IDEX Corp (IEX)
OvervaluedFundamental
70
Price
$227.98
Market Cap
$17.04B
Part 1 · What the company is worth
Overview
IDEX Corporation is a US industrial group that describes itself as an applied solutions provider serving niche markets with mission-critical components. It is not one factory but a federation of more than fifty subsidiary businesses, each holding a small, specialised position: precision pumps that move a few microlitres of fluid inside a laboratory analyser, metering pumps and valves for water treatment and chemical plants, optical and ceramic components, firefighting pumps and hydraulic rescue tools, stainless-steel banding and clamping devices, and paint dispensing equipment. The common thread is that the product is usually a small part of a much larger machine or system, engineered into a customer's design, and cheap relative to the cost of the equipment failing. The fiscal year ends on 31 December; full-year 2025 net sales were about $3.46 billion.
How it makes money
IDEX sells physical products: it designs and manufactures components and small systems and books revenue when they are shipped, either directly to equipment makers and end users or through distributors. There is no subscription or licence stream. Two things shape the economics. First, many products are specified into an OEM's instrument or plant at the design stage, so the initial sale is followed by years of repeat orders and replacement parts as long as that platform stays in production. Second, part of the business is short-cycle and book-and-ship — orders received and delivered inside the same quarter — while fire trucks, water projects and capital equipment carry longer lead times. Growth comes from a mix of volume, price and a steady programme of bolt-on acquisitions, which the company itself names as a core part of its strategy.
Revenue by segment
Precision fluidics, positive displacement pumps, powder and liquid processing equipment, sealing solutions, optical and ceramic components and flow control products. Customers are makers of life-science, medical, analytical and semiconductor instruments, plus pharmaceutical, food processing and industrial users.
Positive displacement pumps, valves, flow meters, injectors and fluid-handling systems, sold to water and wastewater utilities, energy, agriculture, chemical and general industrial customers.
Firefighting pumps and equipment, hydraulic rescue tools, stainless-steel banding and clamping devices and paint dispensing equipment. Buyers are fire departments and rescue organisations, automotive and aerospace manufacturers, and retail paint chains.
Competitive moat
Switching costs · NarrowThe filing does not use the word moat, and the competitive factors it lists are ordinary ones: product quality, design and engineering capability, conformity to customer specifications, quality of after-sales support and delivery times. The durable advantage, such as it is, follows from that list rather than being claimed: when a pump or a fluidic component is engineered into an OEM's analytical instrument and validated with it, replacing the supplier means re-qualifying the whole machine, for a part that is a small fraction of its cost. That sustains pricing and repeat business inside each niche. The limits are equally visible — IDEX is small in most of its markets, the company itself warns that competitive markets could reduce sales and margins, and the shorter-cycle industrial lines have no such lock-in.
What drives demand
Moderately cyclicalDemand sits between defensive and cyclical, and the three segments do not move together. FMT follows industrial production, chemical and energy capital spending and municipal water budgets — it turns down with the industrial cycle, though water and wastewater spending is slower-moving. HST follows laboratory and pharmaceutical instrument budgets and, more recently, semiconductor and data-centre related projects, which can swing hard in both directions. FSDP is the steadiest leg: fire departments and rescue services buy on replacement cycles and public budgets rather than on the state of the economy. IDEX's own risk disclosure ties demand to levels of industrial activity, customer capital spending and commodity prices such as oil. The offsetting factor is the aftermarket and replacement content, which keeps orders flowing when new equipment purchases stall.
Key risks
- A slowdown in the US or international economy — IDEX lists a decline in US or international economic conditions as a risk to sales and profitability, noting that roughly half of its sales are made outside the United States and that levels of industrial activity and customer capital spending drive demand.
- Competitive markets could compress sales and margins — The company discloses that its segments operate in competitive markets and that competition could reduce both sales and profit margins.
- Availability and cost of raw materials, parts and components — IDEX flags that supply availability and price swings in raw materials, parts and components could materially harm its operations — a direct exposure for a business built on machining, castings and electronic content.
- Acquisitions may not be found, integrated or divested well — Growth depends in part on buying businesses. The filing warns the company may not identify suitable targets, may fail to integrate what it buys, and may not execute divestitures as planned.
- Goodwill and intangible impairment — Years of acquisitions have left a large goodwill and intangible balance on the books; IDEX discloses that a significant write-off of those assets would reduce its net worth.
- Cybersecurity incidents and data privacy — Item 1A carries a dedicated risk factor on information systems interruptions and intrusions, including cybersecurity attacks and violations of privacy and data security laws.
- Uncertainty around artificial intelligence — The company discloses uncertainties in the deployment and use of artificial intelligence as an unproven risk to its operations and reputation, and separately cites changes in demand from AI-driven markets among its forward-looking cautions.
- Currency, interest rates and commodity prices — Separate risk factors cover exchange-rate movements across the currencies IDEX trades in, interest-rate changes affecting its revolving credit facility, and a sustained decline in commodity prices such as oil, which would reduce customer spending.
- Climate transition and physical climate risk — IDEX discloses that the global transition to a lower-carbon economy, and the physical effects of climate change, could affect its financial results; a separate factor covers severe weather, natural disasters and public health threats disrupting operations.
- Labour availability and retention of key people — Two risk factors address people: difficulty recruiting and retaining the workforce needed to operate and grow, and the loss of executive leadership and other key personnel needed to carry out the strategy.
- Intellectual property and litigation — The filing discloses that inadequate protection of intellectual property or infringement disputes could damage its competitive position, and that unfavourable outcomes in pending litigation and contingencies could harm results.
Customer concentration
Concentration is very low and the filing says so directly: in 2025 no customer accounted for more than 3% of net sales. IDEX does not publish a combined share for its largest customers, so no aggregate figure can be given here. The structure explains the number — more than fifty businesses selling into different niches, many through distributors, means no single account is large enough to matter on its own.
The case for
Buyers argue that IDEX is the kind of business that compounds quietly: small, engineered-in components that are critical to the customer's machine but cheap relative to it, sold into more than fifty niches where IDEX is often among the few qualified suppliers. That, they say, supports pricing power, high margins and cash conversion through the cycle, while extreme customer diversification — no account above 3% of sales in 2025 — removes the single-client risk that hurts many industrial suppliers. They point to the mix: HST, the largest segment at 43% of 2025 sales, is levered to life sciences, semiconductors and data-centre related work, where management reported order momentum building late in 2025, while fire and rescue provides a budget-funded floor. And they see the acquisition programme as a repeatable engine — cash redeployed into more small niche businesses run the same way.
The case against
Sellers fear that the same structure hides fragility. Two of the three segments — FMT at 35% and FSDP at 22% of 2025 sales — depend on industrial production, chemical and energy capital spending and commodity prices, and the company itself warns that an economic slowdown, competitive pressure and raw-material costs could squeeze sales and margins; results in those segments through 2025 were described as managed against a challenging demand environment. They worry that growth has leaned on acquisitions rather than on the existing businesses, which leaves a large goodwill and intangible balance whose write-off IDEX discloses would cut net worth, and which depends on a supply of suitable targets at sensible prices. They also note that a federation of more than fifty subsidiaries is hard for an outsider to verify piece by piece, that half of sales are exposed to currency and trade policy, and that the AI-linked order strength cited in the fourth quarter is a demand source the company's own risk factors describe as uncertain.
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
IDEX's 10-K names Dover's pump brands (Maag, Blackmer, Wilden) as its principal competitors in rotary gear, air-operated diaphragm and LPG pumps sold to the same industrial and chemical-processing customers.
Its Precision and Science Technologies segment (Milton Roy, LMI, Thomas, Seepex, ARO) sells the same metering pumps, diaphragm pumps and laboratory fluidics that IDEX offers in fluid handling and life-science instrumentation.
Graco builds pumps and precision dispensing and spraying equipment for the same industrial fluid-transfer and coatings applications IDEX serves through its pump and dispensing brands.
Named by IDEX as a competitor in sealing devices and fluid-path components, Parker sells to the same instrument and equipment makers that buy IDEX Health & Science fittings, valves and seals.
Nordson competes for the same precision dispensing and medical-fluidics customers that IDEX's dispensing and health-and-science businesses target, with comparable pumps, valves and applicators.
Balance Sheet & Liquidity
Revenue
$3.59B
Trailing 12 months (through 6/30/2026)
Net Income
$520M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$617M
Total Equity
$4.03B
Total Liabilities
$2.90B
Current Ratio
3.05
Interest Coverage
-
Debt/EBITDA
1.95
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$178.91
Current Price
$227.98
Margin of Safety
-27.4%
Fair Value Range
$119.89 - $237.93
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
32.80
ROE
12.0%
P/B Ratio
4.19
P/FCF
26.20
Gross Margin
44.7%
ROIC
9.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
9.2%
WACC
8.8%
ROIC − WACC
+0.5 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (21)
- EPS shows upward trend
- EPS CAGR 8.79%
- Price CAGR 9.55%
- ROIC 9.2%
- Gross Margin 44.7%
- P/FCF 26.20
- Debt/Equity ratio
- Operating Margin 20.7%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- ROE 12.9%
- Revenue Growth 5Y 8.0%
- Analyst Consensus 65% Buy
- Earnings Surprise avg 6.6%
- Earnings Quality (OCF/NI) 1.38
- Share Dilution -0.9%
- Net Margin Trend 14.5% vs 14.1%
- Piotroski F-Score 8/9
Failed (5)
- P/B Ratio 4.19
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- PEG Ratio 6.10
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Eric D. Ashleman | CEO, President & Director | 58 |
| Ms. Lisa M. Anderson | Senior VP, General Counsel, Chief Administrative Officer & Corporate Secretary | 48 |
| Mr. Akhil Mahendra | Vice President of Corporate Development | 43 |
| Mr. Sean M. Gillen | Senior VP & CFO | 39 |
| Ms. Allison S. Lausas | VP & Chief Accounting Officer | 45 |
| Mr. James Giannakouros C.F.A. | Vice President of Investor Relations | - |
| Mr. Eric Berg | VP, Associate General Counsel & Chief Compliance Officer | - |
| Mr. Mark Spencer | Vice President of Global Communications | - |
| Ms. Abigail Roche | VP, Chief Sustainability Officer & Associate General Counsel | - |
| Mr. Troy McIntosh | VP and Chief Diversity, Equity & Inclusion Officer | - |
Audit Risk
6
Board Risk
2
Compensation Risk
8
Shareholder Rights Risk
9
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-19
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-03
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for IEX, sourced from Markets Gazette.