Why NYSE:IEX qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if IDEX CORP (NYSE:IEX) is suited for quality investing. Investors should of couse do their own research, but we spotted IDEX CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• IDEX CORP has shown strong performance in revenue growth over the past 5 years, with a 6.82% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of IDEX CORP stands at 56.4%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• IDEX CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.58, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 109.0%, IDEX CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• IDEX CORP has experienced impressive EBIT growth over the past 5 years, with 9.25% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of IDEX CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, IEX scores 7 out of 10 in our fundamental rating. IEX was compared to 134 industry peers in the Machinery industry. IEX gets an excellent profitability rating and is at the same time showing great financial health properties. IEX is quite expensive at the moment. It does show a decent growth rate. With these ratings, IEX could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of IEX

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.