IDEX Corp (IEX, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $219.6, IDEX Corp has witnessed a daily loss of 0.27%, marked against a three-month change of 17.25%. A thorough analysis, underlined by the GF Score, suggests that IDEX Corp is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Considering these components, GuruFocus assigned IDEX Corp the GF Score of 94 out of 100, which signals the highest outperformance potential.
Understanding IDEX Corp Business
IDEX Corp, with a market cap of $16.61 billion and sales of $3.3 billion, operates in the manufacturing sector, producing pumps, flow meters, valves, and fluidic systems for a diverse range of markets. The company's operating margin stands at 22.97%, reflecting efficient management and strong profitability. Based in Lake Forest, Illinois, IDEX Corp has a global footprint with manufacturing operations in over 20 countries and employs more than 7,000 people. In 2022, the company generated $3.2 billion in revenue and $763 million in adjusted operating income, showcasing its financial robustness and operational excellence.
Financial Strength Breakdown
According to the Financial Strength rating, IDEX Corp's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for IDEX Corp stands impressively at 14.5, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5. With an Altman Z-Score of 6.45, IDEX Corp exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.44, IDEX Corp's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows IDEX Corp's impressive standing among its peers in generating profit. The company's strong Predictability Rank of 3.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence in the company's ability to maintain its profitability over time.
Growth Rank Breakdown
Ranked highly in Growth, IDEX Corp demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 8.7%, which outperforms better than 55.94% of 2753 companies in the Industrial Products industry. Moreover, IDEX Corp has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 11.9, and the rate over the past five years is 7.6. This trend accentuates the company's continued capability to drive growth.
Next Steps
Considering IDEX Corp's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. As IDEX Corp continues to navigate the competitive landscape with its robust financials and growth strategies, it remains a compelling option for value investors seeking market outperformance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
