BIO-TECHNE CORP (TECH)
US09073M1045 - Common Stock
We assign a fundamental rating of 6 out of 10 to TECH. TECH was compared to 59 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 has a decent growth rate and is not valued too expensively. These ratings would make TECH suitable 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.
TECH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TECH's Return On Assets of 8.21% is amongst the best of the industry. TECH outperforms 86.44% of its industry peers.
With an excellent Return On Equity value of 11.42%, TECH belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
TECH's Return On Invested Capital of 9.21% is amongst the best of the industry. TECH outperforms 86.44% of its industry peers.
TECH had an Average Return On Invested Capital over the past 3 years of 10.69%. This is in line with the industry average of 9.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 11.42% | ||
| ROIC | 9.21% |
ROA(3y)9.62%
ROA(5y)9.05%
ROE(3y)13.15%
ROE(5y)12.86%
ROIC(3y)10.69%
ROIC(5y)9.19%
1.3 Margins
TECH has a Profit Margin of 19.58%. This is amongst the best in the industry. TECH outperforms 93.22% of its industry peers.
In the last couple of years the Profit Margin of TECH has grown nicely.
TECH has a better Operating Margin (24.33%) than 94.92% 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 (67.14%) than 93.22% of its industry peers.
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 | 24.33% | ||
| PM (TTM) | 19.58% | ||
| GM | 67.14% |
OM growth 3Y8.18%
OM growth 5Y0.62%
PM growth 3Y-6.82%
PM growth 5Y5.03%
GM growth 3Y1.16%
GM growth 5Y0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TECH is destroying value.
The number of shares outstanding for TECH has been increased compared to 1 year ago.
The number of shares outstanding for TECH has been increased compared to 5 years ago.
The debt/assets ratio for TECH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.25 indicates that TECH is not in any danger for bankruptcy at the moment.
TECH's Altman-Z score of 9.25 is amongst the best of the industry. TECH outperforms 94.92% of its industry peers.
The Debt to FCF ratio of TECH is 1.98, which is an excellent value as it means it would take TECH, only 1.98 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.98, TECH belongs to the best of the industry, outperforming 89.83% of the companies in the same industry.
TECH has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
TECH has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 9.25 |
ROIC/WACC0.77
WACC12.02%
2.3 Liquidity
TECH has a Current Ratio of 4.37. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
TECH has a Current ratio of 4.37. This is in the better half of the industry: TECH outperforms 66.10% of its industry peers.
A Quick Ratio of 3.03 indicates that TECH has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.03, TECH is doing good in the industry, outperforming 61.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.37 | ||
| Quick Ratio | 3.03 |
3. Growth
3.1 Past
TECH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.69%.
The Earnings Per Share has been growing by 12.29% on average over the past years. This is quite good.
Looking at the last year, TECH shows a small growth in Revenue. The Revenue has grown by 2.23% in the last year.
TECH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.07% yearly.
EPS 1Y (TTM)-3.69%
EPS 3Y20.77%
EPS 5Y12.29%
EPS growth Q2Q-14.89%
Revenue 1Y (TTM)2.23%
Revenue growth 3Y15.45%
Revenue growth 5Y12.07%
Revenue growth Q2Q0.37%
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 10.80% yearly.
The Revenue is expected to grow by 14.25% on average over the next years. This is quite good.
EPS Next Y-10.4%
EPS Next 2Y1.43%
EPS Next 3Y5.9%
EPS Next 5Y10.8%
Revenue Next Year0.43%
Revenue Next 2Y4.49%
Revenue Next 3Y6.59%
Revenue Next 5Y14.25%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.03, which means the current valuation is very expensive for TECH.
Compared to the rest of the industry, the Price/Earnings ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 72.88% of the companies listed in the same industry.
TECH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.80.
TECH is valuated quite expensively with a Price/Forward Earnings ratio of 30.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 74.58% of the companies listed in the same industry.
TECH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 30.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECH is valued a bit cheaper than the industry average as 71.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TECH is valued a bit cheaper than the industry average as 67.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.52 | ||
| EV/EBITDA | 25.94 |
4.3 Compensation for Growth
TECH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.69
EPS Next 2Y1.43%
EPS Next 3Y5.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, TECH is not a good candidate for dividend investing.
TECH's Dividend Yield is rather good when compared to the industry average which is at 0.66. TECH pays more dividend than 94.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TECH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
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%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TECH pays out 22.49% of its income as dividend. This is a sustainable payout ratio.
DP22.49%
EPS Next 2Y1.43%
EPS Next 3Y5.9%
BIO-TECHNE CORP
NASDAQ:TECH (4/19/2024, 11:35:09 AM)
62.42
+0.21 (+0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 30.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 11.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.33% | ||
| PM (TTM) | 19.58% | ||
| GM | 67.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.37 | ||
| Quick Ratio | 3.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.69%
EPS 3Y20.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.23%
Revenue growth 3Y15.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y