Despite a broad recovery underway in many markets, IDEX (IEX) shares have stalled out a bit. Just barely up since my last article, IDEX has modestly lagged a sluggish industrial sector. A few other high-multiple compounders like AMETEK (AME) and Fortive (FTV) have seen similar results, but then Danaher (DHR), IMI plc (OTCPK:IMIAF), and Roper (ROP) have marched merrily onward, so I don’t think there’s any broader conclusion.
This remains a stock that I’d love to get a crack at at a more reasonable long-term valuation. The best I can say about the shares now is that there are plenty of industrials that offer similar lackluster long-term prospective returns and IDEX is a better company than many of them. I realize there’s always going to be an “ignore the valuation and just buy” contingent, and I do like the long-term prospects for this best-of-breed fluid management company, but the valuation still doesn’t really appeal to me now.
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IDEX: Improving Macro And Capital Deployment, But Not Much Share Price Momentum
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