693.85 USD
+2.8 (+0.41%)
690 USD
-3.85 (-0.55%)
We assign a fundamental rating of 7 out of 10 to IDXX. IDXX was compared to 186 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 decent growth rate and is not valued too expensively. 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.
- In the past 5 years IDXX has always been profitable.
- In the past 5 years IDXX always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of IDXX (30.34%) is better than 100.00% of its industry peers.
- Looking at the Return On Equity, with a value of 65.81%, IDXX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 40.25%, IDXX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- IDXX had an Average Return On Invested Capital over the past 3 years of 35.08%. This is significantly above the industry average of 8.84%.
- The 3 year average ROIC (35.08%) for IDXX is below the current ROIC(40.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.34% | ||
| ROE | 65.81% | ||
| ROIC | 40.25% |
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
- The Profit Margin of IDXX (24.65%) is better than 95.16% of its industry peers.
- In the last couple of years the Profit Margin of IDXX has grown nicely.
- The Operating Margin of IDXX (31.34%) is better than 98.92% of its industry peers.
- IDXX's Operating Margin has improved in the last couple of years.
- IDXX's Gross Margin of 61.72% is fine compared to the rest of the industry. IDXX outperforms 63.44% of its industry peers.
- In the last couple of years the Gross Margin of IDXX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.34% | ||
| PM (TTM) | 24.65% | ||
| GM | 61.72% |
OM growth 3Y0.02%
OM growth 5Y4.78%
PM growth 3Y-0.56%
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
- An Altman-Z score of 23.26 indicates that IDXX is not in any danger for bankruptcy at the moment.
- IDXX's Altman-Z score of 23.26 is amongst the best of the industry. IDXX outperforms 96.24% of its industry peers.
- The Debt to FCF ratio of IDXX is 1.04, which is an excellent value as it means it would take IDXX, only 1.04 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of IDXX (1.04) is better than 90.32% of its industry peers.
- IDXX has a Debt/Equity ratio of 0.53. This is a neutral value indicating IDXX is somewhat dependend on debt financing.
- IDXX has a Debt to Equity ratio (0.53) which is in line with 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 | 1.04 | ||
| Altman-Z | 23.26 |
ROIC/WACC3.87
WACC10.39%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that IDXX should not have too much problems paying its short term obligations.
- The Current ratio of IDXX (1.18) is worse than 81.72% of its industry peers.
- IDXX has a Quick Ratio of 1.18. This is a bad value and indicates that IDXX is not financially healthy enough and could expect problems in meeting its short term obligations.
- IDXX has a Quick ratio of 0.87. This is amonst the worse of the industry: IDXX underperforms 80.11% of its industry peers.
- IDXX does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.18 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- IDXX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.16%, which is quite good.
- The Earnings Per Share has been growing by 18.18% on average over the past years. This is quite good.
- The Revenue has grown by 8.39% in the past year. This is quite good.
- IDXX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
EPS 1Y (TTM)15.16%
EPS 3Y9.32%
EPS 5Y18.18%
EPS Q2Q%21.43%
Revenue 1Y (TTM)8.39%
Revenue growth 3Y6.62%
Revenue growth 5Y10.12%
Sales Q2Q%13.29%
3.2 Future
- IDXX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.18% yearly.
- IDXX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.43% yearly.
EPS Next Y16.89%
EPS Next 2Y14.65%
EPS Next 3Y14.13%
EPS Next 5Y14.18%
Revenue Next Year10.46%
Revenue Next 2Y9.59%
Revenue Next 3Y9.39%
Revenue Next 5Y9.43%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 55.02 indicates a quite expensive valuation of IDXX.
- Compared to the rest of the industry, the Price/Earnings ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 69.35% of the companies listed in the same industry.
- IDXX is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 46.92, which means the current valuation is very expensive for IDXX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 69.89% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, IDXX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.02 | ||
| Fwd PE | 46.92 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 68.28% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, IDXX is valued a bit cheaper than 73.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.93 | ||
| EV/EBITDA | 38.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IDXX does not grow enough to justify the current Price/Earnings ratio.
- IDXX has an outstanding profitability rating, which may justify a higher PE ratio.
- IDXX's earnings are expected to grow with 14.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.26
PEG (5Y)3.03
EPS Next 2Y14.65%
EPS Next 3Y14.13%
5. Dividend
5.1 Amount
- No dividends for IDXX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
IDEXX LABORATORIES INC / IDXX FAQ
What is the ChartMill fundamental rating of IDEXX LABORATORIES INC (IDXX) stock?
ChartMill assigns a fundamental rating of 7 / 10 to IDXX.
What is the valuation status of IDEXX LABORATORIES INC (IDXX) stock?
ChartMill assigns a valuation rating of 4 / 10 to IDEXX LABORATORIES INC (IDXX). This can be considered as Fairly Valued.
Can you provide the profitability details for IDEXX LABORATORIES INC?
IDEXX LABORATORIES INC (IDXX) has a profitability rating of 9 / 10.
What are the PE and PB ratios of IDEXX LABORATORIES INC (IDXX) stock?
The Price/Earnings (PE) ratio for IDEXX LABORATORIES INC (IDXX) is 55.02 and the Price/Book (PB) ratio is 35.49.
What is the expected EPS growth for IDEXX LABORATORIES INC (IDXX) stock?
The Earnings per Share (EPS) of IDEXX LABORATORIES INC (IDXX) is expected to grow by 16.89% in the next year.