ESAB vs IDEX
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KIRA’s take AI analyst
I put ESAB and IDEX side by side, using each one’s latest annual report. Here is what stands out:
- IDEX is the larger business, with $3.5B of revenue in fiscal 2025 against $2.8B for ESAB.
- IDEX grew revenue faster (5.8%, against 3.7%).
- IDEX kept more of each dollar of sales as operating profit (20.2% operating margin, against 14.5%).
- IDEX turned more of its sales into free cash flow (17.8% FCF margin, against 7.5%).
- ESAB earned a higher return on the capital invested in it (11.0%, against 10.2%).
- Investors pay more for each dollar of IDEX’s earnings: a P/E of 33.0x against 24.1x for ESAB.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
ESAB
ESAB
1/11
Return on capital
IDEX
IEX
10/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | ESAB FY25 | IEX FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.1B | $17.0B |
| Revenue | $2.8B | $3.5B |
| Free cash flow | $213M | $617M |
| Net income | $227M | $483M |
| Growth | ||
| Revenue growth | 3.7% | 5.8% |
| 5-year growth | 7.8% | 8.0% |
| Share count change | 0.3% | −0.8% |
| Profitability | ||
| Gross margin | 36.9% | 44.5% |
| Operating margin | 14.5% | 20.2% |
| Net margin | 8.0% | 14.0% |
| FCF margin | 7.5% | 17.8% |
| Return on capital | 11.0% | 10.2% |
| Return on equity | 11.5% | 12.4% |
| Balance sheet | ||
| Net debt | $1.0B | $1.2B |
| Net debt / EBITDA | 2.1x | 1.4x |
| Dividends and buybacks | $21.9M | $460M |
| Valuation & quality | ||
| P/E | 24.1x | 33.0x |
| Piotroski F-score | 4 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.