IDEXX Laboratories Inc (IDXX, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $570.15, IDEXX Laboratories Inc has witnessed a daily loss of 0.35%, marked against a three-month change of 33.3%. A thorough analysis, underlined by the GF Score, suggests that IDEXX Laboratories Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Considering the individual ranks, IDEXX Laboratories Inc's financial strength and growth are particularly impressive, while its GF Value rank indicates a moderate valuation. With these factors in mind, GuruFocus assigned IDEXX Laboratories Inc a GF Score of 97 out of 100, signaling the highest outperformance potential.
Understanding IDEXX Laboratories Inc Business
IDEXX Laboratories Inc, with a market cap of $47.35 billion and sales of $3.59 billion, operates at the forefront of veterinary diagnostics. The company boasts an operating margin of 30.06%, reflecting its efficiency in converting sales into profit. IDEXX Laboratories Inc primarily develops, manufactures, and distributes diagnostic products, equipment, and services for pets and livestock. Its diverse product lines and services, including in-office test kits, benchtop analyzers, reference lab services, and veterinary software solutions, have established it as a leader in the animal healthcare industry. Approximately 40% of its revenue is generated from international markets, underscoring its global reach.
Financial Strength Breakdown
The Financial Strength rating of IDEXX Laboratories Inc reflects a resilient balance sheet and a strategic approach to capital management. An Interest Coverage ratio of 23.51 far exceeds the benchmark set by investing legend Benjamin Graham, indicating the company's strong ability to meet its interest obligations. The Altman Z-Score of 19.09 further reinforces IDEXX Laboratories Inc's defense against financial distress. Additionally, a Debt-to-Revenue ratio of 0.32 demonstrates prudent debt management, contributing to the company's financial health.
Profitability Rank Breakdown
IDEXX Laboratories Inc's Profitability Rank is exemplary, with an increasing Operating Margin over the past five years, indicating enhanced profit generation efficiency. The company's Piotroski F-Score reflects a strong financial position, while a Predictability Rank of 5 stars out of five signals consistent operational performance and reliability for investors.
Growth Rank Breakdown
IDEXX Laboratories Inc's high Growth Rank underscores its commitment to expansion and innovation. The company's 3-Year Revenue Growth Rate of 13.1% outperforms a significant portion of its industry peers. The consistent increase in EBITDA over the past years highlights IDEXX Laboratories Inc's ability to drive growth and enhance shareholder value.
Next Steps
Considering IDEXX Laboratories Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking similar investment opportunities can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus.
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.
