IDEXX LABORATORIES INC (IDXX) Stock Fundamental Analysis
NASDAQ:IDXX - Nasdaq - US45168D1046 - Common Stock - Currency: USD
IDXX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 189 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 correct valuation and a medium growth rate. These ratings would make IDXX suitable for quality investing!
1. Profitability
1.1 Basic Checks
IDXX had positive earnings in the past year.
In the past year IDXX had a positive cash flow from operations.
Each year in the past 5 years IDXX has been profitable.
In the past 5 years IDXX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 27.85%, IDXX belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
IDXX has a better Return On Equity (61.81%) than 100.00% of its industry peers.
The Return On Invested Capital of IDXX (38.16%) is better 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 7.87%.
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 better Profit Margin (22.76%) than 94.71% 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 97.35% of its industry peers.
In the last couple of years the Operating Margin of IDXX has grown nicely.
Looking at the Gross Margin, with a value of 61.28%, IDXX is in the better half of the industry, outperforming 61.38% of the companies in the same industry.
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.
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 18.80. This indicates that IDXX is financially healthy and has little risk of bankruptcy at the moment.
IDXX has a Altman-Z score of 18.80. This is amongst the best in the industry. IDXX outperforms 95.24% 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.
With an excellent Debt to FCF ratio value of 1.12, IDXX belongs to the best of the industry, outperforming 91.53% 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's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. IDXX is outperformed by 62.96% of its industry peers.
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 | 18.8 |
ROIC/WACC3.96
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.16 indicates that IDXX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, IDXX is doing worse than 84.66% of the companies in the same industry.
IDXX has a Quick Ratio of 1.16. This is a bad value and indicates that IDXX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, IDXX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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
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.
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%.
The Revenue has been growing by 10.12% on average over the past years. This is quite good.
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
IDXX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.36% yearly.
Based on estimates for the next years, IDXX will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y10.06%
EPS Next 2Y11.13%
EPS Next 3Y11.55%
EPS Next 5Y10.36%
Revenue Next Year6.55%
Revenue Next 2Y7.08%
Revenue Next 3Y7.52%
Revenue Next 5Y7.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 44.00, which means the current valuation is very expensive for IDXX.
Based on the Price/Earnings ratio, IDXX is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.82. IDXX is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 36.10, IDXX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 68.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, IDXX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44 | ||
| Fwd PE | 36.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDXX is valued a bit cheaper than 70.37% of the companies in the same industry.
74.07% 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 | 48.52 | ||
| EV/EBITDA | 32.32 |
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)4.37
PEG (5Y)2.42
EPS Next 2Y11.13%
EPS Next 3Y11.55%
5. Dividend
5.1 Amount
No dividends for IDXX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
501.57
-3.26 (-0.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners91.99%
Inst Owner Change4.51%
Ins Owners0.18%
Ins Owner Change2.16%
Market Cap40.65B
Analysts78
Price Target520.67 (3.81%)
Short Float %3.56%
Short Ratio3.12
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)-0.29%
PT rev (3m)4.22%
EPS NQ rev (1m)2%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44 | ||
| Fwd PE | 36.1 | ||
| P/S | 10.34 | ||
| P/FCF | 48.52 | ||
| P/OCF | 41.97 | ||
| P/B | 28.07 | ||
| P/tB | 43.56 | ||
| EV/EBITDA | 32.32 |
EPS(TTM)11.4
EY2.27%
EPS(NY)13.89
Fwd EY2.77%
FCF(TTM)10.34
FCFY2.06%
OCF(TTM)11.95
OCFY2.38%
SpS48.52
BVpS17.87
TBVpS11.51
PEG (NY)4.37
PEG (5Y)2.42
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 | 18.8 |
F-Score8
WACC9.63%
ROIC/WACC3.96
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 Y10.06%
EPS Next 2Y11.13%
EPS Next 3Y11.55%
EPS Next 5Y10.36%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y6.62%
Revenue growth 5Y10.12%
Sales Q2Q%3.56%
Revenue Next Year6.55%
Revenue Next 2Y7.08%
Revenue Next 3Y7.52%
Revenue Next 5Y7.39%
EBIT growth 1Y2.71%
EBIT growth 3Y6.64%
EBIT growth 5Y15.38%
EBIT Next Year27.01%
EBIT Next 3Y14.52%
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%