Company Reports

Narrow-moat-rated Idex posted solid first-quarter results, considering headwinds in the life sciences and analytical instrumentation businesses, as its adjusted EPS of $1.88 came in above management’s guidance range of $1.70 to $1.75. While nothing in the earnings release materially alters our long-term outlook, we’ve sightly raised our fair value estimate to $220 from $219 due to time value of money. We view the name as fairly valued at current levels.

Idex owns a collection of moaty businesses that tend to be leaders in their niche end markets, typically holding the number-one or -two market share. The company manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s Lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. A common theme across the businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitutes a small part of the customer’s total bill of materials. This aspect contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Narrow-moat-rated Idex ended 2023 with a solid fourth quarter, as its full-year revenue of $3.3 billion and adjusted EPS of $8.22 both came in above our estimates of $3.2 billion and $8.16. After rolling our model forward one year, we’ve raised our fair value estimate to $219 from $215, which reflects our updated near-term outlook as well as time value of money.

Idex owns a collection of moaty businesses that tend to be leaders in their niche end markets, typically holding the number-one or -two market share. The company manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s Lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. A common theme across the businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitutes a small part of the customer’s total bill of materials. This aspect contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

We’ve slightly trimmed our fair value estimate for narrow-moat-rated Idex to $215 from $217 following the firm’s third-quarter earnings release, driven by our slightly more muted near-term revenue growth projections, partially offset by time value of money.

Idex owns a collection of moaty businesses that tend to be leaders in their niche end markets, typically holding the number-one or -two market share. The company manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s Lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. A common theme across the businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitutes a small part of the customer’s total bill of materials. This aspect contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Narrow-moat-rated Idex reported solid second-quarter results, including a 3% year-over-year organic sales increase, but lowered its full-year guidance for the second time this year due to softness in the health and science technologies segment. We’ve trimmed our fair value estimate to $217 per share from $221 to reflect our slightly more muted near-term revenue growth and operating margin projections, partially offset by the time value of money.

Idex owns a collection of moaty businesses that tend to be leaders in their niche end markets, typically holding the number-one or -two market share. The company manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s Lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. A common theme across the businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitutes a small part of the customer’s total bill of materials. This aspect contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Idex owns a collection of moaty businesses that tend to be leaders in their respective niche end markets, typically holding the number-one or -two market share. It manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s Lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. Furthermore, a common theme across its businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitutes a small part of the customer’s total bill of materials. This aspect of the business contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Narrow-moat-rated Idex posted solid first-quarter results, featuring a 7% year-over-year increase in adjusted EPS, from $1.96 to $2.09. However, organic orders fell by 10% due to headwinds in health and sciences technologies, and excess customer inventory levels will likely continue to pressure the segment's sales in the second quarter. We've lowered our fair value estimate for Idex to $221 from $225, which reflects our more muted near-term revenue growth projections, partially offset by time value of money.

Narrow-moat-rated Idex ended 2022 with a solid fourth quarter, as its adjusted EPS of $2.01 beat our estimate by $0.06. After rolling our model forward one year, we’ve lowered our fair value estimate for Idex to $225 from $229, which reflects our slightly more muted near-term revenue growth and operating margin projections.

Idex owns a collection of moaty businesses that tend to be leaders in their respective niche end markets, typically holding the number-one or -two market share. It manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s Lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. Furthermore, a common theme across its businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitutes a small part of the customer’s total bill of materials. This aspect of the business contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Narrow-moat-rated Idex delivered strong third-quarter results, featuring a 20% year-over-year increase in adjusted EPS, from $1.79 to $2.14. Management raised its full-year 2022 guidance range and now expects organic sales growth of around 12% (up from 10%) and adjusted EPS of $8.04-$8.09 (up from $7.88-$7.98). We’ve increased our fair value estimate to $229 from $222, which reflects the firm’s strong execution, our slightly more optimistic near-term revenue growth and operating margin projections, and time value of money. We see the name as appropriately valued at current levels, with shares trading in 3-star territory.

Idex owns a collection of moaty businesses that tend to be leaders in their respective niche end markets, typically holding the number-one or -two market share. It manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. Furthermore, a common theme across its businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitute a small part of the customer’s total bill of materials. This aspect of the business contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

We are maintaining our $222 fair value estimate for narrow-moat-rated Idex as nothing in its second-quarter results fundamentally alters our long-term outlook for the firm. Idex maintained its strong momentum in the second quarter, delivering a 15% year-over-year increase in adjusted EPS, from $1.75 to $2.02.

Idex owns a collection of moaty businesses that tend to be leaders in their respective niche end markets, typically holding the number-one or -two market share. It manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. Furthermore, a common theme across its businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitute a small part of the customer’s total bill of materials. This aspect of the business contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Narrow-moat-rated Idex delivered strong first-quarter results, with adjusted EPS increasing 21% year over year, from $1.62 to $1.96. We’ve raised our fair value estimate to $222 per share from $220, mostly due to time value of money. We see the shares as modestly undervalued, currently trading in 4-star territory.

Idex owns a collection of moaty businesses that tend to be leaders in their respective niche end markets, typically holding the number-one or -two market share. It manufactures a wide array of products, ranging from equipment used in DNA sequencing to wastewater pumps to Jaws of Life hydraulic rescue tools. Idex’s lean manufacturing prowess allows it to effectively operate in a high-mix and low-volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. Furthermore, a common theme across its businesses is that they specialize in making mission-critical equipment that performs a vital function but typically constitute a small part of the customer’s total bill of materials. This aspect of the business contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.

Narrow moat rated Idex’s fourth-quarter adjusted EPS of $1.55 fell $0.02 short of our expectations. While nothing in the cash compounder’s earnings release materially alters our long-term thesis, we’ve modestly bumped our fair value estimate for Idex to $220 from $216, mostly due to time value of money as well as reversing the implementation of a probability-weighted change in the U.S. statutory tax rate in our model.

Idex owns a collection of moaty businesses that tend to be leaders in their respective niche end markets, typically holding the number one or two market share position. Idex manufactures a wide array of products, ranging from equipment used in DNA sequencing, through wastewater pumps, to Jaws of Life hydraulic rescue tools. Idex’s lean manufacturing prowess allows it to effectively operate in a high mix and low volume environment, offering customers a wide variety of highly engineered products that are configurable or customizable. Furthermore, a common theme across its businesses is that they specialize in making mission-critical equipment that performs a vital function but typically comprises a small part of the customer’s total bill of materials. This aspect of the business contributes to Idex’s narrow moat through customer switching costs and allows the firm to command premium pricing.