# IDEXX Laboratories (IDXX.US)

Canonical: https://gigainvestors.com/s/IDXX

Analysis as of: 2026-10-16T07:29:16.699Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $547.18 per share; close as of 2026-10-15.

Estimated value: low $195.06 per share, central $283.93 per share, high $333.50 per share. Buy at or below the central value $283.93 per share. Valuation as of 2026-10-16T07:29:16.699Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.22×

- FY2019: 0.23×

- FY2020: 0.26×

- FY2021: 0.29×

- FY2022: 0.27×

- FY2023: 0.30×

- FY2024: 0.29×

- FY2025: 0.32×

- LTM to Jun 2026: 0.32×

### moat: pass

- ROIC, median of available years: 54.4%

- ROIC, second-lowest year: 49.3%

- Typical minus recent gross margin: -2.7 pp

- Typical gross margin (annual median): 59.1%

- Recent gross margin (lower of latest and 3-year median): 61.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.8%

- ROIC including acquisitions, ten-year median: 40.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 53.3%

- FY2018: 62.0%

- FY2019: 49.3%

- FY2020: 60.6%

- FY2021: 63.2%

- FY2022: 44.2%

- FY2023: 50.4%

- FY2024: 77.3%

- FY2025: 52.1%

- LTM to Jun 2026: 55.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.2B

- Net income, five-year total: $4.2B

- Return on incremental invested capital: 113.3%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.2 pp

- Working capital / revenue, final three-year average: 21.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.02×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 53.3% vs 52.1%

- Per-share earnings: 2.44 to 10.67 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.4%

- Ordinary dilution, 5-year annual growth: -1.3%

- Market cap gain: $43B

- Cumulative retained earnings: $5.9B

- Diluted shares, 10-year annual growth: -1.4%

- Diluted shares, 5-year annual growth: -1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.2%

- Per-share value change: $8.22

- Per-share value, starting three-year median: $2.44

- Per-share value, ending three-year median: $10.67

- Buybacks concentrated in cheaper years (correlation): 0.89

- Average buyback yield: 1.8%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $311M

- Cumulative net income, 10 years: $6.1B

- ROIC, first three-year median: 53.3%

- ROIC, last three-year median: 52.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.44

- FY2017: $2.94

- FY2018: $4.26

- FY2019: $4.89

- FY2020: $6.71

- FY2021: $8.60

- FY2022: $8.03

- FY2023: $10.06

- FY2024: $10.67

- FY2025: $13.08

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.33×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.11×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.33×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.4%

- FY2017: -6.4%

- FY2018: -1.5%

- FY2019: -1.7%

- FY2020: -2.9%

- FY2021: -0.4%

- FY2022: 5.0%

- FY2023: -1.9%

- FY2024: -1.2%

- FY2025: -3.5%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 27% since Nov 2025 · sales +5.8%

Story as of 2026-10-16T09:58:56.282Z; price observation 2026-10-15.

Price needs cash profits to grow 15.7% a year for ten years

- 2025-05-02: IDEXX Laboratories [NasdaqGS:IDXX] Raises 2025 Guidance and Reports Q1 Growth in Revenue and EPS ([finance.yahoo.com](https://finance.yahoo.com/news/idexx-laboratories-nasdaqgs-idxx-raises-173204868.html))

- 2025-08-04: IDEXX rises on upgraded guidance fueled by inVue Dx demand ([seekingalpha.com](https://seekingalpha.com/news/4477226-idexx-rises-on-upgraded-guidance-fueled-by-invue-dx-demand?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +5.8%; source https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm; observed 2026-02-20.

- FY2017: $2.0B 

- FY2018: $2.2B 

- FY2019: $2.4B 

- FY2020: $2.7B 

- FY2021: $3.2B 

- FY2022: $3.4B 

- FY2023: $3.7B 

- FY2024: $3.9B 

- FY2025: $4.3B 

- FY2026: $4.6B 

### Gross margin · FY2026

gross margin 62.4%; source https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm; observed 2026-02-20.

- FY2017: 55.7% 

- FY2018: 56.1% 

- FY2019: 56.7% 

- FY2020: 58.0% 

- FY2021: 58.8% 

- FY2022: 59.5% 

- FY2023: 59.8% 

- FY2024: 61.0% 

- FY2025: 61.8% 

- FY2026: 62.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are USD 4.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm (filed 2026-02-20); FY2025: revenue 4303702000; grossProfit 2659579000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IDXX.US: IDEXX Laboratories, Inc. develops, manufactures, and distributes products for the companion animal veterinary, livestock and poultry, dairy, and water testing industries in the United States and internationally. It operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. The company offers point-of-care diagnostic solutions, blood and urine chemistry, hematology, immunoassay, urinalysis, cytology/morphology, and coagulation analyzers; and SNAP rapid assays test kits. It also provides commercial reference laboratory diagnostic and consulting services to veterinarians; veterinary consultation, telemedicine, and advisory services, including radiology, dental radiography, cardiology, internal medicine, and ultrasound consulting; Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, Quanti-Tray products, and Tecta system instruments; UV Viewer Plus, a UV light cabinet which aids in  the visual interpretation of fluorescent-based water tests; and veterinary software and services for independent veterinary clinics and corporate groups. In addition, the company offers diagnostic tests, services, and related instrumentation to manage the health status of livestock and poultry; human medical diagnostic products and services; and VetConnect PLUS, a cloud-based technology that enables veterinarians to access and analyze patients, as well as operates VetLab Station. It markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.

### Why customers stay

Margins ranged from 59.8% to 61.8% during 2023–25; it earns 54.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 59.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 61%.

- Source: https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 61.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2017,0.5332130378166667],[2018,0.6202677972734182],[2019,0.49341552234080976],[2020,0.6058586320318002],[2021,0.631844653626445],[2022,0.44235203847373583],[2023,0.5044435500877132],[2024,0.7731201013079676],[2025,0.5210099070886594],[2026,0.5555116507014489]]; median 0.5443623442590578. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 60% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.5876268909235669],[2022,0.5952317032753605],[2023,0.5981966990562293]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 3 of 10 years; bought back USD 1.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 64787000; owner earnings 235476000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 76704000; owner earnings 269580000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 39758000; upkeep 83178000; owner earnings 377031000. Growth capex / owner earnings = 0.1054502149690609.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 40847850.26311532; upkeep 114376149.73688468; owner earnings 401354850.2631153. Growth capex / owner earnings = 0.10177490127834952.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 11628000; upkeep 95998000; owner earnings 581776000. Growth capex / owner earnings = 0.019987074062869557.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 14953000; upkeep 104596000; owner earnings 744845000. Growth capex / owner earnings = 0.0200753176835449.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 34502211.612951905; upkeep 114335788.3870481; owner earnings 676653211.6129519. Growth capex / owner earnings = 0.05098950395980282.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 18723000; upkeep 114908000; owner earnings 845042000. Growth capex / owner earnings = 0.02215629519006156.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 986000; upkeep 129936000; owner earnings 887867000. Growth capex / owner earnings = 0.0011105266892451233.

- Source: https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 124676000; owner earnings 1079971000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,36106000],[2020,51328000],[2021,46565000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 1216964000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IDXX.US SharesStats.PercentInsiders = 0.22 percentage points; cache date 2026-10-16.

### What could break it

"Changes in testing patterns could negatively affect our operating results" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm (filed 2026-02-20); Changes in testing patterns could negatively affect our operating results

### What the price says

The price assumes cash profits grow 15.7% yearly over ten years; actual growth was 20.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.29088865372914485. Price 547.18; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.0510416555435724 → FY2025 13.32886146251157. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $107.14 per share

- 2016-11: $117.65 per share

- 2016-12: $117.27 per share

- 2017-01: $122.33 per share

- 2017-02: $144.94 per share

- 2017-03: $154.61 per share

- 2017-04: $167.73 per share

- 2017-05: $168.39 per share

- 2017-06: $161.42 per share

- 2017-07: $166.46 per share

- 2017-08: $155.43 per share

- 2017-09: $155.49 per share

- 2017-10: $166.17 per share

- 2017-11: $156.41 per share

- 2017-12: $156.38 per share

- 2018-01: $187.04 per share

- 2018-02: $187.23 per share

- 2018-03: $191.39 per share

- 2018-04: $194.49 per share

- 2018-05: $208.21 per share

- 2018-06: $217.94 per share

- 2018-07: $244.93 per share

- 2018-08: $254.04 per share

- 2018-09: $249.66 per share

- 2018-10: $212.12 per share

- 2018-11: $203.76 per share

- 2018-12: $186.02 per share

- 2019-01: $212.78 per share

- 2019-02: $211.03 per share

- 2019-03: $223.60 per share

- 2019-04: $232.00 per share

- 2019-05: $249.77 per share

- 2019-06: $275.33 per share

- 2019-07: $282.05 per share

- 2019-08: $289.74 per share

- 2019-09: $271.93 per share

- 2019-10: $285.01 per share

- 2019-11: $251.58 per share

- 2019-12: $261.13 per share

- 2020-01: $271.01 per share

- 2020-02: $254.51 per share

- 2020-03: $242.24 per share

- 2020-04: $277.60 per share

- 2020-05: $308.88 per share

- 2020-06: $330.16 per share

- 2020-07: $397.75 per share

- 2020-08: $391.06 per share

- 2020-09: $393.11 per share

- 2020-10: $424.82 per share

- 2020-11: $460.98 per share

- 2020-12: $499.87 per share

- 2021-01: $478.68 per share

- 2021-02: $520.17 per share

- 2021-03: $489.31 per share

- 2021-04: $548.99 per share

- 2021-05: $558.11 per share

- 2021-06: $631.55 per share

- 2021-07: $678.53 per share

- 2021-08: $673.76 per share

- 2021-09: $621.90 per share

- 2021-10: $666.14 per share

- 2021-11: $608.07 per share

- 2021-12: $658.46 per share

- 2022-01: $507.30 per share

- 2022-02: $532.35 per share

- 2022-03: $547.06 per share

- 2022-04: $430.48 per share

- 2022-05: $391.62 per share

- 2022-06: $350.73 per share

- 2022-07: $399.18 per share

- 2022-08: $347.62 per share

- 2022-09: $325.80 per share

- 2022-10: $359.68 per share

- 2022-11: $425.87 per share

- 2022-12: $407.96 per share

- 2023-01: $480.50 per share

- 2023-02: $473.24 per share

- 2023-03: $500.08 per share

- 2023-04: $492.16 per share

- 2023-05: $464.77 per share

- 2023-06: $502.23 per share

- 2023-07: $554.73 per share

- 2023-08: $511.41 per share

- 2023-09: $437.27 per share

- 2023-10: $399.47 per share

- 2023-11: $465.82 per share

- 2023-12: $555.05 per share

- 2024-01: $515.08 per share

- 2024-02: $575.23 per share

- 2024-03: $539.93 per share

- 2024-04: $492.76 per share

- 2024-05: $496.95 per share

- 2024-06: $487.20 per share

- 2024-07: $476.12 per share

- 2024-08: $481.33 per share

- 2024-09: $505.22 per share

- 2024-10: $406.92 per share

- 2024-11: $421.75 per share

- 2024-12: $413.44 per share

- 2025-01: $422.05 per share

- 2025-02: $437.11 per share

- 2025-03: $419.95 per share

- 2025-04: $432.65 per share

- 2025-05: $513.36 per share

- 2025-06: $536.34 per share

- 2025-07: $534.31 per share

- 2025-08: $647.09 per share

- 2025-09: $638.89 per share

- 2025-10: $629.51 per share

- 2025-11: $752.88 per share

- 2025-12: $676.53 per share

- 2026-01: $670.46 per share

- 2026-02: $656.73 per share

- 2026-03: $561.89 per share

- 2026-04: $560.80 per share

- 2026-05: $563.53 per share

- 2026-06: $526.44 per share

- 2026-07: $559.07 per share

- 2026-08: $556.69 per share

- 2026-09: $522.19 per share

- 2026-10: $520.31 per share

## Annual estimated value (USD per share)

- FY2016: low $40.92 per share, central $57.90 per share, high $67.37 per share

- FY2017: low $46.47 per share, central $65.58 per share, high $76.23 per share

- FY2018: low $49.08 per share, central $71.18 per share, high $83.51 per share

- FY2019: low $55.14 per share, central $80.22 per share, high $94.20 per share

- FY2020: low $79.37 per share, central $114.04 per share, high $133.38 per share

- FY2021: low $92.80 per share, central $134.95 per share, high $158.46 per share

- FY2022: low $116.67 per share, central $169.96 per share, high $199.67 per share

- FY2023: low $140.60 per share, central $203.02 per share, high $237.83 per share

- FY2024: low $157.40 per share, central $228.45 per share, high $268.08 per share

- FY2025: low $179.19 per share, central $260.87 per share, high $306.42 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:59.590Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.