Idex Corp

IEX

Pumps & Pumping Equipment

Mkt Cap

$16.01B

PE

27.75

Debt

$1.332B

Cash

$616.3M

EV

$16.73B

FCF

$642.1M

Market Cap

$16.01B

P/E Ratio

27.75

Debt

$1.332B

Cash

$616.3M

EV

$16.73B

FCF

$642.1M

Charts data: {"Earnings":[{"time":"2014-12-30","value":279386000},{"time":"2015-12-30","value":282807000},{"time":"2016-12-30","value":271109000},{"time":"2017-12-30","value":337257000},{"time":"2018-12-30","value":410573000},{"time":"2019-12-30","value":425500000},{"time":"2020-12-30","value":377778000},{"time":"2021-12-30","value":449300000},{"time":"2022-12-30","value":586700000},{"time":"2023-12-30","value":595600000}],"Sales":[{"time":"2014-12-30","value":2147767000},{"time":"2015-12-30","value":2020668000},{"time":"2016-12-30","value":2113043000},{"time":"2017-12-30","value":2287312000},{"time":"2018-12-30","value":2483666000},{"time":"2019-12-30","value":2494573000},{"time":"2020-12-30","value":2351646000},{"time":"2021-12-30","value":2764800000},{"time":"2022-12-30","value":3181900000},{"time":"2023-12-30","value":3273900000}],"Net Margins":[{"time":"2014-12-30","value":0.1300820805981282},{"time":"2015-12-30","value":0.13995718247629002},{"time":"2016-12-30","value":0.12830264220841697},{"time":"2017-12-30","value":0.14744687213637667},{"time":"2018-12-30","value":0.16530926461126416},{"time":"2019-12-30","value":0.17057027395069216},{"time":"2020-12-30","value":0.160644076531927},{"time":"2021-12-30","value":0.1625072337962963},{"time":"2022-12-30","value":0.18438668719947202},{"time":"2023-12-30","value":0.18192369956321208}],"Assets":[{"time":"2014-12-30","value":2908070000},{"time":"2015-12-30","value":2805443000},{"time":"2016-12-30","value":3154944000},{"time":"2017-12-30","value":3399628000},{"time":"2018-12-30","value":3473857000},{"time":"2019-12-30","value":3813912000},{"time":"2020-12-30","value":4414398000},{"time":"2021-12-30","value":4917200000},{"time":"2022-12-30","value":5511900000},{"time":"2023-12-30","value":5865200000}],"Stockholders Equity":[{"time":"2014-12-30","value":1486451000},{"time":"2015-12-30","value":1443291000},{"time":"2016-12-30","value":1543894000},{"time":"2017-12-30","value":1886542000},{"time":"2018-12-30","value":1994640000},{"time":"2019-12-30","value":2263229000},{"time":"2020-12-30","value":2540326000},{"time":"2021-12-30","value":2803100000},{"time":"2022-12-30","value":3039600000},{"time":"2023-12-30","value":3541400000}],"ROE":[{"time":"2014-12-30","value":0.18795506881827925},{"time":"2015-12-30","value":0.19594593190146686},{"time":"2016-12-30","value":0.17560078606432825},{"time":"2017-12-30","value":0.17876993992182522},{"time":"2018-12-30","value":0.2058381462319015},{"time":"2019-12-30","value":0.18800572102955557},{"time":"2020-12-30","value":0.14871240935218552},{"time":"2021-12-30","value":0.1602868253005601},{"time":"2022-12-30","value":0.19301881826556125},{"time":"2023-12-30","value":0.16818207488563844}],"ROA":[{"time":"2014-12-30","value":0.1493550705450694},{"time":"2015-12-30","value":0.15469250310913463},{"time":"2016-12-30","value":0.13126318565400844},{"time":"2017-12-30","value":0.1478267622222196},{"time":"2018-12-30","value":0.16496735472991547},{"time":"2019-12-30","value":0.15181341362884093},{"time":"2020-12-30","value":0.11795787330458196},{"time":"2021-12-30","value":0.12954526966566338},{"time":"2022-12-30","value":0.13632322792503493},{"time":"2023-12-30","value":0.12962899815863058}]}

IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction and drying systems, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, precision photonic solutions, and precision gear and peristaltic pump technologies. This segment serves food and beverage, pharmaceutical and biopharmaceutical, cosmetics, marine, chemical, wastewater and water treatment, life sciences, research, and defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. The company was incorporated in 1987 and is headquartered in Northbrook, Illinois.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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6/30/22
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3/31/22
10-K
12/31/21
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9/30/21
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3/31/21
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12/31/20
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3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Idex Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$642.1M	$689.9M	$739.4M	$790.4M	$842.7M	$896.3M	$950.9M	$1.006B	$1.062B	$1.118B	$1.174B	$11.74B
DCF		$599.9M	$559.1M	$519.7M	$481.8M	$445.6M	$411.1M	$378.2M	$347.1M	$317.8M	$290.1M	$2.901B
Value	$7.252B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 10%

Earnings Stability 89%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	14%	13%	15%	17%	17%	16%	16%	18%	18%	18%
ROA	15%	13%	15%	16%	15%	12%	13%	14%	13%	12%
ROE	20%	18%	18%	21%	19%	15%	16%	19%	17%	16%

What is the average Net Margin?

The average Net Margin over the past 5 years is +17.09%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.36%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +13.84%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.6%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +17.73%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.46%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.68	2.83	2.22	2.01	1.78	2.03	2.44	3.02	2.13	2.07
Debt Equity	0.59	0.66	0.46	0.43	0.38	0.41	0.43	0.49	0.38	0.37
MIN
Graham Stability	-	-	100%	100%	100%	97%	100%	100%	100%	97%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.07.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.13.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.97.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	6.5%	5.7%	12%	2.9%	1.2%
Net Income	12%	7.7%	16%	1.5%	1%
Stockholders Equity	13%	12%	12%	17%	1.1%
FCF	8.2%	8.2%	6.6%	28%	0.78%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.68%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.19%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +7.72%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.02%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.17%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.08%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.17%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +0.78%.