BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
USA - NASDAQ:TECH - US09073M1045 - Common Stock
62.95 USD
+0.86 (+1.39%)
62.95 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TECH. TECH was compared to 56 industry peers in the Life Sciences Tools & Services industry. TECH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TECH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TECH had positive earnings in the past year.
In the past year TECH had a positive cash flow from operations.
TECH had positive earnings in each of the past 5 years.
In the past 5 years TECH always reported a positive cash flow from operatings.
1.2 Ratios
TECH has a Return On Assets of 2.82%. This is in the better half of the industry: TECH outperforms 69.64% of its industry peers.
TECH has a Return On Equity of 3.77%. This is in the better half of the industry: TECH outperforms 64.29% of its industry peers.
With a decent Return On Invested Capital value of 7.75%, TECH is doing good in the industry, outperforming 78.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TECH is significantly below the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 3.77% | ||
| ROIC | 7.75% |
ROA(3y)6.63%
ROA(5y)7.59%
ROE(3y)8.82%
ROE(5y)10.28%
ROIC(3y)8.49%
ROIC(5y)9.33%
1.3 Margins
TECH has a Profit Margin of 5.92%. This is in the better half of the industry: TECH outperforms 69.64% of its industry peers.
TECH's Profit Margin has declined in the last couple of years.
TECH has a Operating Margin of 18.34%. This is amongst the best in the industry. TECH outperforms 83.93% of its industry peers.
TECH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.74%, TECH belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of TECH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.34% | ||
| PM (TTM) | 5.92% | ||
| GM | 65.74% |
OM growth 3Y-12.06%
OM growth 5Y-2.1%
PM growth 3Y-37.46%
PM growth 5Y-27.97%
GM growth 3Y-1.33%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TECH is destroying value.
Compared to 1 year ago, TECH has less shares outstanding
TECH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TECH has a worse debt to assets ratio.
2.2 Solvency
TECH has an Altman-Z score of 10.62. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH has a Altman-Z score of 10.62. This is amongst the best in the industry. TECH outperforms 94.64% of its industry peers.
The Debt to FCF ratio of TECH is 1.35, which is an excellent value as it means it would take TECH, only 1.35 years of fcf income to pay off all of its debts.
TECH has a better Debt to FCF ratio (1.35) than 87.50% of its industry peers.
TECH has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.18, TECH perfoms like the industry average, outperforming 55.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 10.62 |
ROIC/WACC0.74
WACC10.44%
2.3 Liquidity
A Current Ratio of 3.46 indicates that TECH has no problem at all paying its short term obligations.
TECH has a Current ratio (3.46) which is comparable to the rest of the industry.
A Quick Ratio of 2.38 indicates that TECH has no problem at all paying its short term obligations.
The Quick ratio of TECH (2.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.43% over the past year.
The Earnings Per Share has been growing by 11.25% on average over the past years. This is quite good.
The Revenue for TECH has decreased by -15.06% in the past year. This is quite bad
TECH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.55% yearly.
EPS 1Y (TTM)8.43%
EPS 3Y-0.77%
EPS 5Y11.25%
EPS Q2Q%8.16%
Revenue 1Y (TTM)-15.06%
Revenue growth 3Y3.33%
Revenue growth 5Y10.55%
Sales Q2Q%3.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.12% on average over the next years.
EPS Next Y6.58%
EPS Next 2Y8.97%
EPS Next 3Y11.38%
EPS Next 5Y8.61%
Revenue Next Year2.18%
Revenue Next 2Y4.84%
Revenue Next 3Y6.97%
Revenue Next 5Y7.12%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.62, TECH can be considered very expensive at the moment.
TECH's Price/Earnings ratio is a bit cheaper when compared to the industry. TECH is cheaper than 66.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. TECH is around the same levels.
With a Price/Forward Earnings ratio of 30.60, TECH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TECH to the average of the S&P500 Index (23.32), we can say TECH is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.62 | ||
| Fwd PE | 30.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECH is valued a bit cheaper than 64.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.17 | ||
| EV/EBITDA | 29.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TECH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.96
PEG (5Y)2.9
EPS Next 2Y8.97%
EPS Next 3Y11.38%
5. Dividend
5.1 Amount
TECH has a yearly dividend return of 0.62%, which is pretty low.
Compared to an average industry Dividend Yield of 0.57, TECH pays a better dividend. On top of this TECH pays more dividend than 91.07% of the companies listed in the same industry.
With a Dividend Yield of 0.62, TECH pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of TECH has a limited annual growth rate of 0.11%.
TECH has paid a dividend for at least 10 years, which is a reliable track record.
TECH has decreased its dividend recently.
Dividend Growth(5Y)0.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
69.74% of the earnings are spent on dividend by TECH. This is not a sustainable payout ratio.
The dividend of TECH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.74%
EPS Next 2Y8.97%
EPS Next 3Y11.38%
62.95
+0.86 (+1.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners103.36%
Inst Owner Change-8.22%
Ins Owners0.26%
Ins Owner Change3.27%
Market Cap9.79B
Analysts80.83
Price Target67.51 (7.24%)
Short Float %3.43%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend0.32
Dividend Growth(5Y)0.11%
DP69.74%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.75%
Min EPS beat(2)4.14%
Max EPS beat(2)7.36%
EPS beat(4)4
Avg EPS beat(4)6.45%
Min EPS beat(4)4.14%
Max EPS beat(4)7.75%
EPS beat(8)5
Avg EPS beat(8)1.79%
EPS beat(12)5
Avg EPS beat(12)-3.41%
EPS beat(16)8
Avg EPS beat(16)-2.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-1.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.28%
Revenue beat(8)3
Avg Revenue beat(8)-1.36%
Revenue beat(12)3
Avg Revenue beat(12)-2.62%
Revenue beat(16)5
Avg Revenue beat(16)-2%
PT rev (1m)3%
PT rev (3m)-4.32%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.62 | ||
| Fwd PE | 30.6 | ||
| P/S | 8.03 | ||
| P/FCF | 38.17 | ||
| P/OCF | 34.05 | ||
| P/B | 5.1 | ||
| P/tB | 17.11 | ||
| EV/EBITDA | 29.5 |
EPS(TTM)1.93
EY3.07%
EPS(NY)2.06
Fwd EY3.27%
FCF(TTM)1.65
FCFY2.62%
OCF(TTM)1.85
OCFY2.94%
SpS7.84
BVpS12.34
TBVpS3.68
PEG (NY)4.96
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 3.77% | ||
| ROCE | 9.39% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.32% | ||
| ROICexgc | 21.14% | ||
| OM | 18.34% | ||
| PM (TTM) | 5.92% | ||
| GM | 65.74% | ||
| FCFM | 21.04% |
ROA(3y)6.63%
ROA(5y)7.59%
ROE(3y)8.82%
ROE(5y)10.28%
ROIC(3y)8.49%
ROIC(5y)9.33%
ROICexc(3y)9.13%
ROICexc(5y)10.26%
ROICexgc(3y)23.53%
ROICexgc(5y)33.25%
ROCE(3y)10.28%
ROCE(5y)11.31%
ROICexcg growth 3Y-23.65%
ROICexcg growth 5Y-7.18%
ROICexc growth 3Y-14.16%
ROICexc growth 5Y1.99%
OM growth 3Y-12.06%
OM growth 5Y-2.1%
PM growth 3Y-37.46%
PM growth 5Y-27.97%
GM growth 3Y-1.33%
GM growth 5Y0.1%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 28.21% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 11.8 | ||
| Cash Conversion | 86.19% | ||
| Profit Quality | 355.05% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 10.62 |
F-Score4
WACC10.44%
ROIC/WACC0.74
Cap/Depr(3y)40.04%
Cap/Depr(5y)43.01%
Cap/Sales(3y)3.78%
Cap/Sales(5y)4.03%
Profit Quality(3y)188.66%
Profit Quality(5y)177.71%
High Growth Momentum
Growth
EPS 1Y (TTM)8.43%
EPS 3Y-0.77%
EPS 5Y11.25%
EPS Q2Q%8.16%
EPS Next Y6.58%
EPS Next 2Y8.97%
EPS Next 3Y11.38%
EPS Next 5Y8.61%
Revenue 1Y (TTM)-15.06%
Revenue growth 3Y3.33%
Revenue growth 5Y10.55%
Sales Q2Q%3.55%
Revenue Next Year2.18%
Revenue Next 2Y4.84%
Revenue Next 3Y6.97%
Revenue Next 5Y7.12%
EBIT growth 1Y-26.4%
EBIT growth 3Y-9.13%
EBIT growth 5Y8.22%
EBIT Next Year17.25%
EBIT Next 3Y13.84%
EBIT Next 5Y8.57%
FCF growth 1Y8.66%
FCF growth 3Y-2.92%
FCF growth 5Y10.82%
OCF growth 1Y-3.82%
OCF growth 3Y-4.03%
OCF growth 5Y6.98%