IDEX Corp (IEX)
Key Statistics
EV/EBIT = 20.6x
ROE = 13.77%
Debt/Equity = 52%
FCF Yield = 3.9%
Dividend Yield = 1.6%
Market Cap = $12.79 billion
The Company
IDEX Corporation (IEX) manufactures a wide range of mission-critical products that are used across various industries.
This is a holding company and a serial acquirer that operates more than 50 businesses, IDEX focuses on producing high-quality, customized products that serve essential functions.
To give you a sense of the kinds of products they make, their portfolio includes DNA sequencing equipment, wastewater pumps, and the Jaws of Life rescue tools.
A defining feature of IDEX’s business model is its ability to maintain strong pricing power. Because its products are essential yet represent a small portion of a customer’s overall expenses, companies rely on IDEX's solutions without frequently seeking alternatives. This reliability is evident in businesses like Hurst Jaws of Life, which produces hydraulic and battery-operated rescue tools used by firefighters and emergency responders. These tools help extricate people from life-threatening situations, making their dependability crucial in high-pressure environments.
A key subsidiary is Viking Pump, which specializes in positive displacement pumps used for transferring chemicals, food, and fuel. These pumps play an essential role in industries like pharmaceuticals, oil & gas, and food production, ensuring the precise and safe movement of fluids. A failure in these systems could lead to production delays, contamination, or safety hazards, highlighting the critical nature of their function. Similarly, Gast Manufacturing produces air compressors, vacuum pumps, and air motors, which are essential in medical devices, laboratory equipment, and industrial automation. For example, hospitals rely on Gast’s air compressors to power ventilators, ensuring patients receive a steady oxygen supply.
IDEX also owns BAND-IT, a leading manufacturer of stainless steel banding, clamps, and fasteners. These products are used in securing vehicle airbags, traffic signs, and industrial hoses in aerospace and automotive applications. Without these high-performance fastening solutions, structural integrity and safety in these industries would be compromised. Another subsidiary, IDEX Health & Science, provides optical filters, fluidics, and microfluidic components essential for medical diagnostics and scientific research. Their technology is widely used in DNA sequencing, chromatography, and laboratory testing, helping researchers and doctors make accurate and life-saving discoveries.
Toptech Systems is another significant IDEX-owned business that develops automation software and hardware for the oil, gas, and refined fuel industries. Their solutions ensure accurate fuel measurement and inventory management at refineries, terminals, and transportation hubs, preventing costly measurement errors and improving operational efficiency. Each of these subsidiaries plays a critical role in industries where precision and reliability are non-negotiable.
Founded on the principles of Innovation, Diversity, and Excellence, IDEX has built its reputation by acquiring businesses that are leaders in their niche markets. One of its earliest and most significant acquisitions was Viking Pump, which set the stage for expansion into industries such as fire and safety, life sciences, and fluid metering. Over time, IDEX has grown its portfolio, becoming known for products like Jaws of Life rescue tools, high-precision pumps for water treatment, and advanced equipment for scientific research.
Today, IDEX operates in three main segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). Each segment focuses on a specialized area, ensuring that IDEX's products remain critical across multiple industries.
