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Valens Research

IDXX - Embedded Expectations Analysis - 2021 01 22

IDEXX Laboratories, Inc. (IDXX:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 69.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their diagnostic testing growth, LPD revenue, and free cash flow conversion

Specifically, management is confident they make the viewing of results convenient for customers, that the Companion Animal Group (CAG) Diagnostic growth premium to clinical visits expanded, and that their Livestock, Poultry and Dairy (LPD) results benefited from strong demand for diagnostic testing. In addition, they are confident their Q3 EPS increased by 47% and their net income to free cash flow conversion rate was 90%
Underlying
IDEXX Laboratories Inc.

IDEXX Laboratories develops, manufactures, and distributes products and provides services primarily for the companion animal veterinary, livestock and poultry, dairy and water testing markets. The company operates primarily through three business segments: Companion Animal Group, which provides diagnostic and information management-based products and services for the veterinary market; Water Quality Products, which designs, develops, manufactures, and distributes products used in the detection of various microbiological parameters in water; and Livestock, Poultry and Dairy, which provides diagnostic products and services for livestock and poultry health.

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Valens Research
Valens Research

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