--- title: "IDEXX Laboratories, Inc.'s (NASDAQ:IDXX) Stock's On An Uptrend: Are Strong Financials Guiding The Market?" description: "IDEXX Laboratories' stock has risen 15% over the past month, attributed to strong financials, particularly a high return on equity (ROE) of 62%. This indicates effective capital reinvestment, generati" type: "news" locale: "en" url: "https://longbridge.com/en/news/241893987.md" published_at: "2025-05-26T20:45:55.000Z" --- # IDEXX Laboratories, Inc.'s (NASDAQ:IDXX) Stock's On An Uptrend: Are Strong Financials Guiding The Market? > IDEXX Laboratories' stock has risen 15% over the past month, attributed to strong financials, particularly a high return on equity (ROE) of 62%. This indicates effective capital reinvestment, generating $0.62 profit for every dollar invested by shareholders. Despite an 11% net income growth over five years, it lags behind the industry average of 15%. The company reinvests profits instead of paying dividends, suggesting a focus on growth. Analysts expect continued growth, reflecting confidence in the company's fundamentals and industry trends. Most readers would already be aware that IDEXX Laboratories' (NASDAQ:IDXX) stock increased significantly by 15% over the past month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to IDEXX Laboratories' ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. ## How Is ROE Calculated? **ROE can be calculated by using the formula:** Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for IDEXX Laboratories is: 62% = US$895m ÷ US$1.4b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.62. View our latest analysis for IDEXX Laboratories ## Why Is ROE Important For Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. ## IDEXX Laboratories' Earnings Growth And 62% ROE First thing first, we like that IDEXX Laboratories has an impressive ROE. Second, a comparison with the average ROE reported by the industry of 12% also doesn't go unnoticed by us. Probably as a result of this, IDEXX Laboratories was able to see a decent net income growth of 11% over the last five years. We then compared IDEXX Laboratories' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 15% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if IDEXX Laboratories is trading on a high P/E or a low P/E, relative to its industry. ## Is IDEXX Laboratories Making Efficient Use Of Its Profits? Given that IDEXX Laboratories doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business. ## Summary Overall, we are quite pleased with IDEXX Laboratories' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a respectable growth in its earnings. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. If you're looking to trade IDEXX Laboratories, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers. With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account. Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer. Sponsored Content ### Related Stocks - [IDXX.US - IDEXX Labs](https://longbridge.com/en/quote/IDXX.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 4 位分析师对 IDEXX Labs 的看法 | 分析师对 IDEXX 实验室（NASDAQ:IDXX）的评级在过去一个季度显示出从看涨到看跌的情绪混合。最近的评估表明，12 个月的平均目标价格为 795.00 美元，低于 810.00 美元。主要分析师已下调其评级，巴克莱的 Glen S | [Link](https://longbridge.com/en/news/275015084.md) | | IDEXX 实验室（IDXX）投资者是否需要对 IDEXX 的新 AI 兽医诊断推动采取行动？ | IDEXX 实验室推出了新的人工智能驱动的兽医诊断产品，包括 ImageVue DR50 Plus 系统和增强的癌症检测能力。这些创新旨在提高早期癌症检测和影像效率。尽管这些新产品在短期内可能不会带来变革，但它们可能会增强 IDEXX 的竞 | [Link](https://longbridge.com/en/news/273361584.md) | | 10 年前投资 1000 美元于 IDEXX 实验室，如今会值多少 | IDEXX 实验室 (NASDAQ:IDXX) 在过去十年中实现了平均年回报率 25.31%，超出市场 11.91%。十年前投资 1000 美元于 IDXX 股票，现在的价值为 9,341.28 美元，反映了复利对投资增长的显著影响。该公司 | [Link](https://longbridge.com/en/news/271349916.md) | | 市场对 IDEXX Labs 公司是持看涨态度还是看跌态度？ | IDEXX 实验室的空头头寸减少了 6.42%，目前有 208 万股被卖空，占可交易股份的 3.35%。覆盖这些空头头寸大约需要 3.99 天。空头头寸的下降可能表明市场对该股票的看涨情绪相较于同行更为强烈，而同行的平均空头头寸为 5.39 | [Link](https://longbridge.com/en/news/271820394.md) | | IDEXX 扩展癌症诊断面板以检测犬肥大细胞肿瘤 | IDEXX 实验室宣布将其 IDEXX 癌症诊断面板扩展至包括犬类肥大细胞肿瘤的检测，计划于 2026 年中期在北美推出。此项新增功能将免费提供给已经使用该面板进行早期淋巴瘤检测的超过 5,500 家诊所，结果将在 2-3 天内可得。关于使 | [Link](https://longbridge.com/en/news/272692641.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.