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
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$56.01B
P/E
54.63
ROE
64.6%
Profit margin
24.7%
Debt/Equity
0.71
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
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
Multi-dimensional analysis across 5 key categories
Overall
66
Strong
65
93
95
78
0
AI Verdict
IDEXX is a high-quality growth compounder trading at a premium but justified by superior profitability, consistent earnings beats, and strong relative performance against healthcare peers like ZTS and EW. While valuation is stretched and insider activity is bearish, the company's durable growth in veterinary diagnostics, expanding margins, and sector-leading ROE support a bullish outlook within the context of strong price momentum and analyst confidence.
Key drivers: Sustained double-digit revenue and earnings growth, Elite capital efficiency and return metrics (ROE 64.63%, ROA 24.07%), Outperformance relative to peers in both fundamentals and stock price
Confidence
90%
Value
65/100
IDEXX trades at a substantial premium to the healthcare sector’s average P/E of 36.60 and peers like ZTS (20.34) and EW (37.85), reflecting its growth and quality, but increases vulnerability to multiple compression in a rising rate environment
Positives
- Justified premium valuation due to superior growth and profitability vs sector
- Forward P/E of 57.69 aligns with high-growth innovation leaders in healthcare
Watchpoints
- P/E of 54.63 and Price/Book of 35.35 are significantly above sector averages (36.60 and ~6x)
- Limited margin of safety; any growth deceleration could trigger multiple contraction
Future
93/100
With accelerating YoY earnings growth and strong price momentum (+62.9% over 1Y), IDXX is positioned as a market leader riding favorable secular trends, though the recent Q/Q dip warrants monitoring for cyclical softness
Positives
- 13.3% YoY revenue growth and 21.4% earnings growth demonstrate strong demand and pricing power
- Veterinary diagnostics market is structurally growing due to pet humanization and increased healthcare spending
Watchpoints
- Q/Q EPS decline of -6.3% raises near-term execution concerns
- Forward P/E expansion to 57.69 implies high expectations already priced in
Past
95/100
IDEXX has demonstrated exceptional earnings consistency and margin discipline over five years, with share price returning +51.5% over 5Y and +62.9% over 1Y, significantly outperforming both sector and key peers
Positives
- 21 of last 25 quarters beat EPS estimates, with several double-digit surprises (e.g., +36.4%, +47.9%)
- Consistently high and expanding margins: gross margin of 61.72%, operating margin of 32.11%
Watchpoints
- One notable miss in Q3 2024 (-15.1% surprise) indicates potential volatility in demand or operational execution
- Limited visibility into cash flow due to missing OCF and FCF data
Health
78/100
While IDXX maintains healthier leverage than peers like COR (4.38) and CI (0.81), its below-1 quick ratio is a concern relative to sector norms and could pose risks in a downturn
Positives
- Debt/Equity of 0.71 is moderate and below sector average of 1.28, indicating prudent leverage
- Strong ROIC implied by high ROE and asset efficiency
Watchpoints
- Quick ratio of 0.74 suggests limited short-term liquidity buffer
- Current ratio of 1.18 is tight, potentially constraining operational flexibility
Dividend
0/100
The absence of a dividend reduces total return potential and may deter conservative investors, especially in a higher-rate environment where yield is valued
Positives
No standout positives identified.
Watchpoints
- No dividend policy in place, limiting appeal to income-oriented investors
- Payout ratio of 0.00% indicates capital return via dividends is not a priority
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$689.93
Analyst Target
$754.83
Upside/Downside
+9.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for IDXX and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
IDXX
IDEXX Laboratories, Inc.
Primary
|
+51.5% | +58.8% | +62.9% | +33.2% | +7.9% | -2.6% |
|
BDX
Becton, Dickinson and Company
Peer
|
-11.8% | -8.6% | -13.2% | +11.3% | +3.4% | +8.6% |
|
ZTS
Zoetis Inc.
Peer
|
-23.5% | -16.7% | -29.9% | -25.4% | -14.7% | +0.5% |
|
EW
Edwards Lifesciences Corporation
Peer
|
+5.0% | +13.6% | +30.4% | +10.6% | +18.3% | +3.5% |
|
COR
Cencora, Inc.
Peer
|
+271.1% | +143.6% | +50.2% | +25.1% | +13.4% | +0.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
54.63
Forward P/E
57.69
PEG Ratio
N/A
P/B Ratio
35.35
P/S Ratio
13.44
EV/Revenue
13.44
EV/EBITDA
38.96
Market Cap
$56.01B
Profitability
Profit margins and return metrics
Profit Margin
24.65%
Operating Margin
32.11%
Gross Margin
61.72%
ROE
64.63%
ROA
24.07%
Growth
Revenue and earnings growth rates
Revenue Growth
+13.3%
Earnings Growth
+21.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+17.9%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.71
Moderate
Current Ratio
1.18
Good
Quick Ratio
0.74
Poor
Cash/Share
$2.61
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-03
$N/A
2025-11-03
$3.4
+8.3% surprise
2025-08-04
$3.63
+10.0% surprise
2025-05-01
$2.96
+3.9% surprise
Healthcare Sector Comparison
Comparing IDXX against 23 companies in the Healthcare sector
(10 bullish, 13 neutral, 0 bearish)
P/E Ratio
54.63
This Stock
vs
37.07
Sector Avg
+47.4%
(Expensive)
Return on Equity (ROE)
64.63%
This Stock
vs
37.85%
Sector Avg
+70.8%
(Excellent)
Profit Margin
24.65%
This Stock
vs
13.56%
Sector Avg
+81.8%
(Superior)
Debt to Equity
0.71
This Stock
vs
1.21
Sector Avg
-40.9%
(Less Debt)
Revenue Growth
13.3%
This Stock
vs
11.02%
Sector Avg
+20.7%
(Fast Growth)
Current Ratio
1.18
This Stock
vs
1.95
Sector Avg
-39.4%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
IDXX
IDEXX Laboratories, Inc.
|
BULLISH | $56.01B | 54.63 | 64.6% | 24.7% | $689.93 | |
|
BDX
Becton, Dickinson and Company
|
BULLISH | $55.33B | 33.23 | 6.5% | 7.7% | $193.04 | |
|
ZTS
Zoetis Inc.
|
BULLISH | $53.39B | 20.34 | 49.9% | 28.2% | $120.82 | |
|
EW
Edwards Lifesciences Corporation
|
NEUTRAL | $50.08B | 37.85 | 13.5% | 23.2% | $86.3 | |
|
COR
Cencora, Inc.
|
NEUTRAL | $70.85B | 45.47 | 123.8% | 0.5% | $361.94 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-07 | HUNT NIMRATA | Officer | Sale | 9,425 | $6,629,014 |
| 2025-11-07 | HUNT NIMRATA | Officer | Option Exercise | 12,530 | $4,789,947 |
| 2025-10-30 | HOOLEY JOSEPH L. | Director | Stock Award | 39 | $24,513 |
| 2025-08-29 | SMITH MARTIN ALEXANDER | Officer | Stock Award | 18 | - |
| 2025-08-22 | SZOSTAK MARGARET ANNE | Director | Sale | 2,187 | $1,415,700 |
| 2025-08-22 | SZOSTAK MARGARET ANNE | Director | Option Exercise | 2,187 | $451,878 |
| 2025-08-22 | SZOSTAK MARGARET ANNE | Director | Gift | 259 | - |
| 2025-08-15 | MAZELSKY JONATHAN JAY | Chief Executive Officer | Gift | 1,051 | - |
| 2025-08-12 | ERICKSON MICHAEL G | Officer | Sale | 405 | $263,813 |
| 2025-08-12 | UNDERBERG SHARON E | General Counsel | Option Exercise | 5,633 | $1,227,390 |
| 2025-08-12 | HUNT NIMRATA | Officer | Option Exercise | 1,226 | $299,344 |
| 2025-08-11 | HUNT NIMRATA | Officer | Sale | 1,200 | $787,840 |
| 2025-08-08 | UNDERBERG SHARON E | General Counsel | Sale | 5,450 | $3,551,220 |
| 2025-08-08 | MAZELSKY JONATHAN JAY | Chief Executive Officer | Option Exercise | 183 | $109,523 |
| 2025-08-07 | EMERSON ANDREW | Chief Financial Officer | Option Exercise | 1,849 | $261,818 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
12 analysts
Morgan Stanley
2025-11-04
Overweight
Overweight
UBS
2025-11-04
Neutral
Neutral
JP Morgan
2025-11-04
Overweight
Overweight
BTIG
2025-11-04
Buy
Buy
Stifel
2025-10-31
Hold
Buy
UBS
2025-10-01
Neutral
Morgan Stanley
2025-08-15
Overweight
Overweight
Piper Sandler
2025-08-11
Neutral
Neutral
JP Morgan
2025-08-04
Overweight
Overweight
Morgan Stanley
2025-08-04
Overweight
Overweight