BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
USA - NASDAQ:TECH - US09073M1045 - Common Stock
51.52 USD
-0.26 (-0.5%)
52.55 USD
+1.03 (+2%)
We assign a fundamental rating of 5 out of 10 to TECH. TECH was compared to 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 has a correct valuation and a medium growth rate.
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
The Return On Assets of TECH (2.82%) is better than 69.09% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 7.75%, TECH is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TECH 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
The Profit Margin of TECH (5.92%) is better than 67.27% of its industry peers.
In the last couple of years the Profit Margin of TECH has declined.
The Operating Margin of TECH (18.34%) is better than 83.64% of its industry peers.
In the last couple of years the Operating Margin of TECH has declined.
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.
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
TECH has an Altman-Z score of 9.08. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH has a Altman-Z score of 9.08. This is amongst the best in the industry. TECH outperforms 92.73% of its industry peers.
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.
TECH has a Debt to FCF ratio of 1.35. This is amongst the best in the industry. TECH outperforms 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.
With a Debt to Equity ratio value of 0.18, TECH perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 9.08 |
ROIC/WACC0.75
WACC10.3%
2.3 Liquidity
A Current Ratio of 3.46 indicates that TECH has no problem at all paying its short term obligations.
TECH has a Current ratio (3.46) which is comparable to the rest of the industry.
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 52.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.43% over the past year.
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.
The Revenue for TECH has decreased by -15.06% in the past year. This is quite bad
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
Based on estimates for the next years, TECH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.61% on average per year.
TECH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.12% yearly.
EPS Next Y6.29%
EPS Next 2Y9.48%
EPS Next 3Y10.96%
EPS Next 5Y8.61%
Revenue Next Year2.18%
Revenue Next 2Y4.84%
Revenue Next 3Y6.97%
Revenue Next 5Y7.12%
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 decreasing.
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
The Price/Earnings ratio is 26.69, which means the current valuation is very expensive for TECH.
69.09% of the companies in the same industry are more expensive than TECH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TECH to the average of the S&P500 Index (27.20), we can say TECH is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.11, TECH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than 70.91% 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 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.69 | ||
| Fwd PE | 25.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TECH is valued a bit cheaper than the industry average as 65.45% 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 65.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.24 | ||
| EV/EBITDA | 24.57 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.24
PEG (5Y)2.37
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 1.09, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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.
The dividend of TECH decreased 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 2Y9.48%
EPS Next 3Y10.96%
51.52
-0.26 (-0.5%)
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 Cap8.01B
Analysts80.83
Price Target67.51 (31.04%)
Short Float %3.33%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)-0.86%
PT rev (3m)-4.75%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-10.2%
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-4.04%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-5.59%
Revenue NY rev (1m)-3.13%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.69 | ||
| Fwd PE | 25.11 | ||
| P/S | 6.57 | ||
| P/FCF | 31.24 | ||
| P/OCF | 27.87 | ||
| P/B | 4.18 | ||
| P/tB | 14 | ||
| EV/EBITDA | 24.57 |
EPS(TTM)1.93
EY3.75%
EPS(NY)2.05
Fwd EY3.98%
FCF(TTM)1.65
FCFY3.2%
OCF(TTM)1.85
OCFY3.59%
SpS7.84
BVpS12.34
TBVpS3.68
PEG (NY)4.24
PEG (5Y)2.37
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 | 9.08 |
F-Score4
WACC10.3%
ROIC/WACC0.75
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 Year2.18%
Revenue Next 2Y4.84%
Revenue Next 3Y6.97%
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%