Ricus Reeders from PSG Wealth Ruimsig is upbeat about the prospects of Idexx Laboratories, which operates in the pet healthcare industry.
Idexx Laboratories is an American multinational corporation that develops, manufactures, and distributes products for the veterinary, livestock, water testing, and dairy markets.
The company also manufactures and sells pet-side SNAP tests for various animal health diagnostic uses.
Idexx Laboratories was founded in 1983 and is headquartered in Westbrook, Maine, in the United States. It also has a strong global presence.
It offers products to customers in over 175 countries and employs approximately 9,200 people.
The company’s payoff line is that it “helps pets lead fuller lives by giving veterinarians the tools, technology, and insights to see clearly and get the answers they need.”
Reeders said more than half of Idexx Laboratories’ business sells diagnostic machines and related peripherals to veterinarians.
“It is nice annuity income, and the machines don’t come cheap,” he said.
Idexx Laboratories has achieved strong earnings growth over the past five years, and its outlook remains strong.
“There are a lot of boomers retiring, and the first thing they do is to get a pet. It has happened in Japan, and the same will happen in the United States and Europe,” he said.
“The company is a worldwide leader in the pet healthcare product market, which is a good growth story.”
Reeders said the stock is not cheap, but looking further ahead, it is an important sector that cannot be ignored.