IDEXX LABORATORIES INC (IDXX) Stock Fundamental Analysis
NASDAQ:IDXX - Nasdaq - US45168D1046 - Common Stock - Currency: USD
Taking everything into account, IDXX scores 7 out of 10 in our fundamental rating. IDXX was compared to 187 industry peers in the Health Care Equipment & Supplies industry. IDXX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IDXX is not valued too expensively and it also shows a decent growth rate. With these ratings, IDXX could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year IDXX was profitable.
In the past year IDXX had a positive cash flow from operations.
IDXX had positive earnings in each of the past 5 years.
In the past 5 years IDXX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 27.85%, IDXX belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
IDXX's Return On Equity of 61.81% is amongst the best of the industry. IDXX outperforms 99.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 38.16%, 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 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
With an excellent Profit Margin value of 22.76%, IDXX belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
In the last couple of years the Profit Margin of IDXX has grown nicely.
IDXX's Operating Margin of 29.14% is amongst the best of the industry. IDXX outperforms 97.86% of its industry peers.
IDXX's Operating Margin has improved in the last couple of years.
IDXX's Gross Margin of 61.28% is fine compared to the rest of the industry. IDXX outperforms 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
The number of shares outstanding for IDXX has been reduced compared to 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 19.07. This indicates that IDXX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.07, IDXX belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
IDXX has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
IDXX has a Debt to FCF ratio of 1.12. This is amongst the best in the industry. IDXX outperforms 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.
With a Debt to Equity ratio value of 0.53, IDXX is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for IDXX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 19.07 |
ROIC/WACC4
WACC9.55%
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 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.
IDXX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.18% yearly.
The Revenue has been growing slightly by 5.56% in the past year.
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)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.
Based on estimates for the next years, IDXX will show a small growth in Revenue. The Revenue will grow by 7.00% on average per year.
EPS Next Y10.35%
EPS Next 2Y11.26%
EPS Next 3Y11.76%
EPS Next 5Y9.32%
Revenue Next Year6.75%
Revenue Next 2Y7.22%
Revenue Next 3Y7.62%
Revenue Next 5Y7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 45.14, 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.
When comparing the Price/Earnings ratio of IDXX to the average of the S&P500 Index (27.50), we can say IDXX is valued expensively.
The Price/Forward Earnings ratio is 36.96, which means the current valuation is very expensive for IDXX.
Based on the Price/Forward Earnings ratio, IDXX is valued a bit cheaper than 69.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. IDXX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.14 | ||
| Fwd PE | 36.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDXX is valued a bit cheaper than the industry average as 70.05% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 74.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.4 | ||
| EV/EBITDA | 32.95 |
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)4.36
PEG (5Y)2.48
EPS Next 2Y11.26%
EPS Next 3Y11.76%
5. Dividend
5.1 Amount
No dividends for IDXX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
514.61
-4.1 (-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 Change0%
Ins Owners0.19%
Ins Owner Change2.67%
Market Cap41.38B
Analysts78
Price Target525.89 (2.19%)
Short Float %3.19%
Short Ratio4.51
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)0%
PT rev (3m)0.71%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)2.2%
EPS NY rev (1m)0.27%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.14 | ||
| Fwd PE | 36.96 | ||
| P/S | 10.53 | ||
| P/FCF | 49.4 | ||
| P/OCF | 42.74 | ||
| P/B | 28.58 | ||
| P/tB | 44.35 | ||
| EV/EBITDA | 32.95 |
EPS(TTM)11.4
EY2.22%
EPS(NY)13.93
Fwd EY2.71%
FCF(TTM)10.42
FCFY2.02%
OCF(TTM)12.04
OCFY2.34%
SpS48.89
BVpS18.01
TBVpS11.6
PEG (NY)4.36
PEG (5Y)2.48
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 | 19.07 |
F-Score8
WACC9.55%
ROIC/WACC4
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 Y10.35%
EPS Next 2Y11.26%
EPS Next 3Y11.76%
EPS Next 5Y9.32%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y6.62%
Revenue growth 5Y10.12%
Sales Q2Q%3.56%
Revenue Next Year6.75%
Revenue Next 2Y7.22%
Revenue Next 3Y7.62%
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%