IDEX CORP (IEX) Stock Fundamental Analysis
NYSE:IEX - New York Stock Exchange, Inc. - US45167R1041 - Common Stock - Currency: USD
Taking everything into account, IEX scores 6 out of 10 in our fundamental rating. IEX was compared to 128 industry peers in the Machinery industry. IEX scores excellent on profitability, but there are some minor concerns on its financial health. IEX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IEX had positive earnings in the past year.
IEX had a positive operating cash flow in the past year.
IEX had positive earnings in each of the past 5 years.
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 68.75% of its industry peers.
IEX has a better Return On Equity (12.26%) than 62.50% of its industry peers.
IEX's Return On Invested Capital of 8.78% is fine compared to the rest of the industry. IEX outperforms 62.50% of its industry peers.
IEX had an Average Return On Invested Capital over the past 3 years of 10.77%. This is in line with the industry average of 10.30%.
| 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 86.72% of its industry peers.
IEX's Profit Margin has declined in the last couple of years.
IEX has a Operating Margin of 21.13%. This is amongst the best in the industry. IEX outperforms 90.63% of its industry peers.
In the last couple of years the Operating Margin of IEX has declined.
IEX has a Gross Margin of 44.38%. This is amongst the best in the industry. IEX outperforms 82.81% of its industry peers.
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.
IEX has more shares outstanding than it did 1 year ago.
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
IEX has an Altman-Z score of 4.75. This indicates that IEX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IEX (4.75) is better than 75.78% of its industry peers.
The Debt to FCF ratio of IEX is 3.48, which is a good value as it means it would take IEX, 3.48 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.48, IEX is doing good in the industry, outperforming 64.06% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that IEX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, IEX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 4.75 |
ROIC/WACC0.92
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.79 indicates that IEX has no problem at all paying its short term obligations.
IEX has a Current ratio of 2.79. This is in the better half of the industry: IEX outperforms 73.44% of its industry peers.
A Quick Ratio of 1.99 indicates that IEX should not have too much problems paying its short term obligations.
IEX has a Quick ratio of 1.99. This is in the better half of the industry: IEX outperforms 75.78% 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%.
Measured over the past 5 years, IEX shows a small growth in Earnings Per Share. The EPS has been growing by 6.36% on average per year.
The Revenue has been growing slightly by 1.66% in the past year.
The Revenue has been growing slightly by 5.55% on average over the past years.
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 10.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.12% on average over the next years. This is quite good.
EPS Next Y5.23%
EPS Next 2Y6.6%
EPS Next 3Y6.95%
EPS Next 5Y10.24%
Revenue Next Year4.72%
Revenue Next 2Y4.41%
Revenue Next 3Y4.95%
Revenue Next 5Y9.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 23.34 indicates a rather expensive valuation of IEX.
IEX's Price/Earnings ratio is in line with the industry average.
IEX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
Based on the Price/Forward Earnings ratio of 20.20, the valuation of IEX can be described as rather expensive.
IEX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.15. IEX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
IEX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as IEX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.5 | ||
| EV/EBITDA | 17.2 |
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.
IEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)3.67
EPS Next 2Y6.6%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, IEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.90, IEX pays a bit more dividend than its industry peers.
IEX's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of IEX grows each year by 6.95%, which is quite nice.
IEX has been paying a dividend for at least 10 years, so it has a reliable track record.
IEX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.95%
Div Incr Years15
Div Non Decr Years29
5.3 Sustainability
IEX pays out 43.67% of its income as dividend. 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%
180.91
-1.23 (-0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.14%
Inst Owner Change-0.02%
Ins Owners0.18%
Ins Owner Change3.6%
Market Cap13.67B
Analysts76.84
Price Target214.63 (18.64%)
Short Float %1.67%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)-8.41%
PT rev (3m)-9.7%
EPS NQ rev (1m)-4.87%
EPS NQ rev (3m)-5.55%
EPS NY rev (1m)0.96%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 20.2 | ||
| P/S | 4.16 | ||
| P/FCF | 24.5 | ||
| P/OCF | 22.14 | ||
| P/B | 3.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.2 |
EPS(TTM)7.75
EY4.28%
EPS(NY)8.95
Fwd EY4.95%
FCF(TTM)7.38
FCFY4.08%
OCF(TTM)8.17
OCFY4.52%
SpS43.46
BVpS51.72
TBVpS-8.58
PEG (NY)4.46
PEG (5Y)3.67
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 | 4.75 |
F-Score5
WACC9.57%
ROIC/WACC0.92
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 Y5.23%
EPS Next 2Y6.6%
EPS Next 3Y6.95%
EPS Next 5Y10.24%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y5.74%
Revenue growth 5Y5.55%
Sales Q2Q%1.72%
Revenue Next Year4.72%
Revenue Next 2Y4.41%
Revenue Next 3Y4.95%
Revenue Next 5Y9.12%
EBIT growth 1Y-3.88%
EBIT growth 3Y2.2%
EBIT growth 5Y3.04%
EBIT Next Year31.25%
EBIT Next 3Y13.88%
EBIT Next 5Y15.58%
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%