Idexx Story

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IDXX -- USA Stock  

USD 520.17  1.89  0.36%

As many rational traders are trying to avoid healthcare space, it makes sense to break down IDEXX Laboratories a little further and understand how it stands against Agilent and other similar entities. We are going to inspect some of the competitive aspects of both IDEXX and Agilent.
Published over three weeks ago
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Should you trade your Agilent (NYSE:A) and IDEXX Laboratories (NASDAQ:IDXX) positions after a rise?
By analyzing existing basic indicators between IDEXX Laboratories and Agilent, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Agilent with a short position in IDEXX Laboratories. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. IDEXX Laboratories has an asset utilization ratio of 175.59 percent. This suggests that the company is making $1.76 for each dollar of assets. An increasing asset utilization means that IDEXX Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Idexx or Agilent is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Idexx Laboratories's Liquidity

Idexx Laboratories financial leverage refers to using borrowed capital as a funding source to finance Idexx Laboratories ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Idexx Laboratories financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Idexx Laboratories's total debt and its cash.

Correlation Between Idexx and Agilent Technologies

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Idexx Laboratories together with similar or unrelated positions with a negative correlation. For example, you can also add Agilent Technologies to your portfolio. If Agilent Technologies is not perfectly correlated to Idexx Laboratories it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Idexx Laboratories for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between IDXX and A for more information.

Exercise or conversion by Rebecca Henderson of 3046 shares of Idexx Laboratories subject to Rule 16b-3

Legal trades by Idexx Laboratories insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Idexx insider trading alert for exercise of non-qualified stock option (right-to-buy) by Rebecca Henderson, the corporate stakeholder, on 25th of February 2021. This event was filed by Idexx Laboratories Inc with SEC on 2021-02-25. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check IDEXX Laboratories revenue. Based on the latest financial disclosure, IDEXX Laboratories reported 2.59 B of revenue. This is 66.04% lower than that of the Healthcare sector and 30.71% higher than that of the Diagnostics & Research industry. The revenue for all United States stocks is 72.55% higher than that of IDEXX Laboratories. As for Agilent we see revenue of 5.34 B, which is 169.49% higher than that of the Diagnostics & Research

IDEXX2.59 Billion
Sector1.98 Billion
Agilent5.34 Billion
2.6 B
IDEXX
B
Sector
5.3 B
Agilent

Will IDEXX Laboratories growth be viable after the rise?

The downside variance is down to 6.59 as of today. IDEXX Laboratories currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. However, we do advice investors to further question IDEXX Laboratories expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On IDEXX Laboratories

While many of the other players within the diagnostics & research industry are still a little expensive, even after the recent corrections, IDEXX Laboratories may offer a potential longer-term growth to investors. To summarize, as of the 2nd of February 2021, our present 30 days 'Buy-Sell' recommendation on the company is Strong Buy. We believe IDEXX Laboratories is fairly valued with very small odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Idexx Laboratories. Please refer to our Terms of Use for any information regarding our disclosure principles.

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