News Image

Why IDEXX LABORATORIES INC (NASDAQ:IDXX) qualifies as a quality stock.

By Mill Chart

Last update: Sep 1, 2023

In this article we will dive into IDEXX LABORATORIES INC (NASDAQ:IDXX) as a possible candidate for quality investing. Investors should always do their own research, but we noticed IDEXX LABORATORIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of IDEXX LABORATORIES INC

  • IDEXX LABORATORIES INC has demonstrated significant revenue growth over the past 5 years, with a 11.33% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • IDEXX LABORATORIES INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 50.88% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • The Debt/Free Cash Flow Ratio of IDEXX LABORATORIES INC stands at 1.75, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a robust Profit Quality (5-year) ratio of 75.88%, IDEXX LABORATORIES INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • IDEXX LABORATORIES INC has experienced impressive EBIT growth over the past 5 years, with 16.85% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • IDEXX LABORATORIES INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NASDAQ:IDXX?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to IDXX. IDXX was compared to 204 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making IDXX a very profitable company, without any liquidiy or solvency issues. IDXX has a decent growth rate and is not valued too expensively. With these ratings, IDXX could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of IDXX

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.


Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.