IDEXX Laboratories Inc (IDXX, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $489.94 and a daily gain of 2%, despite a slight dip of -3.97% over the past three months, the company shows promising signs of substantial growth. A detailed analysis using the GF Score indicates that IDEXX Laboratories Inc is poised for significant future success.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. This system has proven to correlate strongly with long-term stock performance. A higher GF Score typically indicates a higher potential for returns. IDEXX Laboratories Inc boasts a GF Score of 99 out of 100, signaling exceptional outperformance potential based on its ranks in financial strength (8/10), profitability (10/10), growth (10/10), GF Value (9/10), and momentum (7/10).
Understanding IDEXX Laboratories Inc's Business
IDEXX Laboratories Inc, with a market cap of $40.32 billion and annual sales of $3.78 billion, operates primarily in the development, manufacture, and distribution of diagnostic products and services for pets and livestock. Its diverse product range includes in-office test kits for dogs and cats, on-site analyzers for benchtop chemistry and hematology, and veterinary software solutions. Approximately 35% of its revenue is generated outside the United States, highlighting its global presence.
Financial Strength Breakdown
IDEXX Laboratories Inc's financial robustness is evident in its impressive Interest Coverage ratio of 31.94 and an Altman Z-Score of 17.26, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.28, further solidifying its financial health.
Profitability Rank Breakdown
The company's profitability is impressive, with an Operating Margin that has consistently increased over the past five years, reaching 29.97% in 2023. This trend is supported by a rising Gross Margin, which stood at 59.82% in 2023. IDEXX Laboratories Inc's financial health is further endorsed by a high Piotroski F-Score and a Predictability Rank of 5.0 stars, indicating reliable operational performance.
Growth Rank Breakdown
IDEXX Laboratories Inc is distinguished by its strong growth metrics. The company's 3-Year Revenue Growth Rate of 11.8% is notably higher than 65.46% of its industry peers. This growth is complemented by a significant increase in EBITDA over the past few years, emphasizing its capacity for sustained expansion.
Conclusion
Considering IDEXX Laboratories Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
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.
