- 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.
For further details see:
IDEX Priced As The High-Quality Growth Fluid Control Story That It Is