IDEX Corporation: Assessing Financial Prospects and ROE

IDEX Corporation's (NYSE:IEX) recent stock decline may be an opportunity for long-term investors. The company's strong financials, including a 12% return on equity and 6.8% growth over the past five years, suggest potential value in the long-term. The return on equity formula calculates the rate of return on shareholder investment, with the company generating a profit of $0.12 for every $1 of shareholder investment. The company's earnings growth is lower than the industry average, but its financial health and moderate growth may make it a worthwhile investment.

IDEX Corporation (NYSE:IEX) has recently experienced a stock decline, which might present an opportunity for long-term investors. The company's strong financials, including a 12% return on equity and 6.8% growth over the past five years, suggest potential value in the long term. The return on equity formula calculates the rate of return on shareholder investment, with IDEX generating a profit of $0.12 for every $1 of shareholder investment [1].

While the company's earnings growth is lower than the industry average, its financial health and moderate growth may make it a worthwhile investment. Analysts expect IDEX to grow earnings and revenue by 13.2% and 6.4% per annum respectively, with EPS expected to grow by 13.9% per annum [1]. The company's return on equity is forecast to be 16.6% in three years, indicating a strong financial performance [1].

IDEX has also been making strategic moves to improve its financial position. In September 2023, the company completed the acquisition of Superior Technical Ceramics Corp. for approximately $210 million, which is expected to enhance its product offerings and revenue streams [2]. Additionally, IDEX has been consistent in its dividend payouts, with a recent dividend of US$0.71 per share [3].

Despite the recent stock decline, IDEX's strong fundamentals and strategic initiatives suggest that it could be a promising long-term investment. However, investors should conduct their own research and consider seeking professional advice before making investment decisions.