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Bio-Techne (TECH)
NASDAQ:TECH
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Bio-Techne
(NASDAQ:TECH)
73Outperform
Positive Factors
Operational Margins
Bio-Techne is a premium growth asset with best-in-class operational margins around 30% and a market cap of approximately $10 billion.
Revenue Growth
The company is expected to achieve revenue growth significantly above the market average, with acceleration in future years.
Negative Factors
Macro Headwinds
Macro headwinds in academic markets could significantly impact near-term financial performance due to budget freezes.
Revenue Growth Expectations
Company management pointed to some big orders in 2Q25 as well as Forex headwinds to temper revenue growth expectations for 3Q25.
Bio-Techne (TECH) vs. S&P 500 (SPY)
Market Cap
$8.18B
Dividend Yield0.62%
Average Volume (3M)1.91M
Price to Earnings (P/E)52.6
Beta (1Y)1.07
Revenue Growth4.46%
EPS Growth-29.62%
CountryUS
Employees3,100
SectorHealthcare
Sector Strength77
IndustryBiotechnology
Share Statistics
EPS (TTM)0.98
Shares Outstanding158,087,680
10 Day Avg. Volume1,712,001
30 Day Avg. Volume1,914,137
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.01
Price to Cash Flow (P/CF)28.40
P/FCF Ratio28.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$82.70Price Target Upside58.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Bio-Techne Business Overview & Revenue Model
Company DescriptionBio-Techne Corporation (TECH) is a leading developer and manufacturer of high-quality biological products and solutions for the life sciences and clinical diagnostics markets. The company operates through two primary segments: Protein Sciences and Diagnostics and Genomics. Bio-Techne offers a wide range of products, including proteins, antibodies, immunoassays, and reagents that are essential for scientific research and clinical diagnostics. Their solutions are used by researchers, pharmaceutical companies, and healthcare providers worldwide to support advancements in medical research and patient care.
How the Company Makes MoneyBio-Techne makes money through the sale of its diverse portfolio of life science and diagnostic products. The company's revenue model is primarily based on product sales, with key revenue streams coming from its Protein Sciences segment, which includes proteins, antibodies, and immunoassays, and its Diagnostics and Genomics segment, which provides diagnostic reagents and instruments. Bio-Techne also generates income through collaborations and partnerships with academic institutions, pharmaceutical companies, and healthcare organizations. These partnerships often involve co-development agreements, licensing deals, and supply agreements, which contribute to the company's earnings.
Bio-Techne Financial Statement Overview
Summary
Bio-Techne exhibits solid financial health with strong revenue growth and profitability. The balance sheet is stable with low debt levels, and cash flow remains robust. Despite some challenges in net profit margins and increasing debt, the company's overall financial position is strong, supporting continued growth and resilience in the biotechnology sector.Income Statement
Bio-Techne demonstrates strong revenue growth with a consistent upward trajectory over the years, evidenced by a 3.3% increase in revenue from 2023 to 2024 (TTM). The company maintains robust profitability with a gross profit margin of 65.8% and an EBIT margin of 19.9% for TTM. However, the net profit margin has decreased, reflecting a decline in net income, suggesting potential cost pressures or other operational challenges.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a Debt-to-Equity ratio of 0.18 in TTM, indicating low leverage and financial stability. The equity ratio stands at 78.2%, showcasing strong equity backing. However, there is a slight increase in total debt, which could pose a risk if not managed well.78
Positive
Cash Flow
Operating cash flow remains strong with a 1.93 ratio to net income in TTM, indicating efficient cash generation. Free cash flow shows growth, although at a slower pace compared to previous years. The company efficiently converts its earnings into cash flow, supporting its operational liquidity and investment activities.82
Very Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.20B | 1.16B | 1.14B | 1.11B | 931.03M | 738.69M | Gross Profit |
| 787.02M | 769.73M | 769.82M | 756.50M | 632.85M | 483.19M | EBIT |
| 238.38M | 206.69M | 298.94M | 296.59M | 149.55M | 74.68M | EBITDA |
| 342.06M | 310.37M | 460.56M | 420.12M | 258.47M | 373.91M | Net Income Common Stockholders |
| 158.14M | 168.10M | 285.26M | 272.05M | 140.41M | 229.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 153.16M | 152.86M | 204.31M | 247.03M | 231.55M | 270.89M | Total Assets |
| 521.89M | 2.70B | 2.64B | 2.29B | 2.26B | 2.03B | Total Debt |
| 0.00 | 419.54M | 454.96M | 325.97M | 420.55M | 433.53M | Net Debt |
| -108.24M | 267.75M | 274.39M | 153.40M | 221.46M | 286.90M | Total Liabilities |
| 19.75M | 635.02M | 672.18M | 593.79M | 691.72M | 646.40M | Stockholders Equity |
| 502.14M | 2.07B | 1.97B | 1.70B | 1.57B | 1.38B |
| Cash Flow | Free Cash Flow | ||||
| 254.30M | 236.10M | 216.15M | 280.36M | 307.86M | 153.47M | Operating Cash Flow |
| 304.72M | 298.98M | 254.39M | 325.27M | 352.16M | 205.22M | Investing Cash Flow |
| -51.96M | -203.03M | -265.65M | -96.85M | -243.52M | 27.09M | Financing Cash Flow |
| -207.92M | -122.40M | 22.62M | -242.85M | -62.55M | -183.80M |
Bio-Techne Technical Analysis
Negative
52.31
Price Trends
64.14
Negative
69.07
Negative
71.68
Negative
Market Momentum
-1.91
Positive
33.04
Neutral
16.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TECH, the sentiment is Negative. The current price of 52.31 is below the 20-day moving average (MA) of 59.02, below the 50-day MA of 64.14, and below the 200-day MA of 71.68, indicating a bearish trend. The MACD of -1.91 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TECH.
Bio-Techne Risk Analysis
Bio-Techne disclosed 27 risk factors in its most recent earnings report. Bio-Techne reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bio-Techne Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.50B | 26.90 | 8.05% | ― | 17.35% | 151.40% | |
77 Outperform | $4.93B | 57.33 | 10.34% | ― | 473.02% | 1620.44% | |
73 Outperform | $8.18B | 52.57 | 7.82% | 0.62% | 4.46% | -29.62% | |
66 Neutral | $11.72B | 222.31 | 0.76% | ― | 14.76% | -88.32% | |
48 Neutral | $9.69B | ― | -28.77% | ― | -52.75% | 25.00% | |
48 Neutral | $1.74B | ― | -61.35% | ― | ― | ― | |
48 Neutral | $6.35B | 1.19 | -46.87% | 2.63% | 17.16% | 1.34% |
* Healthcare Sector Average
Performance Comparison
TECH
Bio-Techne
52.31
-18.61
-26.24%
BMRN
BioMarin Pharmaceutical
59.16
-29.82
-33.51%
INCY
Incyte
60.29
4.99
9.02%
KRYS
Krystal Biotech
166.01
-13.76
-7.65%
MRNA
Moderna
25.64
-85.96
-77.03%
NAMS
NewAmsterdam Pharma Company
15.86
-3.09
-16.31%
Bio-Techne Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -27.81% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong performance in the quarter, with significant growth in core areas and strategic expansion. While there are challenges, particularly in China and foreign exchange impacts, the overall outlook remains positive with expectations of continued growth and recovery in key markets.Highlights
Strong Fiscal Quarter Performance
Bio-Techne delivered a strong fiscal quarter, exceeding initial projections with a 9% organic revenue growth driven by biopharma end markets and significant demand for GMP AdHens in protein analytical instrumentation.
Increased Operating Margin
The adjusted operating margin increased by 110 basis points sequentially to 30.1% due to organizational and operational efficiency improvements.
Expansion in EMEA and New Partnerships
The EMEA region grew low double digits, driven by a 20% growth in the automated protein analysis portfolio. New distribution agreements with LeaderLife Sciences and MedSomTec expanded geographic reach.
GMP Reagents Growth
GMV agents' revenue increased over 90% for the quarter, with a trailing twelve-month organic growth of over 40%.
Protein Analysis Growth
Instrument-specific consumables increased high teens, marking eight out of the last nine quarters with double-digit consumable growth. New instrument placements also showed positive growth.
Spatial Biology and Precision Diagnostic Tools Growth
The spatial biology segment delivered 12% organic growth, with the launch of the comet system contributing to mid-teens revenue growth.
Strong Cash Flow and Shareholder Returns
Generated $84.3 million in cash from operations, returned $12.7 million in dividends, and conducted a $75.6 million share stock buyback.
Lowlights
Decline in China Sales
Sales in China declined low single digits due to a challenging economic environment, which remained a headwind to growth.
Impact of Foreign Exchange
Foreign exchange had an unfavorable impact on adjusted EPS and is expected to be a headwind of approximately 1% of sales in the second half of the fiscal year.
Challenges in NIH Funding
Concerns around NIH funding and administrative changes could impact future funding and growth in the academic market.
Company Guidance
During Bio-Techne's second quarter of fiscal year 2025, the company reported a 9% organic revenue growth, driven by strong performances in biopharma and protein analysis portfolios. The company's adjusted operating margin increased by 110 basis points sequentially to 30.1%. In terms of geographic performance, sales in the Americas and EMEA grew in low double digits, supported by robust demand from cell therapy customers and automated protein analysis products, which grew over 20%. However, sales in China declined by low single digits, though a return to growth is expected in the upcoming quarter. The GMP reagent business saw a significant 90% revenue increase, with more than 500 customers, including 85 in various clinical trial phases. Bio-Techne's protein sciences segment achieved an 8% organic revenue growth, while the diagnostics and spatial biology segment grew by 12%. The company also highlighted its progress in AI initiatives, launching new designer proteins with enhanced features and expecting a steady cadence of new launches. Adjusted EPS for the quarter was $0.42, with total revenue reaching $297 million. Bio-Techne maintains a strong balance sheet and continues to focus on strategic M&A opportunities while anticipating continued growth and margin expansion in the second half of the fiscal year.Bio-Techne Corporate Events
Legal Proceedings
Bio-Techne Ordered to Pay $35M in Stock Option Dispute
Negative
Mar 4, 2025
Bio-Techne Corporation faced a legal dispute regarding the expiration dates of stock options granted to its former CEO, Charles R. Kummeth. An administrative error led to a discrepancy in the expiration date of these options, resulting in arbitration. On February 26, 2025, an arbitrator ruled in favor of Mr. Kummeth, ordering the company to pay him approximately $35,978,000 for the options, along with interest and legal fees, due to the administrative error.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Bio-Techne Appoints New Board Member and Reports Revenue Growth
Positive
Feb 5, 2025
On January 30, 2025, Bio-Techne Corporation announced the appointment of Dr. Amy Herr to its Board of Directors, starting February 1, 2025. Dr. Herr will serve on the Science & Technology Committee, bringing her expertise as a bioengineering professor and Vice President at Chan Zuckerberg Biohub Network. This appointment was part of a two-year process to replace retiring directors, highlighting Bio-Techne’s strategic focus on enhancing its board with industry experts. In its financial results for the second quarter of fiscal 2025, Bio-Techne reported a 9% increase in organic revenue, reaching $297.0 million. The Protein Sciences segment showed 8% organic growth, while the Diagnostics and Spatial Biology segment had a 12% increase. The company’s strong performance is attributed to improved biopharma end-market conditions and successful execution in cell and gene therapy workflow solutions, indicating a positive outlook for stakeholders.
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.