BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
NASDAQ:TECH - Nasdaq - US09073M1045 - Common Stock - Currency: USD
TECH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 56 industry peers in the Life Sciences Tools & Services industry. TECH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TECH has a correct valuation and a medium growth rate. This makes TECH very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year TECH was profitable.
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
TECH's Return On Assets of 4.98% is amongst the best of the industry. TECH outperforms 82.14% of its industry peers.
The Return On Equity of TECH (6.52%) is better than 76.79% of its industry peers.
TECH has a Return On Invested Capital of 7.71%. This is amongst the best in the industry. TECH outperforms 82.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TECH is below the industry average of 12.97%.
| 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
With an excellent Profit Margin value of 10.89%, TECH belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of TECH has grown nicely.
TECH has a Operating Margin of 18.05%. This is amongst the best in the industry. TECH outperforms 82.14% of its industry peers.
TECH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 66.39%, TECH belongs to the top of the industry, outperforming 94.64% 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 | 18.05% | ||
| 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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TECH has been increased compared to 1 year ago.
Compared to 5 years ago, TECH has more shares outstanding
TECH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.04 indicates that TECH is not in any danger for bankruptcy at the moment.
TECH has a Altman-Z score of 9.04. This is amongst the best in the industry. TECH outperforms 91.07% of its industry peers.
The Debt to FCF ratio of TECH is 1.49, which is an excellent value as it means it would take TECH, only 1.49 years of fcf income to pay off all of its debts.
TECH has a Debt to FCF ratio of 1.49. This is amongst the best in the industry. TECH outperforms 89.29% of its industry peers.
TECH has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.16, TECH is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 9.04 |
ROIC/WACC0.74
WACC10.47%
2.3 Liquidity
A Current Ratio of 3.71 indicates that TECH has no problem at all paying its short term obligations.
The Current ratio of TECH (3.71) is comparable to the rest of the industry.
A Quick Ratio of 2.58 indicates that TECH has no problem at all paying its short term obligations.
TECH has a Quick ratio (2.58) which is comparable to the rest of the industry.
| 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.
TECH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.54%.
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
TECH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.74% yearly.
The Revenue is expected to grow by 10.33% on average over the next years. This is quite good.
EPS Next Y9.88%
EPS Next 2Y9.59%
EPS Next 3Y11.25%
EPS Next 5Y14.74%
Revenue Next Year5.08%
Revenue Next 2Y5.72%
Revenue Next 3Y7.1%
Revenue Next 5Y10.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TECH is valuated quite expensively with a Price/Earnings ratio of 26.21.
Based on the Price/Earnings ratio, TECH is valued a bit cheaper than 67.86% of the companies in the same industry.
TECH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.17 indicates a rather expensive valuation of TECH.
TECH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TECH is cheaper than 71.43% of the companies in the same industry.
TECH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 23.17 |
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.
Based on the Price/Free Cash Flow ratio, TECH is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.47 | ||
| EV/EBITDA | 24.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TECH does not grow enough to justify the current Price/Earnings ratio.
TECH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)2.73
EPS Next 2Y9.59%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, TECH is not a good candidate for dividend investing.
The stock price of TECH dropped by -23.71% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TECH's Dividend Yield is rather good when compared to the industry average which is at 0.53. TECH pays more dividend than 96.43% of the companies in the same industry.
With a Dividend Yield of 0.66, TECH pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of TECH decreases each year by -0.07%.
TECH has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TECH decreased recently.
Dividend Growth(5Y)-0.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
38.46% of the earnings are spent on dividend by TECH. This is a low number and sustainable payout ratio.
DP38.46%
EPS Next 2Y9.59%
EPS Next 3Y11.25%
49.53
+0.25 (+0.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.03%
Inst Owner Change3.44%
Ins Owners0.22%
Ins Owner Change1.13%
Market Cap7.83B
Analysts78.18
Price Target82.74 (67.05%)
Short Float %4.14%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)-3.73%
PT rev (3m)-5.28%
EPS NQ rev (1m)-5.33%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 23.17 | ||
| P/S | 6.48 | ||
| P/FCF | 35.47 | ||
| P/OCF | 29.56 | ||
| P/B | 3.88 | ||
| P/tB | 12.93 | ||
| EV/EBITDA | 24.25 |
EPS(TTM)1.89
EY3.82%
EPS(NY)2.14
Fwd EY4.32%
FCF(TTM)1.4
FCFY2.82%
OCF(TTM)1.68
OCFY3.38%
SpS7.65
BVpS12.77
TBVpS3.83
PEG (NY)2.65
PEG (5Y)2.73
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 | 9.04 |
F-Score5
WACC10.47%
ROIC/WACC0.74
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 Y9.88%
EPS Next 2Y9.59%
EPS Next 3Y11.25%
EPS Next 5Y14.74%
Revenue 1Y (TTM)-15.54%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%4.2%
Revenue Next Year5.08%
Revenue Next 2Y5.72%
Revenue Next 3Y7.1%
Revenue Next 5Y10.33%
EBIT growth 1Y-33.29%
EBIT growth 3Y0.48%
EBIT growth 5Y10.77%
EBIT Next Year23.76%
EBIT Next 3Y16.96%
EBIT Next 5Y16.67%
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%