IDEXX Laboratories, Inc. (IDXX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: IDEXX Laboratories, Inc.

Updated on November 2, 2026 · accounts published on August 4, 2026

A highly profitable business with record margins and little debt

IDEXX Laboratories trades at a P/E of 39.0, 27 % above its sector median but 37 % below its own ten-year median, with record operating margins.

• Is IDEXX Laboratories expensive or cheap? At a P/E of 39.0, IDEXX Laboratories trades 27 % above its sector median but 37 % below its own ten-year median.
• How is the business doing? Operating margin reached 31.6 % in fiscal 2025, the highest in 12 fiscal years and well above the 24.5 % average for 2014-2025.
• How strong is the balance sheet? Net debt is just 0.6× EBITDA in fiscal 2025, far below the 2.5× level considered healthy in healthcare.
• Does IDEXX Laboratories invest enough in R&D and turn profit into cash? Free cash flow was 99.4 % of net income in fiscal 2025, but R&D at 5.8 % of revenue is below the 15 % healthcare benchmark.
• What to expect from the next earnings? Analysts expect EPS of $3.73 for the quarter reported on November 2, 2026, after beating estimates in 8 of the last 8 quarters.

Is IDEXX Laboratories expensive or cheap?

Over the last 12 months IDEXX Laboratories trades at a P/E of 39.0, against a sector median of 30.7 across 249 companies. Against its own history the picture flips: the ten-year median P/E is 61.7, and the stock has traded at a lower multiple only 4 % of the time in the last decade, with a weekly low of 35.7 and a high of 110. The share price is down 12 % over the last 12 months and sits 28 % below its 52-week high of $766.68. The premium to peers remains, but the multiple is near the bottom of its own decade range.

How is the business doing?

Revenue grew 10.4 % in the latest fiscal year and EPS rose 22.6 %, so profits are growing faster than sales. The operating margin over the last 12 months is 32.0 %, with a 25.0 % net margin, and fiscal 2025 set the high of the last 12 fiscal years at 31.6 % against a 24.5 % average. ROIC over the last 12 months is 40.9 %, 35.3 points above the 5.7 % median of its sector across 345 companies, and it has stayed above 10 % in each of the last 10 fiscal years. This is a business that earns far more on its capital than its peers, and the margin trend is still pointing up.

How strong is the balance sheet?

Net debt was $11.68 per share in fiscal 2025 ($13.93 of debt minus $2.25 of cash), equal to 2.1 % of the current share price. Debt to equity over the last 12 months is 0.68 and the current ratio 1.17, tight but adequate for a company that turns almost all its profit into cash. The Altman Z-score of 24.0 sits deep in the safe zone and the Piotroski score is 7 out of 9, both over the last 12 months. The 72.0 % ROE is flattered by a small equity base, consistent with a price to book of 27.4. Leverage is modest and does not constrain the business.

Does IDEXX Laboratories invest enough in R&D and turn profit into cash?

In healthcare, the research pipeline is the invisible asset and expiring patents are revenue that evaporates, so the sector is judged on innovation spending and cash generation. IDEXX Laboratories fails two of those tests: R&D was 5.8 % of revenue in fiscal 2025 against a healthy level from 15 %, and its 61.8 % gross margin is below the 70 % mark for branded pharma. It passes the rest: free cash flow covered 99.4 % of net income in fiscal 2025, above the 90 % threshold, and EPS grew 14.2 % a year over fiscal 2020-2025, against a healthy 8 %. Cash conversion is strong; innovation spending is light by sector standards.

What to expect from the next earnings?

IDEXX Laboratories has beaten EPS estimates in 8 of the last 8 quarters. The last report, on August 4, 2026, showed EPS of $4.27 against $3.94 expected, a beat of 8.4 %. For the results scheduled for November 2, 2026, the consensus is $3.73. The fiscal 2026 EPS consensus barely moved in the last 30 days, from $14.76 to $14.75 across 9 analysts, and revenue estimates were also stable. Of the 23 analysts covering the company, 13 recommend buying, 9 holding and 1 selling. Expectations are steady, and the record of beats is the yardstick for this report.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.