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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Idexx Laboratories, Inc. (XNAS:IDXX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
IDXX
Name:
IDEXX LABORATORIES, INC. (XNAS:IDXX)
Sector:
72.87M
Industry:
Diagnostics & Research
CEO:
Mr. Jonathan Mazelsky
Total Employees:
10,350
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -71.57% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF IDEXX LABORATORIES, INC.(IDXX) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND DIAGNOSTICS & RESEARCH INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
343.83
One Month Price Target:
$346.08
Six Month Price Target :
$357.33
Likely Price in One Year's Time:
Ticker:
$370.84
Likely Trading Range Today Under (Normal Volatility)
$342.73
Price Upper limit ($) :
$345.44
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$327.67
This week:
$307.7
This month :
$271.58
Other Primary facts
Market Cap:
28.45B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
83.25M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
12.05%
-11.94%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$418.76
$384.13
$268.90
$303.53
Medium risk (<10%) entry points
Buy Call
Sell Call
$372.86
Buy Put:
Sell Put:
$365.47
$314.71
$322.19
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
IDXX
Sharpe Ratio:
2.77%
Comparison:
IDXX, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 9.98% higher than the industry
& ratio is 21.50% higher than the market/S&P 500 average
Average Returns/Yield of
IDXX
Daily returns:
0.07%
Weekly returns:
0.37%
Monthly returns:
1.46%
Yearly returns:
27.92%
Comparison of returns:
Average annual returns/yield (last 3 years) is -37.07% below industry average
Classification:
IDXX, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.31
Statistical test of Returns:
IDXX has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.32%
Weekly Volatility:
5.20%
Monthly Volatility:
10.39%
Yearly Volatility:
36.00%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.01%
Volatility in last five trading days has been -56.59% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.70%
Weekly VaR:
-10.51%
Monthly VaR:
-21.01%
How Much Can the price of
IDXX
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-72.80%
This translates to price declining to:
$282.82
This translates to price declining to:
$93.54
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
IDXX is a 48.32% riskier investment compared to the market/S&P 500 & is 27.06% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -39.82% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
IDXX
Beta in relation to market/S&P 500--1.17
Expected beta in 1 year's time:
0.884
Expected beta in 3 year's time:
1.25
Unlevered (debt free) Beta:
0.558
Beta in relation to Nasdaq (XNAS):
0.904
Beta in relation to all global stocks::
0.566
Beta Comparison & Analysis
Beta of competitors/peers::
0.82
Beta is 42.55% higher than peers
Average Industry Beta:
1.181
Beta is -1.05% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
102.92%
Sustainable growth rate is 94.84% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.064
Alpha is -61.55% below industry average alpha yield
Alpha is 408% higher than market/& is unsustainably high
Analysis of Cost of Capital of
IDXX
Equity cost of capital:
0.112
Equity cost of capital is -0.76% below industry mean WACC
Unlevered (without debt) cost of capital:
5.32%
Before-tax cost of debt:
2.28%
After-tax cost of debt:
1.80%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.80%
WACC is -24.71% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$39.33
Revenue growth rate per share of (3Y):
44.74
Annual revenue growth rate is -59.48% below industry average
EPS:
$8.52
Expected Annual growth rate of EPS (3Y):
20.06%
Expected future EPS growth rate is -25.28% lower than the Diagnostics & Research industry
Free cash flow (FCF) per share:
$7.01
-
-
Debt per share
$10.37
EBITDA per share
$12.48
Valuation Analysis Today of
IDXX
P/E Ratio:
44.44
P/E Ratio of Competitors/Peers:
44.5
P/E ratio is -0.14% lower than main peers & is 19.54% higher than the industry
Stock price/value with industry average P/E ratio: $316.74
IDXX is 8.55% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
8.74
Price to sales ratio is -8.00% below the industry mean
P/B (Price to book value ratio):
44.74
Price to free cash flow: 49.06
-
Net income growth rate (3Y):
101.41%
Net income growth rate is -144.37% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
134.89%
Net debt to equity ratio:
168.64%
Debt to assets ratio:
33.29%
Net debt to assets ratio:
41.62%
Debt-to-asset ratio is -31.50% below industry average
Ability to repay debt:
Interest coverage ratio:
35.57
Interest coverage ratio is -226.81% less than industry average
Looking forward:
Debt growth rate:
2.77%
Annual debt growth is -97% lower than industry average debt growth rate
Debt repayment rate in last quarter: 8.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.654
Statistical significance of correlation:
IDXX has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.488
Stock price is 34.20% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.488
Correlation of price movement with Nasdaq (^IXIC):
-0.055
Covariance of price movement with the market:
-0.074
Kurtosis
2.566
Returns are, approximately, normally distributed (mesokurtic)
Skewness of returns:
-0.213
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
IDXX
Gross Profit Margin Ratio:
234%
Operating Profit Margin Ratio:
28.49%
Operating profit margin is -125.32% lower than the industry
Net Profit Margin Ratio:
234%
Effective Tax Rate:
18.75%
Effective tax rate is -2.27% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
114.81%
Return on equity (ROE) is 446.48% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
28.33%
Return on assets (ROA) is -110.50% lower than the industry
Financial Leverage:
1.5x
Current Ratio:
1.12
Current ratio is -77.42% below industry average
Cash Conversion Cycle (days):
28.1
Cash conversion cycle is -43.39% below industry average
The remaining useful life of property plant & equipment is: 1.3 years
Stock based compensation to net income ratio:
1.52%
In-depth Efficiency Analysis
Revenue generated per employee:
316.3K
Each employee generates -15% less revenue than industry average revenue per employee
EBITDA generated per employee:
100.4K
Each employee generates 235% more EBITDA than industry average revenue per employee
Profit generated per employee:
71.0K
Each employee generates 344% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
7.0K
Each employee generates -424% less free cash flow than industry average revenue per employee
Assets/Capital per employee
145.2K
Each employee generates -424% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 13.99%
Growth rate in R&D investment/expenditure is -877.01% lower than the industry
Competitors/Peer firms of
IDXX
WALGREENS BOOTS ALLIANCE, INC. (XNAS:WBA)
DEXCOM, INC. (XNAS:DXCM)
ALIGN TECHNOLOGY, INC. (XNAS:ALGN)
ALXN
VERTEX PHARMACEUTICALS INCORPORATED (XNAS:VRTX)
ILLUMINA, INC. (XNAS:ILMN)
BIOGEN INC. (XNAS:BIIB)
REGENERON PHARMACEUTICALS, INC. (XNAS:REGN)
CERNER CORPORATION (XNAS:CERN)
Current Analyst Ratings
Strong buy�17%
Buy�8%
Hold�13%
Sell�4%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
3.27B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.36B
1.92B
163.60M
316.84M
821.06M
504.22M
-
984.65M
525.00K
29.22M
106.05M
1.04B
932.75M
734.55M
904.06M
169.54M
734.55M
Statement of Cash Flow
Date:
Period:
26.51M
Differed Income Tax :
- 5028.00K
Stock Based Compensation :
11.17M
Change in Working Capital :
- 114242.00K
Accounts Receivables:
- 37531.00K
Other Working Capital:
- 53841.00K
Other Non-Cash Items:
2.33M
Net Cash Provided by Operating Activities:
114.71M
Investments in PP&E:
- 31838.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
204.62M
-
204.62M
465.62M
301.64M
117.90M
1.09B
701.19M
360.97M
105.19M
12.01M
23.09M
300.46M
1.50B
-
2.59B
120.88M
420.56M
84.15M
40.91M
388.99M
971.34M
863.01M
71.85M
981.55M
-
1.95B
10.70M
3.11B
- 47348.0K
-
March 31, 2022 at 6:00:00 AM
2.34B
639.80M
2.59B
-
1.28B
1.1B
-
- 10000.00K
- 41838.00K
- 75000.00K
-
- 276633.00K
-
338.15M
- 13480.00K
776.00K
60.16M
204.62M
144.45M
114.71M
- 41838.00K
72.87M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
IDXX
2023
2024
2025
2026
2027
$459.21
$495.28
$534.18
$576.14
$621.40