IDEX Corp. (IEX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lam Research Corp.

Trane Technologies Plc

Parker-Hannifin Corp.

Xylem, Inc.

Applied Materials, Inc.

Dover Corp.

Illinois Tool Works Inc.

Johnson Controls International Plc

IDEX Corp.

Ingersoll Rand, Inc.

Carrier Global Corp.

Why is IDEX Corp. ?

High Management Efficiency with a high ROCE of 17.96%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.83 times

Poor long term growth as Operating profit has grown by an annual rate 4.78% of over the last 5 years

Negative results in Jun 25

INTEREST(HY) At USD 31.7 MM has Grown at 81.14%
OPERATING CASH FLOW(Y) Lowest at USD 645.3 MM
ROCE(HY) Lowest at 12.25%

With ROCE of 13.18%, it has a expensive valuation with a 3.37 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.43%, its profits have fallen by -14.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.43% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IDEX Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is IDEX Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

IDEX Corp.

-21.43%

-0.40

29.31%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.96%

EBIT Growth (5y)

4.78%

EBIT to Interest (avg)

15.39

Debt to EBITDA (avg)

0.83

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.63

Tax Ratio

21.43%

Dividend Payout Ratio

41.48%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

17.96%

ROE (avg)

16.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.20

EV to EBIT

25.61

EV to EBITDA

20.22

EV to Capital Employed

3.37

EV to Sales

5.41

PEG Ratio

Dividend Yield

128.14%

ROCE (Latest)

13.18%

ROE (Latest)

12.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 7.41

DIVIDEND PAYOUT RATIO(Y)

Highest at 40.73%

RAW MATERIAL COST(Y)

Fallen by 0.27% (YoY

NET SALES(Q)

Highest at USD 865.4 MM

OPERATING PROFIT(Q)

Highest at USD 241.2 MM

-10What is not working for the Company

INTEREST(HY)

At USD 31.7 MM has Grown at 81.14%

OPERATING CASH FLOW(Y)

Lowest at USD 645.3 MM

ROCE(HY)

Lowest at 12.25%

Here's what is working for IDEX Corp.

Dividend per share

Highest at USD 7.41 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 865.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 241.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Dividend Payout Ratio

Highest at 40.73%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 51 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for IDEX Corp.

Interest

At USD 31.7 MM has Grown at 81.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 645.3 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)