Idex Corp /De/ (NYSE: IEX)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0000832101
Market Cap 15.87 Bn
P/B 4.34
P/E 27.35
P/S 4.98
ROIC (Qtr) 8.72
Div Yield % 1.61
Rev 1y % (Qtr) 10.09
Total Debt (Qtr) 1.90 Bn
Debt/Equity (Qtr) 0.47
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About

IDEX Corp, with the ticker symbol IEX, is a leading global manufacturer in the industry of pumps, valves, and other fluid-handling equipment, as well as a provider of health and science technologies. The company operates in three main segments: Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products. IDEX's primary business activities involve the design, manufacturing, and distribution of a diverse range of products and services for various industries. These industries include industrial, commercial,...

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Investment thesis

Bull case

  • Healthy cash reserves of 593.80M provide 848.29x coverage of short-term debt 700000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 643.50M provides strong 22.50x coverage of stock compensation 28.60M, indicating sustainable incentive practices.
  • Robust free cash flow of 584.10M exceeds capital expenditure of 59.40M by 9.83x, indicating strong organic growth funding capability.
  • Strong cash position of 593.80M provides 1.67x coverage of other current liabilities 355.20M, indicating excellent liquidity.
  • Tangible assets of 2.28B provide robust 6.42x coverage of other current liabilities 355.20M, indicating strong asset backing.

Bear case

  • Operating cash flow of 643.50M barely covers its investment activities of (134.70M), with a coverage ratio of -4.78, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 643.50M provides thin coverage of dividend payments of (211.70M) with a -3.04 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 593.80M provide limited coverage of acquisition spending of (76.50M), which is -7.76x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 584.10M represents just -3.18x of debt issuance (183.40M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 643.50M shows concerning coverage of minority interest expenses of (700000), which is -919.29x, suggesting complex corporate structure risks.

Business Segments Breakdown of Revenue (2024)

Business Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.38 2.28
EV to Cash from Ops. EV/CFO 23.10 37.14
EV to Debt EV to Debt 8.72 34.39
EV to EBIT EV/EBIT 21.28 27.71
EV to EBITDA EV/EBITDA 17.87 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 25.90 133.36
EV to Market Cap EV to Market Cap 1.04 1.04
EV to Revenue EV/Rev 5.20 39.88
Price to Book Value [P/B] P/B 4.34 6.22
Price to Earnings [P/E] P/E 27.35 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.26 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 44.20 15.73
Dividend per Basic Share Div per Share (Qtr) 2.82 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 36.26 82.53
Interest Coverage Int. cover (Qtr) 10.50 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 16.57 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.22 118.48
Dividend Growth (1y) % Div 1y % (Qtr) 4.06 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1.40 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.57 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 1.99 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -1.94 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -2.01 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) -6.59 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.34 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.49 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.30 0.10
Cash Ratio Cash Ratio (Qtr) 1.05 3.01
Current Ratio Curr Ratio (Qtr) 2.93 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 0.38
Interest Cover Ratio Int Coverage (Qtr) 10.50 12.34
Times Interest Earned Times Interest Earned (Qtr) 10.50 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.90 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 19.93 -7,413.30
EBT Margin % EBT Margin % (Qtr) 18.03 -9,015.79
Gross Margin % Gross Margin % (Qtr) 44.40 -32.61
Net Profit Margin % Net Margin % (Qtr) 14.00 -7,962.06