BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
NASDAQ:TECH - Nasdaq - US09073M1045 - Common Stock - Currency: USD
Taking everything into account, TECH scores 7 out of 10 in our fundamental rating. TECH was compared to 55 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making TECH a very profitable company, without any liquidiy or solvency issues. TECH is not valued too expensively and it also shows a decent growth rate. These ratings could make TECH a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
TECH had positive earnings in the past year.
TECH had a positive operating cash flow in the past year.
TECH had positive earnings in each of the past 5 years.
Each year in the past 5 years TECH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.98%, TECH belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
TECH's Return On Equity of 6.52% is fine compared to the rest of the industry. TECH outperforms 76.36% of its industry peers.
With an excellent Return On Invested Capital value of 7.71%, TECH belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TECH is below the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 6.52% | ||
| ROIC | 7.71% |
ROA(3y)9.62%
ROA(5y)9.27%
ROE(3y)12.87%
ROE(5y)12.83%
ROIC(3y)10.35%
ROIC(5y)9.61%
1.3 Margins
The Profit Margin of TECH (10.89%) is better than 83.64% of its industry peers.
TECH's Profit Margin has improved in the last couple of years.
TECH has a better Operating Margin (18.05%) than 81.82% of its industry peers.
In the last couple of years the Operating Margin of TECH has remained more or less at the same level.
TECH has a better Gross Margin (66.39%) than 94.55% of its industry peers.
TECH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.05% | ||
| PM (TTM) | 10.89% | ||
| GM | 66.39% |
OM growth 3Y-6.6%
OM growth 5Y0.54%
PM growth 3Y-1.27%
PM growth 5Y1.52%
GM growth 3Y-0.78%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
TECH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TECH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TECH has more shares outstanding
The debt/assets ratio for TECH has been reduced compared to a year ago.
2.2 Solvency
TECH has an Altman-Z score of 9.56. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.56, TECH belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
TECH has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.49, TECH belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that TECH is not too dependend on debt financing.
TECH has a better Debt to Equity ratio (0.16) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 9.56 |
ROIC/WACC0.77
WACC10.06%
2.3 Liquidity
A Current Ratio of 3.71 indicates that TECH has no problem at all paying its short term obligations.
TECH has a better Current ratio (3.71) than 61.82% of its industry peers.
TECH has a Quick Ratio of 2.58. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
TECH's Quick ratio of 2.58 is in line compared to the rest of the industry. TECH outperforms 52.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.72% over the past year.
The Earnings Per Share has been growing by 9.61% on average over the past years. This is quite good.
Looking at the last year, TECH shows a very negative growth in Revenue. The Revenue has decreased by -15.54% in the last year.
TECH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.17% yearly.
EPS 1Y (TTM)2.72%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-15.54%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%4.2%
3.2 Future
Based on estimates for the next years, TECH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.44% on average per year.
TECH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.08% yearly.
EPS Next Y9.72%
EPS Next 2Y9.14%
EPS Next 3Y10.73%
EPS Next 5Y11.44%
Revenue Next Year4.99%
Revenue Next 2Y5.32%
Revenue Next 3Y6.51%
Revenue Next 5Y8.08%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.12 indicates a quite expensive valuation of TECH.
TECH's Price/Earnings ratio is a bit cheaper when compared to the industry. TECH is cheaper than 70.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, TECH is valued at the same level.
TECH is valuated quite expensively with a Price/Forward Earnings ratio of 25.06.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than 70.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TECH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.12 | ||
| Fwd PE | 25.06 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than TECH, based on the Enterprise Value to EBITDA ratio.
TECH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TECH is cheaper than 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.74 | ||
| EV/EBITDA | 25.91 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)2.93
EPS Next 2Y9.14%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
TECH has a yearly dividend return of 0.61%, which is pretty low.
TECH's Dividend Yield is rather good when compared to the industry average which is at 0.51. TECH pays more dividend than 94.55% of the companies in the same industry.
With a Dividend Yield of 0.61, TECH pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of TECH decreases each year by -0.07%.
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)-0.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TECH pays out 38.46% of its income as dividend. This is a sustainable payout ratio.
DP38.46%
EPS Next 2Y9.14%
EPS Next 3Y10.73%
53.14
-0.04 (-0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.59%
Inst Owner Change3.46%
Ins Owners0.23%
Ins Owner Change1.13%
Market Cap8.33B
Analysts78.26
Price Target70.56 (32.78%)
Short Float %3.96%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.32
Dividend Growth(5Y)-0.07%
DP38.46%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.96%
Min EPS beat(2)6.57%
Max EPS beat(2)7.36%
EPS beat(4)3
Avg EPS beat(4)4.72%
Min EPS beat(4)-2.78%
Max EPS beat(4)7.75%
EPS beat(8)4
Avg EPS beat(8)1.1%
EPS beat(12)4
Avg EPS beat(12)-4.03%
EPS beat(16)8
Avg EPS beat(16)-1.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.28%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-2.63%
Revenue beat(16)6
Avg Revenue beat(16)-1.67%
PT rev (1m)-14.72%
PT rev (3m)-19.37%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-6.92%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.12 | ||
| Fwd PE | 25.06 | ||
| P/S | 6.89 | ||
| P/FCF | 37.74 | ||
| P/OCF | 31.45 | ||
| P/B | 4.13 | ||
| P/tB | 13.75 | ||
| EV/EBITDA | 25.91 |
EPS(TTM)1.89
EY3.56%
EPS(NY)2.12
Fwd EY3.99%
FCF(TTM)1.41
FCFY2.65%
OCF(TTM)1.69
OCFY3.18%
SpS7.71
BVpS12.87
TBVpS3.86
PEG (NY)2.89
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 6.52% | ||
| ROCE | 8.82% | ||
| ROIC | 7.71% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 20.68% | ||
| OM | 18.05% | ||
| PM (TTM) | 10.89% | ||
| GM | 66.39% | ||
| FCFM | 18.26% |
ROA(3y)9.62%
ROA(5y)9.27%
ROE(3y)12.87%
ROE(5y)12.83%
ROIC(3y)10.35%
ROIC(5y)9.61%
ROICexc(3y)11.38%
ROICexc(5y)10.7%
ROICexgc(3y)34.23%
ROICexgc(5y)37.23%
ROCE(3y)11.84%
ROCE(5y)11%
ROICexcg growth 3Y-22.4%
ROICexcg growth 5Y-11.06%
ROICexc growth 3Y-7.28%
ROICexc growth 5Y2.42%
OM growth 3Y-6.6%
OM growth 5Y0.54%
PM growth 3Y-1.27%
PM growth 5Y1.52%
GM growth 3Y-0.78%
GM growth 5Y0.03%
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.49 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 39.78% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 13.35 | ||
| Cash Conversion | 80.49% | ||
| Profit Quality | 167.69% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.58 | ||
| Altman-Z | 9.56 |
F-Score5
WACC10.06%
ROIC/WACC0.77
Cap/Depr(3y)45.44%
Cap/Depr(5y)49.87%
Cap/Sales(3y)4.28%
Cap/Sales(5y)4.92%
Profit Quality(3y)106.47%
Profit Quality(5y)121.17%
High Growth Momentum
Growth
EPS 1Y (TTM)2.72%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%16.67%
EPS Next Y9.72%
EPS Next 2Y9.14%
EPS Next 3Y10.73%
EPS Next 5Y11.44%
Revenue 1Y (TTM)-15.54%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%4.2%
Revenue Next Year4.99%
Revenue Next 2Y5.32%
Revenue Next 3Y6.51%
Revenue Next 5Y8.08%
EBIT growth 1Y-33.29%
EBIT growth 3Y0.48%
EBIT growth 5Y10.77%
EBIT Next Year22.6%
EBIT Next 3Y14.76%
EBIT Next 5Y13.88%
FCF growth 1Y-5.13%
FCF growth 3Y-8.47%
FCF growth 5Y8.61%
OCF growth 1Y-3.23%
OCF growth 3Y-5.31%
OCF growth 5Y10.49%