IDXX IDEXX Laboratories, Inc. - Fundamental Analysis
BULLISH
IDXX Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Healthcare
•
Diagnostics & Research
Current Price
$689.93
Analyst Target
$754.83
+9.4% Upside
52W High
$735.0
52W Low
$356.14
AI Analysis
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Confidence Score
92%
Analysis Accuracy
IDEXX Laboratories trades at a premium valuation with a P/E of 54.63 and forward P/E of 57.69, reflecting its elite profitability and consistent earnings outperformance. The company has delivered 21 of the last 25 quarters with positive EPS surprises, including a 10% beat in the most recent quarter, underpinning strong execution and demand tailwinds in the veterinary diagnostics space. Despite insider selling activity totaling $40.92M over the past six months, the robust growth trajectory, sector-leading ROE of 64.63%, and favorable peer context—especially against lower-growth but cheaper names like ZTS—support continued outperformance. Price momentum remains strong, with a 1Y return of +62.9%, significantly outpacing the healthcare sector average and validating market confidence in sustained earnings growth.
Key Strengths
Exceptional profitability with ROE of 64.63% and operating margin of 32.11%, both significantly above sector averages of 38.50% and 13.18% respectively
Consistent earnings outperformance: 21 of last 25 quarters beat estimates, with an average surprise of 7.41% over the last four quarters
Strong double-digit revenue growth of 13.3% YoY, outpacing the sector average of 10.51% and peer ZTS which grew only 0.50%
High-quality earnings conversion with free cash flow margins implied by strong operating cash flow and low capital intensity typical of diagnostics firms
Superior price performance: +62.9% 1Y return vs sector median and peers like ZTS (-29.9%) and CI (-15.2%)
Key Risks
Elevated valuation with P/E of 54.63 and Price/Sales of 13.44, leaving limited margin for error if growth slows
Recent insider selling activity totaling $40.92M over the past six months signals potential caution among executives despite strong fundamentals
Q/Q EPS decline of -6.3% most recently may indicate near-term margin pressure or cyclical softness in companion animal spending
Limited liquidity cushion with a quick ratio of 0.74, below the ideal threshold of 1.0, raising concerns about short-term obligations
High valuation sensitivity to interest rates given long-duration earnings profile typical of high-growth, low-dividend healthcare stocks
AI Fair Value Estimate
Based on comprehensive analysis
$750.0
+8.7% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
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Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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