# IDEX Corporation (IEX) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/IEX/thesis · /stocks/IEX/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: IEX
step: "04"
title: Financial Snapshot — IDEX Corporation
created: 2026-05-29
---

### Step 04: Financial Snapshot — IDEX Corporation

#### Income Statement Summary (FY2021–FY2023)

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Revenue | $2,867M | $3,261M | $3,331M |
| Gross Profit | $1,287M | $1,441M | $1,481M |
| Gross Margin | 44.9% | 44.2% | 44.5% |
| Operating Income (GAAP) | $557M | $640M | $658M |
| Operating Margin (GAAP) | 19.4% | 19.6% | 19.8% |
| Adjusted Operating Income | $690M | $798M | $816M |
| Adjusted Operating Margin | 24.1% | 24.5% | 24.5% |
| EBITDA (adjusted) | $790M | $920M | $945M |
| EBITDA Margin (adjusted) | 27.5% | 28.2% | 28.4% |
| Interest Expense | ($57M) | ($82M) | ($109M) |
| Pre-tax Income (GAAP) | $500M | $558M | $549M |
| Income Tax Expense | ($101M) | ($117M) | ($117M) |
| Effective Tax Rate | 20.2% | 21.0% | 21.3% |
| Net Income (GAAP) | $399M | $441M | $432M |
| Net Income Margin (GAAP) | 13.9% | 13.5% | 13.0% |
| Diluted EPS (GAAP) | $5.20 | $5.80 | $5.67 |
| Adjusted Diluted EPS | $6.72 | $8.16 | $8.83 |

**Notes on GAAP vs. Adjusted:**
- The gap between GAAP and adjusted EPS is primarily driven by amortization of acquisition intangibles (~$130–160M per year), a non-cash charge from IDEX's active M&A history
- Restructuring charges and deal costs add another $20–40M annually to the GAAP-to-adjusted bridge
- For comparability with peers and valuation purposes, adjusted metrics are the primary analytical framework

#### Margin Structure Analysis

| Margin | FY2021 | FY2022 | FY2023 | Trend |
|--------|--------|--------|--------|-------|
| Gross Margin | 44.9% | 44.2% | 44.5% | Stable |
| Adj. EBITDA Margin | 27.5% | 28.2% | 28.4% | Improving |
| Adj. Operating Margin | 24.1% | 24.5% | 24.5% | Stable/improving |
| Net Income Margin (GAAP) | 13.9% | 13.5% | 13.0% | Declining slightly |
| FCF Margin | ~19–20% | ~19% | ~20% | Stable |

**Gross margin stability (44–45%)** despite commodity inflation in 2021–2022 demonstrates IDEX's pricing power. Management successfully passed through input cost increases with minimal gross margin compression.

**Adjusted EBITDA margin expansion** from 27.5% to 28.4% over three years reflects operating leverage, pricing contribution, and mix improvement (HST growing faster as a % of revenue until 2022).

**GAAP net margin pressure** is largely a function of rising interest expense (from higher debt post-acquisitions and rising rates) and higher intangible amortization — both non-operational factors.

#### Segment Profitability (FY2023)

| Segment | Revenue | Adj. Operating Income | Adj. Op. Margin |
|---------|---------|----------------------|-----------------|
| FMT | $1,265M | ~$355M | ~28.1% |
| HST | $1,259M | ~$305M | ~24.2% |
| FSDP | $807M | ~$205M | ~25.4% |
| Corporate/Other | — | (~$49M) | — |
| **Total** | **$3,331M** | **~$816M** | **~24.5%** |

FMT has the highest segment margins, reflecting its mature niche positions and high aftermarket content. HST margins were pressured in 2023 by destocking volumes (fixed cost deleverage). FSDP margins are structurally competitive with good niche market positions.

#### Free Cash Flow

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Operating Cash Flow | $618M | $625M | $694M |
| Capital Expenditures | ($76M) | ($98M) | ($83M) |
| Free Cash Flow | $542M | $527M | $611M |
| FCF / Net Income (GAAP) | 136% | 119% | 141% |
| FCF / Adj. Net Income | ~84% | ~75% | ~84% |

FCF consistently exceeds GAAP net income due to the high non-cash amortization load — FCF/GAAP NI ratios of 120–140% are expected to persist. The FCF conversion vs. adjusted earnings (~80–85%) is solid for an acquisitive industrial company.

**CapEx intensity is low** (~2.5–3.0% of revenue), reflecting IDEX's asset-light assembly and engineering model. Most manufacturing is specialized but not capital-intensive (no large foundries or stamping plants). This low reinvestment burden is a structural FCF quality advantage.

#### Key Valuation Metrics (at $210/share, ~76.5M diluted shares = ~$16.1B market cap)

| Metric | Value |
|--------|-------|
| P/E (GAAP, FY2023) | ~37x |
| P/E (Adjusted, FY2023) | ~24x |
| EV/EBITDA (Adjusted) | ~18.5x |
| EV/Revenue | ~5.3x |
| FCF Yield (GAAP FCF) | ~3.8% |
| Dividend Yield (at $210/share) | ~1.0% |

Note: IDEX typically trades at a premium to industrial peers given its consistent margins, low cyclicality, and FCF conversion.

#### Historical Revenue Growth Rates

| Period | Revenue Growth |
|--------|---------------|
| FY2019→FY2020 | +2% (COVID-resilient) |
| FY2020→FY2021 | +11% (recovery) |
| FY2021→FY2022 | +14% (cycle + pricing) |
| FY2022→FY2023 | +2% (destocking headwind) |
| 5-Year CAGR (2018–2023) | ~6–7% |

The 5-year CAGR includes organic growth of ~3–5% and M&A contribution of ~2–3%, consistent with IDEX's long-term compounding model.

#### Earnings Quality Assessment

IDEX's earnings quality is **high**:
- FCF consistently tracks or exceeds adjusted earnings
- Gross margins have been stable for 10+ years (no quality compression)
- Working capital management has improved (DSO stable, inventory turns slightly improving)
- Revenue recognition is straightforward (equipment delivery and service) — minimal deferred revenue complexity
- The primary accounting judgment involves goodwill impairment testing and intangible amortization periods, both conservative

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/IEX/fundamental

## Navigation

- Overview: /stocks/IEX
- Financials (this page): /stocks/IEX/financials
- Thesis: /stocks/IEX/thesis
- Investment Memo: /stocks/IEX/memo
- Coverage universe: /stocks