BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
USA - NASDAQ:TECH - US09073M1045 - Common Stock
65.905 USD
-0.16 (-0.23%)
65.905 USD
0 (0%)
TECH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. TECH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TECH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TECH was profitable.
In the past year TECH had a positive cash flow from operations.
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 has a better Return On Assets (2.82%) than 70.18% of its industry peers.
With a decent Return On Equity value of 3.77%, TECH is doing good in the industry, outperforming 64.91% of the companies in the same industry.
TECH's Return On Invested Capital of 9.18% is amongst the best of the industry. TECH outperforms 84.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TECH is significantly below the industry average of 14.94%.
The last Return On Invested Capital (9.18%) for TECH is above the 3 year average (9.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 3.77% | ||
| ROIC | 9.18% |
ROA(3y)6.63%
ROA(5y)7.59%
ROE(3y)8.82%
ROE(5y)10.28%
ROIC(3y)9%
ROIC(5y)9.64%
1.3 Margins
TECH's Profit Margin of 5.92% is fine compared to the rest of the industry. TECH outperforms 70.18% of its industry peers.
TECH's Profit Margin has declined in the last couple of years.
The Operating Margin of TECH (21.73%) is better than 91.23% of its industry peers.
In the last couple of years the Operating Margin of TECH has remained more or less at the same level.
The Gross Margin of TECH (66.49%) is better than 91.23% of its industry peers.
TECH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.73% | ||
| PM (TTM) | 5.92% | ||
| GM | 66.49% |
OM growth 3Y-6.91%
OM growth 5Y1.3%
PM growth 3Y-37.46%
PM growth 5Y-27.97%
GM growth 3Y-0.95%
GM growth 5Y0.33%
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.
Compared to 1 year ago, TECH has less shares outstanding
The number of shares outstanding for TECH has been increased compared to 5 years ago.
TECH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.24 indicates that TECH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.24, TECH belongs to the top of the industry, outperforming 94.74% 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.
Looking at the Debt to FCF ratio, with a value of 1.35, TECH belongs to the top of the industry, outperforming 87.72% of the companies in the same industry.
TECH has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TECH (0.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 11.24 |
ROIC/WACC0.88
WACC10.49%
2.3 Liquidity
A Current Ratio of 3.46 indicates that TECH has no problem at all paying its short term obligations.
The Current ratio of TECH (3.46) is better than 61.40% 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's Quick ratio of 2.38 is in line compared to the rest of the industry. TECH outperforms 54.39% of 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.
Measured over the past years, TECH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.25% on average per year.
TECH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.06%.
Measured over the past years, TECH shows a quite strong growth in Revenue. The Revenue has been growing by 10.55% on average per year.
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
The Earnings Per Share is expected to grow by 8.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.12% on average over the next years.
EPS Next Y6%
EPS Next 2Y8.92%
EPS Next 3Y11.37%
EPS Next 5Y8.61%
Revenue Next Year1.93%
Revenue Next 2Y4.76%
Revenue Next 3Y6.64%
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 34.15 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 68.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of TECH to the average of the S&P500 Index (26.91), we can say TECH is valued slightly more expensively.
With a Price/Forward Earnings ratio of 32.22, TECH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.92. TECH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.15 | ||
| Fwd PE | 32.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECH is valued a bit cheaper than the industry average as 64.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TECH is valued a bit cheaper than 64.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40 | ||
| EV/EBITDA | 27.86 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.7
PEG (5Y)3.04
EPS Next 2Y8.92%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, TECH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.48, TECH pays a better dividend. On top of this TECH pays more dividend than 89.47% of the companies listed in the same industry.
With a Dividend Yield of 0.48, TECH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of TECH has a limited annual growth rate of 0.11%.
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)0.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TECH pays out 69.74% of its income as dividend. This is not a sustainable payout ratio.
TECH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.74%
EPS Next 2Y8.92%
EPS Next 3Y11.37%
65.905
-0.16 (-0.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners103.36%
Inst Owner Change-0.14%
Ins Owners0.26%
Ins Owner Change3.18%
Market Cap10.26B
Revenue(TTM)1.22B
Net Income(TTM)72.26M
Analysts81.74
Price Target66.98 (1.63%)
Short Float %3.47%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.32
Dividend Growth(5Y)0.11%
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)-0.79%
PT rev (3m)-2.48%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-4.45%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.15 | ||
| Fwd PE | 32.22 | ||
| P/S | 8.41 | ||
| P/FCF | 40 | ||
| P/OCF | 35.68 | ||
| P/B | 5.35 | ||
| P/tB | 17.93 | ||
| EV/EBITDA | 27.86 |
EPS(TTM)1.93
EY2.93%
EPS(NY)2.05
Fwd EY3.1%
FCF(TTM)1.65
FCFY2.5%
OCF(TTM)1.85
OCFY2.8%
SpS7.83
BVpS12.32
TBVpS3.68
PEG (NY)5.7
PEG (5Y)3.04
Graham Number23.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 3.77% | ||
| ROCE | 11.13% | ||
| ROIC | 9.18% | ||
| ROICexc | 9.85% | ||
| ROICexgc | 25.05% | ||
| OM | 21.73% | ||
| PM (TTM) | 5.92% | ||
| GM | 66.49% | ||
| FCFM | 21.04% |
ROA(3y)6.63%
ROA(5y)7.59%
ROE(3y)8.82%
ROE(5y)10.28%
ROIC(3y)9%
ROIC(5y)9.64%
ROICexc(3y)9.68%
ROICexc(5y)10.59%
ROICexgc(3y)24.93%
ROICexgc(5y)34.08%
ROCE(3y)10.9%
ROCE(5y)11.68%
ROICexgc growth 3Y-19.18%
ROICexgc growth 5Y-3.96%
ROICexc growth 3Y-9.13%
ROICexc growth 5Y5.53%
OM growth 3Y-6.91%
OM growth 5Y1.3%
PM growth 3Y-37.46%
PM growth 5Y-27.97%
GM growth 3Y-0.95%
GM growth 5Y0.33%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 28.21% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 13.98 | ||
| Cash Conversion | 76.69% | ||
| Profit Quality | 355.05% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 11.24 |
F-Score4
WACC10.49%
ROIC/WACC0.88
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%
EPS Next 2Y8.92%
EPS Next 3Y11.37%
EPS Next 5Y8.61%
Revenue 1Y (TTM)-15.06%
Revenue growth 3Y3.33%
Revenue growth 5Y10.55%
Sales Q2Q%3.55%
Revenue Next Year1.93%
Revenue Next 2Y4.76%
Revenue Next 3Y6.64%
Revenue Next 5Y7.12%
EBIT growth 1Y-12.8%
EBIT growth 3Y-3.81%
EBIT growth 5Y11.98%
EBIT Next Year17.25%
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%
BIO-TECHNE CORP / TECH FAQ
Can you provide the ChartMill fundamental rating for BIO-TECHNE CORP?
ChartMill assigns a fundamental rating of 6 / 10 to TECH.
What is the valuation status for TECH stock?
ChartMill assigns a valuation rating of 3 / 10 to BIO-TECHNE CORP (TECH). This can be considered as Overvalued.
How profitable is BIO-TECHNE CORP (TECH) stock?
BIO-TECHNE CORP (TECH) has a profitability rating of 7 / 10.
How financially healthy is BIO-TECHNE CORP?
The financial health rating of BIO-TECHNE CORP (TECH) is 7 / 10.
What is the expected EPS growth for BIO-TECHNE CORP (TECH) stock?
The Earnings per Share (EPS) of BIO-TECHNE CORP (TECH) is expected to grow by 6% in the next year.