MeritValue

IDEXX LABORATORIES INC /DE

IDXXdata completeness 100%18 fiscal years on file
The thesis, from the filings

IDEXX LABORATORIES INC /DE earns about 37% on invested capital, far above its ~9% cost of capital, and has bought back 6% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $108.08 and $379.55 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$3.22B1$3.37B2$3.66B3$3.9B3$4.3B3
Net income$744.8M4$679.1M5$845M6$887.9M6$1.06B6
Operating cash flow$755.5M7$543M8$906.5M9$929M9$1.18B9
Capital expenditure$119.5M10$148.8M11$133.6M12$120.9M12$124.7M12
Free cash flow (derived)$636M7$394.1M8$772.9M9$808.1M9$1.06B9
Total debt$1.7B13$1.54B14$1.4B15$1.24B16$899.8M16
Cash & equivalents$144.5M17$112.5M18$453.9M19$288.3M20$180.1M20
Diluted shares86.6M84.6M84.0M83.2M81.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$198.13
your share of equity
Profit it earned you last year
$130.76
Free cash flow it threw off
$130.47
Debt you’d be carrying
$111.06

10 shares is a claim on $198.13 of net worth that earned you $130.76 and generated $130.47 of cash last year, against $111.06 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
37% avg · 5y
FY21 34%FY22 35%FY23 36%FY24 35%FY25 46%

It earned about 37% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−6% shares · 5y

Share count is down 6% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 47% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $108.08 and $379.55 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$379.55
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth14.3%
  • fcfBase$808.1M
DCF · Growth Exit 5Y
$251.07
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth14.3%
  • fcfBase$808.1M
Earnings Power Value
$108.08
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$845M
  • growthAssumed0.0%
Graham Number
$76.36
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years14.3%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $251.07
The three cases
Bear0.0%$133.61
Base14.3%$251.07
Bull19.3%$307.64

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 14.3%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000874716-24-000057 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000874716-25-000037 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000874716-26-000038 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000874716-24-000057 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000874716-25-000037 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000874716-26-000038 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000874716-24-000057 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000874716-25-000037 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000874716-26-000038 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000874716-24-000057 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000874716-25-000037 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000874716-26-000038 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000874716-23-000006 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000874716-24-000057 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000874716-25-000037 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0000874716-26-000038 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000874716-23-000006 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000874716-24-000057 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000874716-25-000037 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0000874716-26-000038 (CashAndCashEquivalentsAtCarryingValue)