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Bio-Rad Laboratories (BIO)
NYSE:BIO
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Bio-Rad Laboratories
(NYSE:BIO)
49Neutral
Positive Factors
Cash Flow Improvement
The CFO is targeting a significant increase in free cash flow by improving terms with suppliers and employing lean methods to reduce inventories.
Operational Strategy
The company is focusing on self-help measures and new management is executing strategies to improve margins and free cash flow.
Negative Factors
Investment Limitations
Historic aspirations for BIO to acquire all of Sartorius are now financially impossible due to massive dilution concerns.
Working Capital Management
The company has more cash tied up in working capital than its peers, with inventory turns significantly down compared to pre-COVID levels.
Bio-Rad Laboratories (BIO) vs. S&P 500 (SPY)
Market Cap
$6.59B
Dividend YieldN/A
Average Volume (3M)373.58K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-3.92%
EPS Growth-202.80%
CountryUS
Employees7,700
SectorHealthcare
Sector Strength76
IndustryMedical - Devices
Share Statistics
EPS (TTM)-65.04
Shares Outstanding22,940,805
10 Day Avg. Volume426,564
30 Day Avg. Volume373,577
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.80
Price to Cash Flow (P/CF)14.50
P/FCF Ratio13.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$347.50Price Target Upside54.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Bio-Rad Laboratories Business Overview & Revenue Model
Company DescriptionBio-Rad Laboratories, Inc. manufactures, and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. The company operates through Life Science and Clinical Diagnostics segments. The Life Science segment develops, manufactures, and markets a range of reagents, apparatus, and laboratory instruments that are used in research techniques, biopharmaceutical production processes, and food testing regimes. It focuses on selected segments of the life sciences market in proteomics, genomics, biopharmaceutical production, cellular biology, and food safety. This segment serves universities and medical schools, industrial research organizations, government agencies, pharmaceutical manufacturers, biotechnology researchers, food producers, and food testing laboratories. The Clinical Diagnostics segment designs, manufactures, sells, and supports test systems, informatics systems, test kits, and specialized quality controls for clinical laboratories in the diagnostics market. This segment offers reagents, instruments, and software, which address specific niches within the in vitro diagnostics test market. It sells its products to reference laboratories, hospital laboratories, state newborn screening facilities, physicians' office laboratories, and transfusion laboratories. In addition, the company offers products and systems to separate complex chemical and biological materials, as well as to identify, analyze, and purify components. The company offers its products through its direct sales force, as well as through distributors, agents, brokers, and resellers. Bio-Rad Laboratories, Inc. was founded in 1952 and is headquartered in Hercules, California.
How the Company Makes MoneyBio-Rad Laboratories generates revenue primarily through the sale of its products and services in the Life Science and Clinical Diagnostics segments. The Life Science segment offers tools and technologies that facilitate research in genomics, proteomics, cell biology, and food safety. Products in this segment include reagents, laboratory instruments, and software that researchers and scientists use in experiments and analyses. The Clinical Diagnostics segment provides a wide range of products for blood testing, diabetes monitoring, quality control, and infectious disease testing. Revenue is derived from the direct sale of these products to hospitals, laboratories, and research institutions worldwide. Additionally, Bio-Rad benefits from strategic partnerships and collaborations with academic institutions, research organizations, and other companies in the biotechnology and healthcare sectors, which further enhance its market reach and innovation capabilities.
Bio-Rad Laboratories Financial Statement Overview
Summary
Bio-Rad Laboratories shows a mixed financial performance with stable production cost management but struggles with revenue growth and profitability in recent years. The balance sheet reflects a strong equity base, while cash flow generation remains robust, albeit affected by negative income. Ongoing challenges include managing operating expenses and returning to profitability.Income Statement
Bio-Rad Laboratories has experienced fluctuating revenue over the years, with a notable decrease in 2024 compared to previous years. The company shows negative net income in recent periods, impacting the net profit margin adversely. The gross profit margin remains relatively stable, indicating cost efficiency in production. However, the EBIT margin has declined, reflecting challenges in managing operating expenses efficiently.42
Neutral
Balance Sheet
The company's balance sheet shows a strong equity position with stockholders' equity consistently higher than total liabilities, leading to a healthy equity ratio. However, the debt-to-equity ratio has risen slightly, suggesting increased leverage. The return on equity has been volatile, reflecting inconsistent profitability.55
Neutral
Cash Flow
Bio-Rad Laboratories maintains positive operating cash flow, indicating strong cash generation capacity. The free cash flow has grown in recent years, which is a positive indicator. However, the operating cash flow to net income ratio has been significantly impacted by negative net income, highlighting potential cash flow management challenges.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.57B | 2.67B | 2.80B | 2.92B | 2.55B | Gross Profit |
| 1.38B | 1.43B | 1.57B | 1.64B | 1.44B | EBIT |
| 269.00M | 337.80M | 482.62M | 489.43M | 410.96M | EBITDA |
| -2.14B | -608.26M | -4.49B | 5.63B | 5.10B | Net Income Common Stockholders |
| -1.84B | -637.32M | -3.63B | 4.25B | 3.81B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.18B | 1.61B | 1.80B | 875.48M | 996.68M | Total Assets |
| 9.36B | 12.30B | 13.50B | 17.78B | 12.97B | Total Debt |
| 174.30M | 1.41B | 1.20B | 11.00M | 14.06M | Net Debt |
| 174.30M | 1.00B | 763.97M | -459.78M | -648.15M | Total Liabilities |
| 2.79B | 3.56B | 3.89B | 4.11B | 3.09B | Stockholders Equity |
| 6.57B | 8.74B | 9.62B | 13.67B | 9.88B |
| Cash Flow | Free Cash Flow | |||
| 266.20M | 218.26M | 80.29M | 535.72M | 476.41M | Operating Cash Flow |
| 455.20M | 374.94M | 194.45M | 656.52M | 575.33M | Investing Cash Flow |
| -160.20M | 20.21M | -1.21B | -784.44M | -60.25M | Financing Cash Flow |
| -218.80M | -425.65M | 973.58M | -55.43M | -523.04M |
Bio-Rad Laboratories Technical Analysis
Negative
225.60
Price Trends
283.52
Negative
310.93
Negative
316.48
Negative
Market Momentum
-11.46
Negative
30.46
Neutral
18.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIO, the sentiment is Negative. The current price of 225.6 is below the 20-day moving average (MA) of 248.03, below the 50-day MA of 283.52, and below the 200-day MA of 316.48, indicating a bearish trend. The MACD of -11.46 indicates Negative momentum. The RSI at 30.46 is Neutral, neither overbought nor oversold. The STOCH value of 18.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIO.
Bio-Rad Laboratories Risk Analysis
Bio-Rad Laboratories disclosed 28 risk factors in its most recent earnings report. Bio-Rad Laboratories 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
Bio-Rad Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.90B | 33.86 | 7.71% | ― | 8.49% | 31.15% | |
69 Neutral | $4.45B | 81.87 | 8.48% | ― | 28.49% | ― | |
60 Neutral | $3.33B | ― | -75.27% | ― | 20.13% | 10.05% | |
58 Neutral | $5.71B | 49.78 | 7.16% | 0.55% | 13.56% | -73.92% | |
56 Neutral | $1.95B | 31.31 | 4.87% | ― | 8.33% | 256.54% | |
49 Neutral | $6.59B | ― | -24.09% | ― | -3.92% | -202.80% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% |
* Healthcare Sector Average
Performance Comparison
BIO
Bio-Rad Laboratories
225.60
-100.72
-30.87%
BRKR
Bruker
36.46
-53.46
-59.45%
ITGR
Integer Holdings
113.70
-1.70
-1.47%
LIVN
LivaNova
35.95
-18.75
-34.28%
IRTC
Irhythm Technologies
100.34
-12.70
-11.23%
INSP
Inspire Medical Systems
141.93
-86.19
-37.78%
Bio-Rad Laboratories Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -26.36% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging landscape with significant declines in the Life Science segment and impacts from China policy changes, despite meeting some financial targets and strategic acquisitions. The overall sentiment is cautious with a focus on future improvement.Highlights
Successful 2024 Revenue and Operating Margin Targets
Bio-Rad Laboratories met its revised 2024 guidance for both revenue and operating margin, with the clinical diagnostic business performing slightly better than forecasted.
Gross Margin Expansion
Gross margin improved in 2024 due to productivity improvements, lean initiatives in manufacturing sites, and effective cost management.
Binding Offer to Acquire Stilla Technologies
Bio-Rad entered into a binding offer to acquire Stilla Technologies, which is expected to complement its digital PCR portfolio and enhance product strategy.
Strong Demand for Droplet Digital PCR Portfolio
Strong demand for reagents and consumables in the droplet digital PCR portfolio, with low double-digit growth year over year.
Increased Free Cash Flow
Free cash flow for the full year of 2024 was approximately $290 million, up from $218 million in 2023.
Lowlights
Decline in Life Science Segment Sales
Life Science Group sales declined by 12.8% on a reported basis for 2024, primarily due to softness in the biopharma market.
China Reimbursement Change Impact
The Asia Pacific region saw a decline due to a reimbursement change for diabetes testing in China, impacting sales by an estimated mid-single-digit million.
Fourth Quarter Revenue Decline
Net sales for Q4 2024 were approximately $668 million, a 2% decline on a reported basis year over year.
Operating Income and Margin Decrease
Q4 2024 operating income was approximately $58 million or 8.7% of sales, a decrease from $95 million or 14% of sales in Q4 2023.
Workforce Reduction
A 5% workforce reduction was implemented to align headcount with the global organization, intended to save $50 to $55 million in 2025.
Company Guidance
During the Bio-Rad Laboratories, Inc. fourth quarter and full year 2024 results conference call, the company provided guidance for 2025, anticipating a currency-neutral revenue growth of 1.5% to 3.5%, excluding acquisitions. The guidance reflects challenges such as a 60 basis point reduction in gross margin due to reimbursement changes for diabetes testing in China and a 40 basis point impact from foreign currency fluctuations. The Life Science Group's revenue is expected to grow 1.5% to 3.5%, bolstered by high single-digit growth in process chromatography. The Clinical Diagnostics Group is projected to increase between 2% and 3%, despite a 100 basis point impact from a partner's exit from the donor screening business and the aforementioned diabetes testing changes. The company aims for a full-year non-GAAP gross margin between 55% and 55.5% and a non-GAAP operating margin between 13% and 13.5%. Additionally, Bio-Rad plans to achieve key development milestones, such as its anticipated acquisition of Stilla Technologies, which should complement its digital PCR portfolio, with the transaction expected to close by the end of Q3 2025.Bio-Rad Laboratories Corporate Events
Financial Disclosures
Bio-Rad Laboratories Updates on Sartorius Investment
Neutral
Feb 21, 2025
Bio-Rad Laboratories has provided an update regarding its investment in Sartorius AG, which disclosed its financial results for the year ending December 31, 2024, on February 17, 2025. Sartorius AG reported sales revenue of €3,380.7 million, a gross profit of €1,524.4 million, and a net profit of €137.4 million, reflecting its financial performance and operational insights.
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.