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 188 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. With these ratings, IDXX could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
IDXX had positive earnings in the past year.
IDXX had a positive operating cash flow in the past year.
Each year in the past 5 years IDXX has 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 98.94% 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.
IDXX's Return On Invested Capital of 38.16% is amongst the best of the industry. IDXX outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDXX is significantly above the industry average of 7.89%.
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
The Profit Margin of IDXX (22.76%) is better than 95.21% of its industry peers.
In the last couple of years the Profit Margin of IDXX has grown nicely.
IDXX has a better Operating Margin (29.14%) than 97.87% 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 61.70% 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.
IDXX has less shares outstanding than it did 1 year ago.
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
IDXX has an Altman-Z score of 19.41. This indicates that IDXX is financially healthy and has little risk of bankruptcy at the moment.
IDXX has a better Altman-Z score (19.41) than 95.21% 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 90.96% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that 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 63.83% 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 | 19.41 |
ROIC/WACC4.05
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.16 indicates that IDXX should not have too much problems paying its short term obligations.
IDXX has a worse Current ratio (1.16) than 84.57% of its industry peers.
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.
IDXX has a worse Quick ratio (0.81) than 85.64% 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
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%.
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 10.43% on average per year.
Based on estimates for the next years, IDXX will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y10.06%
EPS Next 2Y11.13%
EPS Next 3Y11.55%
EPS Next 5Y10.43%
Revenue Next Year6.55%
Revenue Next 2Y7.09%
Revenue Next 3Y7.52%
Revenue Next 5Y7.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 45.85 indicates a quite expensive valuation of IDXX.
69.68% of the companies in the same industry are more expensive than IDXX, based on the Price/Earnings ratio.
IDXX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 37.62, IDXX can be considered very expensive at the moment.
IDXX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IDXX is cheaper than 67.55% of the companies 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.85 | ||
| Fwd PE | 37.62 |
4.2 Price Multiples
IDXX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IDXX is cheaper than 68.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IDXX indicates a somewhat cheap valuation: IDXX is cheaper than 74.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.57 | ||
| EV/EBITDA | 33.72 |
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)4.56
PEG (5Y)2.52
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 |
522.7
-4.22 (-0.8%)
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 Change4.9%
Ins Owners0.18%
Ins Owner Change2.68%
Market Cap42.36B
Analysts78
Price Target525.89 (0.61%)
Short Float %3.76%
Short Ratio3.45
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)0.59%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.85 | ||
| Fwd PE | 37.62 | ||
| P/S | 10.77 | ||
| P/FCF | 50.57 | ||
| P/OCF | 43.74 | ||
| P/B | 29.25 | ||
| P/tB | 45.4 | ||
| EV/EBITDA | 33.72 |
EPS(TTM)11.4
EY2.18%
EPS(NY)13.89
Fwd EY2.66%
FCF(TTM)10.34
FCFY1.98%
OCF(TTM)11.95
OCFY2.29%
SpS48.52
BVpS17.87
TBVpS11.51
PEG (NY)4.56
PEG (5Y)2.52
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 | 19.41 |
F-Score8
WACC9.43%
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 Y10.06%
EPS Next 2Y11.13%
EPS Next 3Y11.55%
EPS Next 5Y10.43%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y6.62%
Revenue growth 5Y10.12%
Sales Q2Q%3.56%
Revenue Next Year6.55%
Revenue Next 2Y7.09%
Revenue Next 3Y7.52%
Revenue Next 5Y7.39%
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%