IDEX (NYSE:IEX) ROE %

: 25.57% (As of Sep. 2022)

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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. IDEX's annualized net income for the quarter that ended in Sep. 2022 was $715 Mil. IDEX's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $2,796 Mil. Therefore, IDEX's annualized ROE % for the quarter that ended in Sep. 2022 was 25.57%.

The historical rank and industry rank for IDEX's ROE % or its related term are showing as below:

IEX' s ROE % Range Over the Past 10 Years
Min: 2.53 Med: 18.21 Max: 21.16
Current: 20.53

During the past 13 years, IDEX's highest ROE % was 21.16%. The lowest was 2.53%. And the median was 18.21%.

IEX's ROE % is ranked better than
87.19% of 2740 companies
in the Industrial Products industry
Industry Median: 7.56 vs IEX: 20.53

IDEX ROE % Historical Data

The historical data trend for IDEX's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

IDEX Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROE %

19.66

21.16

19.99

15.73

16.82

IDEX Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROE %																17.14	17.19	19.64	19.44	25.57

Competitive Comparison

For the Specialty Industrial Machinery subindustry, IDEX's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

IDEX ROE % Distribution

For the Industrial Products industry and Industrials sector, IDEX's ROE % distribution charts can be found below:

* The bar in red indicates where IDEX's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.

IDEX ROE % Calculation

IDEX's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %	=	Net Income (A: Dec. 2021 )	/	( (Total Stockholders Equity (A: Dec. 2020 )	+	Total Stockholders Equity (A: Dec. 2021 ))	/ count )
	=	449.4	/	( (2540.2	+	2803.1)	/ 2 )
	=	449.4	/	2671.65
	=	16.82 %

IDEX's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %	=	Net Income (Q: Sep. 2022 )	/	( (Total Stockholders Equity (Q: Jun. 2022 )	+	Total Stockholders Equity (Q: Sep. 2022 ))	/ count )
	=	714.8	/	( (2788.2	+	2802.8)	/ 2 )
	=	714.8	/	2795.5
	=	25.57 %

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.

IDEX (NYSE:IEX) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

	ROE %		(Q: Sep. 2022 )
=	Net Income	/	Total Stockholders Equity
=	714.8	/	2795.5
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(714.8 / 3296)	*	(3296 / 4902.7)	*	(4902.7 / 2795.5)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	21.69 %	*	0.6723	*	1.7538
=	ROA %	*	Equity Multiplier
=	14.58 %	*	1.7538
=	25.57 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

	ROE %		(Q: Sep. 2022 )
=	Net Income	/	Total Stockholders Equity
=	714.8	/	2795.5
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(714.8 / 913.6)	*	(913.6 / 879.6)	*	(879.6 / 3296)	*	(3296 / 4902.7)	*	(4902.7 / 2795.5)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.7824	*	1.0387	*	26.69 %	*	0.6723	*	1.7538
=	25.57 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
^* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.

IDEX ROE % Related Terms

Thank you for viewing the detailed overview of IDEX's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.

IDEX (NYSE:IEX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » IDEX Corp (NYSE:IEX) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

IEX:Mexico ID7:Germany ID7:Germany I1EX34:Brazil

Address

3100 Sanders Road, Suite 301, Northbrook, IL, USA, 60062

Website

https://www.idexcorp.com

Idex manufactures pumps, flow meters, valves, and fluidic systems for customers in a variety of end markets, including industrial, fire & safety, life science, and water. The firm's business is organized into three segments: fluid & metering technologies, health & science technologies, and fire & safety and diversified products. Based in Lake Forest, Illinois, Idex has manufacturing operations in over 20 countries and has over 7,000 employees. The company generated $2.8 billion in revenue and $661 million in adjusted operating income in 2021.

Executives

Watts Stanfield Paris	director	3100 SANDERS ROAD SUITE 301 NORTHBROOK IL 60062
Gunter Lakecia N	director	3100 SANDER ROAD SUITE 301 NORTHBROOK IL 60062
Satterthwaite Livingston	director	1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Parry David C	director	155 HARLEM AVE. GLENVIEW IL 60025
Beck Mark A	director	2200 PENNSYLVANIA AVENUE, NW SUITE 800W WASHINGTON DC 20037
Christenson Carl R	director	C/O ALTRA INDUSTRIAL MOTION INC. 300 GRANITE STREET BRAINTREE MA 02184
Helmkamp Katrina L	director	1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Cook William M	director	1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Buthman Mark A	director	P O BOX 619100 DALLAS TX 752619100
Unnikrishnan Roopa	officer: SVP, Strategy&Corp Development	3100 SANDERS ROAD SUITE 301 NORTHBROOK IL 60062
Anderson Lisa M	officer: SVP, General Counsel &Corp Sec	3100 SANDERS ROAD SUITE 301 NORTHBROOK IL 60062
Lausas Allison S	officer: VP, Chief Accounting Officer	C/O SUNCOKE ENERGY, INC. 1011 WARRENVILLE ROAD, SUITE 600 LISLE IL 60532
Flores Melissa S	officer: SVP-Chief HR Officer	3100 SANDER ROAD SUITE 301 NORTHBROOK IL 60062
Warner Cynthia J	director	1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Mrozek Ernest J	director	SERVICE MASTER 2300 WARRENVILLE ROAD DOWNERS GROVE IL 60515