IE

IDEX Corp

IEX
—
Accountable AI Logo

IDEX Corp AI Insights

Informational only. Not investment advice.
As of 2026-01-16

Snapshot

  • Goodwill of 3.4B is 85% of equity, creating negative tangible book value (-679M). Material impairment risk if acquisitions underperform.[Goodwill]
  • Operating margin TTM 20.6% vs industry median 6.7% - 3x advantage drives 478M net income on 3.4B revenue.[Operating Margin TTM]
  • FCF TTM 584M (17% margin) with capex only 59M (1.7% of revenue) - capital-light model funds 130M in buybacks + dividends.[Free Cash Flow TTM]

Watch Triggers

  • Operating Margin TTM: Falls below 18% — Margin compression would confirm EPS decline trend and remove premium valuation justification.
  • Asset Impairment Charge: Exceeds 50M annually — Goodwill impairment would signal M&A strategy failure and directly hit equity.
  • EPS Growth 3Y: Turns positive — Would invalidate bear thesis and support current premium multiple.

Bull Case

Premium margins (20.6% operating, 14% net) with 90% FCF conversion enable sustained capital returns without leverage increases at 0.48 debt/equity.

Operating Margin TTMFree Cash Flow TTMDebt to Equity

ROE 12.2% and ROIC 8.1% exceed industry medians (7.4%, 4.8%) despite acquisition-heavy strategy, validating M&A discipline.

ROE TTMROIC TTMGoodwill

Bear Case

P/E of 30x vs industry 25x and P/S 4.3x vs 2.1x median prices in perfection while EPS has declined 8% annually for 3 years.

PE RatioPS RatioEPS Growth 3Y

Goodwill 85% of equity means any acquisition write-down directly impairs book value; tangible equity already negative at -679M.

GoodwillTangible Book ValueCommon Stockholders Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
45%

Leverage IEX's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

Margin expansion likely to stall as 3Y EPS CAGR of -8% signals pricing/mix headwinds despite strong current margins.

1-3ymed
  • EPS declined 8% annually over 3 years despite stable revenue
  • 5Y EPS CAGR only 3.9% vs peers at 13.8%
  • Asset turnover 0.49x well below industry 0.72x
EPS Growth 3Y: -8.0%EPS Growth 5Y: 3.9% vs median 13.8%Asset Turnover: 0.49x vs median 0.72x
Valuation Context
Caveats

Public Strategies Rankings

See how IDEX Corp ranks across different investment strategies.

Leverage IEX's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.
Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.