📊 IDXX Key Takeaways
Is Idexx Laboratories Inc. /de (IDXX) a Good Investment?
IDXX demonstrates exceptional fundamental strength with highly profitable operations (63% gross margin, 32% operating margin) generating robust free cash flow of $234M while maintaining a fortress balance sheet with minimal leverage (0.19x debt/equity). Earnings growth (19.3% net income, 22.6% EPS) is accelerating ahead of revenue growth (10.4%), indicating strong operational leverage and improved execution.
IDEXX delivers durable double-digit growth with industry-leading margins and exceptional returns on capital, translating efficiently into free cash flow. Low leverage and extraordinary interest coverage underscore resilience and capacity to invest through cycles, even with modest on-balance-sheet cash. Continued discipline in working capital will be important as scale increases.
Why Buy Idexx Laboratories Inc. /de Stock? IDXX Key Strengths
- Exceptional profitability: 63.4% gross margin, 31.8% operating margin, 24.4% net margin indicate pricing power and operational excellence
- Accelerating earnings growth: 22.6% EPS growth and 19.3% net income growth significantly outpace 10.4% revenue growth, showing operational leverage
- Strong free cash flow generation: $234M FCF with 20.5% FCF margin provides significant capital deployment flexibility
- Conservative balance sheet: 0.19x debt/equity ratio and 45.8x interest coverage demonstrate minimal financial risk
- Solid return on equity: 17.9% ROE demonstrates effective capital deployment
- High profitability with 61.8% gross, 31.6% operating, and 24.6% net margins
- Exceptional ROE (66%) and ROA (31.6%) indicating efficient asset use and strong competitive position
- Robust cash generation and balance sheet strength (FCF margin 24.6%, D/E 0.28x, interest coverage 171.9x)
IDXX Stock Risks: Idexx Laboratories Inc. /de Investment Risks
- Working capital concerns: Quick ratio of 0.82x below 1.0 suggests potential liquidity constraints or inventory buildup requiring monitoring
- Current ratio of 1.12x is modest and may limit financial flexibility in adverse scenarios
- Diagnostics market competition and potential healthcare regulatory headwinds not reflected in recent metrics
- Tight liquidity profile (current 1.23x, quick 0.90x) and relatively low cash balance
- Potential growth normalization after strong comps; operating leverage could reverse if growth slows
- Regulatory/quality or product-cycle risks inherent to diagnostics that could affect demand and margins
Key Metrics to Watch
- Free cash flow sustainability and conversion rate relative to net income
- Gross margin trends for cost of goods sold pressure
- Operating margin expansion to assess operational leverage continuation
- Working capital efficiency, particularly inventory turnover and Days Sales Outstanding
- Revenue growth rate sustainability in competitive diagnostic markets
- Organic revenue growth (YoY)
- Free cash flow margin
Idexx Laboratories Inc. /de (IDXX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
IDXX Profit Margin, ROE & Profitability Analysis
IDXX vs Healthcare Sector: How Idexx Laboratories Inc. /de Compares
How Idexx Laboratories Inc. /de compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Idexx Laboratories Inc. /de Stock Overvalued? IDXX Valuation Analysis 2026
Based on fundamental analysis, Idexx Laboratories Inc. /de appears fundamentally strong relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Idexx Laboratories Inc. /de Balance Sheet: IDXX Debt, Cash & Liquidity
IDXX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Idexx Laboratories Inc. /de's revenue has grown significantly by 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.06 reflects profitable operations.
IDXX Revenue Growth, EPS Growth & YoY Performance
IDXX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $998.4M | $242.7M | $2.96 |
| Q3 2025 | $975.5M | $203.3M | $2.80 |
| Q2 2025 | $1.0B | $203.3M | $2.44 |
| Q1 2025 | $964.1M | $235.6M | $2.81 |
| Q3 2024 | $915.5M | $203.3M | $2.53 |
| Q2 2024 | $943.6M | $203.3M | $2.44 |
| Q1 2024 | $900.2M | $214.1M | $2.55 |
| Q3 2023 | $841.7M | $132.0M | $2.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Idexx Laboratories Inc. /de Dividends, Buybacks & Capital Allocation
IDXX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Idexx Laboratories Inc. /de (CIK: 0000874716)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IDXX
What is the AI rating for IDXX?
Idexx Laboratories Inc. /de (IDXX) has a Combined AI Rating of STRONG BUY from Claude (STRONG BUY) and ChatGPT (STRONG BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IDXX's key strengths?
Claude: Exceptional profitability: 63.4% gross margin, 31.8% operating margin, 24.4% net margin indicate pricing power and operational excellence. Accelerating earnings growth: 22.6% EPS growth and 19.3% net income growth significantly outpace 10.4% revenue growth, showing operational leverage. ChatGPT: High profitability with 61.8% gross, 31.6% operating, and 24.6% net margins. Exceptional ROE (66%) and ROA (31.6%) indicating efficient asset use and strong competitive position.
What are the risks of investing in IDXX?
Claude: Working capital concerns: Quick ratio of 0.82x below 1.0 suggests potential liquidity constraints or inventory buildup requiring monitoring. Current ratio of 1.12x is modest and may limit financial flexibility in adverse scenarios. ChatGPT: Tight liquidity profile (current 1.23x, quick 0.90x) and relatively low cash balance. Potential growth normalization after strong comps; operating leverage could reverse if growth slows.
What is IDXX's revenue and growth?
Idexx Laboratories Inc. /de reported revenue of $1.1B.
Does IDXX pay dividends?
Idexx Laboratories Inc. /de does not currently pay dividends.
Where can I find IDXX SEC filings?
Official SEC filings for Idexx Laboratories Inc. /de (CIK: 0000874716) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IDXX's EPS?
Idexx Laboratories Inc. /de has a diluted EPS of $3.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IDXX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Idexx Laboratories Inc. /de has a STRONG BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is IDXX stock overvalued or undervalued?
Valuation metrics for IDXX: ROE of 17.9% (sector avg: 15%), net margin of 24.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy IDXX stock in 2026?
Our dual AI analysis gives Idexx Laboratories Inc. /de a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IDXX's free cash flow?
Idexx Laboratories Inc. /de's operating cash flow is $266.2M, with capital expenditures of $32.0M. FCF margin is 20.5%.
How does IDXX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 24.4% (avg: 12%), ROE 17.9% (avg: 15%), current ratio 1.12 (avg: 2).