It's Time For a Quick Look at IDEX (IEX)'s Fundamentals

IDEX logged a -3.1% change during today's morning session, and is now trading at a price of $222.23 per share. The S&P 500 index moved -1.0% and the Nasdaq posted a -0.0% change.

IDEX shares moved 17.8% over the last 52 weeks, with a high of $246.23 and a low of $172.19. During this time, the stock outperformed the S&P 500 index by 26.0%. As of January 2022, the company's 50-day average price is $226.0. IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The large-cap Industrials company has 8,868 full time employees and is based in Northbrook, IL. IDEX has returned a 1.0% dividend yield over the last 12 months.

Snapshot of the Company's Consistent Operating Margins:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $2,495 $2,352 $2,765 $3,182
Revenue Growth n/a -5.73% 17.57% 15.09%
Gross Margins 45.1% 43.7% 44.3% 44.8%
Gross Margins Growth n/a -3.1% 1.37% 1.13%
Operating Margins 24.0% 22.6% 23.4% 24.3%
Operating Margins Growth n/a -5.83% 3.54% 3.85%
Net Margins 17.06% 16.06% 16.25% 18.44%
Net Margins Growth n/a -5.86% 1.18% 13.48%
Earnings Per Share $5.56 $4.94 $5.88 $7.7
EPS Growth n/a -11.15% 19.03% 30.95%
Diluted Shares (MM) 76 76 76 76
Free Cash Flow (MM) $477 $518 $493 $489
FCF Growth n/a 8.5% -4.85% -0.65%
Capital Expenditures (MM) -$51 -$52 -$73 -$68
Net Debt / EBITDA 0.32 0.03 0.46 1.16

IDEX Is Overvalued:

Compared to the Industrials sector's average of 20.49, IDEX has a trailing twelve month P/E ratio of 28.9 and, according to its EPS guidance of 9.17, an expected P/E ratio of 24.2. IDEX's PEG ratio is 1.99 based on its 10.5% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

IDEX's P/B ratio is 5.5 compared to its sector average of 3.78. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 201.2% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 6.02 * 40.195) = $73.79

IDEX Is the Subject of Mixed Market Indicators:

14 analysts are following IDEX and have set target prices ranging from $225.0 to $280.0 per share. On average, they have given the company a rating of buy. At the current price of $222.23, IEX is trading -9.35% away from its average analyst target price of $245.14 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.7% of the company's shares are tied to short positions. Institutions own 101.8% of IDEX's shares, while the insider ownership rate stands at 0.34%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $2,087,794,807.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.