Idexx Laboratories (IDXX)
Key Statistics
EV/EBIT = 35x
ROE = 71.91%
Debt/Equity = 68%
FCF Yield = 1.86%
Dividend Yield = 0%
Market Cap = $38.93 billion
The Company
IDEXX Laboratories (IDXX) specializes in providing products and services that support the veterinary industry, as well as the livestock and poultry sectors, and they also develop water testing products. Their primary focus is on veterinary care, equipping veterinarians with advanced diagnostic tools, software, and services. These products enhance the quality and efficiency of veterinary care.
The company operates on a global scale, with 34% of its revenue generated from international markets outside the United States.
The company was founded by David Evans Shaw in 1983, who saw an opportunity to use advanced technology to improve animal health.
Shaw spearheaded the development of the SNAP test, which revolutionized the veterinary industry. This test uses fluids such as blood, serum, plasma, and stool to quickly detect diseases and conditions like heartworm, feline leukemia, and intestinal parasites. Known for their high accuracy and ease of use, SNAP tests provide results in just 8-15 minutes, enabling veterinarians to make timely and informed decisions about patient care.
This innovation significantly improved the diagnostic process, leading to better health outcomes for many pets.
Before the advent of SNAP tests, veterinarians had to send samples to external laboratories, resulting in delays in diagnosis and treatment. The introduction of SNAP tests by IDEXX revolutionized veterinary medicine by enabling quick, point-of-care diagnostics. This innovation allowed veterinarians to obtain diagnostic results within minutes during the patient visit, significantly improving the efficiency of veterinary care.
Pet owners today often take for granted the speed and convenience of these tests, but IDEXX's innovations have led to faster diagnoses and better health outcomes for countless pets, transforming what was once a much slower and more cumbersome process.