IDEX Corporation
IDEX Corporation Fundamental Analysis
IDEX Corporation (IEX) shows weak financial fundamentals with a PE ratio of 32.11, profit margin of 13.98%, and ROE of 12.11%. The company generates $3.5B in annual revenue with weak year-over-year growth of -0.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IEX's fundamental strength across five key dimensions:
Efficiency Score
WeakIEX struggles to generate sufficient returns from assets.
Valuation Score
WeakIEX trades at a premium to fair value.
Growth Score
WeakIEX faces weak or negative growth trends.
Financial Health Score
ExcellentIEX maintains a strong and stable balance sheet.
Profitability Score
WeakIEX struggles to sustain strong margins.
Key Financial Metrics
Is IEX Expensive or Cheap?
P/E Ratio
IEX trades at 32.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IEX's PEG of 20.29 indicates potential overvaluation.
Price to Book
The market values IDEX Corporation at 3.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.91 times EBITDA. This signals the market has high growth expectations.
How Well Does IEX Make Money?
Net Profit Margin
For every $100 in sales, IDEX Corporation keeps $13.98 as profit after all expenses.
Operating Margin
Core operations generate 20.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.11 in profit for every $100 of shareholder equity.
ROA
IDEX Corporation generates $6.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IDEX Corporation produces operating cash flow of $684.83M, showing steady but balanced cash generation.
Free Cash Flow
IDEX Corporation generates strong free cash flow of $620.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.25 in free cash annually.
FCF Yield
IEX converts 3.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
20.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How IEX Stacks Against Its Sector Peers
| Metric | IEX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.11 | 26.76 | Worse (Expensive) |
| ROE | 12.11% | 1300.00% | Weak |
| Net Margin | 13.98% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.86 | 10.68 | Strong Liquidity |
| ROA | 6.98% | -1545134.00% (disorted) | Weak |
IEX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IDEX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
18.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
26.33%
Industry Style: Cyclical, Value, Infrastructure
High Growth