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 entities, such as IDEXX or Cigna 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. Financial leverage can amplify the potential profits to IDEXX Laboratories' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of IDEXX Laboratories' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between IDEXX Laboratories's total debt and its cash.
Correlation Between IDEXX and Cigna Corp
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 Cigna Corp to your portfolio. If Cigna Corp 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, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both IDEXX Laboratories and Cigna Corp in your portfolio? Please note if you are using this as a pair-trade strategy between IDEXX Laboratories and Cigna Corp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between IDXX and CI for more information.
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
| IDEXX | 2.59 Billion |
| Sector | 1.98 Billion |
| Agilent | 5.34 Billion |
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.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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
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