BIO-TECHNE CORP (TECH) Stock Fundamental Analysis
NASDAQ:TECH - Nasdaq - US09073M1045 - Common Stock - Currency: USD
Taking everything into account, TECH scores 7 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 could make TECH a good candidate 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
Looking at the Return On Assets, with a value of 7.37%, TECH belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
TECH has a better Return On Equity (9.43%) than 83.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.15%, TECH belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
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 9.93%.
| 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
The Profit Margin of TECH (13.92%) is better than 87.50% of its industry peers.
TECH's Profit Margin has improved in the last couple of years.
TECH has a better Operating Margin (20.79%) than 89.29% of its industry peers.
TECH's Operating Margin has been stable in the last couple of years.
TECH has a Gross Margin of 66.11%. This is amongst the best in the industry. TECH outperforms 94.64% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TECH is destroying value.
Compared to 1 year ago, TECH has more shares outstanding
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 14.36. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
TECH's Altman-Z score of 14.36 is amongst the best of the industry. TECH outperforms 98.21% of its industry peers.
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.
TECH has a better Debt to FCF ratio (1.22) than 89.29% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that TECH is not too dependend on debt financing.
TECH has a better Debt to Equity ratio (0.14) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | 14.36 |
ROIC/WACC0.95
WACC10.63%
2.3 Liquidity
A Current Ratio of 4.56 indicates that TECH has no problem at all paying its short term obligations.
TECH's Current ratio of 4.56 is fine compared to the rest of the industry. TECH outperforms 66.07% 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.
TECH has a Quick ratio of 3.26. This is in the better half of the industry: TECH outperforms 62.50% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 9.61% on average over the past years. This is quite good.
Looking at the last year, TECH shows a very strong growth in Revenue. The Revenue has grown by 26.63%.
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)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.
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 Y9.84%
EPS Next 2Y12.16%
EPS Next 3Y13.19%
EPS Next 5Y14.74%
Revenue Next Year5.58%
Revenue Next 2Y7.42%
Revenue Next 3Y8.72%
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.
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 42.97, 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 69.64% 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 28.64.
A Price/Forward Earnings ratio of 34.35 indicates a quite expensive valuation of TECH.
Based on the Price/Forward Earnings ratio, TECH is valued a bit cheaper than 66.07% of the companies in the same industry.
TECH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 34.35 |
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 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TECH indicates a somewhat cheap valuation: TECH is cheaper than 69.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.87 | ||
| EV/EBITDA | 30.59 |
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.
TECH's earnings are expected to grow with 13.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.37
PEG (5Y)4.47
EPS Next 2Y12.16%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
TECH has a yearly dividend return of 0.42%, which is pretty low.
TECH's Dividend Yield is rather good when compared to the industry average which is at 0.62. TECH pays more dividend than 92.86% of the companies in the same industry.
With a Dividend Yield of 0.42, TECH pays less dividend than the S&P500 average, which is at 2.28.
| 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.
The dividend of TECH decreased 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 (1/23/2025, 9:33:39 PM)
After market: 78.56 +1.65 (+2.15%)76.91
-1.8 (-2.29%)
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 Change0.01%
Ins Owners0.2%
Ins Owner Change3.49%
Market Cap12.22B
Analysts82.73
Price Target87.11 (13.26%)
Short Float %2.4%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.32
Dividend Growth(5Y)-0.07%
DP25%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)0%
PT rev (3m)2.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.91%
EPS NY rev (1m)0%
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)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 34.35 | ||
| P/S | 8.44 | ||
| P/FCF | 49.87 | ||
| P/OCF | 40.27 | ||
| P/B | 5.71 | ||
| P/tB | 18.24 | ||
| EV/EBITDA | 30.59 |
EPS(TTM)1.79
EY2.33%
EPS(NY)2.24
Fwd EY2.91%
FCF(TTM)1.54
FCFY2.01%
OCF(TTM)1.91
OCFY2.48%
SpS9.12
BVpS13.46
TBVpS4.22
PEG (NY)4.37
PEG (5Y)4.47
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 | 14.36 |
F-Score6
WACC10.63%
ROIC/WACC0.95
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 2Y7.42%
Revenue Next 3Y8.72%
Revenue Next 5Y10.33%
EBIT growth 1Y3.88%
EBIT growth 3Y0.48%
EBIT growth 5Y10.77%
EBIT Next Year23.77%
EBIT Next 3Y17.28%
EBIT Next 5Y16.67%
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%