IDEXX Laboratories, Inc. Fundamental Analysis (NASDAQ: IDXX)
IDEXX Laboratories, Inc. Fundamental Analysis (NASDAQ: IDXX)
IDEXX Laboratories, Inc. (NASDAQ: IDXX) shows strong financial fundamentals with a PE ratio of 40.89, profit margin of 25.03%, and ROE of 71.96%. The company generates $4.5B in annual revenue with strong year-over-year growth of 10.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IDXX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIDXX demonstrates superior asset utilization.
Valuation Score
WeakIDXX trades at a premium to fair value.
Growth Score
ExcellentIDXX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentIDXX maintains a strong and stable balance sheet.
Profitability Score
ExcellentIDXX achieves industry-leading margins.
Key Financial Metrics
Is IDXX Expensive or Cheap?
P/E Ratio
IDXX trades at 40.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IDXX's PEG of 2.31 indicates potential overvaluation.
Price to Book
The market values IDEXX Laboratories, Inc. at 28.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.65 times EBITDA. This signals the market has high growth expectations.
How Well Does IDXX Make Money?
Net Profit Margin
For every $100 in sales, IDEXX Laboratories, Inc. keeps $25.03 as profit after all expenses.
Operating Margin
Core operations generate 32.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $71.96 in profit for every $100 of shareholder equity.
ROA
IDEXX Laboratories, Inc. generates $33.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IDEXX Laboratories, Inc. generates strong operating cash flow of $1.35B, reflecting robust business health.
Free Cash Flow
IDEXX Laboratories, Inc. generates strong free cash flow of $1.23B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.61 in free cash annually.
FCF Yield
IDXX converts 2.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
28.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.72
vs 25 benchmark
ROA
Return on assets percentage
0.33
vs 25 benchmark
ROCE
Return on capital employed
0.68
vs 25 benchmark
How IDXX Stacks Against Its Sector Peers
| Metric | IDXX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.89 | 30.38 | Worse (Expensive) |
| ROE | 71.96% | 474.00% | Weak |
| Net Margin | 25.03% | -25173.00% (disorted) | Strong |
| Debt/Equity | 0.60 | 0.74 | Neutral |
| Current Ratio | 1.17 | 5.28 | Neutral |
| ROA | 33.11% | 2904318.00% | Weak |
IDXX outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IDEXX Laboratories, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.42%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
94.04%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
93.69%
Industry Style: Defensive, Growth, Innovation
High Growth