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IDEX (NYSE:IEX) Beneish M-Score

: -2.61 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for IDEX's Beneish M-Score or its related term are showing as below:

IEX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.7   Med: -2.56   Max: -2.23
Current: -2.61

During the past 13 years, the highest Beneish M-Score of IDEX was -2.23. The lowest was -2.70. And the median was -2.56.


IDEX Beneish M-Score Historical Data

The historical data trend for IDEX's Beneish M-Score 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.60 -2.70 -2.38 -2.23 -2.61

IDEX Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.23 -2.40 -2.42 -2.46 -2.61

Competitive Comparison

For the Specialty Industrial Machinery subindustry, IDEX's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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.


IDEX Beneish M-Score Distribution

For the Industrial Products industry and Industrials sector, IDEX's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where IDEX's Beneish M-Score falls into.



IDEX Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of IDEX for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.939+0.528 * 1.0147+0.404 * 1.0048+0.892 * 1.0289+0.115 * 0.9134
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0475+4.679 * -0.032258-0.327 * 0.8134
=-2.61

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $428 Mil.
Revenue was 788.9 + 793.4 + 846.2 + 845.4 = $3,274 Mil.
Gross Profit was 336.8 + 349.6 + 378 + 382.5 = $1,447 Mil.
Total Current Assets was $1,446 Mil.
Total Assets was $5,865 Mil.
Property, Plant and Equipment(Net PPE) was $430 Mil.
Depreciation, Depletion and Amortization(DDA) was $152 Mil.
Selling, General, & Admin. Expense(SGA) was $704 Mil.
Total Current Liabilities was $500 Mil.
Long-Term Debt & Capital Lease Obligation was $1,325 Mil.
Net Income was 108.6 + 209.1 + 138.6 + 139.8 = $596 Mil.
Non Operating Income was -11.4 + 91.8 + -11.9 + 0.1 = $69 Mil.
Cash Flow from Operations was 201 + 226.6 + 141.2 + 147.9 = $717 Mil.
Total Receivables was $443 Mil.
Revenue was 810.7 + 824 + 796.1 + 751.1 = $3,182 Mil.
Gross Profit was 345.7 + 381.8 + 356.9 + 342.5 = $1,427 Mil.
Total Current Assets was $1,399 Mil.
Total Assets was $5,512 Mil.
Property, Plant and Equipment(Net PPE) was $382 Mil.
Depreciation, Depletion and Amortization(DDA) was $120 Mil.
Selling, General, & Admin. Expense(SGA) was $653 Mil.
Total Current Liabilities was $544 Mil.
Long-Term Debt & Capital Lease Obligation was $1,565 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(427.8 / 3273.9) / (442.8 / 3181.9)
=0.13067 / 0.139162
=0.939

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1426.9 / 3181.9) / (1446.9 / 3273.9)
=0.448443 / 0.44195
=1.0147

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1446.3 + 430.3) / 5865.2) / (1 - (1399.3 + 382.1) / 5511.9)
=0.680045 / 0.676808
=1.0048

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3273.9 / 3181.9
=1.0289

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(119.7 / (119.7 + 382.1)) / (152.1 / (152.1 + 430.3))
=0.238541 / 0.261161
=0.9134

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(703.5 / 3273.9) / (652.7 / 3181.9)
=0.214881 / 0.205129
=1.0475

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1325.1 + 500.3) / 5865.2) / ((1565.3 + 543.6) / 5511.9)
=0.311226 / 0.382609
=0.8134

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(596.1 - 68.6 - 716.7) / 5865.2
=-0.032258

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

IDEX has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


IDEX (NYSE:IEX) Business Description

Traded in Other Exchanges
Address
3100 Sanders Road, Suite 301, Northbrook, IL, USA, 60062
Idex manufactures pumps, flow meters, valves, and fluidic systems for customers in a variety of end markets, including industrial, fire and safety, life science, and water. The firm's business is organized into three segments: fluid and metering technologies, health and science technologies, and fire and 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 $3.2 billion in revenue and $763 million in adjusted operating income in 2022.
Executives
Alejandro Quiroz director 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Roopa Unnikrishnan officer: SVP, Strategy&Corp Development 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Marc Uleman officer: Senior VP, Group Executive HST 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
William K Grogan officer: SVP - Chief Financial Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Melissa Aquino officer: Former SVP, Group Exec FMT&FSD 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Livingston Satterthwaite director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Eric D Ashleman officer: SVP - Chief Operating Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Stanfield Paris Watts director 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Carl R Christenson director C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Katrina L Helmkamp director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
William M Cook director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Mark A Buthman director P O BOX 619100, DALLAS TX 752619100
Lakecia N Gunter director 3100 SANDER ROAD, SUITE 301, NORTHBROOK IL 60062
Mark A Beck director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
David C Parry director 155 HARLEM AVE., GLENVIEW IL 60025