BIO-TECHNE CORP (TECH)
US09073M1045 - Common Stock
Taking everything into account, TECH scores 7 out of 10 in our fundamental rating. TECH was compared to 55 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making TECH a very profitable company, without any liquidiy or solvency issues. TECH has a correct valuation and a medium growth rate. These ratings could make TECH a good candidate 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.
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 better Return On Equity (10.59%) than 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.
TECH had an Average Return On Invested Capital over the past 3 years of 10.35%. This is in line with the industry average of 10.55%.
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
The Profit Margin of TECH (15.26%) is better than 89.09% of its industry peers.
TECH's Profit Margin has improved in the last couple of years.
TECH has a Operating Margin of 21.17%. This is amongst the best in the industry. TECH outperforms 90.91% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TECH is still creating some 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 13.00. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH has a better Altman-Z score (13.00) than 98.18% 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's Debt to FCF ratio of 1.35 is amongst the best of the industry. TECH outperforms 89.09% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that TECH is not too dependend on debt financing.
The Debt to Equity ratio of TECH (0.15) is better than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 13 |
ROIC/WACC1.01
WACC10.3%
2.3 Liquidity
A Current Ratio of 3.87 indicates that TECH has no problem at all paying its short term obligations.
TECH's Current ratio of 3.87 is in line compared to the rest of the industry. TECH outperforms 60.00% of its industry peers.
TECH has a Quick Ratio of 2.75. 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 2.75, TECH is in line with its industry, outperforming 54.55% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 9.61% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.97% in the past year.
The Revenue has been growing by 10.17% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.45% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 41.73, TECH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TECH is valued a bit cheaper than 70.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.38. TECH is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 33.37 indicates a quite expensive valuation of TECH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 65.45% of the companies listed in the same industry.
TECH is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 33.37 |
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 69.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TECH is valued a bit cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.26 | ||
| EV/EBITDA | 28.95 |
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)4.32
PEG (5Y)4.34
EPS Next 2Y12.14%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, 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 0.65. TECH pays more dividend than 92.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, TECH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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 (11/11/2024, 8:04:33 PM)
After market: 74.69 0 (0%)74.69
-1.27 (-1.67%)
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 Cap11.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 33.37 | ||
| 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)4.32
PEG (5Y)4.34
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y