Idexx Laboratories Inc

IDXX

In Vitro & In Vivo Diagnostic Substances

Mkt Cap

$41.92B

PE

48.38

Debt

$695.8M

Cash

$397.4M

EV

$42.22B

FCF

$796.8M

Market Cap

$41.92B

P/E Ratio

48.38

Debt

$695.8M

Cash

$397.4M

EV

$42.22B

FCF

$796.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":181906000},{"time":"2015-12-30","value":192078000},{"time":"2016-12-30","value":222045000},{"time":"2017-12-30","value":263144000},{"time":"2018-12-30","value":377031000},{"time":"2019-12-30","value":427720000},{"time":"2020-12-30","value":581776000},{"time":"2021-12-30","value":744844000},{"time":"2022-12-30","value":679089000},{"time":"2023-12-30","value":845042000}],"Sales":[{"time":"2014-12-30","value":1485807000},{"time":"2015-12-30","value":1601892000},{"time":"2016-12-30","value":1775423000},{"time":"2017-12-30","value":1969058000},{"time":"2018-12-30","value":2213242000},{"time":"2019-12-30","value":2406908000},{"time":"2020-12-30","value":2706655000},{"time":"2021-12-30","value":3215360000},{"time":"2022-12-30","value":3367324000},{"time":"2023-12-30","value":3660953000}],"Net Margins":[{"time":"2014-12-30","value":0.12242909072308852},{"time":"2015-12-30","value":0.11990696001977662},{"time":"2016-12-30","value":0.12506597019414528},{"time":"2017-12-30","value":0.13363953728127867},{"time":"2018-12-30","value":0.170352360925737},{"time":"2019-12-30","value":0.17770517194674662},{"time":"2020-12-30","value":0.21494279839876157},{"time":"2021-12-30","value":0.23165182125796177},{"time":"2022-12-30","value":0.20167022834749493},{"time":"2023-12-30","value":0.23082568937650935}],"Assets":[{"time":"2014-12-30","value":1384211000},{"time":"2015-12-30","value":1474993000},{"time":"2016-12-30","value":1530704000},{"time":"2017-12-30","value":1713416000},{"time":"2018-12-30","value":1537349000},{"time":"2019-12-30","value":1832475000},{"time":"2020-12-30","value":2294561000},{"time":"2021-12-30","value":2437203000},{"time":"2022-12-30","value":2746765000},{"time":"2023-12-30","value":3259925000}],"Stockholders Equity":[{"time":"2014-12-30","value":117589000},{"time":"2015-12-30","value":-83995000},{"time":"2016-12-30","value":-108213000},{"time":"2017-12-30","value":-53842000},{"time":"2018-12-30","value":-9233000},{"time":"2019-12-30","value":177825000},{"time":"2020-12-30","value":632795000},{"time":"2021-12-30","value":689992000},{"time":"2022-12-30","value":608737000},{"time":"2023-12-30","value":1484530000}],"ROE":[{"time":"2014-12-30","value":1.5469644269446972},{"time":"2015-12-30","value":-2.2867789749389846},{"time":"2016-12-30","value":-2.0519253694103297},{"time":"2017-12-30","value":-4.887337023141785},{"time":"2018-12-30","value":-40.83515650384491},{"time":"2019-12-30","value":2.405286095880782},{"time":"2020-12-30","value":0.9193751530906533},{"time":"2021-12-30","value":1.0794965738733202},{"time":"2022-12-30","value":1.1155704351797247},{"time":"2023-12-30","value":0.5692320128256081}],"ROA":[{"time":"2014-12-30","value":0.1892659428367496},{"time":"2015-12-30","value":0.2050043627325689},{"time":"2016-12-30","value":0.2311975404781068},{"time":"2017-12-30","value":0.24412168440121956},{"time":"2018-12-30","value":0.32034755933753495},{"time":"2019-12-30","value":0.30192662928552916},{"time":"2020-12-30","value":0.30293812193269215},{"time":"2021-12-30","value":0.38241705758609357},{"time":"2022-12-30","value":0.3272085526064297},{"time":"2023-12-30","value":0.33655007400477005}]}

IDEXX Laboratories, Inc. develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. It also provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory animal diagnostic instruments, and services for biomedical research community. In addition, the company offers diagnostic and health-monitoring products for livestock, poultry, and dairy products that test water for various microbiological contaminants; point-of-care electrolytes and blood gas analyzers; OPTI SARS-CoV-2 RT-PCR test kit for human COVID-19 testing; in-clinic chemistry, blood and urine chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers; and SNAP rapid assays test kits. Further, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; and veterinary software and services for independent veterinary clinics and corporate groups. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.

Sector

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12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Idexx Laboratories Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$796.8M	$957.1M	$1.134B	$1.324B	$1.523B	$1.727B	$1.93B	$2.123B	$2.301B	$2.455B	$2.577B	$25.77B
DCF		$832.3M	$857.1M	$870.3M	$870.9M	$858.7M	$834.2M	$798.3M	$752.2M	$697.7M	$637.1M	$6.371B
Value	$14.38B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 22%

Earnings Stability 97%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	12%	13%	13%	17%	18%	21%	23%	20%	23%	23%
ROA	21%	23%	24%	32%	30%	30%	38%	33%	34%	33%
ROE	-230%	-210%	-490%	-4.1K%	240%	92%	110%	110%	57%	55%

What is the average Net Margin?

The average Net Margin over the past 5 years is +20.45%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.12%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +32.86%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.68%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -579.1%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +580.89%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	4.47	2.20	2.03	2.12	2.30	1.77	1.46	2.14	1.00	0.87
Debt Equity	-7.11	-5.49	-11.27	-65.18	3.93	1.52	1.34	1.39	0.52	0.44
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.87.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.18.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	11%	11%	11%	8.7%	0.019%
Net Income	21%	18%	13%	24%	0.23%
Stockholders Equity	-	-	33%	140%	-36%
FCF	16%	22%	13%	96%	2.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.59%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.02%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +17.52%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.23%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -35.68%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +22.14%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.59%.