68.16 USD
-1.49 (-2.14%)
68.21 USD
+0.05 (+0.07%)
We assign a fundamental rating of 6 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 quite expensive at the moment. It does show a decent growth rate.
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.
- TECH had positive earnings in each of the past 5 years.
- Each year in the past 5 years TECH had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.04%, TECH is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- TECH has a better Return On Equity (3.91%) than 73.68% of its industry peers.
- With an excellent Return On Invested Capital value of 9.33%, TECH belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TECH is below the industry average of 13.75%.
- The 3 year average ROIC (9.00%) for TECH is below the current ROIC(9.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 3.91% | ||
| ROIC | 9.33% |
ROA(3y)6.63%
ROA(5y)7.59%
ROE(3y)8.82%
ROE(5y)10.28%
ROIC(3y)9%
ROIC(5y)9.64%
1.3 Margins
- TECH has a Profit Margin of 6.32%. This is in the better half of the industry: TECH outperforms 73.68% of its industry peers.
- In the last couple of years the Profit Margin of TECH has declined.
- TECH's Operating Margin of 22.13% is amongst the best of the industry. TECH outperforms 91.23% of its industry peers.
- TECH's Operating Margin has been stable in the last couple of years.
- TECH has a better Gross Margin (66.83%) than 89.47% of its industry peers.
- TECH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.13% | ||
| PM (TTM) | 6.32% | ||
| GM | 66.83% |
OM growth 3Y-6.91%
OM growth 5Y1.3%
PM growth 3Y-37.46%
PM growth 5Y-27.97%
GM growth 3Y-0.95%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TECH is destroying value.
- The number of shares outstanding for TECH has been reduced compared to 1 year ago.
- Compared to 5 years ago, TECH has more shares outstanding
- TECH has a worse debt/assets ratio than last year.
2.2 Solvency
- TECH has an Altman-Z score of 13.27. This indicates that TECH is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TECH (13.27) is better than 98.25% of its industry peers.
- The Debt to FCF ratio of TECH is 1.34, which is an excellent value as it means it would take TECH, only 1.34 years of fcf income to pay off all of its debts.
- TECH has a better Debt to FCF ratio (1.34) than 89.47% of its industry peers.
- A Debt/Equity ratio of 0.15 indicates that TECH is not too dependend on debt financing.
- TECH's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. TECH outperforms 59.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 13.27 |
ROIC/WACC0.84
WACC11.08%
2.3 Liquidity
- A Current Ratio of 4.22 indicates that TECH has no problem at all paying its short term obligations.
- With a decent Current ratio value of 4.22, TECH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- TECH has a Quick Ratio of 2.81. This indicates that TECH is financially healthy and has no problem in meeting its short term obligations.
- TECH's Quick ratio of 2.81 is in line compared to the rest of the industry. TECH outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.82% over the past year.
- Measured over the past years, TECH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.25% on average per year.
- The Revenue for TECH has decreased by -16.00% 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 10.55% on average per year.
EPS 1Y (TTM)7.82%
EPS 3Y-0.77%
EPS 5Y11.25%
EPS Q2Q%0%
Revenue 1Y (TTM)-16%
Revenue growth 3Y3.33%
Revenue growth 5Y10.55%
Sales Q2Q%-1%
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 8.61% on average per year.
- TECH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y4.66%
EPS Next 2Y7.87%
EPS Next 3Y10.61%
EPS Next 5Y8.61%
Revenue Next Year0.56%
Revenue Next 2Y3.68%
Revenue Next 3Y5.76%
Revenue Next 5Y7.1%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 35.32, 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 61.40% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TECH is valued a bit more expensive.
- The Price/Forward Earnings ratio is 30.35, 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.
- When comparing the Price/Forward Earnings ratio of TECH to the average of the S&P500 Index (24.26), we can say TECH is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 30.35 |
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 61.40% of the companies listed in the same industry.
- 64.91% 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 | 47.4 | ||
| EV/EBITDA | 29.33 |
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 decent profitability rating of TECH may justify a higher PE ratio.
PEG (NY)7.58
PEG (5Y)3.14
EPS Next 2Y7.87%
EPS Next 3Y10.61%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.46%, 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 0.09. TECH pays more dividend than 92.98% of the companies in the same industry.
- With a Dividend Yield of 0.46, TECH pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
- The dividend of TECH has a limited annual growth rate of 0.11%.
- TECH has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of TECH decreased recently.
Dividend Growth(5Y)0.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- TECH pays out 65.26% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of TECH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.26%
EPS Next 2Y7.87%
EPS Next 3Y10.61%
BIO-TECHNE CORP / TECH FAQ
Can you provide the ChartMill fundamental rating for BIO-TECHNE CORP?
ChartMill assigns a fundamental rating of 6 / 10 to TECH.
What is the valuation status of BIO-TECHNE CORP (TECH) stock?
ChartMill assigns a valuation rating of 3 / 10 to BIO-TECHNE CORP (TECH). This can be considered as Overvalued.
How profitable is BIO-TECHNE CORP (TECH) stock?
BIO-TECHNE CORP (TECH) has a profitability rating of 7 / 10.
What is the financial health of BIO-TECHNE CORP (TECH) stock?
The financial health rating of BIO-TECHNE CORP (TECH) is 7 / 10.
Is the dividend of BIO-TECHNE CORP sustainable?
The dividend rating of BIO-TECHNE CORP (TECH) is 4 / 10 and the dividend payout ratio is 65.26%.