IDEXX Laboratories (NasdaqGS:IDXX) - Share price, News & Analysis

Q: What is the Fair Price of IDXX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IDXX ($349.21) is trading above our estimate of [[fair value]] ($312.62)

IDXX fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

IDXX Stock Overview

Rewards

Earnings are forecast to grow 13.5% per year

Earnings have grown 23.9% per year over the past 5 years

Risk Analysis

Has a high level of debt

IDEXX Laboratories Competitors

ResMed

NYSE:RMD

US$31.1b

Baxter International

NYSE:BAX

US$33.6b

DexCom

NasdaqGS:DXCM

US$30.1b

STERIS

NYSE:STE

US$20.8b

Price History & Performance

Summary of all time highs, changes and price drops for IDEXX Laboratories
Historical stock prices
Current Share Price	US$349.21
52 Week High	US$706.95
52 Week Low	US$318.50
Beta	1.11
1 Month Change	-12.39%
3 Month Change	-36.36%
1 Year Change	-45.19%
3 Year Change	26.06%
5 Year Change	119.19%
Change since IPO	36,841.24%

Recent News & Updates

Jun 16

Is It Time To Consider Buying IDEXX Laboratories, Inc. (NASDAQ:IDXX)?

Today we're going to take a look at the well-established IDEXX Laboratories, Inc. ( NASDAQ:IDXX ). The company's stock...

May 25

IDEXX Laboratories: Great Business, But Still Overvalued

IDEXX Laboratories offers products and services in the animal companion diagnostics and testing space. The company has an outstanding track record regarding deployment of capital and shareholder returns. The bright future is already priced in at a current P/E of above 43 and an FCF-Yield of below 2%. I rate IDEXX a hold at its current price.

Shareholder Returns

	IDXX	US Medical Equipment	US Market
7D	5.2%	3.5%	1.7%
1Y	-45.2%	-25.7%	-20.4%

Return vs Industry: IDXX underperformed the US Medical Equipment industry which returned -24% over the past year.

Return vs Market: IDXX underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is IDXX's price volatile compared to industry and market?
IDXX volatility
IDXX Average Weekly Movement	6.6%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: IDXX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: IDXX's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	10,350	Jay Mazelsky	https://www.idexx.com

IDEXX Laboratories, Inc. develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. The company operates through CAG; Water Quality Products; LPD; and Other segments. It provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory animal diagnostic instruments and services for biomedical research community.

IDEXX Laboratories Fundamentals Summary

How do IDEXX Laboratories's earnings and revenue compare to its market cap?
IDXX fundamental statistics
Market Cap	US$30.16b
Earnings (TTM)	US$734.55m
Revenue (TTM)	US$3.27b

39.9x

P/E Ratio

9.0x

P/S Ratio

Is IDXX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IDXX income statement (TTM)
Revenue	US$3.27b
Cost of Revenue	US$1.36b
Gross Profit	US$1.92b
Other Expenses	US$1.18b
Earnings	US$734.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	8.74
Gross Margin	58.56%
Net Profit Margin	22.43%
Debt/Equity Ratio	183.4%

How did IDXX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is IDXX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IDXX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IDXX. This is calculated by dividing IDXX's market cap by their current preferred multiple.
What is IDXX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$30.16b

IDXX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	9.5x
Enterprise Value/EBITDA	30.1x
PEG Ratio	3x

Price to Earnings Ratio vs Peers

How does IDXX's PE Ratio compare to its peers?

IDXX PE Ratio vs Peers

The above table shows the PE ratio for IDXX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	76.2x
RMD ResMed	39.7x	13.5%	US$31.1b
BAX Baxter International	31.1x	15.8%	US$33.6b
DXCM DexCom	150x	29.1%	US$30.1b
STE STERIS	83.9x	18.7%	US$20.8b
IDXX IDEXX Laboratories	39.9x	13.5%	US$30.2b

Forward PE

Price-To-Earnings vs Peers: IDXX is good value based on its Price-To-Earnings Ratio (39.9x) compared to the peer average (76.2x).

Price to Earnings Ratio vs Industry

How does IDXX's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Earnings vs Industry: IDXX is expensive based on its Price-To-Earnings Ratio (39.9x) compared to the US Medical Equipment industry average (34.5x)

Price to Earnings Ratio vs Fair Ratio

What is IDXX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IDXX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	39.9x
Fair PE Ratio	36.7x

Price-To-Earnings vs Fair Ratio: IDXX is expensive based on its Price-To-Earnings Ratio (39.9x) compared to the estimated Fair Price-To-Earnings Ratio (36.7x).

Share Price vs Fair Value

What is the Fair Price of IDXX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IDXX ($349.21) is trading above our estimate of fair value ($312.62)

Significantly Below Fair Value: IDXX is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: IDXX is poor value based on its PEG Ratio (3x)

Discover undervalued companies

Future Growth

How is IDEXX Laboratories forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDXX's forecast earnings growth (13.5% per year) is above the savings rate (1.9%).

Earnings vs Market: IDXX's earnings (13.5% per year) are forecast to grow slower than the US market (13.8% per year).

High Growth Earnings: IDXX's earnings are forecast to grow, but not significantly.

Revenue vs Market: IDXX's revenue (10% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: IDXX's revenue (10% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: IDXX's Return on Equity is forecast to be very high in 3 years time (66%).

Discover growth companies

Past Performance

How has IDEXX Laboratories performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IDXX has high quality earnings.

Growing Profit Margin: IDXX's current net profit margins (22.4%) are lower than last year (23.6%).

Past Earnings Growth Analysis

Earnings Trend: IDXX's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: IDXX's earnings growth over the past year (9%) is below its 5-year average (23.9% per year).

Earnings vs Industry: IDXX earnings growth over the past year (9%) underperformed the Medical Equipment industry 12.9%.

Return on Equity

High ROE: Whilst IDXX's Return on Equity (114.8%) is outstanding, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is IDEXX Laboratories's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IDXX's short term assets ($1.1B) exceed its short term liabilities ($971.3M).

Long Term Liabilities: IDXX's short term assets ($1.1B) exceed its long term liabilities ($981.6M).

Debt to Equity History and Analysis

Debt Level: IDXX's net debt to equity ratio (151.4%) is considered high.

Reducing Debt: IDXX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: IDXX's debt is well covered by operating cash flow (63.6%).

Interest Coverage: IDXX's interest payments on its debt are well covered by EBIT (32.5x coverage).

Balance Sheet

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Dividend

What is IDEXX Laboratories's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate IDXX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IDXX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IDXX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IDXX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as IDXX has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

Jay Mazelsky (60 yo)

3yrs

Tenure

US$9,065,021

Compensation

Mr. Jonathan J. Mazelsky, also known as Jay, has been President, Chief Executive Officer and Director at IDEXX Laboratories, Inc. since October 23, 2019. Mr. Mazelsky was an Interim President and Chief Exe...

CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD9.07M) is below average for companies of similar size in the US market ($USD13.41M).

Compensation vs Earnings: Jay's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: IDXX's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: IDXX's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31