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 127 industry peers in the Machinery industry. IEX scores excellent on profitability, but there are some minor concerns on its financial health. IEX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IEX had positive earnings in the past year.
In the past year IEX had a positive cash flow from operations.
Each year in the past 5 years IEX has been profitable.
Each year in the past 5 years IEX had a positive operating cash flow.
1.2 Ratios
IEX's Return On Assets of 7.05% is fine compared to the rest of the industry. IEX outperforms 66.93% of its industry peers.
IEX has a Return On Equity of 12.26%. This is in the better half of the industry: IEX outperforms 61.42% of its industry peers.
With a decent Return On Invested Capital value of 8.78%, IEX is doing good in the industry, outperforming 60.63% 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 10.78%.
| 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's Profit Margin of 14.60% is amongst the best of the industry. IEX outperforms 85.83% 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 91.34% of its industry peers.
IEX's Operating Margin has declined in the last couple of years.
The Gross Margin of IEX (44.38%) is better than 82.68% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IEX is still creating some value.
Compared to 1 year ago, IEX has more shares outstanding
IEX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IEX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.78 indicates that IEX is not in any danger for bankruptcy at the moment.
IEX has a better Altman-Z score (4.78) than 75.59% of its industry peers.
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.
The Debt to FCF ratio of IEX (3.48) is better than 62.99% of its industry peers.
IEX has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
IEX has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: IEX outperforms 48.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.92
WACC9.57%
2.3 Liquidity
IEX has a Current Ratio of 2.79. This indicates that IEX is financially healthy and has no problem in meeting its short term obligations.
IEX has a Current ratio of 2.79. This is in the better half of the industry: IEX outperforms 73.23% 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.
IEX's Quick ratio of 1.99 is fine compared to the rest of the industry. IEX outperforms 74.80% 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.
IEX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
Based on estimates for the next years, IEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.51% on average per year.
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 Y5.12%
EPS Next 2Y6.6%
EPS Next 3Y6.95%
EPS Next 5Y11.51%
Revenue Next Year4.81%
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 23.66, 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 27.50, IEX is valued at the same level.
With a Price/Forward Earnings ratio of 20.48, IEX is valued on the expensive side.
IEX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of IEX to the average of the S&P500 Index (36.44), we can say IEX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.48 |
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 | 24.83 | ||
| EV/EBITDA | 17.36 |
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)4.63
PEG (5Y)3.72
EPS Next 2Y6.6%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, IEX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.83, IEX pays a bit more dividend than its industry peers.
IEX's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 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
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%
183.38
-0.58 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.46%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change3.91%
Market Cap13.85B
Analysts76.84
Price Target213.98 (16.69%)
Short Float %3.24%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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%
PT rev (3m)-8.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.48 | ||
| P/S | 4.22 | ||
| P/FCF | 24.83 | ||
| P/OCF | 22.44 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.36 |
EPS(TTM)7.75
EY4.23%
EPS(NY)8.95
Fwd EY4.88%
FCF(TTM)7.38
FCFY4.03%
OCF(TTM)8.17
OCFY4.46%
SpS43.46
BVpS51.72
TBVpS-8.58
PEG (NY)4.63
PEG (5Y)3.72
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 | 4.78 |
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 Y5.12%
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 Year4.81%
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%