BIO-TECHNE CORP (TECH)
US09073M1045 - Common Stock
We assign a fundamental rating of 7 out of 10 to TECH. TECH was compared to 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 not valued too expensively and it also shows a decent growth rate. These ratings would make TECH suitable for quality investing!
1. Profitability
1.1 Basic Checks
TECH had positive earnings in the past year.
TECH had a positive operating cash flow in the past year.
In the past 5 years TECH has always been profitable.
TECH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TECH's Return On Assets of 7.37% is amongst the best of the industry. TECH outperforms 91.23% of its industry peers.
TECH has a better Return On Equity (9.43%) than 82.46% of its industry peers.
The Return On Invested Capital of TECH (10.15%) is better than 91.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TECH is in line with the industry average of 9.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 9.43% | ||
| ROIC | 10.15% |
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 Profit Margin of 13.92%. This is amongst the best in the industry. TECH outperforms 87.72% of its industry peers.
TECH's Profit Margin has improved in the last couple of years.
TECH's Operating Margin of 20.79% is amongst the best of the industry. TECH outperforms 89.47% of its industry peers.
In the last couple of years the Operating Margin of TECH has remained more or less at the same level.
TECH has a Gross Margin of 66.11%. This is amongst the best in the industry. TECH outperforms 94.74% of its industry peers.
TECH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.79% | ||
| PM (TTM) | 13.92% | ||
| GM | 66.11% |
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
The number of shares outstanding for TECH has been increased compared to 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 13.48. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.48, TECH belongs to the top of the industry, outperforming 96.49% of the companies in the same industry.
TECH has a debt to FCF ratio of 1.22. This is a very positive value and a sign of high solvency as it would only need 1.22 years to pay back of all of its debts.
The Debt to FCF ratio of TECH (1.22) is better than 89.47% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that TECH is not too dependend on debt financing.
TECH has a Debt to Equity ratio of 0.14. This is in the better half of the industry: TECH outperforms 61.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | 13.48 |
ROIC/WACC0.9
WACC11.23%
2.3 Liquidity
TECH has a Current Ratio of 4.56. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TECH (4.56) is better than 64.91% of its industry peers.
TECH has a Quick Ratio of 3.26. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.26, TECH is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 3.26 |
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%.
Measured over the past years, TECH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.61% on average per year.
Looking at the last year, TECH shows a very strong growth in Revenue. The Revenue has grown by 26.63%.
Measured over the past years, TECH shows a quite strong growth in Revenue. The Revenue has been growing by 10.17% on average per year.
EPS 1Y (TTM)-8.67%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%2.44%
Revenue 1Y (TTM)26.63%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%4.52%
3.2 Future
TECH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.74% yearly.
The Revenue is expected to grow by 10.33% on average over the next years. This is quite good.
EPS Next Y9.84%
EPS Next 2Y12.16%
EPS Next 3Y13.19%
EPS Next 5Y14.74%
Revenue Next Year5.58%
Revenue Next 2Y7.46%
Revenue Next 3Y8.74%
Revenue Next 5Y10.33%
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 accelerating.
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
TECH is valuated quite expensively with a Price/Earnings ratio of 40.88.
Compared to the rest of the industry, the Price/Earnings ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 70.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. TECH is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 32.68, which means the current valuation is very expensive for TECH.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than 63.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TECH to the average of the S&P500 Index (23.73), we can say TECH is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.88 | ||
| Fwd PE | 32.68 |
4.2 Price Multiples
71.93% of the companies in the same industry are more expensive than TECH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TECH is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.45 | ||
| EV/EBITDA | 28.46 |
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.
TECH's earnings are expected to grow with 13.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.15
PEG (5Y)4.25
EPS Next 2Y12.16%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
TECH has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 0.66, TECH pays a better dividend. On top of this TECH pays more dividend than 92.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TECH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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.
TECH has decreased its dividend recently.
Dividend Growth(5Y)-0.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
25.00% of the earnings are spent on dividend by TECH. This is a low number and sustainable payout ratio.
DP25%
EPS Next 2Y12.16%
EPS Next 3Y13.19%
BIO-TECHNE CORP
NASDAQ:TECH (12/20/2024, 8:00:01 PM)
Premarket: 74.98 +1.81 (+2.47%)73.17
+1.78 (+2.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.25%
Inst Owner Change-0.78%
Ins Owners0.2%
Ins Owner Change3.84%
Market Cap11.63B
Analysts81.9
Price Target87.11 (19.05%)
Short Float %2.59%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Dividend Growth(5Y)-0.07%
DP25%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.48%
Min EPS beat(2)-2.78%
Max EPS beat(2)7.75%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-4.95%
Max EPS beat(4)7.75%
EPS beat(8)2
Avg EPS beat(8)-4.05%
EPS beat(12)4
Avg EPS beat(12)-4.54%
EPS beat(16)8
Avg EPS beat(16)-0.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)1.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)1.81%
Revenue beat(8)2
Avg Revenue beat(8)-2.84%
Revenue beat(12)3
Avg Revenue beat(12)-2.45%
Revenue beat(16)7
Avg Revenue beat(16)-0.9%
PT rev (1m)2.49%
PT rev (3m)3.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.91%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.88 | ||
| Fwd PE | 32.68 | ||
| P/S | 8.03 | ||
| P/FCF | 47.45 | ||
| P/OCF | 38.31 | ||
| P/B | 5.44 | ||
| P/tB | 17.35 | ||
| EV/EBITDA | 28.46 |
EPS(TTM)1.79
EY2.45%
EPS(NY)2.24
Fwd EY3.06%
FCF(TTM)1.54
FCFY2.11%
OCF(TTM)1.91
OCFY2.61%
SpS9.12
BVpS13.46
TBVpS4.22
PEG (NY)4.15
PEG (5Y)4.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 9.43% | ||
| ROCE | 11.61% | ||
| ROIC | 10.15% | ||
| ROICexc | 10.94% | ||
| ROICexgc | 28.07% | ||
| OM | 20.79% | ||
| PM (TTM) | 13.92% | ||
| GM | 66.11% | ||
| FCFM | 16.92% |
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-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.22 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 52.49% | ||
| Cap/Sales | 4.04% | ||
| Interest Coverage | 19.8 | ||
| Cash Conversion | 73.57% | ||
| Profit Quality | 121.5% | ||
| Current Ratio | 4.56 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z | 13.48 |
F-Score6
WACC11.23%
ROIC/WACC0.9
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)-8.67%
EPS 3Y2%
EPS 5Y9.61%
EPS Q2Q%2.44%
EPS Next Y9.84%
EPS Next 2Y12.16%
EPS Next 3Y13.19%
EPS Next 5Y14.74%
Revenue 1Y (TTM)26.63%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%4.52%
Revenue Next Year5.58%
Revenue Next 2Y7.46%
Revenue Next 3Y8.74%
Revenue Next 5Y10.33%
EBIT growth 1Y3.88%
EBIT growth 3Y0.48%
EBIT growth 5Y10.77%
EBIT Next Year22.33%
EBIT Next 3Y16.74%
EBIT Next 5Y16.41%
FCF growth 1Y-13.91%
FCF growth 3Y-8.47%
FCF growth 5Y8.61%
OCF growth 1Y-8.87%
OCF growth 3Y-5.31%
OCF growth 5Y10.49%