IDEX CORP (IEX) Stock Fundamental Analysis
NYSE:IEX - New York Stock Exchange, Inc. - US45167R1041 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to IEX. IEX was compared to 128 industry peers in the Machinery industry. While IEX has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, IEX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year IEX was profitable.
In the past year IEX had a positive cash flow from operations.
In the past 5 years IEX has always been profitable.
IEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IEX's Return On Assets of 7.05% is fine compared to the rest of the industry. IEX outperforms 67.19% of its industry peers.
Looking at the Return On Equity, with a value of 12.26%, IEX is in the better half of the industry, outperforming 61.72% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.78%, IEX is doing good in the industry, outperforming 60.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IEX is in line with the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 12.26% | ||
| ROIC | 8.78% |
ROA(3y)9.43%
ROA(5y)9.2%
ROE(3y)16.48%
ROE(5y)16.07%
ROIC(3y)10.77%
ROIC(5y)10.86%
1.3 Margins
IEX has a better Profit Margin (14.60%) than 85.94% of its industry peers.
In the last couple of years the Profit Margin of IEX has declined.
IEX's Operating Margin of 21.13% is amongst the best of the industry. IEX outperforms 91.41% of its industry peers.
In the last couple of years the Operating Margin of IEX has declined.
Looking at the Gross Margin, with a value of 44.38%, IEX belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
IEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 14.6% | ||
| GM | 44.38% |
OM growth 3Y-3.35%
OM growth 5Y-2.38%
PM growth 3Y-1.68%
PM growth 5Y-1.96%
GM growth 3Y-0.06%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IEX is creating some value.
Compared to 1 year ago, IEX has more shares outstanding
Compared to 5 years ago, IEX has less shares outstanding
Compared to 1 year ago, IEX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.66 indicates that IEX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.66, IEX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
IEX has a debt to FCF ratio of 3.48. This is a good value and a sign of high solvency as IEX would need 3.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.48, IEX is in the better half of the industry, outperforming 63.28% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that IEX is not too dependend on debt financing.
The Debt to Equity ratio of IEX (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 4.66 |
ROIC/WACC0.9
WACC9.75%
2.3 Liquidity
A Current Ratio of 2.79 indicates that IEX has no problem at all paying its short term obligations.
The Current ratio of IEX (2.79) is better than 73.44% of its industry peers.
IEX has a Quick Ratio of 1.99. This is a normal value and indicates that IEX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IEX (1.99) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
IEX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.25%.
IEX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
Looking at the last year, IEX shows a small growth in Revenue. The Revenue has grown by 1.66% in the last year.
Measured over the past years, IEX shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)-3.25%
EPS 3Y7.74%
EPS 5Y6.36%
EPS Q2Q%-6.91%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y5.74%
Revenue growth 5Y5.55%
Sales Q2Q%1.72%
3.2 Future
The Earnings Per Share is expected to grow by 11.51% on average over the next years. This is quite good.
IEX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.93% yearly.
EPS Next Y5.17%
EPS Next 2Y6.6%
EPS Next 3Y6.95%
EPS Next 5Y11.51%
Revenue Next Year4.78%
Revenue Next 2Y4.43%
Revenue Next 3Y4.98%
Revenue Next 5Y8.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.65, the valuation of IEX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IEX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.15, IEX is valued at the same level.
IEX is valuated rather expensively with a Price/Forward Earnings ratio of 19.61.
The rest of the industry has a similar Price/Forward Earnings ratio as IEX.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, IEX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
IEX's Enterprise Value to EBITDA is on the same level as the industry average.
IEX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.78 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IEX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of IEX may justify a higher PE ratio.
PEG (NY)4.38
PEG (5Y)3.56
EPS Next 2Y6.6%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
IEX has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 1.88, IEX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, IEX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of IEX is nicely growing with an annual growth rate of 6.95%!
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.
Dividend Growth(5Y)6.95%
Div Incr Years15
Div Non Decr Years29
5.3 Sustainability
43.67% of the earnings are spent on dividend by IEX. This is a bit on the high side, but may be sustainable.
The dividend of IEX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.67%
EPS Next 2Y6.6%
EPS Next 3Y6.95%
175.57
-0.75 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.46%
Inst Owner Change-0.02%
Ins Owners0.18%
Ins Owner Change3.91%
Market Cap13.26B
Analysts76.84
Price Target213.3 (21.49%)
Short Float %2.04%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend2.71
Dividend Growth(5Y)6.95%
DP43.67%
Div Incr Years15
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.99%
Min EPS beat(2)-0.11%
Max EPS beat(2)6.08%
EPS beat(4)1
Avg EPS beat(4)1.41%
Min EPS beat(4)-0.18%
Max EPS beat(4)6.08%
EPS beat(8)5
Avg EPS beat(8)3.35%
EPS beat(12)9
Avg EPS beat(12)3.49%
EPS beat(16)11
Avg EPS beat(16)3.14%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)-0.12%
Revenue beat(8)1
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)0.56%
PT rev (1m)-0.62%
PT rev (3m)-9.61%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 19.61 | ||
| P/S | 4.04 | ||
| P/FCF | 23.78 | ||
| P/OCF | 21.49 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.7 |
EPS(TTM)7.75
EY4.41%
EPS(NY)8.95
Fwd EY5.1%
FCF(TTM)7.38
FCFY4.21%
OCF(TTM)8.17
OCFY4.65%
SpS43.46
BVpS51.72
TBVpS-8.58
PEG (NY)4.38
PEG (5Y)3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 12.26% | ||
| ROCE | 11.16% | ||
| ROIC | 8.78% | ||
| ROICexc | 9.71% | ||
| ROICexgc | 51.33% | ||
| OM | 21.13% | ||
| PM (TTM) | 14.6% | ||
| GM | 44.38% | ||
| FCFM | 16.99% |
ROA(3y)9.43%
ROA(5y)9.2%
ROE(3y)16.48%
ROE(5y)16.07%
ROIC(3y)10.77%
ROIC(5y)10.86%
ROICexc(3y)11.91%
ROICexc(5y)12.81%
ROICexgc(3y)60.63%
ROICexgc(5y)61.29%
ROCE(3y)13.7%
ROCE(5y)13.82%
ROICexcg growth 3Y-3.1%
ROICexcg growth 5Y-4.49%
ROICexc growth 3Y-11.38%
ROICexc growth 5Y-9.81%
OM growth 3Y-3.35%
OM growth 5Y-2.38%
PM growth 3Y-1.68%
PM growth 5Y-1.96%
GM growth 3Y-0.06%
GM growth 5Y-0.4%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 32.16% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 11.44 | ||
| Cash Conversion | 70.28% | ||
| Profit Quality | 116.43% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 4.66 |
F-Score5
WACC9.75%
ROIC/WACC0.9
Cap/Depr(3y)51%
Cap/Depr(5y)57.05%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.34%
Profit Quality(3y)102.65%
Profit Quality(5y)110.92%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.25%
EPS 3Y7.74%
EPS 5Y6.36%
EPS Q2Q%-6.91%
EPS Next Y5.17%
EPS Next 2Y6.6%
EPS Next 3Y6.95%
EPS Next 5Y11.51%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y5.74%
Revenue growth 5Y5.55%
Sales Q2Q%1.72%
Revenue Next Year4.78%
Revenue Next 2Y4.43%
Revenue Next 3Y4.98%
Revenue Next 5Y8.93%
EBIT growth 1Y-3.88%
EBIT growth 3Y2.2%
EBIT growth 5Y3.04%
EBIT Next Year31.25%
EBIT Next 3Y13.88%
EBIT Next 5Y15.19%
FCF growth 1Y1.96%
FCF growth 3Y6.97%
FCF growth 5Y4.79%
OCF growth 1Y-1.34%
OCF growth 3Y5.73%
OCF growth 5Y4.82%