$IDEX- “Intrinsic Value of $2.44/share”
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Posted On: 11/11/2020 6:48:28 PM
$IDEX- “Intrinsic Value of $2.44/share”
“Valuation is attractive given strong revenue growth, expected increase in profit margins and strong balance sheet. IDEX is trading at a steep discount to its intrinsic value. We expect IDEX’s topline to climb from $30 million in CY20 to $100 million in CY22. Its EBITDA margin is likely to expand to 3 3% in CY22 as the company benefits from economies of scale. More importantly, balance sheet is strengthening, IDEX will generate positive FCF next year, and RoE will reach 22% by CY22. We model CY22 EPS of $0.12 and apply a conservative 20x PE multiple to arrive at an intrinsic value of $2.44/share, implying a 151% upside to the current market price of $0.97/share. Overall, given the large addressable market, IDEX’s strong competitive position and its expansion into markets outside China, we believe that the Street is undervaluing the stock and expect it to re -rate as business goals are achieved.”
How The US Election Could Impact The EV Industry
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“Valuation is attractive given strong revenue growth, expected increase in profit margins and strong balance sheet. IDEX is trading at a steep discount to its intrinsic value. We expect IDEX’s topline to climb from $30 million in CY20 to $100 million in CY22. Its EBITDA margin is likely to expand to 3 3% in CY22 as the company benefits from economies of scale. More importantly, balance sheet is strengthening, IDEX will generate positive FCF next year, and RoE will reach 22% by CY22. We model CY22 EPS of $0.12 and apply a conservative 20x PE multiple to arrive at an intrinsic value of $2.44/share, implying a 151% upside to the current market price of $0.97/share. Overall, given the large addressable market, IDEX’s strong competitive position and its expansion into markets outside China, we believe that the Street is undervaluing the stock and expect it to re -rate as business goals are achieved.”
How The US Election Could Impact The EV Industry
https://cleantechnica.com/2020/11/04/how-the-...-industry/
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