IDEXX LABORATORIES INC /DE

In Vitro & In Vivo Diagnostic Substances
Stock Price
$551.50
$-3.44 (-0.62%)
Jun 26, 2026
Debt to Equity
23.3%
ROE
61.8%
PE Ratio
38.02
EPS (Diluted)
$8.60

Idexx Laboratories Inc De (IDXX) Fundamental Analysis

IDEXX Laboratories: Financial Profile and Key Fundamentals

IDEXX Laboratories supplies diagnostic tests, instrumentation and practice-management software to the veterinary and companion animal markets and presents a high‑margin, compounding‑growth financial profile, with a gross margin of 59.8% and a five‑year diluted EPS CAGR of 15.73%.

Revenue and Cash Flow Trends

The company’s revenue per share has shown durable expansion, with a five‑year revenue‑per‑share CAGR of 10.59% and a level of $45.18 (period end 2023) that reflects long‑term top‑line per‑share growth [EPS Diluted & Revenue per Share].

Operating cash flow has stepped up materially, rising from about $373.3M in 2017 to $906.5M on a trailing‑twelve‑month basis (period end 2023‑12‑31), and operating cash flow exceeded net income in the latest overlapping period ($906.5M OCF vs $895.0M net income), supporting reported margin durability such as a net profit margin of 23.1% (2023) and operating margin of 43.9% (2022) [Strategic Capital Allocation] [Profit Margin Trends].

Capital structure metrics are conservative: interest coverage is about 36.1x and debt‑to‑equity is 0.2335, indicating comfortable debt service capacity.

Near-term Profitability and Earnings Dynamics

At the same time, profitability and earnings momentum show near‑term stress. Diluted EPS growth turned negative year‑over‑year at −17.18% (period end 2025‑03‑31) after a recent peak of $13.34 (2024‑03‑31) and a trough of $10.96 (2024‑12‑31), while revenue‑per‑share growth was 8.7% in the most recent observation, creating a disconnect between top‑line per‑share increases and EPS performance [Revenue & EPS Growth] [EPS Diluted & Revenue per Share].

Financing cash outflows deepened to −$878.1M (period end 2024‑12‑31), even as investing outflows moderated to about −$136.2M (period end 2025‑12‑31), which bears watching for impacts on free cash flow and capital returns [Strategic Capital Allocation].

Market multiples are elevated relative to historical ranges, with a trailing P/E around 38.0x (most recent).

Key Metrics and Outlook Highlights

Key fundamentals to monitor going forward include revenue‑per‑share growth (five‑year CAGR 10.59% and recent level $45.18), the trajectory of diluted EPS (recent YoY −17.18% and latest EPS $11.05), the relationship of operating cash flow to net income ($906.5M vs $895.0M), margin trends (net margin 23.1%, gross margin 59.8%), ROE (61.8% at 2025‑03‑31) and the size and composition of financing cash flow (recent −$878.1M) [Return on Equity (ROE)] [Earnings Quality Analysis] [Revenue & Net Income] [Price-to-Earnings (PE) Ratio Trend].

Revenue and Growth

Revenue Trend

Revenue & Net Income

The foundation of business quality and long-term value creation

Revenue & Net Income Growth

Revenue for IDEXX LABORATORIES INC /DE shows quarter-to-quarter variability with a recent upward move. After $1.00B in 2024-06 and a slight dip to $975.5M in 2024-09, revenue increased to $998.4M in 2025-03 and then to $1.11B in 2025-06. There are notable larger quarterly values earlier in the series, including $2.75B on 2023-12-31 and $1.67B on 2022-12-31, which stand out from the surrounding quarterly amounts.

Net income has generally clustered in the low-to-mid hundreds of millions with intermittent larger quarters. Recent net income was $242.7M in 2025-03 following a $652.3M result in 2024-12 and $235.6M in 2024-03; 2023-12 recorded $408.6M among other quarters around $200–250M. The most recent quarterly revenue was $1.11B. The most recent reported net income was $242.7M.

Why Growth Matters

Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.

Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.

Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.

IDEXX LABORATORIES INC /DE (IDXX) quarterly revenue and net income trend analysis showing historical financial performance over multiple years. Interactive chart displaying revenue growth, net income trends, and profitability patterns for IDXX stock with quarterly and annual data points.

Revenue & Net Income Trend

Revenue
Net Income

EPS Diluted & Revenue per Share

Per-share earnings and revenue — the shareholder's view of growth

Why Per-Share Metrics Matter

Total revenue and net income can grow simply because a company issues more shares or makes acquisitions. Per-share metrics cut through that noise — they show how much value each single share of stock is generating, which is what actually matters to shareholders.

Revenue per Share (split-adjusted) tells you how much revenue the business generates for every share outstanding. Growing revenue per share means the company is either expanding the business or shrinking the share count — both shareholder-friendly signals.EPS Diluted (split-adjusted) captures bottom-line earnings per share after accounting for all dilutive instruments such as stock options and convertible debt.

The most powerful signal is when both lines rise together over many years. If revenue per share grows but EPS lags, margins are being squeezed. If EPS grows faster than revenue per share, the company is becoming more profitable — a hallmark of businesses with durable competitive advantages. Watch for share buybacks, which can mechanically lift EPS even if total earnings are flat.

IDEXX LABORATORIES INC /DE (IDXX) EPS diluted and revenue per share trend showing historical per-share earnings and revenue performance over time.

EPS Diluted & Revenue per Share

Revenue Per Share
Earnings Per Share (Diluted)

Revenue & EPS Growth

Year-over-year growth rates for revenue and earnings per share

Reading the Growth Rate Chart

This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.

Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.

Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.

IDEXX LABORATORIES INC /DE (IDXX) year-over-year revenue per share and EPS diluted growth rate trend analysis showing historical growth performance.

Revenue & EPS Growth

Avg:
Revenue Per Share year-on-year growth rate
Diluted EPS year-on-year growth rate
10Y rolling avg (dashed)

Revenue Analysis

Revenue Waterfall Analysis

How revenue converts to net income for the most recent annual period

IDEXX LABORATORIES INC /DE (IDXX) revenue waterfall chart showing the breakdown from total revenue to net income. Displays cost of goods sold, operating expenses, selling and administrative costs, research and development expenses, tax expenses, and final net income for IDXX. Annual financial statement waterfall analysis showing profit margin components and expense structure.

Over the period Jan 2023 to Dec 2023, Idexx Laboratories Inc De converts approximately 60¢ of every revenue dollar into gross profit (gross margin: 59.8%).After accounting for operating expenses and taxes and expenses, the company retains 23.1% as net profit margin, resulting in $0.85B in net earnings.

Starting Revenue
Expenses
Other Items
Net Income

Period Information

Report Type: Annual (10-K)

Period: Jan 2023 to Dec 2023

Profitability

Profit Margins

Earnings Quality

Earnings Quality Analysis

Comparing reported earnings to actual cash generation

Earnings Quality Analysis — Net Income vs Operating Cash Flow (TTM)

IDEXX LABORATORIES INC /DE's trailing twelve‑month net income rose to a peak of $1.08B at the 2024-03-31 period, then declined through the rest of 2024 to $887.9M at 2024-12-31 and edged up slightly to $895.0M by 2025-03-31. The most recent quarters show net income below the March 2024 peak, with the latest observation indicating a modest recovery versus the year‑end trough.

Operating cash flow on a TTM basis has trended higher over the multi‑year record provided, with the latest operating cash flow observation of $906.5M at 2023-12-31. In the most recent date where both metrics are available (2023-12-31), operating cash flow ($906.5M) exceeded net income ($845.0M). The latest reported values are: Net Income TTM $895.0M and Operating Cash Flow TTM $906.5M.

The Earnings vs. Cash Flow Gap

Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.

Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.

Net Income vs Operating Cash Flow

Trailing Twelve Months

Net Income (Trailing Twelve Months)
Operating Cash Flow (Trailing Twelve Months)

What to Look For

  • Consistent Alignment: High-quality earnings show operating cash flow tracking closely with or exceeding net income over time. This indicates the company is actually collecting cash from its reported profits.
  • Warning Sign - Divergence: If net income consistently exceeds cash flow, the company may be reporting earnings that aren't translating to cash. This could indicate aggressive revenue recognition, growing receivables that may not be collected, or inventory building up.
  • Positive Sign - Cash Exceeds Earnings: When cash flow exceeds net income, it often reflects conservative accounting (like accelerated depreciation) or strong working capital management. This is generally a sign of high earnings quality.
  • Quarterly Volatility is Normal: Some variation is expected due to timing of collections, seasonal factors, and one-time items. Focus on the trend over multiple quarters rather than any single period.

Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.

Return on Equity

Return on Equity (ROE)

Measuring management's efficiency at generating profits from shareholder capital

Return on Equity (ROE) Analysis

IDEXX LABORATORIES INC /DE's trailing twelve‑month return on equity has been in a stable, elevated range over the most recent quarters, rising to 61.8% at the 2025-03-31 quarter from 55.7% at 2024-12-31 and 56.9% at 2023-12-31. Over the last three reported quarters the ROE shows modest upward movement and currently sits in the low‑60% area, representing the most recent consolidation after larger prior swings.

Historical Volatility and Trends

Historically the series shows pronounced volatility: moderate ROE in the 24–39% range across 2010–2013, a period of very large negative ROE in 2016–2018 (reaching −4,083.5% at 2018-12-31), a dramatic rebound to extreme highs in 2019 (peaking at 930.4% on 2019-03-31) and elevated but declining ROE through 2019–2022 (e.g., 290.1% on 2019-06-30 down to 111.6% on 2022-12-31) before the more recent mid‑50s to low‑60s readings. The most recent reported ROE (period end 2025-03-31) was 61.8%.

The Gold Standard of Profitability

Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.

A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.

What to Look For:

  • Consistency: Look for an ROE that is stable or rising over time. Erratic ROE can signal cyclicality or inconsistent management.
  • Quality vs. Leverage: While a high ROE is generally positive, it can sometimes be artificially inflated by high debt (leverage). Always cross-reference ROE with the company's Debt-to-Equity ratio to ensure the profitability is coming from operational excellence rather than excessive borrowing.
  • Comparison: ROE is most meaningful when compared against industry peers or the company's own historical average.
IDEXX LABORATORIES INC /DE (IDXX) Return on Equity (ROE) historical trend analysis. Quarterly chart showing the company's return on equity over time, reflecting management's efficiency in using shareholder capital.

Return on Equity Trend

Avg:
Return on Equity
10Y rolling avg (dashed)

Capital Allocation & Cash Flow

Capital Strategy

Strategic Capital Allocation

How the company generates and deploys its cash

Strategic Capital Allocation — Cash Flow Allocation Trend (TTM)

IDEXX LABORATORIES INC /DE demonstrates a sustained growth in operating cash flow over the observed period. Operating cash flow increased from approximately $373.3M in 2017 and $385.6M in 2018 to a significantly higher level of $906.5M at the most recent period end (2023-12-31), reflecting an upward trajectory in cash generated from core operations in the later years.

Investing cash flow has persistently been negative, indicating cash outflows across the timeframe shown. It moved from about -$138.7M in 2017 to larger outflows around -$293.0M in 2021, then moderated to -$125.3M in 2023 and -$136.2M at period end 2025-12-31.

Financing cash flow has also been negative throughout and became more pronounced recently. Financing outflows were -$442.0M at period end 2023-12-31 and increased to -$878.1M at period end 2024-12-31. The latest TTM figures are:

  • Operating Cash Flow: $906.5M (period end 2023-12-31)
  • Investing Cash Flow: -$136.2M (period end 2025-12-31)
  • Financing Cash Flow: -$878.1M (period end 2024-12-31)

Understanding Company Strategy

Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:

  • Operating Cash Flow: The engine of the business. This shows how much cash is generated from core operations. Sustainable businesses should ideally fund their growth and shareholder returns primarily from this source.
  • Investing Cash Flow: The future of the business. This includes spending on new equipment, R&D, and acquisitions. Consistent negative values are normal for growing companies as they reinvest in their future.
  • Financing Cash Flow: The funding of the business. This reflects capital raising (issuing stock or debt) versus returning capital to shareholders (dividends and buybacks) or repaying debt.

What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.

IDEXX LABORATORIES INC /DE (IDXX) cash flow allocation analysis. Quarterly chart displaying the three pillars of cash flow: net cash from operating activities, investing activities, and financing activities, providing insight into the company's capital allocation strategy.

Cash Flow Allocation Trend

Trailing Twelve Months

Operating CF (TTM)
Investing CF (TTM)
Financing CF (TTM)

Balance Sheet

Book Value per Share

Book Value per Share

Net assets attributable to each share — the accounting floor of intrinsic value

Why Book Value per Share Matters

Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.

A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.

Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.

IDEXX LABORATORIES INC /DE (IDXX) book value per share trend showing historical net asset value per share over time, split-adjusted.

Book Value per Share

Book Value Per Share

Debt to Equity

Debt-to-Equity Ratio

How much of the company is financed by debt versus shareholders' equity

Reading the Debt-to-Equity Ratio

The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.

Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.

Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.

IDEXX LABORATORIES INC /DE (IDXX) debt-to-equity ratio trend showing the historical balance between financial leverage and shareholders' equity.

Debt-to-Equity Ratio

Debt-to-Equity Ratio

Current Ratio

Current Ratio

Short-term liquidity — can the company cover its near-term obligations?

Liquidity: Can the Business Pay Its Bills?

The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?

A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.

Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.

IDEXX LABORATORIES INC /DE (IDXX) current ratio trend showing the ratio of current assets to current liabilities over time, a measure of short-term liquidity.

Current Ratio

Current Ratio

Valuation

PE Ratio

Price-to-Earnings (PE) Ratio Trend

How much the market is paying for each dollar of company earnings

Price-to-Earnings (PE) Ratio

IDEXX LABORATORIES INC /DE's trailing twelve-month P/E moved from the mid-to-high double digits in earlier years into a pronounced peak at 71.6x at 2021-12-31, then declined through 2022 into the low 30s. A notable inflection occurred at 2023-12-31 when the P/E jumped to 52.5x, after which it contracted back toward the high-30s over the subsequent quarters.

Over the most recent three reported quarters the P/E has been relatively stable: 39.9x at 2024-03-31, 37.7x at 2024-12-31, and 38.0x at 2025-03-31. The most recent P/E ratio was 38.0x.

What Is the PE Ratio?

The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.

Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.

What to Look For:

  • Expanding PE (Re-rating):If the PE is rising while earnings are also growing, the market is assigning increasing confidence in the company's future. If PE rises while earnings stagnate, it may signal speculative excess.
  • Contracting PE (De-rating): A falling PE can indicate the market is losing confidence in growth prospects. If earnings grow but the PE shrinks, total returns may be muted.
  • Negative PE: When a company is loss-making, the PE ratio is negative or undefined. In these cases, investors typically use other metrics such as Price-to-Sales (P/S) or EV/EBITDA.
  • Spikes and Troughs: Sudden PE spikes often occur when earnings temporarily collapse (making the divisor small) rather than when the stock price surges. Context is key.

Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.

IDEXX LABORATORIES INC /DE (IDXX) Price-to-Earnings (PE) ratio historical trend analysis. Quarterly chart showing how the market has valued the company's earnings over time.

PE Ratio Trend

Price-to-Earnings Ratio