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Idexx Laboratories (IDXX)
NASDAQ:IDXX
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Idexx Laboratories
(NASDAQ:IDXX)76Outperform
Positive Factors
Financial Performance
IDEXX delivered a solid beat on the top and bottom line in Q4.
Innovation and Product Growth
IDEXX expects to deliver over one point of revenue growth from its new InVueDx system and place 4,500 systems this year alone.
Negative Factors
Market Challenges
Pessimism stems from worries about declining visit volumes and a pet consumer that may be more financially squeezed, increased competition in the space, and questions over the trajectory of new drug and product launches.
Idexx Laboratories (IDXX) vs. S&P 500 (SPY)
Market Cap
$35.92B
Dividend YieldN/A
Average Volume (3M)790.49K
Price to Earnings (P/E)41.4
Beta (1Y)1.38
Revenue Growth6.46%
EPS Growth5.82%
CountryUS
Employees11,000
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)10.67
Shares Outstanding81,328,230
10 Day Avg. Volume773,987
30 Day Avg. Volume790,490
Financial Highlights & Ratios
PEG Ratio7.11
Price to Book (P/B)N/A
Price to Sales (P/S)9.12
Price to Cash Flow (P/CF)33.90
P/FCF Ratio33.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$517.14Price Target Upside18.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Idexx Laboratories Business Overview & Revenue Model
Company DescriptionMaine-based IDEXX Laboratories, Inc. develops, manufactures, and distributes products and services for the animal veterinary, livestock and poultry, dairy and water testing markets. It operates through the Companion Animal Group; Water Quality Products; Livestock, Poultry and Dairy; and Other segments.
How the Company Makes MoneyIDEXX Laboratories generates revenue primarily through the sale of diagnostic and information management products and services to veterinary practices. The company's revenue streams include the sale of diagnostic instruments and consumables, reference laboratory and consulting services, and digital imaging systems. Additionally, IDEXX offers practice management software solutions that provide data integration and workflow efficiencies to veterinary practitioners. Significant revenue is also derived from the water quality segment, which involves testing products for the detection of microbiological contaminants. IDEXX's earnings are bolstered by its global distribution network, strategic partnerships, and a growing emphasis on innovation, allowing it to maintain a competitive edge in the animal healthcare industry.
Idexx Laboratories Financial Statement Overview
Summary
Idexx Laboratories demonstrates robust financial health with strong revenue growth and profitability, effective leverage management, and solid cash flow generation. The income statement shows consistent growth, the balance sheet indicates prudent leverage and high returns on equity, and cash flow metrics highlight strong cash generation capabilities.Income Statement
Idexx Laboratories exhibits strong revenue growth and profitability. Revenue has been increasing consistently, with a notable growth rate of 6.47% from 2023 to 2024. The company maintains high gross and net profit margins, 61.04% and 22.78% respectively, indicating efficiency in operations and profitability. EBIT and EBITDA margins are robust, reflecting the company's strong operational performance.88
Very Positive
Balance Sheet
The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.17, indicating manageable leverage. The return on equity is impressive at 55.64%, showcasing effective use of equity to generate profits. However, the equity ratio of 84.25% suggests high reliance on equity, which could limit financial flexibility.75
Positive
Cash Flow
Cash flow analysis reveals strong free cash flow generation with a growth rate of 4.55% from 2023 to 2024. The operating cash flow to net income ratio of 1.05 and a free cash flow to net income ratio of 0.91 indicate efficient conversion of income into cash. These metrics highlight the company's ability to generate and sustain cash flows.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.90B | 3.66B | 3.37B | 3.22B | 2.71B | Gross Profit |
| 2.38B | 2.19B | 2.00B | 1.89B | 1.57B | EBIT |
| 1.13B | 1.10B | 898.76M | 932.03M | 694.52M | EBITDA |
| 1.27B | 1.22B | 1.01B | 1.04B | 793.81M | Net Income Common Stockholders |
| 887.87M | 845.04M | 679.09M | 744.85M | 581.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 288.27M | 453.93M | 112.55M | 144.45M | 383.93M | Total Assets |
| 3.29B | 3.26B | 2.75B | 2.44B | 2.29B | Total Debt |
| 265.62M | 1.07B | 1.35B | 923.70M | 908.48M | Net Debt |
| -22.64M | 613.42M | 1.24B | 779.25M | 524.55M | Total Liabilities |
| 1.70B | 1.78B | 2.14B | 1.75B | 1.66B | Stockholders Equity |
| 1.60B | 1.48B | 608.74M | 689.99M | 632.09M |
| Cash Flow | Free Cash Flow | |||
| 808.08M | 772.88M | 394.15M | 636.00M | 540.44M | Operating Cash Flow |
| 929.00M | 906.51M | 542.98M | 755.55M | 648.06M | Investing Cash Flow |
| -207.06M | -125.25M | -195.35M | -292.97M | -109.38M | Financing Cash Flow |
| -878.07M | -442.00M | -370.94M | -697.41M | -248.42M |
Idexx Laboratories Technical Analysis
Negative
437.23
Price Trends
435.59
Positive
436.55
Positive
463.93
Negative
Market Momentum
0.38
Positive
44.41
Neutral
34.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDXX, the sentiment is Negative. The current price of 437.23 is below the 20-day moving average (MA) of 453.02, above the 50-day MA of 435.59, and below the 200-day MA of 463.93, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 34.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDXX.
Idexx Laboratories Risk Analysis
Idexx Laboratories disclosed 24 risk factors in its most recent earnings report. Idexx Laboratories reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Idexx Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $238.61B | 18.01 | 30.95% | 1.63% | 4.59% | 134.50% | |
79 Outperform | $76.08B | 31.09 | 50.91% | 1.06% | 8.33% | 7.70% | |
76 Outperform | $35.92B | 41.40 | 55.65% | ― | 6.46% | 5.82% | |
69 Neutral | $5.34B | 15.92 | 5.54% | ― | 0.50% | ― | |
58 Neutral | $81.59M | 373.83 | 0.36% | ― | -10.82% | ― | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
48 Neutral | $7.11B | ― | -28.07% | ― | -3.92% | -202.80% |
* Healthcare Sector Average
Performance Comparison
IDXX
Idexx Laboratories
437.23
-125.99
-22.37%
ABT
Abbott Laboratories
137.71
19.21
16.21%
BIO
Bio-Rad Laboratories
260.34
-79.06
-23.29%
PETS
Petmed Express
4.00
-1.01
-20.16%
ZTS
Zoetis
167.00
-12.59
-7.01%
ELAN
Elanco Animal Health
10.85
-5.44
-33.39%
Idexx Laboratories Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: 3.60% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth across several segments, bolstered by successful product launches and international expansion. However, challenges such as a decline in US clinical visits and litigation expenses were noted. Overall, the positive aspects of IDEXX's performance and strategic advancements in innovation outweighed the challenges.Highlights
Solid Fourth Quarter Financial Performance
IDEXX's fourth quarter revenue increased 6% organically, with operating profits increasing 7% as reported and 8% on a comparable basis. EPS for Q4 was $2.62, up 10% on a comparable basis.
Full Year 2024 Achievements
Full year organic growth in CAG Diagnostics recurring revenues was 7%, with 9% growth in the global premium instrument installed base, and 11% organic growth in the Water business. Full year EPS was $10.67 per share, up 12% on a comparable basis.
Launch of IDEXX inVue Dx and IDEXX Cancer Dx
IDEXX launched the inVue Dx, a slide-free Point-of-Care cellular analyzer, and Cancer Dx with canine lymphoma, a new oncology screening panel.
Strong International Growth
International CAG Diagnostic recurring revenue growth was 12% in Q4, with double-digit year-on-year growth in the international premium instrument installed base.
High Customer Retention and New Business Gains
IDEXX maintained high customer retention levels and achieved solid new business gains, contributing to strong performance.
Lowlights
Decline in US Same-Store Clinical Visit Levels
US same-store clinical visit levels declined nearly 3% in Q4 and 2% for the full year 2024, impacting growth.
Negative Impacts from Litigation Expense
Full year EPS included a $0.56 per share negative impact from a discrete litigation expense accrual.
Challenges in Rapid Assay Revenue
Rapid assay revenue was flat on an organic basis in Q4, constrained by pressure on US wellness visits and the addition of the pancreatic lipase slide.
12% Decline in CAG Instrument Revenues
CAG instrument revenues declined 12% organically in Q4, with a 12% decrease in premium instrument placements.
Company Guidance
During the IDEXX Laboratories Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, forecasting revenue growth of 4% to 7% on a reported basis and 6% to 9% organically. IDEXX anticipates 5% to 8% organic growth in CAG Diagnostics recurring revenues, with a 2% negative impact on full-year revenue from foreign exchange. Key drivers include global net price realization of 4% to 4.5% and volume gains of about 2%. Operating margins are expected to improve by 30 to 80 basis points year-over-year, with EPS projected to rise 8% to 12% on a comparable basis, reflecting the lapping of a 2024 litigation expense. IDEXX plans for $42 million in net interest expense and a net income to free cash flow conversion of 85% to 90%, supported by $160 million in capital spending. The company is also targeting $1.5 billion in share repurchases, reflecting confidence in its growth potential.Idexx Laboratories Corporate Events
Executive/Board Changes
Idexx Laboratories Director Resigns, Board Size Reduced
Neutral
Feb 14, 2025
On February 13, 2025, Dr. Asha Collins resigned from the Board of Directors of Idexx Laboratories, Inc., effective immediately. Her resignation was not due to any disagreements with the company regarding its operations, policies, or practices. Consequently, the board size was reduced from ten to nine directors, as the company expressed gratitude for Dr. Collins’s contributions and wished her well in her future endeavors.
Business Operations and Strategy
Idexx Laboratories Approves Nonqualified Deferred Compensation Plan
Neutral
Dec 12, 2024
IDEXX Laboratories has approved a Nonqualified Deferred Compensation Plan allowing select management and high-earning employees to defer parts of their compensation. The Plan provides flexibility in deferral options and includes provisions for discretionary company contributions, promising potential benefits for both the company and its participants.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.