IDEX (NYSE:IEX) - Share price, News & Analysis

Q: What is the Fair Price of IEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IEX ($217.63) is trading below our estimate of [[fair value]] ($274.55)

IEX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

IEX Stock Overview

IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide.

Rewards

Trading at 20.7% below our estimate of its fair value

Earnings are forecast to grow 13.03% per year

Earnings grew by 22.1% over the past year

Risk Analysis

No risks detected for IEX from our risk checks.

IDEX Competitors

Stanley Black & Decker

NYSE:SWK

US$15.1b

Nordson

NasdaqGS:NDSN

US$14.2b

Dover

NYSE:DOV

US$20.2b

Xylem

NYSE:XYL

US$18.4b

Price History & Performance

Summary of all time highs, changes and price drops for IDEX
Historical stock prices
Current Share Price	US$217.63
52 Week High	US$240.33
52 Week Low	US$172.19
Beta	1.05
1 Month Change	14.91%
3 Month Change	17.33%
1 Year Change	-1.38%
3 Year Change	32.01%
5 Year Change	91.44%
Change since IPO	6,380.89%

Recent News & Updates

Aug 08

Is IDEX (NYSE:IEX) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 26

IDEX Non-GAAP EPS of $2.02 beats by $0.13, revenue of $796M beats by $30.75M

IDEX press release (NYSE:IEX): Q2 Non-GAAP EPS of $2.02 beats by $0.13. Revenue of $796M (+16.0% Y/Y) beats by $30.75M. Outlook: Full year GAAP EPS guidance raised to $7.19 to $7.29 from prior guidance of $6.87 to $7.00 Full year adjusted EPS guidance raised to $7.88 to $7.98 from prior guidance of $7.50 to $7.63, vs. consensus of $7.63

Jul 26

Is Now An Opportune Moment To Examine IDEX Corporation (NYSE:IEX)?

IDEX Corporation ( NYSE:IEX ) saw a decent share price growth in the teens level on the NYSE over the last few months...

Shareholder Returns

	IEX	US Machinery	US Market
7D	1.7%	1.4%	1.4%
1Y	-1.4%	-6.9%	-8.4%

Return vs Industry: IEX exceeded the US Machinery industry which returned -8.8% over the past year.

Return vs Market: IEX exceeded the US Market which returned -9% over the past year.

Price Volatility

Is IEX's price volatile compared to industry and market?
IEX volatility
IEX Average Weekly Movement	3.3%
Machinery Industry Average Movement	5.8%
Market Average Movement	7.6%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.1%

Stable Share Price: IEX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IEX's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	7,536	Eric Ashleman	https://www.idexcorp.com

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.

IDEX Fundamentals Summary

How do IDEX's earnings and revenue compare to its market cap?
IEX fundamental statistics
Market Cap	US$16.43b
Earnings (TTM)	US$512.70m
Revenue (TTM)	US$2.97b

32.0x

P/E Ratio

5.5x

P/S Ratio

Is IEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IEX income statement (TTM)
Revenue	US$2.97b
Cost of Revenue	US$1.64b
Gross Profit	US$1.33b
Other Expenses	US$822.00m
Earnings	US$512.70m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	6.79
Gross Margin	44.88%
Net Profit Margin	17.24%
Debt/Equity Ratio	42.7%

How did IEX perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

34%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is IEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IEX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IEX. This is calculated by dividing IEX's market cap by their current preferred multiple.
What is IEX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$16.43b

IEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.8x
Enterprise Value/EBITDA	20.3x
PEG Ratio	2.5x

Price to Earnings Ratio vs Peers

How does IEX's PE Ratio compare to its peers?

IEX PE Ratio vs Peers

The above table shows the PE ratio for IEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.7x
SWK Stanley Black & Decker	16.1x	30.9%	US$15.1b
NDSN Nordson	29.4x	10.6%	US$14.2b
DOV Dover	17.6x	6.5%	US$20.2b
XYL Xylem	43.8x	16.4%	US$18.4b
IEX IDEX	32x	13.0%	US$16.4b

Price-To-Earnings vs Peers: IEX is expensive based on its Price-To-Earnings Ratio (32x) compared to the peer average (26.7x).

Price to Earnings Ratio vs Industry

How does IEX's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: IEX is expensive based on its Price-To-Earnings Ratio (32x) compared to the US Machinery industry average (22.1x)

Price to Earnings Ratio vs Fair Ratio

What is IEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	32x
Fair PE Ratio	22.5x

Price-To-Earnings vs Fair Ratio: IEX is expensive based on its Price-To-Earnings Ratio (32x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).

Share Price vs Fair Value

What is the Fair Price of IEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IEX ($217.63) is trading below our estimate of fair value ($274.55)

Significantly Below Fair Value: IEX is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is IDEX forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IEX's forecast earnings growth (13% per year) is above the savings rate (1.9%).

Earnings vs Market: IEX's earnings (13% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: IEX's earnings are forecast to grow, but not significantly.

Revenue vs Market: IEX's revenue (6.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: IEX's revenue (6.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: IEX's Return on Equity is forecast to be high in 3 years time (21%)

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Past Performance

How has IDEX performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IEX has high quality earnings.

Growing Profit Margin: IEX's current net profit margins (17.2%) are higher than last year (16.6%).

Past Earnings Growth Analysis

Earnings Trend: IEX's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: IEX's earnings growth over the past year (22.1%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: IEX earnings growth over the past year (22.1%) exceeded the Machinery industry 9.4%.

Return on Equity

High ROE: IEX's Return on Equity (18.4%) is considered low.

Discover strong past performing companies

Financial Health

How is IDEX's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IEX's short term assets ($1.6B) exceed its short term liabilities ($513.8M).

Long Term Liabilities: IEX's short term assets ($1.6B) do not cover its long term liabilities ($1.6B).

Debt to Equity History and Analysis

Debt Level: IEX's net debt to equity ratio (21.2%) is considered satisfactory.

Reducing Debt: IEX's debt to equity ratio has reduced from 51.4% to 42.7% over the past 5 years.

Debt Coverage: IEX's debt is well covered by operating cash flow (43%).

Interest Coverage: IEX's interest payments on its debt are well covered by EBIT (19.2x coverage).

Balance Sheet

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Dividend

What is IDEX current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IEX's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: IEX's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.99%).

Stability and Growth of Payments

Stable Dividend: IEX's dividends per share have been stable in the past 10 years.

Growing Dividend: IEX's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.8%), IEX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.4%), IEX's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Eric Ashleman (55 yo)

2.5yrs

Tenure

US$6,719,772

Compensation

Mr. Eric D. Ashleman has been Chief Executive Officer and Director of IDEX Corporation since December 15, 2020 and has been its President since February 21, 2020. He was Chief Operating Officer of IDEX Cor...

CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD6.72M) is below average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: IEX's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: IEX's board of directors are considered experienced (4.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31