IDEXX Laboratories: I See Pet Healthcare As An Interesting Market For The Future

Tangerine Tan Capital
2.22K Followers
(8min)

Summary

  • IDEXX Laboratories is poised for growth in the pet healthcare market, driven by an aging pet population and strong pet-owner bonds.
  • IDEXX's comprehensive ecosystem, including AI-driven diagnostics and software, enhances veterinary practices and pet health monitoring, creating significant value for pet owners.
  • IDEXX's strong balance sheet, shareholder-friendly capital allocation, and high ROIC of 32% indicate robust financial health and competitive advantage.
  • With EPS projected to grow 15-20% annually, I see a 50% upside in IDXX stock by FY27.

IDEXX Laboratories offices in Silicon Valley

Sundry Photography

IDEXX Laboratories Investment Thesis

IDEXX Laboratories Inc. (NASDAQ:IDXX) is a company that receives relatively little attention in the technology-driven environment, despite its extraordinary performance over the past decade. And in an age of memes about "cat moms" and "cat dads," where

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2.22K Followers
My primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies to demonstrate a long-term capability of capital compounding, with a high enough compound annual growth rate to potentially deliver tenfold returns or even greater.My approach is to maintain a long-term perspective on these companies, as I believe this will generate higher returns compared to the market index, in a rapidly evolving investment landscape where short-term holdings are becoming increasingly prevalent.I primarily adopt a conservative investment strategy, but occasionally I may pursue opportunities with a favorable risk-reward ratio where the potential upside is substantial and downside is limited. These ventures are carefully considered and allocated a proportional amount within my portfolio to maintain overall stability.Bachelor's degree in finance and accounting All ideas and articles are provided for informational and educational purposes. Nothing contained herein is investment advice or should be construed as investment advice. All decisions that you make after reading our articles and reports are 100% your responsibility.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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