- IDEX posted a pretty sector-typical quarter, with strong revenue growth on the back of robust short-cycle demand, but clear margin pressure from supply chain challenges.
- The short-cycle recovery still has legs, and large projects should pick up later in the year, but cost relief is unlikely until the second half of 2022, if then.
- Expect IDEX to be active on the M&A front.
- Mid-single-digit revenue and high single-digit FCF growth can support a high single-digit total annualized return; IDEX is increasingly attractive on valuation, but sentiment is a concern.
For further details see:
Margin Headwinds Chipping Away At IDEX's Premium