IDEX Corporation (IEX)
Industrials · $17.3B market cap · SEC CIK 0000832101
ahead of 44% of the S&P 500 · #40 of 79 in Industrials
Next reports on Feb 2, 2027, after the close, with analysts expecting $2.32 in earnings per share.
52-week range $160.60 to $243.80. 3% below its 52-week high and 48% above its low.
The case for IEX
- Generated $617M of free cash flow in FY2025, 18% of revenue.
- Current assets cover the near-term bills 2.8 times over.
- Pays a modest 1.3% dividend.
- Within 3% of its 52-week high: the trend is up.
- Up 40.5% over the past year.
The case against
- Expensive for its growth: 32.3× earnings, where 7% a year of growth plus a 1.3% dividend would justify about 20×.
- Weakest against its peers: return on equity of 13% is lower than 79% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 33 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 52 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 57 |
| Momentumhow the price has behaved lately | 76 |
| Stabilityhow violently it moves, what it owes and what it pays you | 59 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +6.9% |
|---|---|
| Over 5 years | +8.0% a year |
| FY2025 revenue | $3.5B (+6%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $617M |
|---|---|
| Of revenue | 18% |
| Of profit | 128% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 45% |
|---|---|
| Operating margin | 21% |
| Net margin, FY24 → FY25 → now | 15.4% → 14.0% → 14.7% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $580M |
|---|---|
| Long-term debt | $1.8B |
| Net debt | $1.2B |
| Years to repay | 2.7 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 32.3× |
|---|---|
| Fair P/E for its growth | 20× |
| P/FCF | 28.1× |
| Forward P/E | 24.3× |
| EV / EBITDA | 21.9× |
At 32.3× earnings it trades well above the 20× that 7% a year of growth plus a 1.3% dividend would justify. At 28.1× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from IDEX Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $3.5B | $3.3B | $3.3B | $3.2B | $2.8B |
| Change on the year | +6% | 0% | +3% | +15% | — |
| Free cash flow | |||||
| Free cash flow | $617M | $603M | $627M | $489M | $493M |
| Of revenue | 18% | 18% | 19% | 15% | 18% |
| Profit margins | |||||
| Gross margin | 44.5% | 44.2% | 44.2% | 44.8% | 44.3% |
| Operating margin | 20.2% | 20.7% | 22.4% | 23.6% | 23.0% |
| Net margin | 14.0% | 15.4% | 18.2% | 18.4% | 16.3% |
| Debt vs. cash | |||||
| Cash | $580M | $621M | $534M | $430M | $855M |
| Long-term debt | $1.8B | $1.9B | $1.3B | $1.5B | $1.2B |
| Net cash (debt) | −$1.2B | −$1.2B | −$791M | −$1.0B | −$335M |
What IDEX Corporation says it does
Overview IDEX Corporation (“IDEX,” the “Company,” “we,” or “our”) is a global applied solutions provider serving niche markets with mission critical components for everyday life. Substantially all of the Company’s business activities are carried out through over 50 wholly-owned subsidiaries with shared values of Trust, Team and Excellence. IDEX’s diverse family of businesses is committed to making trusted solutions that improve lives and is innovative and inquisitive in its quest to solve customers’ most challenging applied technology problems. These businesses operate with a high degree of autonomy, yet are all united by employing The IDEX Difference, a philosophy of great teams who embrace the 8020 principle while remaining hyper-focused on serving customers. IDEX was incorporated in Delaware on September 24, 1987. End Markets and Products The following table summarizes the percentage of total IDEX sales generated by each end market…
Risk factors IEX lists in its 10-K
- The Company’s Inability to Continue to Develop New Products Could Limit Sales Growth
- The Company’s Growth Strategy Includes Acquisitions and Divestitures, and the Company May Not be Able to Make Acquisitions of Suitable Candidates, Integrate Acquisitions Successfully, or Successfully Execute Divestitures
- The Markets Served by the Company are Highly Competitive and this Competition Could Reduce Sales and Profit Margins
- The Company is Dependent on the Availability of Raw Materials, Parts and Components Used in Its Products and Changes in Supply of, or Price for, Raw Materials, Parts and Components May Materially Adversely Affect the Company
- Uncertainties with Respect to the Development, Deployment, and Use of Artificial Intelligence in Our Business and Products May Result in Harm to Our Business and Reputation
- Business Disruptions Due to Catastrophic Weather Events, Natural Disasters and Public Health Threats Could Adversely Affect the Company
- A Slowdown in the U.S. or International Economy Could Materially Adversely Affect the Sales and Profitability of the Company’s Businesses
- and Economic Conditions in the U.S. and Foreign Countries in Which the Company Operates Could Adversely Affect the Company
- Significant Movements in Foreign Currency Exchange Rates May Harm the Company’s Financial Results
- A Significant or Sustained Decline in Commodity Prices, Including Oil, Could Negatively Impact the Levels of Expenditures by Certain of the Company’s Customers
- An Unfavorable Outcome of Any Pending Contingencies or Litigation Could Adversely Affect the Company
- The Company May Face Adverse Effects Resulting from Improper Conduct by Our Employees, Agents or Business Partners
- A Failure to Retain Executive Management and Key Personnel or Recruit Adequate Successors May Adversely Affect the Company’s Operations and Implementation of Strategy
- Challenges with Respect to Labor Availability Could Negatively Impact the Company’s Ability to Operate or Grow the Business