IDEX CORP /DE/ (IEX) - Comprehensive Stock Analysis & Investment Research
Deep dive into IDEX CORP /DE/'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
IDEX CORP /DE/ Investment Summary
When evaluating whether IDEX CORP /DE/ (IEX) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
IDEX CORP /DE/ (IEX) operates within the Technology sector, specifically in the Pumps & Pumping Equipment industry. The company employs approximately 1,289 people. With a market capitalization of $14 billion, the company is a large-cap stock offering relative stability combined with growth potential.
Financial Performance Analysis
IDEX CORP /DE/ generates annual revenues of approximately $3 billion. The company maintains solid profitability with a net margin of 15.4%, indicating healthy operational efficiency.
From a profitability standpoint, the company achieves a strong Return on Equity (ROE) of 17.3%, reflecting solid management performance. The Return on Assets (ROA) stands at 10.1%, indicating efficient asset utilization. The gross margin of 44.3% indicates healthy product or service economics.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 3.59x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.44x reflects a conservative capital structure with low leverage.
Cash Flow Generation
IDEX CORP /DE/ generates $462 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $536 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 7.8%, indicating steady improvement.
Valuation Analysis
The P/E ratio of 28.4x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 3.39x, indicating the market values the company above its book value, typical for profitable enterprises. For income-focused investors, the current dividend yield of 1.58% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether IDEX CORP /DE/ is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a large-cap stock, IDEX CORP /DE/ typically offers more stability but potentially lower growth compared to smaller companies.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
IDEX CORP /DE/ (Stock Symbol: IEX) is a prominent company operating within the Technology sector, with a specific focus on the Pumps & Pumping Equipment industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 1,289 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $14 billion, IDEX CORP /DE/ is classified as a large-cap stock. Large-cap companies are well-established industry leaders that typically offer investors relative stability combined with consistent returns. These companies often have diversified revenue streams, established competitive advantages, and the financial resources to weather economic downturns.
Sector & Industry Context
Operating within the Technology sector, IDEX CORP /DE/ is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy. The technology sector is known for rapid innovation, high growth potential, and competitive intensity. Companies in this sector must continuously invest in research and development to maintain their competitive edge.
Revenue & Growth Analysis
IDEX CORP /DE/ generates annual revenues of $3 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a 15.4% net profit margin, demonstrating healthy profitability and efficient operations. This margin level provides comfortable coverage for reinvestment in the business, dividend payments, and building financial reserves for future opportunities or challenges.
Gross profit margin stands at 44.3%, a healthy margin indicating strong pricing power relative to direct production costs and efficient supply chain management.
Operating margin is 21.1%, showing solid operational efficiency with balanced investment in sales, marketing, research, and administrative functions.
Market Valuation
Current market capitalization stands at $14 billion . This large-cap valuation typically attracts institutional investors seeking stability and liquidity. Large-cap stocks generally exhibit lower volatility and often pay dividends, making them core portfolio holdings.
Return on Investment Metrics
Return on Equity (ROE) measures 17.3%, showing strong ability to generate shareholder value from invested capital. This solid ROE suggests effective management and a business model that efficiently converts equity investments into profits.
Return on Assets (ROA) stands at 10.1%, demonstrating solid efficiency in utilizing company assets to generate earnings.
Return on Invested Capital (ROIC) measures 12.7%, demonstrating the company creates meaningful value by earning returns well above its cost of capital.
Cash Flow Generation
Free cash flow generation of $462 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.
Operating cash flow reaches $536 million , with year-over-year growth of 7.8%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
IDEX CORP /DE/ strategically competes in the highly dynamic Pumps & Pumping Equipment marketplace. As a large-cap market participant, the company has established significant competitive advantages and market presence. Large-cap companies typically benefit from brand recognition, operational scale, diverse revenue streams, and the financial resources to invest in research and development, marketing, and strategic acquisitions. This size category attracts substantial institutional ownership and analyst coverage.
Industry Competitive Landscape
IDEX CORP /DE/ operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $462 million annually , with year-over-year cash flow growth of 7.8%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 44.3% gross margin indicating healthy pricing power relative to direct production costs. This margin level suggests the company has successfully differentiated its products or services, allowing it to command prices meaningfully above input costs. Maintaining these margins requires ongoing investment in brand, technology, or other differentiating factors.
Operating margin of 21.1% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This strong operating margin indicates excellent cost control and efficient organizational structure relative to the revenue base.
Asset Utilization Efficiency
Asset turnover ratio of 0.61x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 3.59 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.