Quality Investor

IDEX Corporation

Rank #308Capital ReturnWatchlistCompare with other stocks

IEX · NYSE · Industrials

IDEX Corporation (IEX) — Rank #308 by gross profitability (GP/assets 0.22) · ROE 12.0% · Piotroski F-Score 8 / 9.

As-of 2026-10-30 · CIK 0000832101 · all metrics point-in-time as of the filing date.

About

IDEX Corporation, together with its subsidiaries, provides applied solutions in the United States, North America, Europe, Asia, and internationally.

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It operates through three segments: Health & Science Technologies (HST), Fluid & Metering Technologies (FMT) and Fire & Safety/Diversified Products (FSDP). The HST segment designs, produces, and distributes a range of precision fluidics, positive displacement pumps, powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing components, and custom mechanical and shaft seals. This segment also offers engineered hygienic mixers and valves, biocompatible medical devices and implantable products, air compressors and blowers, optical components and coatings, ultra-precision diamond tools, and laboratory and commercial equipment, as well as precision photonic solutions, technical ceramics, hermetic sealing products, porous material structures, and flow control solutions. The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, other fluid-handling pump modules, and systems; and provides flow monitoring and other services. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, and rescue tools; lifting bags and other components and systems; engineered stainless steel banding and clamping devices; and precision equipment for dispensing, metering, and mixing colorants and paints.

The company was incorporated in 1987 and is headquartered in Northbrook, Illinois.

Industry
Specialty Industrial Machinery
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

8,700

Industry

Specialty Industrial Machinery

Exchange

NYSE

11/12

Flags passed

IEX fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
12.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.71
Current ratio
2.78×
Net cash
-$1.15B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.8%

Growth

2/2 pass
Revenue growth
5.8%
Piotroski F-Score
8 / 9
Share dilution
-0.8%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 32nd percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

32nd pctl of 26 SIC 35 peers

Return on equity

12.0%

Gross margin

44.5%

56th pctl of 26 SIC 35 peers

Revenue growth (YoY)

5.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

2.8%

Revenue CAGR (5Y)

8.0%

Earnings CAGR (3Y)

-6.3%

FCF CAGR (3Y)

8.0%

Cash Flow Health

Is the cash real?

No warning flags · FCF 28% above net income

Free cash flow

$616.80M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

27.6%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.8%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $1.15B, F-Score 8/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.71

68th pctl of 26 SIC 35 peers (best = lowest)

Current ratio

2.78×

92nd pctl of 26 SIC 35 peers

Quick ratio

1.80×

Net cash

-$1.15B

Cash & equivalents minus total debt.

Piotroski F-Score

8 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.8 / 5

Good
Payout ratio
44.0%4/5 Strong
FCF coverage
2.90×4/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.71 · IC N/A2/5 Fair

Capital allocation quality

Composite score

3.7 / 5

Good
Share count trend(net buybacks)
-0.8%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
10 yr5/5 Strong
Net debt trajectory(deleveraging)
1.4%3/5 Good

Lifecycle Phase History

20202025
Decline
Capital Return
Value

Price History

IEX+11.3% · +2.2% CAGRSPY+82.9% · +12.8% CAGR