Idexx Laboratories Inc /De (NASDAQ: IDXX)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000874716
Market Cap 57.54 Bn
P/B 36.86
P/E 56.01
P/S 13.81
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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. 229.80 Bn 34.98 5.25 35.68 Bn
2 DHR Danaher Corp /De/ 168.69 Bn 48.16 6.95 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.54 Bn 56.01 13.81 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.51 Bn 33.13 2.67 15.19 Bn
5 A Agilent Technologies, Inc. 41.38 Bn 31.76 5.96 3.35 Bn
6 NTRA Natera, Inc. 32.34 Bn -104.61 15.28 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.48 Bn 36.47 7.73 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.36 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 17.30 2.83
EV to Cash from Ops. EV/CFO 53.85 19.40
EV to Debt EV to Debt 53.93 55.09
EV to EBIT EV/EBIT 44.70 19.01
EV to EBITDA EV/EBITDA 40.51 4.60
EV to Free Cash Flow [EV/FCF] EV/FCF 61.44 -2.36
EV to Market Cap EV to Market Cap 1.02 1.57
EV to Revenue EV/Rev 14.06 5.06
Price to Book Value [P/B] P/B 36.86 1.40
Price to Earnings [P/E] P/E 56.01 19.36
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) 35.29 -129.02
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -8.27 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -32.55 24.08
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 18.49 -55.31
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 16.83 -457.27
EBIT Growth (1y) % EBIT 1y % (Qtr) 16.40 -42.01
EBT Growth (1y) % EBT 1y % (Qtr) 16.51 -72.92
EPS Growth (1y) % EPS 1y % (Qtr) 21.49 -70.88
FCF Growth (1y) % FCF 1y % (Qtr) 20.31 56.94
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.18 185.76
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.23 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.17 1.23
Current Ratio Curr Ratio (Qtr) 1.18 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.70 -0.84
Interest Cover Ratio Int Coverage (Qtr) 35.29 -129.02
Times Interest Earned Times Interest Earned (Qtr) 35.29 -129.02
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 34.80 -98.25
EBIT Margin % EBIT Margin % (Qtr) 31.45 -116.67
EBT Margin % EBT Margin % (Qtr) 30.56 -115.28
Gross Margin % Gross Margin % (Qtr) 61.70 44.77
Net Profit Margin % Net Margin % (Qtr) 24.70 -114.12