Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
As of 11 April 2023
NYSE:IDEXX
- IDEXX Laboratories, Inc. is a multinational corporation that specializes in the development, manufacture, and distribution of veterinary diagnostics and software solutions. The company’s business model revolves around offering a wide range of innovative diagnostic products and services to veterinarians worldwide.
- IDEXX Labs’ revenue streams come from three primary business segments:
- Companion Animal Group (CAG)
- Livestock, Poultry, and Dairy (LPD)
- Water: This segment provides testing services for water quality in various industries, including municipal water supplies, environmental testing, and industrial process water.
What we think are pros of business:
- Strong brand recognition
- Leading market position
- Comprehensive product portfolio
- Global distribution network: IDEXX has a global distribution network that allows it to reach customers in over 175 countries.
What we think the risks are:
- Dependency on veterinary industry
- Dependence on key customers: IDEXX has a small number of large customers that generate a significant portion of its revenue.
- Competitive landscape
- Dependence on technology
- Regulatory challenges
Fundamentals:
- Market Cap: $39 BillionÂ
- P/E : 59
- D/E : 1.3
- Operating Cash Flow: $500 Million
- Profit margins = 27%
- ROE= 124%
- P/FCF= 99.0
Dividends
Company does not provide any dividend at current moment
Technical for long term perspective:
Trend : Sideways
Entry : Entry at lower level 330
Target: 600
Our Final Thought:
IDEXX is a smaller world leader in the animal care industry compared to Zoetis Inc. and is definitely a compounder. The stock trades at a premium because of this but you can accumulate at lower levels by checking technical analysis combined with fundamentals. Debt levels are higher in this company which makes it a risky bet. This should be in your watchlist for long term buying.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.