IDEXX LABORATORIES INC (IDXX) Stock Fundamental Analysis
NASDAQ:IDXX - Nasdaq - US45168D1046 - Common Stock - Currency: USD
Overall IDXX gets a fundamental rating of 7 out of 10. We evaluated IDXX against 187 industry peers in the Health Care Equipment & Supplies industry. IDXX gets an excellent profitability rating and is at the same time showing great financial health properties. IDXX has a correct valuation and a medium growth rate. This makes IDXX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year IDXX was profitable.
IDXX had a positive operating cash flow in the past year.
IDXX had positive earnings in each of the past 5 years.
Each year in the past 5 years IDXX had a positive operating cash flow.
1.2 Ratios
IDXX has a better Return On Assets (27.85%) than 98.93% of its industry peers.
With an excellent Return On Equity value of 61.81%, IDXX belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
IDXX has a Return On Invested Capital of 38.16%. This is amongst the best in the industry. IDXX outperforms 100.00% of its industry peers.
IDXX had an Average Return On Invested Capital over the past 3 years of 35.08%. This is significantly above the industry average of 7.89%.
The 3 year average ROIC (35.08%) for IDXX is below the current ROIC(38.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.85% | ||
| ROE | 61.81% | ||
| ROIC | 38.16% |
ROA(3y)25.87%
ROA(5y)26.7%
ROE(3y)74.71%
ROE(5y)84.83%
ROIC(3y)35.08%
ROIC(5y)36.07%
1.3 Margins
IDXX has a Profit Margin of 22.76%. This is amongst the best in the industry. IDXX outperforms 95.19% of its industry peers.
IDXX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.14%, IDXX belongs to the top of the industry, outperforming 97.86% of the companies in the same industry.
In the last couple of years the Operating Margin of IDXX has grown nicely.
With a decent Gross Margin value of 61.28%, IDXX is doing good in the industry, outperforming 62.03% of the companies in the same industry.
IDXX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.14% | ||
| PM (TTM) | 22.76% | ||
| GM | 61.28% |
OM growth 3Y0.02%
OM growth 5Y4.78%
PM growth 3Y-0.55%
PM growth 5Y5.09%
GM growth 3Y1.27%
GM growth 5Y1.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDXX is creating value.
Compared to 1 year ago, IDXX has less shares outstanding
IDXX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IDXX has an improved debt to assets ratio.
2.2 Solvency
IDXX has an Altman-Z score of 19.92. This indicates that IDXX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IDXX (19.92) is better than 94.12% of its industry peers.
The Debt to FCF ratio of IDXX is 1.12, which is an excellent value as it means it would take IDXX, only 1.12 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.12, IDXX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
IDXX has a Debt/Equity ratio of 0.53. This is a neutral value indicating IDXX is somewhat dependend on debt financing.
IDXX's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. IDXX is outperformed by 63.10% of its industry peers.
Although IDXX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 19.92 |
ROIC/WACC4.05
WACC9.41%
2.3 Liquidity
A Current Ratio of 1.16 indicates that IDXX should not have too much problems paying its short term obligations.
IDXX has a Current ratio of 1.16. This is amonst the worse of the industry: IDXX underperforms 85.03% of its industry peers.
A Quick Ratio of 0.81 indicates that IDXX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, IDXX is doing worse than 85.56% of the companies in the same industry.
The current and quick ratio evaluation for IDXX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
IDXX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.36%, which is quite good.
Measured over the past years, IDXX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.18% on average per year.
Looking at the last year, IDXX shows a small growth in Revenue. The Revenue has grown by 5.56% in the last year.
Measured over the past years, IDXX shows a quite strong growth in Revenue. The Revenue has been growing by 10.12% on average per year.
EPS 1Y (TTM)10.36%
EPS 3Y9.32%
EPS 5Y18.18%
EPS Q2Q%5.34%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y6.62%
Revenue growth 5Y10.12%
Sales Q2Q%3.56%
3.2 Future
Based on estimates for the next years, IDXX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.32% on average per year.
IDXX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y10.27%
EPS Next 2Y11.24%
EPS Next 3Y11.67%
EPS Next 5Y9.32%
Revenue Next Year6.65%
Revenue Next 2Y7.18%
Revenue Next 3Y7.57%
Revenue Next 5Y7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.86, which means the current valuation is very expensive for IDXX.
Compared to the rest of the industry, the Price/Earnings ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 69.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, IDXX is valued quite expensively.
A Price/Forward Earnings ratio of 39.19 indicates a quite expensive valuation of IDXX.
Based on the Price/Forward Earnings ratio, IDXX is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
IDXX is valuated expensively when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.86 | ||
| Fwd PE | 39.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDXX is valued a bit cheaper than 69.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 74.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.78 | ||
| EV/EBITDA | 34.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of IDXX may justify a higher PE ratio.
PEG (NY)4.66
PEG (5Y)2.63
EPS Next 2Y11.24%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
IDXX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
545.56
-1.45 (-0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.45%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change2.67%
Market Cap44.21B
Analysts78
Price Target525.89 (-3.61%)
Short Float %3.15%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.31%
Min EPS beat(2)1.72%
Max EPS beat(2)6.89%
EPS beat(4)4
Avg EPS beat(4)3.49%
Min EPS beat(4)1.72%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)4.39%
EPS beat(12)11
Avg EPS beat(12)3.61%
EPS beat(16)14
Avg EPS beat(16)4.26%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)0.06%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)1
Avg Revenue beat(12)-1.55%
Revenue beat(16)3
Avg Revenue beat(16)-1.12%
PT rev (1m)1%
PT rev (3m)0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.83%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.86 | ||
| Fwd PE | 39.19 | ||
| P/S | 11.24 | ||
| P/FCF | 52.78 | ||
| P/OCF | 45.66 | ||
| P/B | 30.53 | ||
| P/tB | 47.38 | ||
| EV/EBITDA | 34.9 |
EPS(TTM)11.4
EY2.09%
EPS(NY)13.92
Fwd EY2.55%
FCF(TTM)10.34
FCFY1.89%
OCF(TTM)11.95
OCFY2.19%
SpS48.52
BVpS17.87
TBVpS11.51
PEG (NY)4.66
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.85% | ||
| ROE | 61.81% | ||
| ROCE | 55.16% | ||
| ROIC | 38.16% | ||
| ROICexc | 40.96% | ||
| ROICexgc | 53.23% | ||
| OM | 29.14% | ||
| PM (TTM) | 22.76% | ||
| GM | 61.28% | ||
| FCFM | 21.31% |
ROA(3y)25.87%
ROA(5y)26.7%
ROE(3y)74.71%
ROE(5y)84.83%
ROIC(3y)35.08%
ROIC(5y)36.07%
ROICexc(3y)39.8%
ROICexc(5y)41.54%
ROICexgc(3y)51.52%
ROICexgc(5y)54.69%
ROCE(3y)52.73%
ROCE(5y)50.92%
ROICexcg growth 3Y-5.99%
ROICexcg growth 5Y4.29%
ROICexc growth 3Y-3.86%
ROICexc growth 5Y4.07%
OM growth 3Y0.02%
OM growth 5Y4.78%
PM growth 3Y-0.55%
PM growth 5Y5.09%
GM growth 3Y1.27%
GM growth 5Y1.47%
F-Score8
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 97.45% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.65% | ||
| Profit Quality | 93.6% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 19.92 |
F-Score8
WACC9.41%
ROIC/WACC4.05
Cap/Depr(3y)119.66%
Cap/Depr(5y)117.12%
Cap/Sales(3y)3.91%
Cap/Sales(5y)3.89%
Profit Quality(3y)79.31%
Profit Quality(5y)83.23%
High Growth Momentum
Growth
EPS 1Y (TTM)10.36%
EPS 3Y9.32%
EPS 5Y18.18%
EPS Q2Q%5.34%
EPS Next Y10.27%
EPS Next 2Y11.24%
EPS Next 3Y11.67%
EPS Next 5Y9.32%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y6.62%
Revenue growth 5Y10.12%
Sales Q2Q%3.56%
Revenue Next Year6.65%
Revenue Next 2Y7.18%
Revenue Next 3Y7.57%
Revenue Next 5Y7%
EBIT growth 1Y2.71%
EBIT growth 3Y6.64%
EBIT growth 5Y15.38%
EBIT Next Year29.02%
EBIT Next 3Y15.29%
EBIT Next 5Y11.31%
FCF growth 1Y83.83%
FCF growth 3Y7.86%
FCF growth 5Y21.29%
OCF growth 1Y58.18%
OCF growth 3Y7.13%
OCF growth 5Y15.13%