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 56 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 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
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.
In the past 5 years TECH always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.92%, TECH belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TECH has a better Return On Equity (7.61%) than 76.79% of its industry peers.
TECH's Return On Invested Capital of 8.68% is amongst the best of the industry. TECH outperforms 82.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TECH is below the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 7.61% | ||
| ROIC | 8.68% |
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
Looking at the Profit Margin, with a value of 13.22%, TECH belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
TECH's Profit Margin has improved in the last couple of years.
TECH's Operating Margin of 20.84% is amongst the best of the industry. TECH outperforms 87.50% of its industry peers.
TECH's Operating Margin has been stable in the last couple of years.
TECH's Gross Margin of 66.26% is amongst the best of the industry. TECH outperforms 94.64% 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 | 20.84% | ||
| PM (TTM) | 13.22% | ||
| GM | 66.26% |
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
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 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 9.35. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH's Altman-Z score of 9.35 is amongst the best of the industry. TECH outperforms 92.86% of its industry peers.
TECH has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
The Debt to FCF ratio of TECH (1.18) is better than 91.07% of its industry peers.
TECH has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
TECH has a Debt to Equity ratio of 0.14. This is in the better half of the industry: TECH outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 9.35 |
ROIC/WACC0.83
WACC10.49%
2.3 Liquidity
A Current Ratio of 3.94 indicates that TECH has no problem at all paying its short term obligations.
TECH has a Current ratio of 3.94. This is in the better half of the industry: TECH outperforms 60.71% of its industry peers.
TECH has a Quick Ratio of 2.77. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
TECH has a Quick ratio (2.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The earnings per share for TECH have decreased by -4.23% in the last year.
The Earnings Per Share has been growing by 9.61% on average over the past years. This is quite good.
TECH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.88%.
TECH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.17% yearly.
EPS 1Y (TTM)-4.23%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%5%
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%8.28%
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 14.74% on average per year.
TECH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.33% yearly.
EPS Next Y8.77%
EPS Next 2Y12.3%
EPS Next 3Y13.21%
EPS Next 5Y14.74%
Revenue Next Year6.09%
Revenue Next 2Y7.46%
Revenue Next 3Y8.91%
Revenue Next 5Y10.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.57, which means the current valuation is very expensive for TECH.
Based on the Price/Earnings ratio, TECH is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
TECH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 21.43, TECH is valued on the expensive side.
TECH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TECH is cheaper than 75.00% 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 64.29% of the companies listed in the same industry.
TECH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TECH is cheaper than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.9 | ||
| EV/EBITDA | 21.47 |
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.
The excellent profitability rating of TECH may justify a higher PE ratio.
A more expensive valuation may be justified as TECH's earnings are expected to grow with 13.21% in the coming years.
PEG (NY)3.03
PEG (5Y)2.77
EPS Next 2Y12.3%
EPS Next 3Y13.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, TECH is not a good candidate for dividend investing.
In the last 3 months the price of TECH has falen by -36.57%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.54, TECH pays a better dividend. On top of this TECH pays more dividend than 96.43% of the companies listed in the same industry.
With a Dividend Yield of 0.67, TECH pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
32.02% of the earnings are spent on dividend by TECH. This is a low number and sustainable payout ratio.
DP32.02%
EPS Next 2Y12.3%
EPS Next 3Y13.21%
48.1
-1.87 (-3.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.03%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change1.66%
Market Cap7.60B
Analysts79.09
Price Target85.95 (78.69%)
Short Float %3.38%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.32
Dividend Growth(5Y)-0.07%
DP32.02%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.16%
Min EPS beat(2)6.57%
Max EPS beat(2)7.75%
EPS beat(4)3
Avg EPS beat(4)3.86%
Min EPS beat(4)-2.78%
Max EPS beat(4)7.75%
EPS beat(8)3
Avg EPS beat(8)-0.02%
EPS beat(12)4
Avg EPS beat(12)-4.22%
EPS beat(16)8
Avg EPS beat(16)-1.43%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)1.26%
Max Revenue beat(2)1.28%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)1.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.7%
Revenue beat(12)4
Avg Revenue beat(12)-2.27%
Revenue beat(16)7
Avg Revenue beat(16)-1.23%
PT rev (1m)-1.79%
PT rev (3m)-1.33%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 21.43 | ||
| P/S | 6.36 | ||
| P/FCF | 29.9 | ||
| P/OCF | 24.95 | ||
| P/B | 3.66 | ||
| P/tB | 11.65 | ||
| EV/EBITDA | 21.47 |
EPS(TTM)1.81
EY3.76%
EPS(NY)2.24
Fwd EY4.67%
FCF(TTM)1.61
FCFY3.34%
OCF(TTM)1.93
OCFY4.01%
SpS7.57
BVpS13.15
TBVpS4.13
PEG (NY)3.03
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 7.61% | ||
| ROCE | 9.94% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 24.05% | ||
| OM | 20.84% | ||
| PM (TTM) | 13.22% | ||
| GM | 66.26% | ||
| FCFM | 21.26% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 15.83 | ||
| Cash Conversion | 84.67% | ||
| Profit Quality | 160.84% | ||
| Current Ratio | 3.94 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 9.35 |
F-Score5
WACC10.49%
ROIC/WACC0.83
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)-4.23%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%5%
EPS Next Y8.77%
EPS Next 2Y12.3%
EPS Next 3Y13.21%
EPS Next 5Y14.74%
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%8.28%
Revenue Next Year6.09%
Revenue Next 2Y7.46%
Revenue Next 3Y8.91%
Revenue Next 5Y10.33%
EBIT growth 1Y-25.38%
EBIT growth 3Y0.48%
EBIT growth 5Y10.77%
EBIT Next Year23.76%
EBIT Next 3Y16.96%
EBIT Next 5Y16.67%
FCF growth 1Y0.91%
FCF growth 3Y-8.47%
FCF growth 5Y8.61%
OCF growth 1Y2.81%
OCF growth 3Y-5.31%
OCF growth 5Y10.49%