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 57 industry peers in the Life Sciences Tools & Services industry. TECH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TECH is not valued too expensively and it also shows a decent 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.
TECH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TECH has a better Return On Assets (5.92%) than 89.47% of its industry peers.
TECH's Return On Equity of 7.61% is fine compared to the rest of the industry. TECH outperforms 78.95% of its industry peers.
TECH's Return On Invested Capital of 8.68% is amongst the best of the industry. TECH outperforms 87.72% 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 9.60%.
| 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 87.72% of the companies in the same industry.
TECH's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.84%, TECH belongs to the best of the industry, outperforming 87.72% 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.
TECH's Gross Margin of 66.26% is amongst the best of the industry. TECH outperforms 94.74% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TECH is destroying value.
Compared to 1 year ago, TECH has more shares outstanding
Compared to 5 years ago, TECH has more shares outstanding
Compared to 1 year ago, TECH has an improved debt to assets ratio.
2.2 Solvency
TECH has an Altman-Z score of 12.05. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.05, TECH belongs to the best of the industry, outperforming 96.49% of the companies in the same industry.
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.
TECH has a Debt to FCF ratio of 1.18. This is amongst the best in the industry. TECH outperforms 91.23% 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.
The Debt to Equity ratio of TECH (0.14) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 12.05 |
ROIC/WACC0.77
WACC11.27%
2.3 Liquidity
TECH has a Current Ratio of 3.94. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TECH (3.94) is better than 63.16% 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.
With a Quick ratio value of 2.77, TECH perfoms like the industry average, outperforming 54.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
TECH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.23%.
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 for TECH has decreased by -15.88% 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 10.17% on average per year.
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
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.
Based on estimates for the next years, TECH will show a quite strong growth in Revenue. The Revenue will grow by 10.33% on average per year.
EPS Next Y9.61%
EPS Next 2Y12.39%
EPS Next 3Y13.73%
EPS Next 5Y14.74%
Revenue Next Year6.18%
Revenue Next 2Y7.54%
Revenue Next 3Y8.77%
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
A Price/Earnings ratio of 35.87 indicates a quite expensive valuation of TECH.
Based on the Price/Earnings ratio, TECH is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
TECH is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.87, which means the current valuation is very expensive for TECH.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than 68.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TECH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
68.42% of the companies in the same industry are more expensive than TECH, based on the Enterprise Value to EBITDA ratio.
68.42% of the companies in the same industry are more expensive than TECH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.36 | ||
| EV/EBITDA | 28.86 |
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 13.73% in the coming years.
PEG (NY)3.73
PEG (5Y)3.73
EPS Next 2Y12.39%
EPS Next 3Y13.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, 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 0.42. TECH pays more dividend than 96.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, TECH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 2Y12.39%
EPS Next 3Y13.73%
64.92
-0.57 (-0.87%)
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 Change-91.19%
Ins Owners0.22%
Ins Owner Change1.98%
Market Cap10.26B
Analysts81.82
Price Target89.09 (37.23%)
Short Float %2.52%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)2.27%
PT rev (3m)4.82%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-4.49%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 28.87 | ||
| P/S | 8.58 | ||
| P/FCF | 40.36 | ||
| P/OCF | 33.68 | ||
| P/B | 4.94 | ||
| P/tB | 15.72 | ||
| EV/EBITDA | 28.86 |
EPS(TTM)1.81
EY2.79%
EPS(NY)2.25
Fwd EY3.46%
FCF(TTM)1.61
FCFY2.48%
OCF(TTM)1.93
OCFY2.97%
SpS7.57
BVpS13.15
TBVpS4.13
PEG (NY)3.73
PEG (5Y)3.73
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 | 12.05 |
F-Score5
WACC11.27%
ROIC/WACC0.77
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 Y9.61%
EPS Next 2Y12.39%
EPS Next 3Y13.73%
EPS Next 5Y14.74%
Revenue 1Y (TTM)-15.88%
Revenue growth 3Y7.58%
Revenue growth 5Y10.17%
Sales Q2Q%8.28%
Revenue Next Year6.18%
Revenue Next 2Y7.54%
Revenue Next 3Y8.77%
Revenue Next 5Y10.33%
EBIT growth 1Y-25.38%
EBIT growth 3Y0.48%
EBIT growth 5Y10.77%
EBIT Next Year23.57%
EBIT Next 3Y17.25%
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%