BIO-TECHNE CORP (TECH)
US09073M1045 - Common Stock
Overall TECH gets a fundamental rating of 7 out of 10. We evaluated TECH against 55 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 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.
In the past 5 years TECH has always been profitable.
Each year in the past 5 years TECH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TECH (8.10%) is better than 90.91% of its industry peers.
TECH has a Return On Equity of 10.59%. This is amongst the best in the industry. TECH outperforms 81.82% of its industry peers.
TECH's Return On Invested Capital of 10.44% is amongst the best of the industry. TECH outperforms 90.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TECH is in line with the industry average of 10.42%.
The last Return On Invested Capital (10.44%) for TECH is above the 3 year average (10.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 10.59% | ||
| ROIC | 10.44% |
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
TECH has a better Profit Margin (15.26%) than 89.09% of its industry peers.
TECH's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.17%, TECH belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Operating Margin of TECH has remained more or less at the same level.
Looking at the Gross Margin, with a value of 66.50%, TECH belongs to the top of the industry, outperforming 94.55% 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 | 21.17% | ||
| PM (TTM) | 15.26% | ||
| GM | 66.5% |
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.
TECH has more shares outstanding than it did 1 year ago.
TECH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TECH has an improved debt to assets ratio.
2.2 Solvency
TECH has an Altman-Z score of 12.11. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH's Altman-Z score of 12.11 is amongst the best of the industry. TECH outperforms 96.36% of its industry peers.
The Debt to FCF ratio of TECH is 1.35, which is an excellent value as it means it would take TECH, only 1.35 years of fcf income to pay off all of its debts.
TECH has a Debt to FCF ratio of 1.35. This is amongst the best in the industry. TECH outperforms 89.09% of its industry peers.
TECH has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
TECH's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. TECH outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 12.11 |
ROIC/WACC0.93
WACC11.22%
2.3 Liquidity
A Current Ratio of 3.87 indicates that TECH has no problem at all paying its short term obligations.
TECH has a Current ratio of 3.87. This is in the better half of the industry: TECH outperforms 61.82% of its industry peers.
A Quick Ratio of 2.75 indicates that TECH has no problem at all paying its short term obligations.
TECH's Quick ratio of 2.75 is in line compared to the rest of the industry. TECH outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
TECH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.67%.
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 has been growing slightly by 1.97% in the past year.
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)-8.67%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%2.44%
Revenue 1Y (TTM)1.97%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%4.52%
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 15.45% on average per year.
Based on estimates for the next years, TECH will show a quite strong growth in Revenue. The Revenue will grow by 10.79% on average per year.
EPS Next Y9.67%
EPS Next 2Y12.14%
EPS Next 3Y13.19%
EPS Next 5Y15.45%
Revenue Next Year5.58%
Revenue Next 2Y7.46%
Revenue Next 3Y8.74%
Revenue Next 5Y10.79%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.69, the valuation of TECH can be described as expensive.
TECH's Price/Earnings ratio is a bit cheaper when compared to the industry. TECH is cheaper than 69.09% of the companies in the same industry.
TECH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.65.
The Price/Forward Earnings ratio is 31.74, which means the current valuation is very expensive for TECH.
TECH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TECH is cheaper than 61.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, TECH is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.69 | ||
| Fwd PE | 31.74 |
4.2 Price Multiples
70.91% of the companies in the same industry are more expensive than TECH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 69.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.81 | ||
| EV/EBITDA | 26.67 |
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.
A more expensive valuation may be justified as TECH's earnings are expected to grow with 13.19% in the coming years.
PEG (NY)4.11
PEG (5Y)4.13
EPS Next 2Y12.14%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, 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 0.69. TECH pays more dividend than 92.73% of the companies in the same industry.
With a Dividend Yield of 0.44, TECH pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
The dividend of TECH decreases each year by -0.07%.
TECH has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TECH pays out 23.01% of its income as dividend. This is a sustainable payout ratio.
DP23.01%
EPS Next 2Y12.14%
EPS Next 3Y13.19%
BIO-TECHNE CORP
NASDAQ:TECH (11/21/2024, 4:33:42 PM)
After market: 71.05 0 (0%)71.05
+2.33 (+3.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.69 | ||
| Fwd PE | 31.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.11
PEG (5Y)4.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.1% | ||
| ROE | 10.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.17% | ||
| PM (TTM) | 15.26% | ||
| GM | 66.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.87 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.67%
EPS 3Y2%
EPS 5Y
EPS Q2Q%
EPS Next Y9.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.97%
Revenue growth 3Y7.58%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y