Why NYSE:IEX provides a good dividend, while having solid fundamentals.

Last update: Sep 4, 2024

Take a closer look at IDEX CORP (NYSE:IEX), a stock of interest to dividend investors uncovered by our stock screener. NYSE:IEX excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Looking at the Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:IEX has achieved a 7 out of 10:

IEX's Dividend Yield is a higher than the industry average which is at 1.70.
The dividend of IEX is nicely growing with an annual growth rate of 8.58%!
IEX has paid a dividend for at least 10 years, which is a reliable track record.
IEX has not decreased their dividend for at least 10 years, which is a reliable track record.
IEX pays out 34.03% of its income as dividend. This is a sustainable payout ratio.
IEX's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NYSE:IEX

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:IEX, the assigned 9 reflects its health status:

IEX has an Altman-Z score of 6.24. This indicates that IEX is financially healthy and has little risk of bankruptcy at the moment.
IEX has a better Altman-Z score (6.24) than 84.62% of its industry peers.
IEX has a debt to FCF ratio of 2.03. This is a good value and a sign of high solvency as IEX would need 2.03 years to pay back of all of its debts.
IEX's Debt to FCF ratio of 2.03 is amongst the best of the industry. IEX outperforms 82.31% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that IEX is not too dependend on debt financing.
A Current Ratio of 3.41 indicates that IEX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.41, IEX belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
IEX has a Quick Ratio of 2.52. This indicates that IEX is financially healthy and has no problem in meeting its short term obligations.
IEX has a better Quick ratio (2.52) than 82.31% of its industry peers.

Assessing Profitability for NYSE:IEX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:IEX was assigned a score of 8 for profitability:

Looking at the Return On Assets, with a value of 9.83%, IEX belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.88%, IEX is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.17%, IEX is doing good in the industry, outperforming 70.77% of the companies in the same industry.
IEX's Profit Margin of 18.19% is amongst the best of the industry. IEX outperforms 95.38% of its industry peers.
IEX's Profit Margin has improved in the last couple of years.
IEX has a Operating Margin of 22.08%. This is amongst the best in the industry. IEX outperforms 92.31% of its industry peers.
IEX's Gross Margin of 44.22% is amongst the best of the industry. IEX outperforms 86.15% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.