development, which helps maintain its competitive edge and drive innovation, further contributing to its revenue growth.
IDEX Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong Q2 financial performance and strategic capital deployment, but was overshadowed by reduced financial projections due to slower customer decision-making and geopolitical tensions. While there were notable achievements, such as better-than-expected Q2 results and successful M&A activity, these were balanced by significant challenges in key business areas and lowered guidance.Q2-2025 Updates
Positive Updates
Better-than-Expected Q2 Results
IDEX's teams across all three segments delivered better-than-expected results in Q2 despite continued macro uncertainty.
Strong Q2 Financial Performance
Orders grew organically by 2%, and free cash flow increased by 25% year-over-year with a 94% conversion versus adjusted net income.
Successful Capital Deployment
The acquisition of Micro-LAM and strategic focus on tuck-in M&A to scale and expand critical capabilities in advantaged markets.
Continued M&A Activity
IDEX deployed $50 million to repurchase shares in Q2 and has $440 million remaining in its current authorization.
Successful Platform Optimization
Platform optimization and delayering initiatives delivered a combined $14 million in savings during Q2, in line with plans.
Negative Updates
Lowered Financial Projections for 2025
IDEX lowered its back half financial projections due to slower customer decision-making and geopolitical tensions.
Weakness in Semiconductor and Automotive
Continued softness in automotive, rescue tool, and parts of semiconductor businesses affected overall performance.
Order Volatility and Impact of Trade Policies
Unpredictable trade policy positioning led to oscillation in both small and larger order patterns, impacting Q2 results.
Challenges in Mott and MSS Businesses
Mott's growth slowed due to policy-driven demand uncertainties, and MSS group faced mix pressure impacting profitability.
Adjusted EPS Guidance Reduction
Adjusted EPS guidance for the year reduced to $7.85-$7.95 from $8.10-$8.45 previously, reflecting lower volumes and continued mix headwinds.
Company Guidance
During the IDEX Corporation's Second Quarter 2025 Earnings Conference Call, the company provided updated guidance for the fiscal year, adjusting their organic sales growth outlook to approximately 1%, down from the previous estimate of 1% to 3%. This revision is due to fluctuating order patterns and delays in customer decision-making, particularly impacting newer acquisitions in the Health and Science Technology (HST) segment. Despite these challenges, IDEX delivered an adjusted EBITDA margin of 27.4% in Q2, a decline of 40 basis points year-over-year, and achieved a free cash flow of $147 million, representing a 94% conversion of adjusted net income. The company also reported that their cost-saving initiatives remain on track, expecting $62 million in full-year savings from platform optimization and delayering actions. For the third quarter, IDEX anticipates 2% to 3% organic revenue growth and adjusted EPS of $1.90 to $1.95, reflecting ongoing market uncertainties and incremental tariff impacts, which are expected to be fully mitigated by price increases and supply chain efficiencies.IDEX Financial Statement Overview
Summary
IDEX is financially sound with strong profitability, a solid balance sheet, and stable cash flows. The company maintains low leverage and efficient capital use, though there is a slight decline in operating margins.Income Statement
IDEX demonstrates strong profitability with consistent gross and net profit margins. The TTM data shows a slight revenue growth, indicating stability in revenue generation. However, the EBIT and EBITDA margins have slightly decreased over the TTM, suggesting some pressure on operating efficiency.85
Very Positive
Balance Sheet
The balance sheet is robust with a very low debt-to-equity ratio in the TTM, indicating minimal leverage risk. The return on equity is solid, reflecting efficient use of equity capital. The equity ratio is healthy, showing a strong capital structure.90
Very Positive
Cash Flow
IDEX has a strong operating cash flow to net income ratio, indicating good cash generation relative to earnings. The free cash flow growth in the TTM is positive, although slightly lower than previous periods, suggesting stable cash flow management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.34B | 3.27B | 3.27B | 3.18B | 2.76B | 2.35B |
| Gross Profit | 1.45B | 1.52B | 1.62B | 1.59B | 1.36B | 1.16B |
| EBITDA | 805.70M | 859.40M | 964.10M | 909.80M | 720.50M | 604.60M |
| Net Income | 469.40M | 505.00M | 596.10M | 586.90M | 449.40M | 377.80M |
Balance Sheet | ||||||
| Total Assets | 6.88B | 6.75B | 5.87B | 5.51B | 4.92B | 4.41B |
| Cash, Cash Equivalents and Short-Term Investments | 568.20M | 620.80M | 534.30M | 430.20M | 900.70M | 1.03B |
| Total Debt | 800.00K | 1.96B | 1.45B | 1.59B | 1.30B | 1.16B |
| Total Liabilities | 2.87B | 2.95B | 2.32B | 2.47B | 2.11B | 1.87B |
| Stockholders Equity | 4.01B | 3.79B | 3.54B | 3.04B | 2.80B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 587.00M | 603.00M | 626.80M | 489.40M | 492.60M | 517.70M |
| Operating Cash Flow | 645.30M | 668.10M | 716.70M | 557.40M | 565.30M | 569.30M |
| Investing Cash Flow | -1.04B | -1.01B | -283.80M | -917.20M | -698.10M | -172.60M |
| Financing Cash Flow | 234.90M | 465.90M | -344.70M | -37.80M | -9.50M | -42.60M |
IDEX Technical Analysis
Negative
161.03
Price Trends
168.17
Negative
174.21
Negative
185.16
Negative
Market Momentum
-1.67
Negative
44.90
Neutral
25.18
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 161.03 is below the 20-day moving average (MA) of 163.43, below the 50-day MA of 168.17, and below the 200-day MA of 185.16, indicating a bearish trend. The MACD of -1.67 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.18 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 14.12B | 28.45 | 20.24% | 0.76% | 6.69% | 21.44% | |
77 Outperform | 10.70B | 30.28 | 14.02% | ― | 9.69% | 54.29% | |
75 Outperform | 12.65B | 28.29 | 15.26% | 1.40% | 4.49% | -3.33% | |
71 Outperform | $12.12B | 25.99 | 12.25% | 1.74% | 4.73% | -19.15% | |
71 Outperform | 14.02B | 30.01 | 19.30% | 1.28% | 0.75% | -2.74% | |
70 Outperform | 10.48B | 34.35 | 18.63% | 0.49% | 3.01% | 27.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
IEX
IDEX
161.03
-46.04
-22.23%
GNRC
Generac Holdings
182.28
36.04
24.64%
GGG
Graco
84.64
-0.04
-0.05%
ITT
ITT
181.02
36.44
25.20%
NDSN
Nordson
225.08
-26.56
-10.55%
CR
Crane Company
182.05
30.23
19.91%
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.
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.