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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
IEX — frequently asked questions
Is IDEX Corporation overvalued?
In our latest published analysis dated 2026-10-11, IEX looks meaningfully overvalued. The price recorded at analysis is 234 USD versus our fair value of 168 USD; the high endpoint is presented separately as potential value of 185 USD. That implies roughly 28.1% downside to fair value at that date.
Our latest published report, analyzed 2026-10-11, gives IEX a fair value of 168 USD and a potential value of 185 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for IDEX Corporation's archetype; it is a dated research output, not a live price.
Should I buy IEX now?
Our latest published rating for IEX, analyzed 2026-10-11, is Sell. IDEX Corporation looks meaningfully overvalued at the analysis-date price of 234 USD versus fair value of 168 USD; potential value is 185 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for IEX?
The dedicated bear-case section in our report analyzed 2026-10-11 documents IDEX Corporation's material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is IEX's rating?
Our latest published rating for IEX, analyzed 2026-10-11, is Sell, with a published moat assessment of 7.5/10 (Narrow). It reflects our fair value of 168 USD, the potential value of 185 USD, and the price recorded at analysis (234 USD).
Ten raport nie został jeszcze przetłumaczony. Odśwież za kilka minut, gdy kolejka tłumaczeń go przetworzy.
§1 Podsumowanie wykonawczeEN
Odpowiedź w 30 sekundSell
Cena a wartość
Cena
$234.29
Wartość godziwa
$168.38
Wartość potencjalna
$185.31
Stan na
2026-10-09
Dlaczego to może zadziałać
Accelerated commercial adoption of proprietary precision fluidic cooling manifolds in hyperscale AI data centers combined with non-idling high-purity water heating systems for advanced semiconductor fabs, driving Health and Science Technologies organic growth into double digits.
Co zmieniłoby naszą ocenę
Expiration of tariff refunds accompanied by selective customer rebate concessions and persistent input inflation.
IDEX Corporation is assigned a Sell rating as its share price of $234.29 on October 9, 2026 trades at a substantial 39.14% premium to the house Fair value of $168.38. While IDEX maintains exceptional operational execution and secular momentum in Health and Science Technologies, prevailing valuation multiples leave no safety margin against persistent European and Asian industrial headwinds.4,5,8
IDEX demonstrates admirable commercial discipline across its precision fluidics and instrumentation portfolio. In the second quarter of 2026, management raised full-year organic revenue growth to 5%-6% and adjusted guidance to $8.70-$8.85, supported by low double-digit expansion in Health and Science Technologies where data center liquid cooling and semiconductor equipment customers are prebooking capacity through 2027. are projected to expand from 20.23% in FY2025 toward 23.2% by FY2030 as 80/20 operational rigor optimizes acquired business units.
However, this operational strength is heavily discounted by market pricing. IDEX trades at 23.98x forward earnings, commanding a premium over diversified peer ITW (21.40x forward P/E) despite ITW generating significantly higher operating margins (26.90% vs IDEX's 20.23%). Furthermore, international operations remain exposed to cyclical destocking across Europe ($846.2M revenue) and Asia ($563.0M revenue), while guided FY2026 capex surges to $110M. With the house Fair value synthesized at $168.38, representing an implied return of -28.13%, capital preservation mandates a Sell rating.3,4,5,7,8
Switching Costs
Custom-engineered fluidic sub-assemblies, precision micro-pumps, and specialized valves are designed directly into customer instruments and machines, creating prohibitive platform re-engineering, regulatory validation, and operational switching costs for OEMs.5
Proprietary patents and specialized trade secrets protect key technologies, such as non-idling high-purity water heating systems for semiconductor manufacturing and specialized automation fluidics.5
Cycle upside
During an industrial upcycle, semiconductor fabrication equipment builds surge alongside hyper-scale AI data center construction, driving rapid order conversion for IDEX's precision liquid cooling manifolds and high-purity fluidic assemblies. Concurrently, general industrial demand in North America and Europe rebounds, filling rapid-replenishment channels and driving operating margin expansion through overhead absorption and 80/20 operational efficiencies.5
Rekomendacja domu
The investment committee maintains a Sell rating on IDEX Corporation. The shares price in flawless multi-year execution across secular niches while ignoring cyclical exposure in European and Asian industrial markets. Investors should eliminate or trim equity exposure, as the share price of $234.29 on October 9, 2026 implies -28.13% downside to the house Fair value of $168.38.4
Przegląd spółki
IDEX Corporation is an applied solutions manufacturer specializing in fluidics systems, precision optics, fire and rescue equipment, and metering devices. The company serves global niche industrial, life sciences, semiconductor, and municipal markets through three operating segments: Health and Science Technologies, Fluid and Metering Technologies, and Fire and Safety Diversified Products.
IDEX generates broad geographic revenue diversification, with the United States accounting for $1,760.8M (50.9%), Europe generating $846.2M (24.5%), and Asia contributing $563.0M (16.3%) of total FY2025 revenue ($3,457.5M). The business maintains low customer concentration, with its largest individual customer representing less than 3% of net sales.
§2 Scenariusz negatywnyEN
In a severe macroeconomic stress scenario, synchronized industrial contractions in Europe and Asia cascade into broad-based original equipment manufacturer inventory destocking across the Fluid and Metering Technologies and Fire and Safety Diversified Products segments. As international revenues contract, domestic general industrial customers reduce rapid-replenishment order velocity. Compounding top-line deceleration, the cessation of tariff refund recoveries coincides with selective pricing rebate pressure, causing gross margins to compress below 42% and driving consolidated operating margins under 19.5%. Concurrently, full-year capital expenditures of $110M committed to prebooked capacity must still be funded against declining operating cash flows, reducing annual free cash flow below $450M and leaving debt of $1.89B elevated. In this environment, IDEX's compounder valuation premium evaporates, compressing its forward multiple toward 17.0x and exposing existing equity holdings to severe capital loss.
Organic revenue growth decelerates toward 1% to 2% under persistent European and Asian industrial destocking.5
Jak ta teza może się załamać
Tariff rebate expiration and commercial pricing lag trigger sustained operating margin contraction across FMT and HST segments.
Management noted selective rebate activity on tariff adjustments in Q2 and tough margin comparisons as tariff pricing took effect faster than underlying costs. If tariff refunds cease and input inflation persists without offsetting OEM price increases, consolidated operating margin falls below 19.5%, down from FY2025 20.23%.5,7
FV impact
0%
Operating margin 3 points lower throughout
Trigger
Within 12 months
Sygnały wczesnego ostrzegania do monitorowania
Pięć zdarzeń, które osłabiłyby naszą tezę inwestycyjną.
Tariff rebate expiration and input inflation outpace OEM price adjustments, causing fixed cost de-leverage across FMT and HST.
Obecnie:20.23% in FY2025
Alarm, jeśli< 19.5%
02
§3 Przewaga konkurencyjnaEN
Narrow
IDEX Corporation possesses a durable narrow economic moat anchored primarily by high switching costs and specialized intangible assets. In its Health and Science Technologies segment, IDEX manufactures mission-critical fluidic sub-assemblies that are embedded directly into life science analytical instruments, medical diagnostic devices, and semiconductor wafer fabrication equipment. Because the cost of component failure is catastrophic while the unit cost represents a fraction of the total tool value, OEMs face substantial re-certification risks and operational delays if they attempt to switch component suppliers.
The company enhances this architectural defensibility through proprietary process intellectual property and continuous co-development with leading OEMs. For example, IDEX's patented high-purity water heating solution for semiconductor manufacturing operates without continuous idling, delivering vital water and energy conservation benefits that competitive offerings cannot replicate. Combined with disciplined 80/20 operational execution that prunes product line complexity and focuses resources on core accounts, IDEX sustains gross margins of 44.51% and maintains return on capital above its cost of financing.
Zysk ekonomiczny
IDEX delivers a return on invested capital of 9.52%, which exceeds its moderate weighted average cost of capital of 8.71%, generating a positive economic profit spread of 81 basis points. However, this return profile lags premier peer ITW, which generates a 26.90% operating margin and return on equity exceeding 100%.2,3
7.5/ 10
Narrow
Sources of advantage
01Switching Costs — Custom-engineered fluidic sub-assemblies, precision micro-pumps, and specialized valves are designed directly into customer instruments and machines, creating prohibitive platform re-engineering, regulatory validation, and operational switching costs for OEMs.Wide
02Intangible Assets — Proprietary patents and specialized trade secrets protect key technologies, such as non-idling high-purity water heating systems for semiconductor manufacturing and specialized automation fluidics.Moderate
Znane zagrożenia dla przewagi
Zagrożenie
Powaga
Oś czasu
Złagodzenie
OEM redesign cycles and next-generation equipment platform transitions phasing out legacy fluidic architectures.
medium
2 to 4 years
Early engagement with OEM system architects to co-design replacement modular components and embed proprietary automation gear.5
The highlighted cell is Fair value when every assumption sits at its base level ($168.38). Each row and column shows what Fair value becomes when one assumption moves.
Consolidated revenue growth of 6.74% in FY2026 and 5.99% in FY2027 fading to 4.5% by FY2030.1
Operating margin expands from 20.23% in FY2025 to 21.5% in FY2026 and reaches 23.2% by FY2030.5,7
Share repurchases retire ~0.7% to 1.0% of diluted shares annually, funded by steady operating cash flows.5
Terminal exit P/E multiple of 21.0x, aligning with mature high-grade peer ITW (21.40x).3
Under the base case, IDEX achieves organic revenue growth accelerating into 5%-6% in FY2026, consistent with raised management guidance, followed by 5.99% in FY2027. Operating margin expands from 20.23% in FY2025 toward 23.2% by FY2030 through disciplined 80/20 operational execution. Diluted EPS increases from $6.41 in FY2025 to $8.83 in FY2026 and $9.63 in FY2027. At an exit P/E of 21.0x, in line with mature peer ITW (21.40x), intrinsic value aligns with the house Fair value midpoint of $168.38.1,3,5
HST segment revenue grows at low double digits through 2028 on sustained data center liquid cooling adoption.5
§7 Drzewo decyzyjne wynikówEN
Powyżej
Upgrade the rating; Evaluate order backlog duration into subsequent fiscal periods and monitor whether customer prebooking extends beyond initial commitments before adjusting portfolio weightings.
A decisive beat driven by accelerating Health and Science Technologies demand and faster margin accretion would demonstrate that high-margin platforms can outpace European industrial drag, narrowing the gap to Fair value.
Zgodnie
Maintain Sell; Maintain disciplined risk limits and review position allocation against diversified industrial peers that offer wider margins of safety.
Meeting guidance confirms the operational baseline but leaves the current market valuation stretched above $168.38, offering insufficient margin of safety given cyclical risks.
Poniżej
Maintain Sell; Immediately scrutinize segment order books and reassess exposure given the absence of operational buffers to absorb negative revisions.
Wyzwalacz: Consolidated organic revenue growth or operating margin falling below the guided band due to international industrial destocking or pricing concessions
An earnings miss caused by distributor inventory adjustments in Europe or selective pricing rebates would accelerate valuation multiple compression toward historical peer averages.
Jakość wyników
Earnings quality is supported by healthy operating cash flow conversion and disciplined working capital control. Reported net income translates reliably into free cash generation, with capital expenditures focused primarily on prebooked OEM capacity expansions. Operating margins are driven by structural gross profitability rather than non-operating items, although selective tariff rebate concessions introduce minor timing variability in reported segment profitability.
Dynamika prognoz
Consensus earnings per share and revenue estimates experienced upward revisions following second-quarter earnings, supported by management raising full-year outlook across organic revenue growth, operating margin, and adjusted diluted earnings per share. Analysts increased forward projections to reflect accelerating backlog delivery in Health and Science Technologies, while maintaining moderate expectations for international industrial recovery.
IDEX exhibits strong cash flow conversion underpinned by gross margins of 44.51%. In FY2025, operating cash flow reached $680.4M and free cash flow totaled $616.8M, delivering free cash flow conversion of 127.6% relative to net income of $483.2M. While FY2026 free cash flow will temporarily moderate due to the $110M capex ramp, the underlying asset-light manufacturing profile ensures normalized free cash flow will exceed $650M annually as new capacity scales.5,6,7
Alokacja kapitału
IDEX exercises a disciplined capital allocation strategy that balances internal capacity reinvestment, bolt-on acquisitions, and shareholder returns. For FY2026, growth are targeted at ~$110M, stepping up from $63.6M in FY2025 to support prebooked data center programs. The company maintains a steady share repurchase pace of ~$75M quarterly (~$300M annualized) through the remainder of 2026, which systematically reduces the by approximately 0.7% to 1.0% annually against 75.3M . Total company debt of $1.89B is supported by $680.4M in , maintaining an equity weight of 90.16% in the capital structure.
IDEX generates an attractive return on capital, with its ROIC of 9.52% exceeding its moderate WACC of 8.71%. The trajectory is supported by the systematic deployment of 80/20 operational initiatives across acquired businesses, lifting operating margins from 20.23% in FY2025 toward 23.2% by FY2030. However, ROIC expansion is tempered by elevated goodwill and intangible asset balances from prior acquisitions.
ROIC exceeds WACC by 81 basis points (9.52% vs 8.71%), demonstrating value creation, although the spread is modest compared to peers such as ITW (operating margin 26.90%) and Nordson (operating margin 27.40%).
Najnowsze wolne przepływy pieniężne616,8 mln USDFY2025
Dług netto1,2 mld USDFY2025
Struktura rachunku zysków i stratJak skala działalności przekłada się na raportowany zysk.30 cze 2026
StockMarketAgent.AI
Przychody920,6 mln USDKoszt sprzedaży−493,8 mln USDZysk brutto426,8 mln USDKoszty operacyjne−226,9 mln USDZysk operacyjny199,9 mln USDPozycje pozaoperacyjne i podatki−56,5 mln USDZysk netto143,4 mln USD
Dane historii finansowej
Przychody
920 600 000 USD
Koszt sprzedaży
493 800 000 USD
Zysk brutto
426 800 000 USD
Koszty operacyjne
226 900 000 USD
Zysk operacyjny
199 900 000 USD
Pozycje pozaoperacyjne i podatki
-56 500 000 USD
Zysk netto
143 400 000 USD
Podsumowanie bilansuJak wykazane aktywa są utrzymywane i finansowane w wybranym okresie.
StockMarketAgent.AI
Struktura aktywówFinansowane przez
Aktywa ogółem6,9 mld USDŚrodki pieniężne580 mln USDAktywa obrotowe1,6 mld USDZobowiązania ogółem2,9 mld USDZobowiązania krótkoterminowe575,4 mln USDKapitał własny4 mld USD
Dane podziału bilansu
Aktywa ogółem
6 927 000 000 USD
Środki pieniężne
580 000 000 USD
Aktywa obrotowe
1 643 200 000 USD
Zobowiązania ogółem
2 900 800 000 USD
Zobowiązania krótkoterminowe
575 400 000 USD
Kapitał własny
4 026 200 000 USD
Most przepływów pieniężnychJak przepływy operacyjne przełożyły się na wolne przepływy pieniężne w FY2025.
StockMarketAgent.AI
Uzgodnienie przepływów operacyjnych
Zysk netto483,2 mln USDAmortyzacja+206,5 mln USDWynagrodzenie w akcjach+27,3 mln USDPozostałe korekty operacyjne−36,6 mln USDOperacyjne przepływy pieniężne680,4 mln USD
Uzgodnienie środków na początek i koniec
Środki pieniężne na początek638,9 mln USDOperacyjne przepływy pieniężne+680,4 mln USDPrzepływy inwestycyjne−137,6 mln USDPrzepływy finansowe−632,6 mln USDWpływ kursów walutowych+36,8 mln USDŚrodki pieniężne na koniec585,9 mln USD
680,4 mln USD − 63,6 mln USDWolne przepływy pieniężne 616,8 mln USD
Dane mostu przepływów pieniężnych
Zysk netto
483 200 000 USD
Wpływy operacyjne
717 000 000 USD
Amortyzacja
206 500 000 USD
Wynagrodzenie w akcjach
27 300 000 USD
Operacyjne przepływy pieniężne
680 400 000 USD
Wydatki operacyjne
36 600 000 USD
Dostępne środki pieniężne
1 356 100 000 USD
Środki pieniężne na początek
638 900 000 USD
Wpływ kursów walutowych
36 800 000 USD
Wydatki inwestycyjne
137 600 000 USD
Capex
63 600 000 USD
Pozostała działalność inwestycyjna
74 000 000 USD
Wydatki finansowe
632 600 000 USD
Skup akcji
247 800 000 USD
Wypłacone dywidendy
212 600 000 USD
Spłata długu netto
170 900 000 USD
Pozostała działalność finansowa
1 300 000 USD
Środki pieniężne na koniec
585 900 000 USD
Przepływy inwestycyjne
-137 600 000 USD
Przepływy finansowe
-632 600 000 USD
Przychody według segmentu operacyjnegoUdział w łącznych przychodach za 2025-12-31.
3,5 mld USDŁączne przychody
Przychody według segmentu operacyjnegoUdział
Health And Science Technologies1,5 mld USD43,1%+15,2% r/r
Fluid And Metering Technologies1,2 mld USD35,4%−0,8% r/r
Fire And Safety Diversified Products744,3 mln USD21,5%+0,2% r/r
Źródło: SEC EDGAR · Złożono 2026-02-19 · SEC EDGAR
Dane o strukturze przychodów: Przychody według segmentu operacyjnego
Przychody według segmentu operacyjnego
Przychody
Udział
r/r
Health And Science Technologies
1,5 mld USD
43,1%
15,2%
Fluid And Metering Technologies
1,2 mld USD
35,4%
-0,8%
Fire And Safety Diversified Products
744,3 mln USD
21,5%
0,2%
Przychody według regionuUdział w łącznych przychodach za 2025-12-31.
3,5 mld USDŁączne przychody
Przychody według regionuUdział
United States1,8 mld USD50,9%+8,6% r/r
Europe846,2 mln USD24,5%+6,2% r/r
Asia563 mln USD16,3%−1,4% r/r
Other Geographical Areas165,1 mln USD4,8%+7,2% r/r
North America Excluding United States129,7 mln USD3,8%−2% r/r
Źródło: SEC EDGAR · Złożono 2026-02-19 · SEC EDGAR
Dane o strukturze przychodów: Przychody według regionu
Przychody według regionu
Przychody
Udział
r/r
United States
1,8 mld USD
50,9%
8,6%
Europe
846,2 mln USD
24,5%
6,2%
Asia
563 mln USD
16,3%
-1,4%
Other Geographical Areas
165,1 mln USD
4,8%
7,2%
North America Excluding United States
129,7 mln USD
3,8%
-2%
Przychody i wynikiJak skala działalności przekłada się na raportowany zysk.
Gotówka i zadłużenieDostępna płynność wobec całkowitego zadłużenia.
Generowanie gotówkiPrzepływy operacyjne w porównaniu z wolnymi przepływami pieniężnymi.
RentownośćZmiany marży brutto, operacyjnej i netto.
Dane finansowe na określony moment użyte w analizie z 2026-10-11.
Dane historii finansowej
Okres
Przychody
EBITDA
Zysk netto
Operacyjne przepływy pieniężne
Wolne przepływy pieniężne
Capex
Amortyzacja
Wynagrodzenie w akcjach
Skup akcji
Wypłacone dywidendy
Emisja długu netto
Przepływy inwestycyjne
Przepływy finansowe
Środki pieniężne na początek
Środki pieniężne na koniec
Gotówka i inwestycje
Zadłużenie ogółem
Marża operacyjna
ROIC
WACC
Spread ROIC−WACC
2016-12-31
2,1 mld USD
507,9 mln USD
271,1 mln USD
399,9 mln USD
361,7 mln USD
38,2 mln USD
86,9 mln USD
20,3 mln USD
57,3 mln USD
102,7 mln USD
—
-509,2 mln USD
46,5 mln USD
—
236 mln USD
236 mln USD
1 mld USD
19,5%
—
6,4%
—
2017-12-31
2,3 mld USD
591 mln USD
337,3 mln USD
432,8 mln USD
388,9 mln USD
43,9 mln USD
84,2 mln USD
24,4 mln USD
29,1 mln USD
111,2 mln USD
—
-54,7 mln USD
-277,4 mln USD
236 mln USD
376 mln USD
376 mln USD
862,2 mln USD
22,0%
—
6,5%
—
2018-12-31
2,5 mld USD
657,1 mln USD
410,6 mln USD
479,3 mln USD
423,3 mln USD
56,1 mln USD
77,5 mln USD
24,8 mln USD
173,9 mln USD
127,5 mln USD
—
-81,4 mln USD
-290 mln USD
376 mln USD
466,4 mln USD
466,4 mln USD
851,1 mln USD
22,9%
—
6,8%
—
2019-12-31
2,5 mld USD
647,8 mln USD
425,5 mln USD
528,1 mln USD
477,2 mln USD
50,9 mln USD
76,9 mln USD
22,1 mln USD
54,7 mln USD
147,2 mln USD
—
-137 mln USD
-227,6 mln USD
466,4 mln USD
632,6 mln USD
632,6 mln USD
850,6 mln USD
23,2%
—
6,2%
—
2020-12-31
2,4 mld USD
604,6 mln USD
377,8 mln USD
569,3 mln USD
517,7 mln USD
51,6 mln USD
83,5 mln USD
14,8 mln USD
110,3 mln USD
151,8 mln USD
—
-172,6 mln USD
-42,6 mln USD
632,6 mln USD
1 mld USD
1 mld USD
1,1 mld USD
22,1%
—
4,2%
—
2021-12-31
2,8 mld USD
720,5 mln USD
449,4 mln USD
565,3 mln USD
492,6 mln USD
72,7 mln USD
103 mln USD
20,4 mln USD
0 USD
161,1 mln USD
—
-698,1 mln USD
-9,5 mln USD
1 mld USD
855,4 mln USD
900,7 mln USD
1,2 mld USD
23,0%
—
4,7%
—
2022-12-31
3,2 mld USD
909,8 mln USD
586,9 mln USD
557,4 mln USD
489,4 mln USD
68 mln USD
119,7 mln USD
21,6 mln USD
148,1 mln USD
177,4 mln USD
275,4 mln USD
-917,2 mln USD
-37,8 mln USD
855,4 mln USD
430,2 mln USD
430,2 mln USD
1,5 mld USD
23,6%
—
7,1%
—
2023-12-31
3,3 mld USD
732,5 mln USD
596,1 mln USD
716,7 mln USD
626,8 mln USD
89,9 mln USD
152,1 mln USD
21,8 mln USD
24,2 mln USD
190,7 mln USD
-150 mln USD
-283,8 mln USD
-344,7 mln USD
430,2 mln USD
534,3 mln USD
534,3 mln USD
1,3 mld USD
22,4%
—
7,0%
—
2024-12-31
3,3 mld USD
859,4 mln USD
505 mln USD
668,1 mln USD
603 mln USD
65,1 mln USD
175,6 mln USD
25,8 mln USD
0 USD
205,3 mln USD
656,9 mln USD
-1 mld USD
465,9 mln USD
534,3 mln USD
638,9 mln USD
620,8 mln USD
2 mld USD
20,7%
—
7,5%
—
2025-12-31
3,5 mld USD
903,5 mln USD
483,2 mln USD
680,4 mln USD
616,8 mln USD
63,6 mln USD
206,5 mln USD
27,3 mln USD
247,8 mln USD
212,6 mln USD
-170,9 mln USD
-137,6 mln USD
-632,6 mln USD
638,9 mln USD
585,9 mln USD
580 mln USD
1,8 mld USD
20,2%
—
7,7%
—
§9 Porównanie wyceny z konkurentami
Wartość godziwaReport-date price
IDEX CorporationIEX
Cena / wartość godziwa
Wartość godziwa168,38 USDReport-date price234,29 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych63 / 100
Otis Worldwide CorporationOTIS
Cena / wartość godziwa
Wartość godziwa72,4 USDReport-date price66,11 USD
Data oceny
Przewaga konkurencyjnaWide
Karta wyników inwestycyjnych61 / 100
Nordson CorporationNDSN
Cena / wartość godziwa
Wartość godziwa206,83 USDReport-date price328,17 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych68 / 100
IDEX CorporationIEX
Cena / wartość godziwa
Wartość godziwa168,38 USDReport-date price234,29 USD
IDEX Corporation (IEX) trades at 24.0x forward earnings against a peer median of 23.3x. Its EV/EBITDA of 19.0x compares with a peer median of 19.2x. The comparison uses 4 peers: Otis Worldwide Corporation, Nordson Corporation, Rockwell Automation Inc. and Illinois Tool Works Inc., as of 2026-10-11.
§10 Branża i cyklEN
Faza cyklu
Expansion
Broader industrial sector benchmark metrics demonstrate disciplined capital allocation, with an industry capex-to-revenue ratio of 4.1% and capex-to-depreciation of 0.68 as of 2026-10-05. IDEX historically operated below this benchmark with FY2025 capex of $63.6M (1.84% of revenue), but is expanding its investment phase with FY2026 capex guided to ~$110M (~3.0% of revenue) to build capacity for prebooked OEM backlog.5,7
Cykl byczy
During an industrial upcycle, semiconductor fabrication equipment builds surge alongside hyper-scale AI data center construction, driving rapid order conversion for IDEX's precision liquid cooling manifolds and high-purity fluidic assemblies. Concurrently, general industrial demand in North America and Europe rebounds, filling rapid-replenishment channels and driving operating margin expansion through overhead absorption and 80/20 operational efficiencies.
Cykl niedźwiedzi
In a cyclical downturn, prolonged industrial weakness in Europe and Asia exacerbates customer destocking across general industrial and municipal markets. Lower factory utilization leads OEM partners to cancel or defer blanket purchase commitments, resulting in fixed cost de-leverage across FMT and FSDP manufacturing facilities. Margin compression is intensified if input cost inflation persists while tariff rebates expire.
Trendy długoterminowe
Trend
Wpływ
Uwaga
Data Center Liquid Cooling Adoption
positive
Accelerating power density in artificial intelligence data center infrastructure requires advanced liquid cooling solutions, fueling strong multi-year demand for specialized precision pneumatic manifolds and valves.
Advanced Semiconductor Fab Capacity Expansions
positive
Next-generation sub-2nm semiconductor fabrication requires extreme chemical purity and ultra-precise thermal control, increasing adoption of IDEX's patented non-idling high-purity water heating solutions.
Pozycjonowanie
IDEX is strategically positioned as a premier precision component supplier, insulating itself from broader cyclical volatility through high niche diversification and mission-critical OEM integration. Its broad product line across Health and Science Technologies ($1,490.7M), Fluid and Metering Technologies ($1,222.5M), and Fire and Safety Diversified Products ($744.3M), paired with a customer base where no client exceeds 3% of sales, enables IDEX to outperform commoditized industrial machinery peers during mid-cycle transitions.8
§11 Zarządzanie pozycjąEN
Wielkość pozycji
0%
With the stock trading at $234.29 against a Fair value midpoint of $168.38, the shares carry a -28.13% implied return. A 0% portfolio allocation is recommended for fundamental equity accounts to prevent capital impairment.4
Ryzyko
Risk management mandates disciplined avoidance of equity purchases under prevailing valuation multiples. Investors holding legacy positions should utilize trailing stop orders and sell call options against long inventory to hedge downside risk. Portfolio managers should closely monitor quarterly operating margin prints across the Fluid and Metering Technologies segment to detect early signs of pricing lag or tariff rebate friction, liquidating remaining holdings if consolidated operating margins breach 20.0%.
Transze wejścia
Poziom
Działanie
Dlaczego
$168.38 (House Fair Value Midpoint)
Re-evaluate fundamental risk-reward profile for potential rating upgrade.
At the house Fair value midpoint, share price reflects full compensation for European industrial destocking and tariff rebate friction.
Consider initiating long coverage review if operational checkpoints hold.
The low end of the synthesized valuation range provides an adequate margin of safety against cyclical de-rating.
Transze wyjścia
Poziom
Działanie
$234.29 (Current Analysis Price)
Liquidate existing positions or initiate structured reduction of legacy holdings.
$243.80 (52-Week High)
Complete final position liquidation before valuation multiple mean reversion.
Trading at 23.98x forward earnings and a 39.14% premium to Fair value ($168.38), IDEX offers no margin of safety against macroeconomic deceleration or multiple contraction.4
Quality Compounder Growth Investor
Avoid
Although IDEX demonstrates strong 80/20 execution and secular growth in Health and Science Technologies, organic compounding is over-discounted by the market, limiting upside even under the bull case ($185.31).5
Cyclical / Income Investor
Avoid
With a modest baseline dividend yield and international revenue (Europe $846.2M, Asia $563.0M) vulnerable to manufacturing contraction, cyclical risk outweighs cash returns.8
§14 Końcowa rekomendacjaEN
Działanie
Sprzedaj
IDEX Corporation is assigned a Sell rating. While IDEX is a high-grade industrial business benefiting from narrow-moat switching costs in mission-critical fluidics, the market price of $234.29 trades at an excessive 39.14% premium to the house Fair value of $168.38, implying -28.13% return.4
At 23.98x forward earnings, IDEX trades well above diversified peer ITW (21.40x forward P/E) despite trailing ITW in operating profitability (20.23% vs 26.90%). Current pricing leaves zero buffer for cyclical headwinds in Europe ($846.2M revenue) or Asia ($563.0M revenue).
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Sources
The records this analysis drew on, as they stood when it was run.
Analyst consensusData as of 2026-10-11 · Published 2026-10-11 · Provider-adjusted · cited for 4 figuresCited in Scenariusze
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Under the bear case, European and Asian industrial stagnation deepens, triggering distributor destocking and OEM order deferrals across FMT and FSDP segments. Operating margins contract as tariff rebate expirations and persistent input cost inflation outpace commercial price increases, while elevated FY2026 capex of $110M dampens free cash flow generation.
Protracted European and Asian industrial recession induces OEM order cancellation and destocking across FMT and FSDP.
Europe contributed $846.2M (24.5%) and Asia $563.0M (16.3%) of FY2025 revenue ($3,457.5M). Ongoing geopolitical tensions, rate headwinds, and industrial caution could drive international orders negative, reducing top-line growth by over 500 bps relative to guided 5%-6%.5,7,8
FV impact
-0.9%
Revenue and EPS growth 5 points lower for five years
IDEX trades at 23.98x forward earnings, relying on a terminal exit multiple of 21.0x. High-quality diversified peer ITW trades at 21.40x forward P/E while delivering 26.90% operating margins, and peer OTIS trades at 14.57x. If IDEX's growth normalizes without closing the margin gap, its multiple derates 20% toward 17.0x-18.0x.3,4
FV impact
-3.1%
Terminal multiple 20% lower
Trigger
Within 24 months
Simultaneous industrial capex contraction, capacity under-absorption, and elevated capex burden.
FY2025 FCF was $616.8M on capex of $63.6M. Guided FY2026 capex surges to $110M. If OEM demand drops and operating cash flow falls 25% from $680.4M to ~$510M while capex remains at $110M, FCF collapses below $450M.5,6,7
FV impact
-1.6%
The analyst's bear scenario path and multiple as the base case
OEM customers delay capital equipment deployments or push out delivery dates for semiconductor and life science tools, slowing high-margin volume recovery.
Obecnie:Low double-digit FY2026 target
Alarm, jeśli< 4.0%
Competitive encroachment in standard industrial pumps and valves by larger conglomerates such as ITW and Nordson.
medium
3 to 5 years
Relentless application of the 80/20 operational framework to reduce internal overhead and preserve gross margins above 44%.5,7
Under the bull case, rapid commercial adoption of liquid cooling manifolds in hyperscale AI data centers and surging semiconductor fab tool installations accelerate organic revenue growth above 8% annually. Operating margins expand toward 25.0%, approaching specialized peers Nordson (27.40%) and ITW (26.90%), lifting potential intrinsic value toward $185.31.3,5
Dlaczego to ważne
Tests the effectiveness of systematic operational initiatives in acquired businesses.
03
Wskaźnik:
European and Asian Order Trajectory
BieżącyFacing persistent headwinds from regional economic uncertainty and distributor caution.
Dlaczego to ważne
Monitors whether international distribution channels stabilize or suffer deeper destocking.
FY2025 gross profit of $1,538.8M on revenue of $3,457.5M represents a 44.51% gross margin, compared to the broader industrial peer average of 37.5%.
Premium pricing power provides an operating cushion that protects consolidated gross profitability against selective tariff rebates and material inflation.
Capex surge reflects high-return growth capacity expansion rather than structural maintenance drag.
Capexguidance was increased from $63.6M in FY2025 to ~$110M in FY2026.
Near-term free cash flow is dampened by approximately $46M, but targeted capacity de-bottlenecks prebooked OEM order conversion through 2027.
Europe generated $846.2M (24.5%) and Asia generated $563.0M (16.3%) of FY2025 revenue.
Macroeconomic stagnation in foreign manufacturing centers creates an ongoing drag on organic top-line compounding that offsets domestic life-science acceleration.
Rockwell Automation Inc.ROK
Cena / wartość godziwa
Wartość godziwa162,13 USDReport-date price455,08 USD
Data oceny
Przewaga konkurencyjnaStrong
Karta wyników inwestycyjnych60 / 100
Illinois Tool Works Inc.ITW
Cena / wartość godziwa
Wartość godziwa195,02 USDReport-date price262,92 USD
Data oceny
Przewaga konkurencyjnaWide
Karta wyników inwestycyjnych61 / 100
Marża
IEX
IDEX Corporation
$17.3B
24.0x
4.8x
19.0x
13.0%
—
OTIS
Otis Worldwide Corporation
$25.1B
14.6x
1.7x
12.7x
—
15.1%
NDSN
Nordson Corporation
$18.3B
25.3x
6.1x
20.8x
17.8%
27.4%
ROK
Rockwell Automation Inc.
$48.0B
29.0x
5.4x
24.5x
30.6%
21.0%
ITW
Illinois Tool Works Inc.
$75.2B
21.4x
4.6x
17.5x
104.6%
26.9%
European Industrial Production Softness
negative
Persistent macroeconomic stagnation, high interest rates, and regulatory friction across European industrial centers dampen general factory automation and industrial equipment demand.
< 20.5% in any reported quarter
Halt operating margin expansion glidepath and lower terminal exit multiple from 21.0x to 18.5x.