At the moment, the debt-to-equity of IDEX Corporation (NYSE:IEX) is high, standing at 42.59, a figure that is higher than the 21.67 average recorded by the industry. This means that the company is currently holding a debt level at 848.82 M. IEX shares have a strong debt-to-equity ratio but their quick ratio which reads 2.40 is strong and might cause problems for them later in the future.
Even though there was a rise of +4.81% in revenue, the company failed to succeed in outperforming the industry average of 1.21%. For the most recent quarter, the net income has jumped by +4.68%. This strength in their income has affected them and thus increased their earnings to $161.59 M. The 4.81% yoy growth of IEX’s revenue has gone up that of the industry average by -3.77%. For the past 12 months, IDEX Corporation revenue has gone up by 8.58%. The sustained growth in their revenue has helped boost their earnings per share.
The 12-month return on equity has significantly fallen to 22.73 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Industrial Goods sector, the industry average is 11.28 while 13.29 is of the sector.
IEX total operating cash flow had jumped to $153.59 billion compared to $133.33 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 20.76 ratio of the stock is higher than the industry’s 14.03.
IDEX Corporation (NYSE:IEX) has a price-to-earnings ratio of 24.69 which is higher than the 18.69 industry average at the moment. In addition to their unfavorable P/E ratio, IDEX Corporation has maintained a gross margin of 45.01. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 12.84 when compared to 7.65 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, IDEX Corporation ROE is above 13.29 that of both the sector average.
The operating profit margin for IDEX Corporation (IEX) is 22.91%, a figure which is considered to be weak. It has gone 17.71 from the 21.28 over the past 5 years. In addition to this, their operating margin is 5.2 higher than the industry average.
The net profit margin which stood at 14.30 on average in the past 5 years has jumped to 17.75 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 13.68.
Analysts meanwhile rate IDEX Corporation (NYSE:IEX) as a buy. Still some above discussed indicators of the $10.95B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the IEX shares to either perform positively or negatively when compared to other stocks. The primary strengths of IDEX Corporation can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.