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. Both the health and profitability get an excellent rating, making IDXX a very profitable company, without any liquidiy or solvency issues. 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.
IDXX had a positive operating cash flow in the past year.
In the past 5 years IDXX has always been profitable.
Each year in the past 5 years IDXX had a positive operating cash flow.
1.2 Ratios
IDXX's Return On Assets of 27.85% is amongst the best of the industry. IDXX outperforms 98.93% of its industry peers.
Looking at the Return On Equity, with a value of 61.81%, IDXX belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
IDXX has a better Return On Invested Capital (38.16%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IDXX is significantly above the industry average of 8.14%.
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 94.65% of its industry peers.
IDXX's Profit Margin has improved in the last couple of years.
IDXX has a Operating Margin of 29.14%. This is amongst the best in the industry. IDXX outperforms 97.33% of its industry peers.
In the last couple of years the Operating Margin of IDXX has grown nicely.
IDXX has a better Gross Margin (61.28%) than 62.03% of its industry peers.
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
IDXX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for IDXX has been reduced compared to 1 year ago.
Compared to 5 years ago, IDXX has less shares outstanding
Compared to 1 year ago, IDXX has an improved debt to assets ratio.
2.2 Solvency
IDXX has an Altman-Z score of 19.53. This indicates that IDXX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IDXX (19.53) is better than 94.65% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.12, IDXX belongs to the top 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 has a worse Debt to Equity ratio (0.53) than 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 | 19.53 |
ROIC/WACC4.1
WACC9.3%
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 85.56% of its industry peers.
A Quick Ratio of 0.81 indicates that IDXX may have some problems paying its short term obligations.
The Quick ratio of IDXX (0.81) is worse than 85.56% of its industry peers.
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
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
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.
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 Year6.95%
Revenue Next 2Y7.31%
Revenue Next 3Y7.7%
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
With a Price/Earnings ratio of 46.98, IDXX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, IDXX is valued a bit cheaper than the industry average as 68.98% of the companies are valued more expensively.
IDXX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.82.
Based on the Price/Forward Earnings ratio of 38.46, the valuation of IDXX can be described as expensive.
Based on the Price/Forward Earnings ratio, IDXX is valued a bit cheaper than 68.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IDXX to the average of the S&P500 Index (36.21), we can say IDXX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.98 | ||
| Fwd PE | 38.46 |
4.2 Price Multiples
IDXX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IDXX is cheaper than 68.98% of the companies in the same industry.
74.87% 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 | 51.41 | ||
| EV/EBITDA | 34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IDXX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)2.58
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 |
535.54
+1.23 (+0.23%)
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-0.87%
Ins Owners0.19%
Ins Owner Change2.67%
Market Cap43.07B
Analysts78
Price Target541.93 (1.19%)
Short Float %3.31%
Short Ratio5.26
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)3.05%
PT rev (3m)5.81%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.98 | ||
| Fwd PE | 38.46 | ||
| P/S | 10.95 | ||
| P/FCF | 51.41 | ||
| P/OCF | 44.47 | ||
| P/B | 29.74 | ||
| P/tB | 46.15 | ||
| EV/EBITDA | 34 |
EPS(TTM)11.4
EY2.13%
EPS(NY)13.93
Fwd EY2.6%
FCF(TTM)10.42
FCFY1.95%
OCF(TTM)12.04
OCFY2.25%
SpS48.89
BVpS18.01
TBVpS11.6
PEG (NY)4.54
PEG (5Y)2.58
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 | 19.53 |
F-Score8
WACC9.3%
ROIC/WACC4.1
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 Year6.95%
Revenue Next 2Y7.31%
Revenue Next 3Y7.7%
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%