Things are pretty good these days at IDEX (IEX).
Strong, and persistent, recoveries in markets like agriculture and
water and ongoing growth in semiconductors have helped drive strong
organic revenue growth, which the company has leveraged into improved
margins across its businesses. Free cash flow generation has picked up
and the outlook for 2018 is attractive.
The "but",
as is the case for most multi-industrials, is valuation. If you believe
in buying good companies no matter what the price/valuation and/or
you're comfortable with implied returns in the mid-single-digits, maybe
IDEX still meets your requirements. I'm less comfortable with valuation,
though, and while IDEX is generating good results (and is likely to
continue to do so in 2018), I'm not willing to pay such a high apparent
price.
Click here to continue:
Recovering Markets And Improving Margins Propelling IDEX
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