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Azenta (AZTA)
NASDAQ:AZTA
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Azenta
(NASDAQ:AZTA)
51Neutral
Positive Factors
Divestiture
The planned divestiture of the underperforming B Medical segment is expected to be a key catalyst for improving the stock's performance.
Strategic Restructuring
The new management team has initiated a strategic restructuring to focus on higher margin segments, which is seen as a necessary move for future growth.
Negative Factors
Geopolitical Tensions
The company is facing significant geopolitical tensions and challenges in the vaccine cold chain segment, which have been major obstacles in recent months.
Azenta (AZTA) vs. S&P 500 (SPY)
Market Cap
$1.86B
Dividend YieldN/A
Average Volume (3M)626.75K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth1.32%
EPS Growth-803.66%
CountryUS
Employees3,300
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-2.99
Shares Outstanding45,695,590
10 Day Avg. Volume737,913
30 Day Avg. Volume626,748
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.06
Price to Cash Flow (P/CF)16.20
P/FCF Ratio22.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.20Price Target Upside33.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Azenta Business Overview & Revenue Model
Company DescriptionBrooks Automation, Inc. engages in the provision of automation and cryogenic solutions for multiple markets, including semiconductor capital equipment and life science biological sample management and storage. It operates through the Brooks Semiconductor Solutions Group and Brooks Life Sciences segments. The Brooks Semiconductor Solutions Group segment include atmospheric and vacuum robots, robotic modules and tool automation systems that provide precision handling and clean wafer environments, as well as cryogenic pumps and compressors that provide vacuum pumping and thermal management solutions used to create and control critical process vacuum applications. The Brooks Life Sciences segment provides automated cold sample management systems for compound and biological sample storage, equipment for sample preparation and handling, consumables, and parts and support services to a range of life science customers including pharmaceutical companies, biotechnology companies, bio-banks and research institutes. The company was founded in 1978 and is headquartered in Chelmsford, MA.
How the Company Makes MoneyAzenta makes money through a diversified revenue model centered around its array of life sciences service offerings. A significant portion of its revenue comes from providing automated storage and management solutions for biological samples, which are critical for pharmaceutical companies and research institutions. In addition to storage solutions, Azenta generates income through laboratory services, which include genomic sequencing and analysis. Strategic partnerships with key players in the biotechnology and pharmaceutical sectors further enhance its revenue streams, as these collaborations often lead to long-term service agreements and integration of Azenta's technologies into partner operations.
Azenta Financial Statement Overview
Summary
Azenta faces significant profitability challenges, with consistent net losses impacting overall performance. While the balance sheet indicates financial stability with low leverage and strong equity, the company must focus on turning operations profitable and enhancing cash flow generation to improve financial health.Income Statement
Azenta shows declining revenue and profitability, with a TTM (Trailing-Twelve-Months) net income loss of $161.8 million. The gross profit margin is 40.6%, but EBIT and net profit margins are negative, indicating operational challenges. Revenue growth is inconsistent, with a decline from 2023 to 2024.45
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with a debt-to-equity ratio of 0.03, indicating low leverage. However, the return on equity is negative due to losses. The equity ratio stands at 84.2%, suggesting financial stability, but the company needs to address its profitability issues.55
Neutral
Cash Flow
Operating cash flow has improved to $54.5 million TTM, but free cash flow remains low at $20.4 million. The free cash flow to net income ratio is negative due to losses, indicating cash flow challenges. Operating cash flow covers net income losses, suggesting some operational efficiency.50
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 649.52M | 656.32M | 665.07M | 555.50M | 513.70M | 897.27M | Gross Profit |
| 263.87M | 263.37M | 263.14M | 255.58M | 243.81M | 380.02M | EBIT |
| -57.31M | -200.68M | -73.13M | -4.00M | -46.55M | 78.46M | EBITDA |
| 16.07M | 21.80M | 55.15M | 48.35M | 9.94M | 28.15M | Net Income Common Stockholders |
| -161.79M | -164.17M | -14.26M | -11.29M | -28.87M | 64.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 463.44M | 462.09M | 1.02B | 1.57B | 227.51M | 295.72M | Total Assets |
| 2.04B | 2.10B | 2.89B | 3.72B | 1.82B | 1.56B | Total Debt |
| 54.34M | 58.79M | 60.44M | 49.23M | 94.77M | 82.27M | Net Debt |
| -323.15M | -252.14M | -618.47M | -609.05M | -132.66M | -213.38M | Total Liabilities |
| 322.24M | 331.07M | 351.22M | 352.74M | 494.18M | 345.51M | Stockholders Equity |
| 1.72B | 1.77B | 2.53B | 3.36B | 1.33B | 1.21B |
| Cash Flow | Free Cash Flow | ||||
| 20.43M | 12.90M | -21.95M | -543.48M | 97.05M | -2.06M | Operating Cash Flow |
| 54.49M | 50.29M | 17.49M | -466.05M | 149.86M | 37.87M | Investing Cash Flow |
| 202.60M | 224.74M | 431.38M | 1.47B | -146.35M | -22.74M | Financing Cash Flow |
| -551.18M | -659.21M | -844.08M | -62.76M | -25.91M | -27.02M |
Azenta Technical Analysis
Negative
40.62
Price Trends
49.00
Negative
46.97
Negative
49.36
Negative
Market Momentum
-2.12
Positive
34.11
Neutral
42.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZTA, the sentiment is Negative. The current price of 40.62 is below the 20-day moving average (MA) of 43.96, below the 50-day MA of 49.00, and below the 200-day MA of 49.36, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 34.11 is Neutral, neither overbought nor oversold. The STOCH value of 42.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZTA.
Azenta Risk Analysis
Azenta disclosed 35 risk factors in its most recent earnings report. Azenta reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Azenta Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $198.74B | 32.15 | 13.15% | 0.30% | 0.05% | 6.87% | |
65 Neutral | $146.95B | 38.80 | 7.57% | 0.53% | -13.50% | -17.25% | |
58 Neutral | $7.19B | 63.99 | 7.16% | 0.41% | 13.56% | -73.92% | |
51 Neutral | $1.86B | ― | -7.58% | ― | 1.32% | -803.66% | |
49 Neutral | $7.04B | ― | -24.09% | ― | -3.92% | -202.80% | |
49 Neutral | $13.39B | ― | -30.11% | ― | -2.93% | -4.69% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
AZTA
Azenta
40.62
-23.49
-36.64%
BIO
Bio-Rad Laboratories
251.01
-85.42
-25.39%
BRKR
Bruker
45.56
-46.82
-50.68%
DHR
Danaher
205.61
-48.64
-19.13%
ILMN
Illumina
84.52
-44.52
-34.50%
TMO
Thermo Fisher
514.20
-77.51
-13.10%
Azenta Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -21.84% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a cautiously optimistic outlook for fiscal year 2025, with several positive developments in the company's operations and financial health. Despite a few challenges, such as declining Sanger Sequencing revenue and uncertainties in large stores revenue, the company maintains a strong cash position and has shown significant operational improvements. The overall sentiment of the call is positive, given the strong financial performance and strategic initiatives underway.Highlights
Positive Start to Fiscal Year 2025
Fiscal 2025 started with positive momentum, with organic revenue growing by 4% year-over-year and adjusted EBITDA margin expanding by 400 basis points.
Multiomics Business Growth
The Multiomics segment reported a 6% growth year-over-year, with Next Generation Sequencing growing by 11% and Gene Synthesis by 5%.
Strong Cash Position
Azenta ended the quarter with $530 million in cash, cash equivalents, and marketable securities, demonstrating strong financial health.
Operational Improvements
Gross margin increased by 270 basis points year-over-year, and adjusted EBITDA margin improved by 400 basis points, indicating better operational efficiencies.
Lowlights
Decline in Sanger Sequencing
Sanger Sequencing revenue declined by 11% year-over-year due to technological shifts in sequencing.
Uncertainty in Large Stores Revenue
Revenue from large automated stores saw a year-over-year decline, attributed to timing issues and market uncertainty.
Initial Stages of B Medical Sale
The sale of B Medical is still in the initial stages, with uncertainties around the timeline for completion.
Potential Tariff Impacts
Concerns over potential tariffs, especially with the increase in China tariffs to 10%, although considered immaterial by the company.
Company Guidance
During the Azenta Q1 2025 Financial Results Conference Call, the company provided guidance on key metrics for fiscal year 2025. Azenta projects organic revenue growth between 3% and 5% for the full year, with the Sample Management Solutions segment expected to grow mid-single digits and Multiomics segment to grow low single digits. The company also anticipates a 300 basis point expansion in adjusted EBITDA margin. In Q1, Azenta reported a 4% year-over-year organic revenue growth, with an adjusted EBITDA margin expansion of 400 basis points. The company continues to focus on operational excellence and portfolio optimization, aiming to enhance profitability and long-term shareholder value.Azenta Corporate Events
Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Azenta Appoints New CFO Amid Revenue Growth
Positive
Nov 12, 2024
Azenta, Inc. has appointed Lawrence Lin as its new CFO, succeeding Herman Cueto, who will stay on as an advisor to ensure a smooth transition. The company reported a 4% revenue growth for FY’24 and expects organic revenue growth of 3% to 5% in FY’25. Azenta is also planning to sell B Medical Systems to streamline its portfolio, aiming for improved profitability. The company’s strong performance in Sample Management Solutions and Multiomics, along with strategic moves, highlights its focus on long-term shareholder value.
Executive/Board ChangesBusiness Operations and Strategy
Azenta Enhances Board and Reaffirms Growth Strategy
Positive
Nov 4, 2024
Azenta, Inc. has entered into a cooperation agreement with Politan Capital, leading to the appointment of three new independent directors, including Quentin Koffey, to its Board. This move is part of Azenta’s strategy to enhance shareholder value and leverage diverse expertise. The Board has also established a Value Creation Committee, focusing on long-term growth and capital strategies. The company reaffirms its full-year financial guidance while committing to innovation in the life sciences sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.