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1. Company Snapshot

1.a. Company Description

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, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as offers 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.


IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.

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1.b. Last Insights on IEX

IDEX Corporation faces challenges, including weakness in its Fluid & Metering Technologies (FMT) segment, rising costs, and foreign exchange headwinds. Despite a 7% revenue growth in Q2, driven by acquisitions and strong Health & Science Technologies (HST) performance, margins slipped. The company's growth outlook is modest, with 1-3% organic sales growth and $8.10-8.45 EPS. IDEX's valuation is considered fair, but some analysts recommend caution due to near-term uncertainty. The company maintains a robust financial position, with strong free cash flow and a healthy balance sheet.

1.c. Company Highlights

2. IDEX's Q3 2025 Earnings: A Strong Beat on Revenue and EPS

IDEX reported a robust third quarter, with organic revenue growth of 5% and adjusted EPS of $2.03, beating estimates of $1.93. The company's Health & Science Technologies (HST) segment was a standout, with organic orders and sales increasing 5% and 10% year-over-year, driven by growth in pharma and data centers. Adjusted EBITDA margin and adjusted EPS came in higher than expected, driven by volume leverage and platform optimization efforts. The company's free cash flow conversion was 123% of adjusted net income, demonstrating its ability to generate cash.

Publication Date: Oct -31

📋 Highlights
  • Outperforming Q3 Results:: IDEX reported better-than-expected Q3 results with organic revenue growth of 5%, driven by 10% organic sales growth in the Health & Science Technologies (HST) segment.
  • Strong HST Momentum:: HST achieved record orders of $390 million, with 5% organic order growth and 10% organic sales growth, fueled by pharma, data centers, and semiconductor MRO markets.
  • Margin Expansion:: HST improved adjusted EBITDA margins via volume leverage and full run rate of platform optimization, while FMT exceeded expectations with strong pricing and profitability.
  • Free Cash Flow Strength:: Generated $189 million in free cash flow (123% conversion of adjusted net income), aligning with the 2025 target of at least 100% conversion despite 2% year-on-year decline.

Segment Performance

The HST segment drove strong margin improvement, with record high orders of $390 million. The Fluid & Metering Technologies (FMT) segment also performed well, with sales and profitability exceeding expectations driven by strong execution and pricing. However, the Fire & Safety Diversified Products (FSDP) segment was impacted by disruptions in the funding environment and sluggish replenishment spend.

Outlook and Guidance

IDEX narrowed its full-year guidance range to $7.86 to $7.91, remaining within its previously communicated outlook. The company expects to deliver on its second-half expectations and is well-positioned for long-term growth. Management is confident in its ability to drive value for shareholders through its portfolio of critical technologies and culture of operational excellence.

Valuation and Growth Prospects

With a P/E Ratio of 26.75 and an EV/EBITDA of 13.86, IDEX's valuation suggests that investors have high expectations for its growth prospects. Analysts estimate next year's revenue growth at 3.4%. Given the company's strong track record of delivering on its guidance and its commitment to operational excellence, it is likely that IDEX will continue to drive growth through its diversified portfolio.

Capital Allocation and M&A

IDEX has a strong portfolio and generates consistent free cash flow, which it can deploy through M&A, dividends, and share repurchases. The company aims to return 30% to 35% of adjusted net income to shareholders through dividends and share repurchases. As Eric Ashleman noted, "taking advantage of the businesses we've acquired and driving value from them is a high priority." This focus on capital allocation is expected to drive long-term value creation for shareholders.

3. NewsRoom

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IDEX Corporation Appoints Sean Gillen as SVP, Chief Financial Officer

Dec -04

Source: businesswire.com

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Edgestream Partners L.P. Grows Position in IDEX Corporation $IEX

Dec -03

Source: defenseworld.net

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IDEX Stock Exhibits Strong Prospects Despite Persisting Headwinds

Nov -28

Source: zacks.com

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Clarkston Capital Partners LLC Takes $17.56 Million Position in IDEX Corporation $IEX

Nov -28

Source: defenseworld.net

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Brokerages Set IDEX Corporation (NYSE:IEX) Price Target at $198.86

Nov -18

Source: defenseworld.net

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Head-To-Head Survey: IDEX (NYSE:IEX) & Illinois Tool Works (NYSE:ITW)

Nov -15

Source: defenseworld.net

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Dodge & Cox's Strategic Moves: Aon PLC Takes Center Stage with 0.67% Portfolio Impact

Nov -13

Source: gurufocus.com

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IDEX Corporation Declares Regular Quarterly Cash Dividend

Nov -13

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.06%)

6. Segments

Health & Science Technologies

Expected Growth: 5%

IDEX Corporation's Health & Science Technologies segment growth is driven by increasing demand for precision fluidics, growing adoption of genetic sequencing, and rising need for bioprocessing and medical technologies. Additionally, expansion in emerging markets, strategic acquisitions, and innovative product launches contribute to the segment's 5% growth.

Fluid & Metering Technologies

Expected Growth: 4%

IDEX Corporation's Fluid & Metering Technologies segment growth is driven by increasing demand for precision flow control and metering solutions in industries such as chemical processing, oil and gas, and water treatment. Additionally, the segment benefits from its diversified product portfolio, strategic acquisitions, and investments in digital technologies, enabling it to capitalize on emerging trends in industrial automation and IoT.

Fire & Safety/Diversified Products

Expected Growth: 7%

IDEX Corporation's Fire & Safety/Diversified Products segment growth is driven by increasing demand for fire suppression systems, clean agent solutions, and rescue equipment. Additionally, the segment benefits from a strong aftermarket presence, a growing need for safety and security products, and strategic acquisitions that expand its product portfolio and geographic reach.

7. Detailed Products

Fluid & Metering Technologies

IDEX Corporation's Fluid & Metering Technologies segment designs, manufactures, and distributes a wide range of fluidics systems and components, including pumps, valves, and meters.

Health & Science Technologies

IDEX Corporation's Health & Science Technologies segment develops and manufactures a range of precision equipment and consumables for the healthcare, life sciences, and industrial markets.

Fire & Safety/Diversified Products

IDEX Corporation's Fire & Safety/Diversified Products segment designs, manufactures, and distributes a range of products, including firefighting equipment, rescue tools, and engineered components.

8. IDEX Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

IDEX Corporation's products are highly specialized and customized, making it difficult for substitutes to emerge. However, the company's reliance on a few key customers increases the threat of substitutes.

Bargaining Power Of Customers

IDEX Corporation's customers are large and have significant bargaining power, which can lead to downward pressure on prices and margins.

Bargaining Power Of Suppliers

IDEX Corporation's suppliers are fragmented and lack bargaining power, giving the company an upper hand in negotiations.

Threat Of New Entrants

The high barriers to entry in IDEX Corporation's industries, including the need for specialized equipment and expertise, make it difficult for new entrants to emerge.

Intensity Of Rivalry

While IDEX Corporation operates in a competitive landscape, the company's diversified portfolio and strong brand recognition help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.24%
Debt Cost 4.98%
Equity Weight 72.76%
Equity Cost 8.87%
WACC 7.81%
Leverage 37.43%

11. Quality Control: IDEX Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 7.2

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Momentum: 7.0

Volatility: 7.3

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A-Score: 4.8/10

Value: 3.1

Growth: 4.9

Quality: 7.9

Yield: 3.0

Momentum: 2.0

Volatility: 8.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

177.51$

Current Price

177.51$

Potential

-0.00%

Expected Cash-Flows