IDEXX Laboratories Inc (IDXX, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial position. With a current share price of $509.02, IDEXX Laboratories Inc has experienced a slight daily decrease of 0.16%, amidst a three-month decline of -8.07%. A detailed analysis, supported by the GF Score, indicates that IDEXX Laboratories Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For IDEXX Laboratories Inc, the GF Score is an impressive 98 out of 100, indicating a high potential for outperformance.
Understanding IDEXX Laboratories Inc's Business
IDEXX Laboratories Inc, with a market cap of $42.04 billion and annual sales of $3.72 billion, primarily focuses on developing, manufacturing, and distributing diagnostic products and services for pets and livestock. Its diverse product range includes single-use test kits, benchtop analyzers, reference lab services, and veterinary software solutions. Notably, about 35% of its revenue is generated from international markets.
Financial Strength Breakdown
IDEXX Laboratories Inc's financial strength is evident through its robust balance sheet and impressive financial ratios. The company boasts an Interest Coverage ratio of 30.68, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 18.52 signals strong financial health, minimizing the risk of financial distress. The strategic management of its debt, with a Debt-to-Revenue ratio of 0.29, further solidifies its financial stability.
Profitability Rank Breakdown
The profitability of IDEXX Laboratories Inc is outstanding, as reflected in its high Profitability Rank. The company's Operating Margin has consistently improved over the past five years, reaching 29.97% in 2023. This trend is supported by a steady increase in Gross Margin, which stood at 59.82% in 2023. The Piotroski F-Score further confirms the company's robust financial health, while its Predictability Rank of 5 stars indicates reliable operational performance.
Growth Rank Breakdown
IDEXX Laboratories Inc is also recognized for its strong growth metrics. The company's 3-Year Revenue Growth Rate of 11.8% outperforms 65.84% of its peers in the Medical Diagnostics & Research industry. Its EBITDA growth over the past three and five years underscores its capability to expand profitably and sustainably.
Conclusion
Considering IDEXX Laboratories Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
