GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » IDEX Corp (NYSE:IEX) » Definitions » Free Cash Flow
中文

IDEX (IEX) Free Cash Flow

: $627 Mil (TTM As of Dec. 2023)
View and export this data going back to 1989. Start your Free Trial

IDEX's total free cash flow for the months ended in Dec. 2023 was $179 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2023 was $627 Mil.

IDEX's Free Cash Flow per Share for the months ended in Dec. 2023 was $2.36. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2023 was $8.26.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of IDEX was 28.20% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 6.80% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 6.40% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 6.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, IDEX's highest 3-Year average Free Cash Flow per Share Growth Rate was 41.10% per year. The lowest was -5.40% per year. And the median was 9.65% per year.


IDEX Free Cash Flow Historical Data

The historical data trend for IDEX's Free Cash Flow 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
Free Cash Flow
Get a 7-Day Free Trial Premium Member Only Premium Member Only 477.20 517.70 492.60 489.40 626.80

IDEX Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Free Cash Flow Get a 7-Day Free Trial 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 147.30 121.30 119.60 206.50 179.40

IDEX Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

IDEX's Free Cash Flow for the fiscal year that ended in Dec. 2023 is calculated as

Free Cash Flow (A: Dec. 2023 )=Cash Flow from Operations+Capital Expenditure
=716.7+-89.9
=627

IDEX's Free Cash Flow for the quarter that ended in Dec. 2023 is calculated as

Free Cash Flow (Q: Dec. 2023 )=Cash Flow from Operations+Capital Expenditure
=201+-21.6
=179

Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $627 Mil.

* 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.


IDEX  (NYSE:IEX) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Dec23, IDEX's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec23)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=6.8472381/217.11+0.106
=13.75 %

* 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.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


IDEX Free Cash Flow Related Terms

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


IDEX (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

IDEX (IEX) Headlines

From GuruFocus

Q4 2021 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2022 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2018 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2020 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2022 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2019 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2019 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2020 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2021 IDEX Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024