IDXX Stock Study (6-15-26)

Posted by Mark on July 28, 2026 at 07:01 | Last modified: June 16, 2026 06:57

I recently did a stock study on IDEXX Laboratories Inc. (IDXX, $560.88).

M* writes:

     > Idexx Laboratories primarily develops, manufactures, and
     > distributes diagnostic products, equipment, and services for
     > pets and livestock. Its key product lines include single-use
     > canine and feline test kits that veterinarians can employ in
     > the office, benchtop chemistry and hematology analyzers for
     > test-panel analysis on-site, reference lab services, and tests
     > to detect and manage disease in livestock. The firm also
     > offers vet practice management software and consulting
     > services to animal hospitals. Idexx derives roughly 35%
     > of its revenue from outside the United States.

Over the past 10 years, this medium-size company has grown sales and earnings 10.5% and 20.1% per year, respectively. Lines are mostly up, straight, and parallel except for YOY EPS dip in ’22. Five-year EPS R^2 is 0.86 and Value Line (VL) gives an Earnings Predictability score of 85. Shares outstanding decrease 10.9% (1.3%/year).

Over the past 10 years, PTPM leads peer and industry averages while increasing from 18.1% to 30.8% (’25) with a last-5-year mean of 28.4%. Since 2019, ROE leads peer and industry averages despite falling from 206% to 66.8% (’25) with a last-5-year mean of 84.2% (shareholder equity negative from ’16-’18 with 44.3% CAGR since). Over the past 10 years, debt-to-capital is greater than peer and industry averages despite falling from 110% to 37.8% (’25) with a last-5-year mean of 49.7%.

Quick ratio is 0.7 and interest coverage 36.2 per M* who assigns “Wide” Economic Moat, gives an “Exemplary” rating for Capital Allocation, and an A grade for Financial Health (per BI website). VL gives an A grade for Financial Strength.

With regard to sales growth:

• YF gives YOY ACE 9.3% and 8.6% for ’26 and ’27, respectively (based on 14 analysts).
• Zacks gives YOY ACE 9.5% and 8.8% for ’26 and ’27 (6 analysts).
• VL projects 8.3% per year from ’25-’30.
• CFRA projects 9.5% YOY and 8.4% per year for ’26 and ’25-’27, respectively.
• M* gives 2-year ACE of 9.1% per year and projects 5-year CAGR of 8.1% in Equity Report.

My 8.0% per year forecast is below the range.

With regard to EPS growth:

• MarketWatch gives ACE 13.2% per year for both ’25-’27 and ’25-’28 (based on 16 analysts).
• Nasdaq.com gives ACE 12.9% and 10.4% per year for ’26-’28 and ’26-’29 [7 / 5 / 1 analyst(s) for ’26 / ’28 / ’29].
• Seeking Alpha projects 4-year CAGR of 12.4%.
• Finviz gives 5-year annualized ACE of 12.7% (6).
• LSEG has LTG at 12.7%.
• YF gives YOY ACE 11.8% and 12.9% for ’26 and ’27, respectively (14).
• Zacks gives YOY ACE 12.2% and 12.6% for ’26 and ’27 along with 5-year CAGR of 12.4% (7).
• VL projects 11.0% per year from ’25-’30.
• CFRA projects 12.4% YOY and 12.0% per year for ’26 and ’25-’27 along with 3-year CAGR of 9.0%.
• M* gives long-term ACE 10.6% and projects 5-year CAGR of 10.6% in Equity Report.

My 9.0% forecast is below the long-term-estimate range (mean of seven: 11.8%). Initial value is ’25 EPS of $13.08/share rather than 2026 Q1 EPS of $13.58 (TTM).

My Forecast High P/E is 48.0. Over the past decade, high P/E ranges from 49.9 in ’16 to 82.2 in ’21 with last-5-year mean of 66.7 and a last-5-year-mean average P/E of 51.2 (excluding ’21 low P/E upside outlier). I am below the range.

My Forecast Low P/E is 27.0. Over the past decade, low P/E ranges from 25.1 in ’20 to 52.9 in ’21 with a last-5-year mean (excluding ’21) of 35.6. I am forecasting near bottom of the range [only ’20 and ’16 (26.0) are less].

My Low Stock Price Forecast (LSPF) of $366.70 is default based on initial value from above: 37.0% less than previous close and 30.3% less than the 52-week low.

These inputs land IDXX in the HOLD zone with a U/D ratio of 2.0. Total Annualized Return (TAR) is 9.2%.

PAR (using Forecast Average—not High—P/E) of 6.1% is less than I seek for a medium-size company. If a healthy margin of safety (MOS) anchors the study, then I can proceed based on TAR instead.

To assess MOS, I start by comparing my inputs with those of Member Sentiment (MS). Based on only 23 studies done in the past 90 days (my study and 11 outliers excluded), averages (lower of mean/median) for projected sales growth, projected EPS growth, Forecast High P/E, and Forecast Low P/E are 8.7%, 9.9%, 50.0, and 36.6, respectively. I am lower across the board. VL projects a future average P/E of 40.0 that is less than MS (43.3) and greater than mine (37.5).

MS high / low EPS are $21.32 / $12.88 versus my $20.13 / $13.08 (per share). My high EPS is less due to a lower growth rate. VL (M*) high EPS of $22.00 ($21.63) is greater than both.

MS LSPF of $442.60 implies a Forecast Low P/E of 34.4: less than the above-stated 36.6. MS LSPF is 6.1% less than the default $12.88/share * 36.6 = $471.41 resulting in more conservative zoning. MS LSPF is 25.3% greater than mine, though.

MOS is robust in the study because my inputs are near or below historical/analyst/MS averages/ranges. MS TAR exceeding mine by 1.9% per year supports the assessment along with my substantially lower LSPF.

With regard to valuation, PEG is 3.1 and 4.2 per Zacks and my projected P/E: significantly overvalued (M* has 3.5). Relative Value [(current P/E) / 5-year-mean average P/E] is low at 0.81. “Quick and Dirty” free cash flow method has stock undervalued by 17% (factoring in capex, which is debatable) while M* reports the stock at a 19% premium (two stars).

Per U/D, IDXX would be a BUY under $506/share. Given a forecast high price ~$966, the BetterInvesting® TAR criterion would be met [966.2 / ((14.87 / 100 ) +1 ) ^ 5] ~ $483 (no dividend).

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