IDEX Corp (IEX, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance and promising growth prospects. With a current share price of $219.12 and a modest daily gain of 0.22%, the company has shown a notable increase of 5.43% over the past three months. A detailed analysis, supported by the GF Score, indicates that IDEX Corp is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. For IDEX Corp, the breakdown is as follows:
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 5/10
With a GF Score of 92 out of 100, IDEX Corp demonstrates a 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 various industries, including 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, IDEX generated $3.3 billion in revenue in 2023, showcasing a robust operating margin of 21.73%.
Financial Strength Breakdown
IDEX Corp's financial resilience is evident in its Financial Strength rating. The company boasts an Interest Coverage ratio of 16.2, significantly above the benchmark of 5 preferred by Benjamin Graham. Additionally, its Altman Z-Score of 6.6 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.41 further solidifies its financial health.
Profitability and Growth Metrics
The Profitability Rank and Predictability Rank of IDEX Corp are impressive, with a predictability score of 4.5 stars out of five. This reflects the company's consistent operational performance and reliability for investors. In terms of growth, IDEX Corp has excelled with a 3-Year Revenue Growth Rate of 11.9%, outperforming 59.3% of its industry peers. The company's EBITDA growth rates over three and five years are 17.5 and 9.8, respectively, highlighting its sustained growth trajectory.
Conclusion
Considering IDEX Corp's robust financial strength, high profitability, and consistent growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying companies with strong performance potential.
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.
