BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
USA - NASDAQ:TECH - US09073M1045 - Common Stock
51.26 USD
-1.95 (-3.66%)
51 USD
-0.26 (-0.51%)
TECH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. While TECH has a great health rating, its profitability is only average at the moment. TECH is not valued too expensively and it also shows a decent growth rate.
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
With a decent Return On Assets value of 2.82%, TECH is doing good in the industry, outperforming 69.09% of the companies in the same industry.
With a decent Return On Equity value of 3.77%, TECH is doing good in the industry, outperforming 65.45% of the companies in the same industry.
TECH's Return On Invested Capital of 7.75% is fine compared to the rest of the industry. TECH outperforms 78.18% of its industry peers.
TECH had an Average Return On Invested Capital over the past 3 years of 8.49%. This is significantly below the industry average of 15.96%.
| 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 better Profit Margin (5.92%) than 67.27% of its industry peers.
TECH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.34%, TECH belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
TECH's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 65.74%, TECH belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
TECH's Gross Margin has been stable in the last couple of years.
| 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
TECH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TECH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TECH has more shares outstanding
TECH has a worse debt/assets ratio than last year.
2.2 Solvency
TECH has an Altman-Z score of 9.32. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.32, TECH belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
TECH has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
The Debt to FCF ratio of TECH (1.35) is better than 87.27% 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.
Looking at the Debt to Equity ratio, with a value of 0.18, TECH is in line with its industry, outperforming 56.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 9.32 |
ROIC/WACC0.76
WACC10.22%
2.3 Liquidity
TECH has a Current Ratio of 3.46. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
TECH's Current ratio of 3.46 is in line compared to the rest of the industry. TECH outperforms 58.18% of its industry peers.
TECH has a Quick Ratio of 2.38. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
TECH has a Quick ratio (2.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
TECH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.43%, which is quite good.
TECH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.25% yearly.
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
TECH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.61% yearly.
The Revenue is expected to grow by 7.12% on average over the next years.
EPS Next Y6.29%
EPS Next 2Y9.48%
EPS Next 3Y10.96%
EPS Next 5Y8.61%
Revenue Next Year2.34%
Revenue Next 2Y4.92%
Revenue Next 3Y6.62%
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
A Price/Earnings ratio of 26.56 indicates a quite expensive valuation of TECH.
69.09% of the companies in the same industry are more expensive than TECH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. TECH is around the same levels.
A Price/Forward Earnings ratio of 24.99 indicates a rather expensive valuation of TECH.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
TECH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.56 | ||
| Fwd PE | 24.99 |
4.2 Price Multiples
TECH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TECH is cheaper than 65.45% 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 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.08 | ||
| EV/EBITDA | 25.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TECH may justify a higher PE ratio.
PEG (NY)4.22
PEG (5Y)2.36
EPS Next 2Y9.48%
EPS Next 3Y10.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, TECH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.55, TECH pays a better dividend. On top of this TECH pays more dividend than 92.73% of the companies listed in the same industry.
With a Dividend Yield of 0.60, TECH pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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
69.74% of the earnings are spent on dividend by TECH. This is not a sustainable payout ratio.
DP69.74%
EPS Next 2Y9.48%
EPS Next 3Y10.96%
51.26
-1.95 (-3.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners105.81%
Inst Owner Change-8.22%
Ins Owners0.23%
Ins Owner Change3.27%
Market Cap7.97B
Analysts80.83
Price Target66.64 (30%)
Short Float %3.75%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.32
Dividend Growth(5Y)-0.07%
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)-2.14%
PT rev (3m)-19.47%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)-10.52%
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-4.04%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-5.51%
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)-3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.56 | ||
| Fwd PE | 24.99 | ||
| P/S | 6.54 | ||
| P/FCF | 31.08 | ||
| P/OCF | 27.73 | ||
| P/B | 4.16 | ||
| P/tB | 13.93 | ||
| EV/EBITDA | 25.36 |
EPS(TTM)1.93
EY3.77%
EPS(NY)2.05
Fwd EY4%
FCF(TTM)1.65
FCFY3.22%
OCF(TTM)1.85
OCFY3.61%
SpS7.84
BVpS12.34
TBVpS3.68
PEG (NY)4.22
PEG (5Y)2.36
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 | 9.32 |
F-Score4
WACC10.22%
ROIC/WACC0.76
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 Y6.29%
EPS Next 2Y9.48%
EPS Next 3Y10.96%
EPS Next 5Y8.61%
Revenue 1Y (TTM)-15.06%
Revenue growth 3Y3.33%
Revenue growth 5Y10.55%
Sales Q2Q%3.55%
Revenue Next Year2.34%
Revenue Next 2Y4.92%
Revenue Next 3Y6.62%
Revenue Next 5Y7.12%
EBIT growth 1Y-26.4%
EBIT growth 3Y-9.13%
EBIT growth 5Y8.22%
EBIT Next Year20.73%
EBIT Next 3Y13.85%
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%