BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
NASDAQ:TECH - Nasdaq - US09073M1045 - Common Stock - Currency: USD
Taking everything into account, TECH scores 6 out of 10 in our fundamental rating. TECH was compared to 55 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.
In the past 5 years TECH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.98%, TECH belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
TECH has a better Return On Equity (6.52%) than 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.
TECH had an Average Return On Invested Capital over the past 3 years of 10.35%. This 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.
The Operating Margin of TECH (18.05%) is better than 81.82% of its industry peers.
TECH's Operating Margin has been stable in the last couple of years.
TECH has a better Gross Margin (66.39%) than 94.55% 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 | 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
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 more shares outstanding
Compared to 5 years ago, TECH has more shares outstanding
TECH has a better debt/assets ratio than last year.
2.2 Solvency
TECH has an Altman-Z score of 9.74. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH's Altman-Z score of 9.74 is amongst the best of the industry. TECH outperforms 92.73% 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's Debt to FCF ratio of 1.49 is amongst the best of the industry. TECH outperforms 87.27% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that TECH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, TECH is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 9.74 |
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.
TECH's Current ratio of 3.71 is fine compared to the rest of the industry. TECH outperforms 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.
With a Quick ratio value of 2.58, TECH perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
TECH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.72%.
TECH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.61% yearly.
The Revenue for TECH has decreased by -15.54% in the past year. This is quite bad
The Revenue has been growing by 10.17% on average over the past years. This is quite good.
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
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.
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
Based on the Price/Earnings ratio of 28.65, the valuation of TECH can be described as expensive.
Based on the Price/Earnings ratio, TECH is valued a bit cheaper than 70.91% of the companies in the same industry.
TECH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 25.53, the valuation of TECH can be described as expensive.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than 70.91% of the companies in the same industry.
TECH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 25.53 |
4.2 Price Multiples
TECH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TECH is cheaper than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TECH is valued a bit cheaper than 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.45 | ||
| EV/EBITDA | 26.5 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)2.98
EPS Next 2Y9.14%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, 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 0.50. TECH pays more dividend than 94.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, TECH's dividend is way lower than the S&P500 average.
| 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.
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%
54.14
-0.27 (-0.5%)
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 Change0%
Ins Owners0.23%
Ins Owner Change1.13%
Market Cap8.49B
Analysts78.26
Price Target70.56 (30.33%)
Short Float %3.96%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)-17.9%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 25.53 | ||
| P/S | 7.02 | ||
| P/FCF | 38.45 | ||
| P/OCF | 32.05 | ||
| P/B | 4.21 | ||
| P/tB | 14.01 | ||
| EV/EBITDA | 26.5 |
EPS(TTM)1.89
EY3.49%
EPS(NY)2.12
Fwd EY3.92%
FCF(TTM)1.41
FCFY2.6%
OCF(TTM)1.69
OCFY3.12%
SpS7.71
BVpS12.87
TBVpS3.86
PEG (NY)2.95
PEG (5Y)2.98
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 | 9.74 |
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 Y9.72%
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%