Moderate Price-to-Earnings Ratio
Strong Gross Profit Margin
Strong Return on Equity
Healthy Net Profit Margin
Strong Liquidity Ratios
Low Debt Levels
🏆 Strong Competitive Position
💡 Innovation-Driven Growth
📈 Positive Growth Outlook
🔍 Strategic Capital Deployment
High Price-to-Sales Ratio
Elevated EV/EBITDA Ratio
Moderate Operating Profit Margin
Moderate Interest Coverage
⚠️ Market Volatility Impact
📉 Uncertainty in End Markets
Overall, IDEX Corporation demonstrates strong business quality through its competitive advantages and focus on innovation. However, market volatility and uncertainty present challenges. Future prospects appear positive with growth expectations and strategic capital deployment, although risks remain due to macroeconomic conditions.
Analysis Date: February 5, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$174.97
Current Market Price: $161.94
IV/P Ratio: 1.08x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
7.000000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for IEX
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (24.47)
P/B ratio ≤ 1.5 (3.26)
Current ratio ≥ 2.0 (2.53x)
Long-term debt < Net current assets (1.93x)
Margin of safety (7.000000000000001%)
IEX does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Return on equity at 13.57% reflects effective use of shareholders' equity to generate profits, indicating strong financial performance.
A net profit margin of 15.45% indicates that the company retains a good portion of its revenue as profit, showcasing operational efficiency.
The operating profit margin of 20.91% suggests that while the company is profitable, there may be room for improvement in controlling operating costs.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
13.57%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.83%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
44.21%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
15.45%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 2.53 and a quick ratio of 1.85 indicate that the company is well-positioned to cover its short-term liabilities, showing strong liquidity.
A debt-to-equity ratio of 0.52 indicates a moderate level of debt, suggesting financial stability and lower risk associated with borrowing.
While an interest coverage ratio of 15.36 is solid, it indicates that while the company can cover its interest obligations, it is not excessively strong relative to very low-risk firms.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.52x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.53x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
IDEX Corporation has demonstrated strong execution and operational focus amidst choppy macro conditions. They are well-positioned in high-quality markets like health and science technology, which have strong secular growth trends. Their differentiated technologies provide solutions to complex problems, enhancing their competitive advantage.
The company continues to innovate with a focus on high-growth sectors such as energy transition and intelligent water solutions. Their acquisition of Mott is expected to enhance their technological capabilities and market presence in these sectors.
The company has faced challenges due to market softness in certain segments such as life sciences and semiconductor capital equipment. This has affected their overall revenue growth and margins.
The company anticipates organic revenue growth of 1% to 3% for 2025, with expectations for the health and science technology segment to be at the high end of this range. This growth is supported by strong customer demand and strategic investments.
IDEX is focused on M&A opportunities to enhance their business portfolio. Their dedicated corporate development team is actively working on a robust M&A funnel that aligns with their growth strategy, targeting proprietary acquisitions.
Despite positive indicators, there remains uncertainty regarding U.S. trade and economic policy, which could impact growth in the near term. The company is closely monitoring geopolitical tensions that may affect market stability.