Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 1 Jun 2026
IDXX· Healthcare
IDEXX Laboratories
IDEXX Laboratories boasts a strong ROIC of 40.7% but faces valuation challenges with a P/E of 40.3 and low owner earnings yield of 2.42%.
Buffett fit
Strong fit
Owner
98
Durability
84
Management
34
Price
57
Score updated 26 Sept 2026 · analysis from 1 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned IDEXX entirely, I would focus on maintaining its competitive edge in the veterinary market, where the of 40.7% indicates exceptional profitability.
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The 10-year test shows IDEXX's resilience, with consistent profitability over the last five years and a maximum EPS decline of only -7.09%.
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Management has reduced share count by -1.53% over the last five years, indicating a commitment to returning value to shareholders through , which yield 1.7%.
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The current yield of 2.42% is below the 8-10% threshold that provides a .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 40.7% significantly exceeds the sector top-quintile cutoff of 5.3%.
- 2 of 31.6% is in the top-quintile for the healthcare sector.
- 3Consistent revenue growth with a 5-year CAGR of 7.56%.
- 4 growth of 31.99% year-over-year indicates strong cash generation.
Concerns
5- 1 of 40.3 is high compared to historical averages, indicating potential overvaluation.
- 2 yield of 2.42% suggests limited current return on investment.
- 3 of 62.1% is below the sector's top-quintile cutoff of 78.4%.
- 4Management quality score of 34 raises concerns about effectiveness.
Price history
$561-15.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
IDEXX Laboratories develops and sells diagnostic products for veterinary and water testing markets, generating $4.3B in revenue. Their stands at 31.6%, indicating strong profitability. The company also exhibits high growth at 31.99% year-over-year, showcasing robust unit economics.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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