Investment Thesis
IDEX demonstrates solid operational fundamentals with strong profitability margins (20.2% operating margin, 14.0% net margin) and excellent cash generation (FCF of $616.8M representing 17.8% of revenue). The company maintains a healthy balance sheet with conservative leverage (0.45x debt/equity) and exceptional interest coverage (40.0x), supporting financial flexibility despite flat revenue growth.
IEX Strengths
- Strong free cash flow generation at $616.8M with 17.8% FCF margin indicates operational efficiency and cash conversion
- Excellent liquidity position with 2.86x current ratio and 2.02x quick ratio, providing substantial financial cushion
- High profitability margins across all levels (gross 44.5%, operating 20.2%, net 14.0%) demonstrate pricing power and cost control
- Conservative capital structure with 0.45x debt/equity ratio and exceptional 40.0x interest coverage provides financial stability
IEX Risks
- Flat revenue growth (0.0% YoY) suggests market maturity or competitive pressure in pumps & equipment sector without organic growth
- Declining diluted EPS (-3.5% YoY) despite stable net income indicates potential share issuance or dilution impact
- Modest ROE of 12.0% and ROA of 7.0% raise questions about capital efficiency relative to the earnings base
- Capital expenditure of only $63.6M (1.8% of revenue) may be insufficient for long-term competitive positioning and innovation
Key Metrics to Watch
- Revenue growth acceleration - need to see positive YoY growth to validate market demand
- Operating margin sustainability - monitor if 20.2% margin can be maintained amid potential price competition
- Free cash flow conversion rate - track if FCF remains above 15% of revenue to fund growth investments and shareholder returns
- Capital expenditure trends - watch for increased R&D and CapEx to support future growth initiatives
IEX Financial Metrics
IEX Profitability Ratios
IEX Balance Sheet & Liquidity
IEX 5-Year Financial Trend
5-Year Trend Summary: IDEX CORP /DE/'s revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.85 reflects profitable operations.
IEX Growth Metrics (YoY)
IEX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $798.2M | $119.1M | $1.57 |
| Q2 2025 | $807.2M | $131.6M | $1.74 |
| Q1 2025 | $800.5M | $95.5M | $1.26 |
| Q3 2024 | $793.4M | $119.1M | $1.57 |
| Q2 2024 | $807.2M | $138.6M | $1.82 |
| Q1 2024 | $800.5M | $121.4M | $1.60 |
| Q3 2023 | $793.4M | $178.7M | $2.36 |
| Q2 2023 | $796.1M | $138.2M | $1.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IEX Capital Allocation
IEX SEC Filings
Access official SEC EDGAR filings for IDEX CORP /DE/ (CIK: 0000832101)