IMIAY - IDEX Priced As The High-Quality Growth Fluid Control Story That It Is

• Despite positive contributions from the company's biopharma exposure, sharp declines in short-cycle industrial, longer-cycle process, and municipal markets have hit IDEX's revenue and margins quite hard.
• Biopharma production, including therapeutics and vaccines, offers good long-term growth, and the company's specialized control products will benefit from ongoing long-term investment in industrial and process capex.
• Decremental margins have been high, due in large part to the structure of the company, but management has delivered better than expected performance on aggressive cost-cutting.
• IDEX is a high-quality name in an attractive space (high-end/precision fluid control), but the valuation amply reflects that.

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