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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.16
LIFE's Cash to Debt is ranked lower than
53% of the 181 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 10.63 vs. LIFE: 0.16 )
LIFE' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.16

Equity to Asset 0.59
LIFE's Equity to Asset is ranked higher than
60% of the 167 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.68 vs. LIFE: 0.59 )
LIFE' s 10-Year Equity to Asset Range
Min: 0.08   Max: 0.91
Current: 0.59

0.08
0.91
Interest Coverage 5.37
LIFE's Interest Coverage is ranked lower than
52% of the 105 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 138.50 vs. LIFE: 5.37 )
LIFE' s 10-Year Interest Coverage Range
Min: 1.96   Max: 18.13
Current: 5.37

1.96
18.13
F-Score: 8
Z-Score: 3.29
M-Score: -2.67
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 17.51
LIFE's Operating margin (%) is ranked higher than
91% of the 174 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.31 vs. LIFE: 17.51 )
LIFE' s 10-Year Operating margin (%) Range
Min: -23.93   Max: 17.98
Current: 17.51

-23.93
17.98
Net-margin (%) 11.34
LIFE's Net-margin (%) is ranked higher than
89% of the 174 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.95 vs. LIFE: 11.34 )
LIFE' s 10-Year Net-margin (%) Range
Min: -23.47   Max: 29.76
Current: 11.34

-23.47
29.76
ROE (%) 9.26
LIFE's ROE (%) is ranked higher than
78% of the 169 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.30 vs. LIFE: 9.26 )
LIFE' s 10-Year ROE (%) Range
Min: -8.84   Max: 23.93
Current: 9.26

-8.84
23.93
ROA (%) 4.99
LIFE's ROA (%) is ranked higher than
78% of the 180 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.07 vs. LIFE: 4.99 )
LIFE' s 10-Year ROA (%) Range
Min: -5.54   Max: 15.5
Current: 4.99

-5.54
15.5
ROC (Joel Greenblatt) (%) 48.57
LIFE's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 179 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 5.52 vs. LIFE: 48.57 )
LIFE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -65.81   Max: 63.72
Current: 48.57

-65.81
63.72
Revenue Growth (%) 5.40
LIFE's Revenue Growth (%) is ranked higher than
69% of the 134 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 7.90 vs. LIFE: 5.40 )
LIFE' s 10-Year Revenue Growth (%) Range
Min: 5.4   Max: 34.4
Current: 5.4

5.4
34.4
EBITDA Growth (%) 8.40
LIFE's EBITDA Growth (%) is ranked higher than
75% of the 114 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 6.00 vs. LIFE: 8.40 )
LIFE' s 10-Year EBITDA Growth (%) Range
Min: 6.9   Max: 51.6
Current: 8.4

6.9
51.6
EPS Growth (%) 44.20
LIFE's EPS Growth (%) is ranked higher than
96% of the 110 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.30 vs. LIFE: 44.20 )
LIFE' s 10-Year EPS Growth (%) Range
Min: -36.4   Max: 89.8
Current: 44.2

-36.4
89.8
» LIFE's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

LIFE Guru Trades in Q1 2013

Jeremy Grantham 18,500 sh (New)
Steven Cohen 25,000 sh (+189.62%)
Larry Robbins 14,539,992 sh (+29.87%)
Scott Black 8,885 sh (+7.37%)
John Paulson 14,773,700 sh (+5.53%)
Mario Gabelli 39,896 sh (unchged)
Caxton Associates Sold Out
Chuck Royce Sold Out
RS Investment Management Sold Out
PRIMECAP Management 14,657,427 sh (-0.92%)
Murray Stahl 23,000 sh (-4.17%)
Meridian Funds 350,000 sh (-7.99%)
John Rogers 1,671,846 sh (-11.02%)
Diamond Hill Capital 73,906 sh (-20.8%)
Joel Greenblatt 16,192 sh (-24.55%)
First Pacific Advisors 585,598 sh (-33.18%)
Robert Olstein 99,000 sh (-38.51%)
Paul Tudor Jones 3,900 sh (-42.65%)
Ronald Muhlenkamp 50,000 sh (-76.85%)
Ray Dalio 24,408 sh (-83.06%)
» More
Q2 2013

LIFE Guru Trades in Q2 2013

Jim Simons 604,397 sh (New)
Jean-Marie Eveillard 455,735 sh (New)
Mario Gabelli 1,311,520 sh (+3187.35%)
Jeremy Grantham 435,000 sh (+2251.35%)
Diamond Hill Capital 81,748 sh (+10.61%)
Louis Moore Bacon 100,000 sh (unchged)
John Rogers Sold Out
Paul Tudor Jones Sold Out
Ronald Muhlenkamp Sold Out
Meridian Funds Sold Out
Ray Dalio Sold Out
Scott Black Sold Out
Robert Olstein Sold Out
First Pacific Advisors 581,198 sh (-0.75%)
PRIMECAP Management 13,339,442 sh (-8.99%)
Murray Stahl 18,000 sh (-21.74%)
Larry Robbins 10,206,878 sh (-29.8%)
Joel Greenblatt 10,836 sh (-33.08%)
Steven Cohen 5,532 sh (-77.87%)
John Paulson 1,284,433 sh (-91.31%)
» More
Q3 2013

LIFE Guru Trades in Q3 2013

Louis Moore Bacon 6,767 sh (New)
Jim Simons 1,857,897 sh (+207.4%)
Diamond Hill Capital 96,693 sh (+18.28%)
Jeremy Grantham 444,698 sh (+2.23%)
Mario Gabelli 1,334,898 sh (+1.78%)
First Pacific Advisors 581,198 sh (unchged)
Murray Stahl Sold Out
PRIMECAP Management 13,127,442 sh (-1.59%)
Steven Cohen 4,830 sh (-12.69%)
Jean-Marie Eveillard 200,000 sh (-56.11%)
Larry Robbins 4,251,124 sh (-58.35%)
Joel Greenblatt 3,541 sh (-67.32%)
John Paulson 181,053 sh (-85.9%)
» More
Q4 2013

LIFE Guru Trades in Q4 2013

Joel Greenblatt 14,885 sh (+320.36%)
Jim Simons 3,241,897 sh (+74.49%)
Steven Cohen 6,307 sh (+30.58%)
Diamond Hill Capital 97,280 sh (+0.61%)
PRIMECAP Management 12,827,575 sh (-2.28%)
Louis Moore Bacon 6,612 sh (-2.29%)
Mario Gabelli 1,159,098 sh (-13.17%)
Larry Robbins 2,749,798 sh (-35.32%)
First Pacific Advisors 288,198 sh (-50.41%)
John Paulson 89,657 sh (-50.48%)
Jean-Marie Eveillard 72,600 sh (-63.7%)
Jeremy Grantham 81,598 sh (-81.65%)
» More
» Details

Insider Trades

Latest Guru Trades with LIFE

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Paulson 2013-12-31 Reduce -50.48%0.04%$74.72 - $75.78 $ 76.041%89657
Jean-Marie Eveillard 2013-12-31 Reduce -63.7%0.03%$74.72 - $75.78 $ 76.041%72600
Joel Greenblatt 2013-12-31 Add 320.36%0.02%$74.72 - $75.78 $ 76.041%14885
John Paulson 2013-09-30 Reduce -85.9%0.58%$74.06 - $74.96 $ 76.042%181053
Jean-Marie Eveillard 2013-09-30 Reduce -56.11%0.06%$74.06 - $74.96 $ 76.042%200000
Joel Greenblatt 2013-09-30 Reduce -67.32%0.02%$74.06 - $74.96 $ 76.042%3541
John Paulson 2013-06-30 Reduce -91.31%4.93%$64.57 - $74.41 $ 76.045%1284433
Meridian Funds 2013-06-30 Sold Out 0.83%$64.57 - $74.41 $ 76.045%0
Ronald Muhlenkamp 2013-06-30 Sold Out 0.67%$64.57 - $74.41 $ 76.045%0
Mario Gabelli 2013-06-30 Add 3187.35%0.59%$64.57 - $74.41 $ 76.045%1311520
PRIMECAP Management 2013-06-30 Reduce -8.99%0.13%$64.57 - $74.41 $ 76.045%13339442
Jean-Marie Eveillard 2013-06-30 New Buy0.1%$64.57 - $74.41 $ 76.045%455735
Scott Black 2013-06-30 Sold Out 0.07%$64.57 - $74.41 $ 76.045%0
Joel Greenblatt 2013-06-30 Reduce -33.08%0.02%$64.57 - $74.41 $ 76.045%10836
Ray Dalio 2013-06-30 Sold Out 0.01%$64.57 - $74.41 $ 76.045%0
Ronald Muhlenkamp 2013-03-31 Reduce -76.85%1.77%$49.03 - $65.27 $ 76.0426%50000
John Paulson 2013-03-31 Add 5.53%0.28%$49.03 - $65.27 $ 76.0426%14773700
Ray Dalio 2013-03-31 Reduce -83.06%0.06%$49.03 - $65.27 $ 76.0426%24408
Joel Greenblatt 2013-03-31 Reduce -24.55%0.01%$49.03 - $65.27 $ 76.0426%16192
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Life Technologies Corp

RS Investment Management Comments on Life Technologies - May 28, 2013

Life Technologies (LIFE) is a global life sciences company that manufactures and sells instruments, consumables, and services used in life science research as well as in commercial applications. The Company sells a broad range of products including cell cultures, sample preparations, DNA analysis and forensic products. Life has more than 75,000 customers in 160 countries and provides integrated and complete solutions that address researchers' workflow. End markets for Life's products are academic/government organizations (~45% of revenue), pharmaceuticals and biotech (~30%), and applied markets (~25%), which include forensics, diagnostics, and water and food safety. Importantly, 80% of Life's revenue is recurring (i.e., consumables and services) with the other 20% related to instrument sales.

We saw a compelling entry point to purchase the stock during the summer of 2011 as investors became increasingly concerned about potential National Institutes of Health ("NIH") funding cuts. In our opinion, these concerns were overstated given that a potential 8% cut to NIH funding would only translate to about a 1% headwind to Life's overall business, given that NIH funding only accounted for ~15% of Life's revenue. Importantly, NIH funding has doubled over the past 12 years to $30 billion and has historically received broad bipartisan support. Moreover, we felt that a reasonable cut to NIH funding would be more than offset by the increasing growth prospects from the emerging markets. At the time of our investment, emerging markets made up just 10% of Life's revenue but were growing at an annual rate of 25%. China alone was a $180 million revenue business growing at 25%, partially in response to the Chinese government's announcement that it was determined to invest $125 billion in health care and science over the coming years. Other growth opportunities that we felt were under-appreciated by the Street included sequencing product launches that exceeded expectations as well as applied markets in bio-production and forensics.

Having completed several large acquisitions in the past, management was increasingly focused on maximizing returns on its existing asset base, and return on invested capital ("ROIC") was added as a performance metric for the senior management team. We saw several positive signs that the company was more disciplined in its capital allocation strategy and remained keenly focused on improving ROIC. In fact, the company began publishing its ROIC metric and publicly set an ROIC target of 10% for 2012 (compared with just 7.7% in 2008). Margin expansion opportunities of 50−75 basis points a year were identified and could be realized by improving efficiencies and leveraging fixed assets. In fact, the company improved its efficiency and productivity by shutting down six manufacturing facilities in 2010, while moving 50% of its purchase transactions online. After successfully rationalizing the Company's cost structure and discontinuing unprofitable product lines, Life announced plans to use its free cash flow to aggressively repurchase stock and deleverage the Company. While we like its long-term prospects, when Life announced that it had hired consultants to help the Company pursue strategic alternatives, the stock price reacted by increasing by roughly 20%. As such, at this more aggressive valuation, we felt that we lost sufficient downside protection that we decided to exit our position in the company during the first quarter of 2013.

From RS Investment Management's first quarter 2013 letter.


Check out RS Investment Management latest stock trades

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52-Week Highs
Life Technologies Corp (LIFE) Reached the 52-Week High of $74.10 Read more...
RS Investment Management Comments on Life Technologies
Life Technologies (LIFE) is a global life sciences company that manufactures and sells instruments, consumables, and services used in life science research as well as in commercial applications. The Company sells a broad range of products including cell cultures, sample preparations, DNA analysis and forensic products. Life has more than 75,000 customers in 160 countries and provides integrated and complete solutions that address researchers' workflow. End markets for Life's products are academic/government organizations (~45% of revenue), pharmaceuticals and biotech (~30%), and applied markets (~25%), which include forensics, diagnostics, and water and food safety. Importantly, 80% of Life's revenue is recurring (i.e., consumables and services) with the other 20% related to instrument sales. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 28.10
LIFE's P/E(ttm) is ranked higher than
53% of the 92 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 25.50 vs. LIFE: 28.10 )
LIFE' s 10-Year P/E(ttm) Range
Min: 12.15   Max: 4847.5
Current: 28.1

12.15
4847.5
P/B 2.64
LIFE's P/B is ranked higher than
71% of the 155 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.68 vs. LIFE: 2.64 )
LIFE' s 10-Year P/B Range
Min: 0.58   Max: 2.71
Current: 2.64

0.58
2.71
P/S 3.47
LIFE's P/S is ranked higher than
53% of the 172 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.63 vs. LIFE: 3.47 )
LIFE' s 10-Year P/S Range
Min: 1.4   Max: 5.21
Current: 3.47

1.4
5.21
PFCF 19.50
LIFE's PFCF is ranked higher than
57% of the 80 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 20.36 vs. LIFE: 19.50 )
LIFE' s 10-Year PFCF Range
Min: 8.06   Max: 31.45
Current: 19.5

8.06
31.45
EV-to-EBIT 21.96
LIFE's EV-to-EBIT is ranked higher than
50% of the 122 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 21.08 vs. LIFE: 21.96 )
LIFE' s 10-Year EV-to-EBIT Range
Min: 11   Max: 80.3
Current: 21.96

11
80.3
PEG 2.46
LIFE's PEG is ranked higher than
62% of the 52 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.56 vs. LIFE: 2.46 )
LIFE' s 10-Year PEG Range
Min: 0.62   Max: 519.56
Current: 2.46

0.62
519.56
Shiller P/E 42.86
LIFE's Shiller P/E is ranked lower than
54% of the 52 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 34.50 vs. LIFE: 42.86 )
LIFE' s 10-Year Shiller P/E Range
Min: 30.45   Max: 3293.5
Current: 42.86

30.45
3293.5

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.20
LIFE's Price/DCF (Projected) is ranked higher than
80% of the 80 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.70 vs. LIFE: 1.20 )
LIFE' s 10-Year Price/DCF (Projected) Range
Min: 0.48   Max: 1.95
Current: 1.2

0.48
1.95
Price/Median PS Value 1.20
LIFE's Price/Median PS Value is ranked higher than
69% of the 159 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.10 vs. LIFE: 1.20 )
LIFE' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 5.46
Current: 1.2

0.5
5.46
Price/Peter Lynch Fair Value 2.70
LIFE's Price/Peter Lynch Fair Value is ranked higher than
56% of the 36 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.20 vs. LIFE: 2.70 )
LIFE' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.16   Max: 464
Current: 2.7

1.16
464
Earnings Yield (Greenblatt) 4.60
LIFE's Earnings Yield (Greenblatt) is ranked higher than
56% of the 120 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 4.70 vs. LIFE: 4.60 )
LIFE' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.2   Max: 9.1
Current: 4.6

1.2
9.1
Forward Rate of Return (Yacktman) 13.82
LIFE's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 138 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.42 vs. LIFE: 13.82 )
LIFE' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.3   Max: 48.9
Current: 13.82

0.3
48.9

Business Description

Industry: Medical Diagnostics & Research » Diagnostics & Research
Compare:LH, ALR, DGX, ENZ, IDXX » details
Traded in other countries:IVN.Germany
Life Technologies Corp began operations as a California partnership in 1987 and incorporated in California in 1989. In 1997, the Company reincorporated as a Delaware corporation. On November 21, 2008, Invitrogen Corporation, a predecessor company to Life Technologies, completed the acquisition of Applied Biosystems, Inc. to form a new company called Life Technologies Corporation. The Company is a global life sciences company dedicated to improving the human condition. The Company's systems, consumables and services enable researchers and commercial markets to accelerate scientific exploration, to discoveries and developments that better the quality of life. The Company's products are also used in forensics, food and water testing and other industrial applications. The Company delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its growing portfolio of products includes innovative technologies for capillary electrophoresis-based sequencing, next generation sequencing, PCR, sample preparation, cell culture, RNA interference analysis, functional genomics research, proteomics and cell biology applications, as well as clinical diagnostic applications, forensics and animal, food, pharmaceutical and water testing analysis. The Company also provides its customers convenient and value-added purchasing options through thousands of sales and service professionals, e-commerce capabilities and onsite supply center solutions. The Company operates is business under three divisions: Molecular Biology Systems ('MBS'), Cell Systems ('CS'), and Genetic Systems ('GS'). The MBS division includes the molecular biology-based technologies, including basic and real-time PCR, RNAi, DNA synthesis, sample prep, transfection, cloning and protein expression profiling, protein analysis and thermo-cycler instrumentation. The CS division includes all product lines used in the study of cell function, including cell culture media and sera, stem cells and related tools, cellular imaging products, antibodies, drug discovery services and cell therapy related products. The GS division includes capillary electrophoresis systems and reagents and next generation sequencing systems and reagents, including the SOLiDTM and Ion TorrentTM systems, as well as reagent kits developed specifically for applied markets, such as forensics and food safety, animal health and pharmaceutical quality monitoring. The Company offers many different products and services and is continually developing and/or acquiring others. Some of its specific product categories include the following: 'High-throughput' gene cloning and expression technology; Pre-cast electrophoresis products; Antibodies; Magnetic beads; Molecular Probes fluorescence-based technologies; Transfection reagents; PCR and Real Time PCR systems and reagents; and RNA Interference reagents. The Company's manufacturing operations require a variety of raw materials, elec

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