IDEX Corp (IEX, Financial) has recently captured the attention of investors and financial analysts due to its strong financial position. With a current share price of $208.78, IDEX Corp has experienced a slight daily decrease of 0.82%, yet it maintains a positive three-month change of 3.11%. A detailed analysis, supported by the GF Score, indicates that IDEX Corp is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Historically, stocks with higher GF Scores have tended to yield superior long-term returns.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 5/10
With an impressive GF Score of 92 out of 100, IDEX Corp is flagged as having high potential for market outperformance.
Understanding IDEX Corp's Business
IDEX Corp, headquartered in Lake Forest, Illinois, operates globally, manufacturing pumps, flow meters, valves, and fluidic systems for diverse industries such as industrial, fire and safety, life science, and water. The company is structured into three segments: fluid and metering technologies, health and science technologies, and fire and safety and diversified products. With over 7,000 employees worldwide and manufacturing operations in more than 20 countries, IDEX Corp generated $3.3 billion in revenue in 2023. The company's market capitalization stands at $15.8 billion, with sales amounting to $3.19 billion and an operating margin of 21.73%.
Financial Strength and Stability
IDEX Corp's financial robustness is evident through its Financial Strength rating. The company boasts an Interest Coverage ratio of 16.2, significantly above the benchmark of 5 preferred by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 6.43 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.41 showcases prudent debt management.
Profitability and Growth Prospects
The Profitability Rank of IDEX Corp highlights its efficiency in generating profits, which is further supported by a Predictability Rank of 4.5 stars. The company's commitment to growth is evident from its Growth Rank and a 3-Year Revenue Growth Rate of 11.9%, surpassing 59.62% of its peers in the Industrial Products industry. The upward trend in EBITDA over recent years underscores its capacity for sustained growth.
Conclusion
Considering IDEX Corp's robust financial strength, impressive profitability, and promising growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other companies with strong GF Scores through the GF Score Screen.
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.
