10Y annualized return is
excellent
at 21.4% per year
IDXX has met or exceeded earnings expectations in
all
recent quarters (10/10)
Strong Return on Equity
Strong Profit Margins
Low Debt Levels
Healthy Interest Coverage
🏆 Solid Financial Performance
🌍 Strong Market Position
🚀 Innovation-Driven Growth
📈 Positive Growth Outlook
💡 Expansion of Diagnostic Offerings
High Price-to-Earnings Ratio
Liquidity Concerns
⚠️ Clinical Visit Trends
Overall, IDEXX Laboratories demonstrates strong business quality with solid financial performance, a robust market position, and a commitment to innovation. However, the company must navigate challenges related to declining clinical visits to ensure sustained growth in the future. The outlook for 2025 is positive, driven by new product launches and ongoing market demand.
Analysis Date: February 3, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
IDEXX Laboratories, Inc. is a company that creates and sells products to help take care of animals and keep our water safe. They provide tools for veterinarians to test pets' health, like quick test kits and lab services. They also make products to check the health of farm animals and test water for harmful germs. Overall, IDEXX helps ensure that animals stay healthy and that our water is clean.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$373.76
Current Market Price: $387.68
IV/P Ratio: 0.96x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-4.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for IDXX
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (36.50)
P/B ratio ≤ 1.5 (20.31)
Current ratio ≥ 2.0 (1.31x)
Long-term debt < Net current assets (0.00x)
Margin of safety (-4.0%)
IDXX does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
55.82%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
61.08%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
22.78%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
IDXX demonstrates robust profit margins with a gross profit margin of 61.08% and a net profit margin of 22.78%, indicating efficient cost management and profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.11x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.31x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The company's debt-to-equity ratio of 0.11 and debt-to-assets ratio of 0.05 indicate a strong balance sheet with minimal reliance on debt.
An interest coverage ratio of 36.21 shows the company comfortably generates sufficient earnings to cover interest expenses.
The current ratio of 1.31 indicates adequate liquidity, but the quick ratio of 0.95 suggests potential issues in meeting short-term liabilities if inventory can't be quickly converted to cash.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
IDEXX achieved solid financial results in Q4 2024, with a 6% organic revenue growth driven by a 7% growth in CAG Diagnostics recurring revenues. The operating profits increased by 7%, reflecting strong gross margin gains and effective cost management.
IDEXX has established a strong market position with a robust installed base of premium instruments, which grew 9% globally. The company enjoys high customer retention rates of over 97%, indicating that veterinary practices view IDEXX as an indispensable partner.
The company is advancing its innovation strategy with the launch of products like IDEXX inVue Dx and IDEXX Cancer Dx, which are expected to drive future growth and enhance diagnostic capabilities in veterinary practices.
IDEXX provided optimistic guidance for 2025, expecting organic revenue growth of 6% to 9%, supported by strong execution and innovation. The company anticipates continued growth in CAG Diagnostics recurring revenues and robust demand for new products.
The introduction of new diagnostic tests such as the IDEXX Cancer Dx panel and enhanced software solutions like Vello positions IDEXX to capture a larger share of the veterinary diagnostics market, estimated to be a $1.1 billion opportunity.
IDEXX continues to face headwinds from declining clinical visit numbers, particularly in wellness visits, which have seen a nearly 3% decline in Q4 2024. This trend poses a risk to future growth if not addressed effectively.
