Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin31.6%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin24.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
B
Years to Pay Off Debt0.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$110M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$265M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$1.0B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income13.0%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.3B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit61.8%
Operating Margin31.6%
Net Margin24.6%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
61.8%▲
61.0%▲
59.8%▲
59.5%•
N/A
Operating Margin %
31.6%▲
29.0%▼
30.0%▲
26.7%•
N/A
Net Income %
24.6%▲
22.8%▼
23.1%▲
20.2%•
N/A
Diluted EPS
13.08▲
10.67▲
10.06▲
8.03•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$3.4B
$3.3B
$3.3B
$2.7B
N/A
Total Debt
$976M▼
$987M▼
$1.1B▼
$1.5B•
N/A
Working Capital
$265M▼
$332M▼
$544M▲
-$134M•
N/A
Years to Pay Debt
0.92
1.11
1.26
2.16
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$1.0B▲
$798M▲
$773M▲
$384M•
N/A
Owner Earnings
$1.3B
$1.1B
$1.1B
$950M
N/A
CapEx % of Net Income
13.0%
14.7%
15.8%
23.4%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,508,224
1,270,972
1,217,665
1,011,730
Net Income From Continuing Operation Net Minority Interest
1,059,464
887,867
845,042
679,089
Reconciled Depreciation
145,183
129,936
114,908
111,900
Reconciled Cost Of Revenue
1,644,123
1,518,577
1,470,983
1,362,986
EBITDA
1,508,224
1,270,972
1,217,665
1,011,730
EBIT
1,363,041
1,141,036
1,102,757
899,830
Net Interest Income
-35,842
-18,506
-35,952
-38,793
Interest Expense
38,852
31,205
41,581
39,858
Interest Income
3,010
12,699
5,629
1,065
Normalized Income
1,059,464
887,867
845,042
679,089
Net Income From Continuing And Discontinued Operation
1,059,464
887,867
845,042
679,089
Total Expenses
2,943,671
2,769,167
2,563,825
2,468,559
Total Operating Income As Reported
1,360,031
1,128,337
1,097,128
898,765
Diluted Average Shares
81,025
83,246
83,978
84,600
Basic Average Shares
80,427
82,467
83,066
83,623
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
1,059,464
887,867
845,042
679,089
Net Income Common Stockholders
1,059,464
887,867
845,042
679,089
Net Income
1,059,464
887,867
845,042
679,089
Minority Interests
0
0
1
Net Income Including Noncontrolling Interests
1,059,464
887,867
845,042
679,089
Net Income Continuous Operations
1,059,464
887,867
845,042
679,089
Tax Provision
264,725
221,964
216,134
180,883
Pretax Income
1,324,189
1,109,831
1,061,176
859,972
Net Non Operating Interest Income Expense
-35,842
-18,506
-35,952
-38,793
Interest Expense Non Operating
38,852
31,205
41,581
39,858
Interest Income Non Operating
3,010
12,699
5,629
1,065
Operating Income
1,360,031
1,128,337
1,097,128
898,765
Operating Expense
1,299,548
1,250,590
1,092,842
1,105,573
Research And Development
251,207
219,792
190,951
254,820
Selling General And Administration
1,048,341
1,030,798
901,891
850,753
Selling And Marketing Expense
643,547
588,507
566,066
524,505
General And Administrative Expense
404,794
442,291
335,825
326,248
Other Gand A
404,794
442,291
335,825
326,248
Gross Profit
2,659,579
2,378,927
2,189,970
2,004,338
Cost Of Revenue
1,644,123
1,518,577
1,470,983
1,362,986
Total Revenue
4,303,702
3,897,504
3,660,953
3,367,324
Operating Revenue
4,303,702
3,897,504
3,660,953
3,367,324
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
28,657
26,232
24,474
24,299
Ordinary Shares Number
79,712
81,604
83,032
82,894
Share Issued
108,369
107,836
107,506
107,193
Net Debt
667,767
579,307
493,948
1,235,823
Total Debt
976,062
986,948
1,067,353
1,470,033
Tangible Book Value
1,081,536
1,078,537
1,034,069
149,270
Invested Capital
2,453,220
2,462,886
2,432,410
1,957,106
Working Capital
265,013
331,981
543,707
-134,326
Net Tangible Assets
1,081,536
1,078,537
1,034,069
149,270
Capital Lease Obligations
128,225
119,375
119,473
121,664
Common Stock Equity
1,605,383
1,595,313
1,484,530
608,737
Total Capitalization
1,980,225
2,045,099
2,107,413
1,303,124
Total Equity Gross Minority Interest
1,605,383
1,595,313
1,484,530
608,737
Stockholders Equity
1,605,383
1,595,313
1,484,530
608,737
Other Equity Interest
6,094
5,885
5,530
5,182
Gains Losses Not Affecting Retained Earnings
-68,844
-93,645
-71,206
-77,796
Other Equity Adjustments
-68,844
-93,645
-71,206
-77,796
Foreign Currency Translation Adjustments
-87,691
-61,999
Minimum Pension Liabilities
-2,776
0
Unrealized Gain Loss
-172
-126
Treasury Stock
6,561,356
5,334,012
4,474,681
4,392,112
Retained Earnings
6,391,902
5,332,438
4,444,571
3,599,529
Additional Paid In Capital
1,826,750
1,673,863
1,569,565
1,463,215
Capital Stock
10,837
10,784
10,751
10,719
Common Stock
10,837
10,784
10,751
10,719
Total Liabilities Net Minority Interest
1,745,376
1,698,130
1,775,395
2,138,028
Total Non Current Liabilities Net Minority Interest
596,562
630,214
823,848
902,225
Non Current Accrued Expenses
42,075
23,443
25,884
18,445
Tradeand Other Payables Non Current
14,452
20,898
39,642
49,142
Non Current Deferred Liabilities
64,042
38,251
35,768
39,012
Non Current Deferred Revenue
32,177
26,939
28,533
30,862
Non Current Deferred Taxes Liabilities
31,865
11,312
7,235
8,150
Long Term Debt And Capital Lease Obligation
475,993
547,622
722,554
795,626
Long Term Capital Lease Obligation
101,151
97,836
99,671
101,239
Long Term Debt
374,842
449,786
622,883
694,387
Current Liabilities
1,148,814
1,067,916
951,547
1,235,803
Current Deferred Liabilities
35,264
33,799
37,195
37,938
Current Deferred Revenue
35,264
33,799
37,195
37,938
Current Debt And Capital Lease Obligation
500,069
439,326
344,799
674,407
Current Capital Lease Obligation
27,074
21,539
19,802
20,425
Current Debt
472,995
417,787
324,997
653,982
Other Current Borrowings
74,995
167,787
74,997
74,982
Line Of Credit
398,000
250,000
250,000
579,000
Pensionand Other Post Retirement Benefit Plans Current
212,444
174,583
174,375
142,994
Payables And Accrued Expenses
401,037
420,208
395,178
380,464
Current Accrued Expenses
201,961
243,745
197,982
221,696
Payables
199,076
176,463
197,196
158,768
Total Tax Payable
88,668
62,252
86,553
48,547
Accounts Payable
110,408
114,211
110,643
110,221
Total Assets
3,350,759
3,293,443
3,259,925
2,746,765
Total Non Current Assets
1,936,932
1,893,546
1,764,671
1,645,288
Other Non Current Assets
219,219
178,664
165,014
50,838
Non Current Deferred Assets
27,871
125,630
107,364
162,420
Non Current Deferred Taxes Assets
27,871
125,630
107,364
55,215
Non Current Accounts Receivable
236,906
185,506
167,963
148,971
Investments And Advances
58,481
57,718
56,193
55,500
Other Investments
58,481
57,718
56,193
55,500
Goodwill And Other Intangible Assets
523,847
516,776
450,461
459,467
Other Intangible Assets
109,843
111,676
84,500
97,672
Goodwill
414,004
405,100
365,961
361,795
Net PPE
870,608
829,252
817,676
768,092
Accumulated Depreciation
-925,698
-835,022
-784,817
-705,914
Gross PPE
1,796,306
1,664,274
1,602,493
1,474,006
Leases
125,304
119,844
116,347
107,251
Construction In Progress
68,982
67,144
79,059
97,310
Other Properties
123,228
116,129
115,499
118,618
Machinery Furniture Equipment
991,763
891,004
837,150
772,557
Buildings And Improvements
462,393
446,164
432,038
356,049
Land And Improvements
24,636
23,989
22,400
22,221
Current Assets
1,413,827
1,399,897
1,495,254
1,101,477
Other Current Assets
104,910
109,812
83,142
88,463
Hedging Assets Current
13,320
6,512
Current Deferred Assets
73,563
61,653
54,081
50,776
Prepaid Assets
57,900
58,626
48,370
41,742
Inventory
377,756
381,877
380,282
367,823
Finished Goods
248,869
245,775
244,901
246,986
Work In Process
32,588
31,907
28,989
28,041
Raw Materials
96,299
104,195
106,392
92,796
Receivables
693,191
561,316
529,528
490,903
Other Receivables
75,828
60,751
55,111
41,854
Taxes Receivable
64,985
26,990
16,972
48,430
Accounts Receivable
552,378
473,575
457,445
400,619
Allowance For Doubtful Accounts Receivable
-11,304
-12,585
-9,501
-8,265
Gross Accounts Receivable
563,682
486,160
466,946
408,884
Cash Cash Equivalents And Short Term Investments
180,070
288,266
453,932
112,546
Cash And Cash Equivalents
180,070
288,266
453,932
112,546
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
1,043,579
798,079
772,879
384,146
Repurchase Of Capital Stock
-1,216,964
-837,034
-71,920
-819,711
Repayment Of Debt
-428,385
-75,000
-75,000
-75,000
Issuance Of Debt
250,000
0
0
505,500
Capital Expenditure
-138,226
-130,922
-133,631
-158,838
End Cash Position
180,070
288,266
453,932
112,546
Beginning Cash Position
288,266
453,932
112,546
144,454
Effect Of Exchange Rate Changes
11,202
-9,532
2,126
-8,606
Changes In Cash
-119,398
-156,134
339,260
-23,302
Financing Cash Flow
-1,164,964
-878,073
-441,996
-370,936
Cash Flow From Continuing Financing Activities
-1,164,964
-878,073
-441,996
-370,936
Net Other Financing Charges
-10,977
-10,531
-13,110
-17,472
Proceeds From Stock Option Exercised
93,362
44,492
47,034
35,747
Net Common Stock Issuance
-1,216,964
-837,034
-71,920
-819,711
Common Stock Payments
-1,216,964
-837,034
-71,920
-819,711
Net Issuance Payments Of Debt
-30,385
-75,000
-404,000
430,500
Net Short Term Debt Issuance
148,000
0
-329,000
505,500
Short Term Debt Issuance
505,500
73,500
Net Long Term Debt Issuance
-178,385
-75,000
-75,000
-75,000
Long Term Debt Payments
-428,385
-75,000
-75,000
-75,000
Long Term Debt Issuance
250,000
0
0
0
Investing Cash Flow
-136,239
-207,062
-125,254
-195,350
Cash Flow From Continuing Investing Activities
-136,239
-207,062
-125,254
-195,350
Net Investment Purchase And Sale
2,743
1,558
8,377
0
Sale Of Investment
2,743
1,558
8,377
0
Net Business Purchase And Sale
-756
-77,698
0
-36,512
Purchase Of Business
0
-76,694
0
-11,512
Net Intangibles Purchase And Sale
-13,550
-10,000
0
-10,000
Purchase Of Intangibles
-13,550
-10,000
0
-10,000
Net PPE Purchase And Sale
-124,676
-120,922
-133,631
-148,838
Purchase Of PPE
-124,676
-120,922
-133,631
-148,838
Operating Cash Flow
1,181,805
929,001
906,510
542,984
Cash Flow From Continuing Operating Activities
1,181,805
929,001
906,510
542,984
Change In Working Capital
-227,514
-133,238
-72,429
-273,530
Change In Other Working Capital
-149,430
-85,043
10,650
-113,868
Change In Payables And Accrued Expense
-8,573
8,086
-557
3,467
Change In Payable
-8,573
8,086
-557
3,467
Change In Account Payable
-8,573
8,086
-557
3,467
Change In Inventory
-789
-28,001
-28,651
-121,731
Change In Receivables
-68,722
-28,280
-53,871
-41,398
Changes In Account Receivables
-68,722
-28,280
-53,871
-41,398
Other Non Cash Items
5,026
1,468
2,004
2,645
Stock Based Compensation
60,013
60,295
59,739
49,770
Provisionand Write Offof Assets
8,429
6,867
5,552
5,829
Asset Impairment Charge
250
1,484
2,346
5,148
Deferred Tax
131,204
-24,194
-48,306
-35,065
Deferred Income Tax
131,204
-24,194
-48,306
-35,065
Depreciation Amortization Depletion
145,183
129,936
114,908
111,900
Depreciation And Amortization
145,183
129,936
114,908
111,900
Net Income From Continuing Operations
1,059,464
887,867
845,042
679,089
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $1.6B
Warren's Owner Earnings
$1.3B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$4.3B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.23x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $8.03 to $13.08 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+62.9% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $4.3Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.23xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $8.03 to $13.08 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what IDXX is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
48.8%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
13.0%
14.7%
15.8%
23.4%
N/A
Repurchase of Capital Stock
-$1.2B
-$837M
-$72M
-$820M
N/A
Free Cash Flow
$1.0B▲
$798M▲
$773M▲
$384M•
N/A•
Warren's Owner Earnings
$1.3B
$1.1B
$1.1B
$950M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare IDXX against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
IDXX (IDXX) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 61.8%. Operating margin: 31.6%. Net margin: 24.6%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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