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 $482.81, IDEXX Laboratories Inc has witnessed a daily gain of 1.07%, marked against a three-month change of -0.88%. 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: 7/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high financial strength rank and an exceptional profitability rank, GuruFocus assigned IDEXX Laboratories Inc the GF Score of 98 out of 100, which signals the highest outperformance potential.
Understanding IDEXX Laboratories Inc Business
IDEXX Laboratories Inc, with a market cap of $40.1 billion and sales of $3.59 billion, operates with a remarkable operating margin of 30.06%. The company primarily develops, manufactures, and distributes diagnostic products, equipment, and services for pets and livestock. Its key product lines include single-use canine and feline test kits that veterinarians can employ in the office, benchtop chemistry and hematology analyzers for test-panel analysis on-site, reference lab services, and tests to detect and manage disease in livestock. The firm also offers vet practice management software and consulting services to animal hospitals. IDEXX Laboratories Inc generates close to 40% of its revenue from outside the United States, indicating a diversified and global presence.
Financial Strength Breakdown
The Financial Strength rating of IDEXX Laboratories Inc reflects a resilient balance sheet, capable of withstanding financial headwinds. An Interest Coverage ratio of 23.51 far exceeds the threshold set by investment guru Benjamin Graham, indicating a strong ability to meet interest obligations. The Altman Z-Score of 17.71 further reinforces the company's defense against financial distress. Additionally, a Debt-to-Revenue ratio of 0.32 showcases IDEXX Laboratories Inc's strategic debt management, solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of IDEXX Laboratories Inc is a testament to its superior ability to generate profits. The company's Operating Margin has consistently increased over the past five years, indicating an enhanced capacity to convert revenue into profit. The Gross Margin has also seen a steady rise, further emphasizing the company's efficiency. IDEXX Laboratories Inc's financial health is also supported by a strong Piotroski F-Score and a Predictability Rank of 5 stars, which bodes well for investor confidence.
Growth Rank Breakdown
IDEXX Laboratories Inc's high Growth Rank reflects its commitment to business expansion. 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 few years highlights IDEXX Laboratories Inc's ability to sustain growth and profitability.
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 opportunities can explore more companies with strong GF Scores using the GF Score Screen. With a comprehensive approach to evaluating financial health and growth prospects, IDEXX Laboratories Inc stands out as a compelling investment choice for those looking to capitalize on market leadership and innovation.
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.
