Idexx Laboratories Inc /De (NASDAQ: IDXX)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000874716
P/B 36.43
P/E 55.36
P/S 13.65
Market Cap 56.88 Bn
ROIC (Qtr) 39.13
Div Yield % 0.00
Rev 1y % (Qtr) 13.29
Total Debt (Qtr) 1.09 Bn
Debt/Equity (Qtr) 0.70

About

IDEXX Laboratories Inc., commonly known as IDEXX, is a prominent player in the development, manufacture, and distribution of diagnostic and information management products for the companion animal, livestock, and poultry industries. The company was established in Delaware in 1983 and is publicly traded on the NASDAQ stock exchange under the symbol IDXX. IDEXX operates its business through three primary segments: the Companion Animal Group, Water Quality Products, and Livestock, Poultry, and Dairy. The company's offerings are geared towards improving...

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Analysis

Pros

  • Strong operating cash flow of 1.09B provides robust 1x coverage of total debt 1.09B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.09B provides strong 18.71x coverage of stock compensation 58.16M, indicating sustainable incentive practices.
  • Robust free cash flow of 953.57M exceeds capital expenditure of 134.50M by 7.09x, indicating strong organic growth funding capability.
  • Operating cash flow of 1.09B provides exceptional 29.30x coverage of interest expenses 37.14M, showing strong debt service capability.
  • Strong tangible asset base of 2.86B provides 2.63x coverage of total debt 1.09B, indicating robust asset backing and low credit risk.

Cons

  • Operating cash flow of 1.09B barely covers its investment activities of (147.95M), with a coverage ratio of -7.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (147.95M) provide weak support for R&D spending of 242.10M, which is -0.61x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Retained earnings of 6.14B provide limited buffer against comprehensive income items of (72.95M), which is -84.22x, indicating elevated exposure to market risks.
  • Operating cash flow of 1.09B is outpaced by equity issuance of (1.14B) (-0.96 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tax assets of 0 provide limited offset against tax liabilities of 3.72M, which is 0x, indicating potential future cash flow pressure from tax obligations.

Peer Comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 216.83 Bn 33.00 4.96 35.68 Bn
2 DHR Danaher Corp /De/ 162.47 Bn 46.38 6.69 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 56.88 Bn 55.36 13.65 1.09 Bn
4 A Agilent Technologies, Inc. 39.82 Bn 32.64 5.87 3.41 Bn
5 IQV Iqvia Holdings Inc. 38.85 Bn 30.28 2.44 15.19 Bn
6 NTRA Natera, Inc. 31.32 Bn -101.29 14.80 0.18 Bn
7 MTD Mettler Toledo International Inc/ 28.99 Bn 34.68 7.35 2.21 Bn
8 WAT Waters Corp /De/ 22.92 Bn 35.32 7.38 1.49 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 17.10 2.69
EV to Cash from Ops. 53.24 18.14
EV to Debt 53.32 52.51
EV to EBIT 44.19 19.22
EV to EBITDA 40.05 4.35
EV to Free Cash Flow [EV/FCF] 60.75 2.84
EV to Market Cap 1.02 1.52
EV to Revenue 13.90 4.79
Price to Book Value [P/B] 36.43 1.34
Price to Earnings [P/E] 55.36 22.02

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -1.96
Dividend Payout Ratio % 0.00 2.83
Dividend per Basic Share 0.00 0.19
FCF Dividend Payout Ratio % 0.00 1.92
Interest Coverage 35.29 -126.58

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -8.27 -31.50
Cash and Equivalents Growth (1y) % -32.55 21.37
Dividend Growth (1y) % 0.00 0.24
EBIAT Growth (1y) % 18.49 -55.24
EBITDA Growth (1y) % 16.83 -447.96
EBIT Growth (1y) % 16.40 -40.50
EBT Growth (1y) % 16.51 -70.94
EPS Growth (1y) % 21.49 -70.02
FCF Growth (1y) % 20.31 56.33
Gross Profit Growth (1y) % 10.18 185.11

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 1.23 0.56
Cash Payout Ratio 0.00 0.01
Cash Ratio 0.17 1.21
Current Ratio 1.18 2.64
Debt to Equity Ratio 0.70 -0.80
Interest Cover Ratio 35.29 -126.58
Times Interest Earned 35.29 -126.58

Profitability

Metric Value Industry Percentile
EBITDA Margin % 34.80 -129.91
EBIT Margin % 31.45 -156.71
EBT Margin % 30.56 -162.23
Gross Margin % 61.70 47.70
Net Profit Margin % 24.70 -189.30