IDEX Corp (IEX) stock analysis

P/E above its 5-year median

IDEX's P/E of 33.3 is above its own 5-year median of 29.5.

P/E above the industry

IDEX's P/E of 33.3 is above the General Industrial Machinery and Equipment median of 26.9.

EV/EBITDA above its 5-year median

IDEX's EV/EBITDA of 24.6 is above its 5-year median of 21.1.

P/B above the industry

IDEX's price-to-book of 4.39 is above the General Industrial Machinery and Equipment median of 2.84.

Trading above fair value

The share price of $239.96 is above our fair value estimate of $181.62.

Margin of safety under 20%

The price is 32.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -6.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 12.1% over the last twelve months, against a 5-year average of 5.0% a year.

Growing slower than the industry

Revenue grew 6.9% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Guidance raised

IDEX raised its Full year adjusted diluted EPS outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 44.9% over the last twelve months, against 44.4% a year earlier.

Return on equity under 15%

Return on equity was 13.3% over the last twelve months and averaged 16.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

IDEX's return on equity of 13.3% is above the General Industrial Machinery and Equipment median of 9.9%.

Earnings grew over 5 years

Net income grew 5.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 14.6% over the last twelve months, against a 5-year average of 16.5%.

Net margin above the industry

IDEX's net margin of 14.6% is above the General Industrial Machinery and Equipment median of 8.0%.

High debt

Debt is 43.6% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 41.1% five years ago to 43.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 43.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.78 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.75; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

IDEX paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; IDEX yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 39.9% of net income.

Covered by free cash flow

Dividends take 32.1% of free cash flow.