BIO-TECHNE CORP (NASDAQ:TECH) – A Quality Stock with Strong Fundamentals

BIO-TECHNE CORP (NASDAQ:TECH) stands out as a potential candidate for quality investors, meeting key criteria for long-term growth and profitability. The company, a global life sciences firm, develops tools and reagents for research and diagnostics, positioning itself in a stable and expanding industry.

Why TECH Fits the Quality Investing Profile

• Revenue and EBIT Growth: Over the past five years, TECH has delivered solid revenue growth (8.08% CAGR) and even stronger EBIT growth (10.77% CAGR), indicating improving operational efficiency.
• High Return on Invested Capital (ROIC): With an ROIC of 20.68%, TECH demonstrates an ability to generate strong returns from its capital investments, a hallmark of quality businesses.
• Healthy Debt Management: The company’s debt-to-free cash flow ratio of 1.49 suggests it can repay its debt quickly, reflecting financial stability.
• Profit Quality: TECH’s five-year average profit quality of 121.17% shows it effectively converts net income into cash, a sign of reliable earnings.

Fundamental Analysis Highlights

Our fundamental report rates TECH at 6 out of 10, with strengths in profitability and financial health. Key takeaways:

• Profitability: Strong margins, including an 18.05% operating margin and 66.39% gross margin, outperform most industry peers.
• Valuation: While TECH trades at a P/E of 27.87, it remains reasonably priced relative to its sector.
• Growth Outlook: Analysts project an 11.44% annual EPS growth and 8.08% revenue growth, supporting its long-term potential.

For investors seeking quality stocks with consistent performance, TECH presents a compelling case.

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Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.