IDEXX LABORATORIES INC (IDXX) Stock Fundamental Analysis
NASDAQ:IDXX - Nasdaq - US45168D1046 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to IDXX. IDXX was compared to 187 industry peers in the Health Care Equipment & Supplies industry. IDXX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IDXX is not valued too expensively and it also shows a decent 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.
IDXX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IDXX (27.85%) is better than 98.93% of its industry peers.
IDXX's Return On Equity of 61.81% is amongst the best of the industry. IDXX outperforms 99.47% of its industry peers.
The Return On Invested Capital of IDXX (38.16%) is better than 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 last Return On Invested Capital (38.16%) for IDXX is above the 3 year average (35.08%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of IDXX has grown nicely.
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.
The Gross Margin of IDXX (61.28%) is better than 62.03% 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 | 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
An Altman-Z score of 19.96 indicates that IDXX is not in any danger for bankruptcy at the moment.
The Altman-Z score of IDXX (19.96) is better than 94.65% 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.
IDXX has a better Debt to FCF ratio (1.12) than 90.91% 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.
Looking at the Debt to Equity ratio, with a value of 0.53, IDXX is doing worse than 63.10% of the companies in the same industry.
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 | 19.96 |
ROIC/WACC4.05
WACC9.41%
2.3 Liquidity
IDXX has a Current Ratio of 1.16. This is a normal value and indicates that IDXX is financially healthy and should not expect problems in meeting its short term obligations.
IDXX's Current ratio of 1.16 is on the low side compared to the rest of the industry. IDXX is outperformed by 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.
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 | 1.16 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.36% over the past year.
The Earnings Per Share has been growing by 18.18% on average over the past years. This is quite good.
IDXX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.56%.
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
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 47.98, the valuation of IDXX can be described as expensive.
IDXX's Price/Earnings ratio is a bit cheaper when compared to the industry. IDXX is cheaper than 69.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, IDXX is valued quite expensively.
A Price/Forward Earnings ratio of 39.29 indicates a quite expensive valuation of IDXX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 67.91% of the companies listed in the same industry.
IDXX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.98 | ||
| Fwd PE | 39.29 |
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 69.52% of the companies listed in the same industry.
74.33% of the companies in the same industry are more expensive than IDXX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.92 | ||
| EV/EBITDA | 34.99 |
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.
The excellent profitability rating of IDXX may justify a higher PE ratio.
PEG (NY)4.67
PEG (5Y)2.64
EPS Next 2Y11.24%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
No dividends for IDXX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
547.01
+4.3 (+0.79%)
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 Change-50.27%
Ins Owners0.19%
Ins Owner Change2.67%
Market Cap44.33B
Analysts78
Price Target525.89 (-3.86%)
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 | 47.98 | ||
| Fwd PE | 39.29 | ||
| P/S | 11.27 | ||
| P/FCF | 52.92 | ||
| P/OCF | 45.78 | ||
| P/B | 30.61 | ||
| P/tB | 47.51 | ||
| EV/EBITDA | 34.99 |
EPS(TTM)11.4
EY2.08%
EPS(NY)13.92
Fwd EY2.54%
FCF(TTM)10.34
FCFY1.89%
OCF(TTM)11.95
OCFY2.18%
SpS48.52
BVpS17.87
TBVpS11.51
PEG (NY)4.67
PEG (5Y)2.64
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 | 19.96 |
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%