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74.21 (1y: +69%)
Market Cap 12.78 B P/E(ttm) 31.50
Enterprise Value 15.03 B P/B 2.70
LIFE- NAS (USA)
Life Technologies Corp
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$74.21
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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 : 5/10

vs
industry		 vs
history
Cash to Debt 0.103
LIFE's Cash to Debt is ranked lower than
57% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 4.95 vs. LIFE: 0.103 )
LIFE' s 10-Year Cash to Debt Range
Min: 0.09   Max: 148.86
Current: 0.1
0.09
148.86
Equity to Asset 0.539
LIFE's Equity to Asset is ranked higher than
56% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.62 vs. LIFE: 0.539 )
LIFE' s 10-Year Equity to Asset Range
Min: 0.38   Max: 0.93
Current: 0.54
0.38
0.93
Interest Coverage 5.5
LIFE's Interest Coverage is ranked higher than
63% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 5.60 vs. LIFE: 5.5 )
LIFE' s 10-Year Interest Coverage Range
Min: 2   Max: 29720
Current: 5.5
2
29720
F-Score: 6
Z-Score: 2.92
M-Score: -2.59
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 : 8/10

vs
industry		 vs
history
Operating margin (%) 17.50
LIFE's Operating margin (%) is ranked higher than
90% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 17.50 )
LIFE' s 10-Year Operating margin (%) Range
Min: -23.9   Max: 18.9
Current: 17.5
-23.9
18.9
Net-margin (%) 11.3
LIFE's Net-margin (%) is ranked higher than
90% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 11.3 )
LIFE' s 10-Year Net-margin (%) Range
Min: -23.5   Max: 11.3
Current: 11.3
-23.5
11.3
ROE (%) 9.3
LIFE's ROE (%) is ranked higher than
81% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 9.3 )
LIFE' s 10-Year ROE (%) Range
Min: -11.7   Max: 9.3
Current: 9.3
-11.7
9.3
ROA (%) 5
LIFE's ROA (%) is ranked higher than
78% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 5 )
LIFE' s 10-Year ROA (%) Range
Min: -6   Max: 5
Current: 5
-6
5
ROC (Joel Greenblatt) (%) 48.60
LIFE's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 48.60 )
LIFE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -65.8   Max: 63.7
Current: 48.6
-65.8
63.7
Revenue Growth (%) 4
LIFE's Revenue Growth (%) is ranked higher than
80% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 4 )
LIFE' s 10-Year Revenue Growth (%) Range
Min: 4   Max: 34.9
Current: 4
4
34.9
EBITDA Growth (%) 5.2
LIFE's EBITDA Growth (%) is ranked higher than
87% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 5.2 )
LIFE' s 10-Year EBITDA Growth (%) Range
Min: -73.8   Max: 372.4
Current: 5.2
-73.8
372.4
EPS Growth (%) 31.6
LIFE's EPS Growth (%) is ranked higher than
99% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 31.6 )
LIFE' s 10-Year EPS Growth (%) Range
Min: -28.8   Max: 61.7
Current: 31.6
-28.8
61.7
» LIFE's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

LIFE Guru Trades in Q2 2012

Paul Tudor Jones 9,300 sh (New)
Zeke Ashton 55,000 sh (New)
Jeremy Grantham 6,400 sh (New)
Diamond Hill Capital 86,940 sh (+8.03%)
Robert Olstein 207,000 sh (+2.99%)
John Paulson 4,977,792 sh (unchged)
George Soros 51,831 sh (unchged)
PRIMECAP Management 14,869,870 sh (-0.03%)
Larry Robbins 11,705,472 sh (-0.43%)
Mario Gabelli 42,696 sh (-2.73%)
First Pacific Advisors 923,398 sh (-6.86%)
RS Investment Management 2,105,280 sh (-11.07%)
Murray Stahl 24,000 sh (-11.11%)
Joel Greenblatt 12,519 sh (-12.11%)
John Hussman 1,000,000 sh (-48.8%)
Ray Dalio 49,956 sh (-71.75%)
Steven Cohen 10,527 sh (-91.46%)
» More
Q3 2012

LIFE Guru Trades in Q3 2012

Ronald Muhlenkamp 218,140 sh (New)
John Rogers 1,488,160 sh (New)
John Paulson 13,513,800 sh (+171.48%)
Steven Cohen 23,228 sh (+120.65%)
Joel Greenblatt 26,136 sh (+108.77%)
Ray Dalio 67,312 sh (+34.74%)
Jeremy Grantham 6,600 sh (+3.13%)
Diamond Hill Capital 87,869 sh (+1.07%)
Murray Stahl 24,000 sh (unchged)
First Pacific Advisors 923,398 sh (unchged)
Paul Tudor Jones Sold Out
John Hussman Sold Out
Zeke Ashton Sold Out
George Soros Sold Out
PRIMECAP Management 14,829,254 sh (-0.27%)
Larry Robbins 11,444,515 sh (-2.23%)
Mario Gabelli 40,996 sh (-3.98%)
Robert Olstein 175,000 sh (-15.46%)
RS Investment Management 1,670,893 sh (-20.63%)
» More
Q4 2012

LIFE Guru Trades in Q4 2012

Paul Tudor Jones 6,800 sh (New)
Chuck Royce 33,000 sh (New)
Meridian Funds 380,400 sh (New)
Scott Black 8,275 sh (New)
Bruce Kovner 71,000 sh (New)
Ray Dalio 144,088 sh (+114.06%)
John Rogers 1,878,931 sh (+26.26%)
Diamond Hill Capital 93,314 sh (+6.2%)
John Paulson 14,000,000 sh (+3.6%)
Murray Stahl 24,000 sh (unchged)
Larry Robbins 350,000 sh (unchged)
PRIMECAP Management 14,793,545 sh (-0.24%)
Ronald Muhlenkamp 216,000 sh (-0.98%)
Larry Robbins 11,195,648 sh (-2.17%)
Mario Gabelli 39,896 sh (-2.68%)
First Pacific Advisors 876,398 sh (-5.09%)
Robert Olstein 161,000 sh (-8%)
Joel Greenblatt 21,461 sh (-17.89%)
RS Investment Management 1,185,197 sh (-29.07%)
Steven Cohen 8,632 sh (-62.84%)
» More
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)
Bruce Kovner Sold Out
RS Investment Management Sold Out
Chuck Royce 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
» Details

Insider Trades

Latest Guru Trades with LIFE

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ronald Muhlenkamp 2013-03-31 Reduce -76.85%1.77%$49.03 - $65.27 $ 74.2124%50000
John Paulson 2013-03-31 Add 5.53%0.28%$49.03 - $65.27 $ 74.2124%14773700
Ray Dalio 2013-03-31 Reduce -83.06%0.06%$49.03 - $65.27 $ 74.2124%24408
Joel Greenblatt 2013-03-31 Reduce -24.55%0.01%$49.03 - $65.27 $ 74.2124%16192
Meridian Funds 2012-12-31 New Buy0.73%$46.39 - $51.79 $ 74.2151%380400
John Paulson 2012-12-31 Add 3.6%0.15%$46.39 - $51.79 $ 74.2151%14000000
Scott Black 2012-12-31 New Buy0.06%$46.39 - $51.79 $ 74.2151%8275
Ray Dalio 2012-12-31 Add 114.06%0.04%$46.39 - $51.79 $ 74.2151%144088
John Paulson 2012-09-30 Add 171.48%3.41%$41.26 - $49.7 $ 74.2162%13513800
Ronald Muhlenkamp 2012-09-30 New Buy2.3%$41.26 - $49.7 $ 74.2162%218140
John Hussman 2012-09-30 Sold Out 0.85%$41.26 - $49.7 $ 74.2162%0
Joel Greenblatt 2012-09-30 Add 108.77%0.04%$41.26 - $49.7 $ 74.2162%26136
George Soros 2012-09-30 Sold Out 0.03%$41.26 - $49.7 $ 74.2162%0
Ray Dalio 2012-09-30 Add 34.74%0.01%$41.26 - $49.7 $ 74.2162%67312
John Hussman 2012-06-30 Reduce -48.8%0.88%$40.25 - $48.69 $ 74.2168%1000000
Ray Dalio 2012-06-30 Reduce -71.75%0.09%$40.25 - $48.69 $ 74.2168%49956
Premium More recent guru trades are included for Premium Members only!!
» Financial Charts

Peter Lynch Chart

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

Top Ranked Articles about Life Technologies Corp

52-Week Highs
June 3, 2013
Life Technologies Corp (LIFE) Reached the 52-Week High of $74.10 Read more...
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. Read more...
Three Gurus Hold a Major Stake in LIFE
March 26, 2013
For the past few months, Life Technologies Corporation (LIFE), the global biotechnology company that makes DNA-sequencing equipment, laboratory instruments and lab testing products, is still in discussions with potential buyers. The company has over 50,0000 products and 5,000 patents used in cellular testing and research, forensics, food and water safety, animal health, clinical testing and numerous other applications in research science, applied science, and medical science. In its gene-sequencing sector, Life Technologies Corp. competes with Illumina Inc. (ILMN). Both California-based companies use technology that can “blueprint” a human being’s DNA for medical purposes in the emerging field of molecular diagnostics. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 31.50
LIFE's P/E(ttm) is ranked higher than
54% of the 85 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 21.70 vs. LIFE: 31.50 )
LIFE' s 10-Year P/E(ttm) Range
Min: 12.15   Max: 2092.2
Current: 31.5
12.15
2092.2
P/B 2.70
LIFE's P/B is ranked higher than
71% of the 147 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.42 vs. LIFE: 2.70 )
LIFE' s 10-Year P/B Range
Min: 0.78   Max: 14.84
Current: 2.7
0.78
14.84
P/S 3.40
LIFE's P/S is ranked higher than
63% of the 161 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.59 vs. LIFE: 3.40 )
LIFE' s 10-Year P/S Range
Min: 1.4   Max: 27.27
Current: 3.4
1.4
27.27
PFCF 19.70
LIFE's PFCF is ranked higher than
69% of the 90 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 21.66 vs. LIFE: 19.70 )
LIFE' s 10-Year PFCF Range
Min: 8.06   Max: 269.62
Current: 19.7
8.06
269.62
EV-to-EBIT 23.3
LIFE's EV-to-EBIT is ranked higher than
55% of the 93 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 16.29 vs. LIFE: 23.3 )
LIFE' s 10-Year EV-to-EBIT Range
Min: 11   Max: 182.6
Current: 23.3
11
182.6
PEG 1.8
LIFE's PEG is ranked higher than
76% of the 34 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.18 vs. LIFE: 1.8 )
LIFE' s 10-Year PEG Range
Min: 0.35   Max: 2.14
Current: 1.8
0.35
2.14
Shiller P/E 45.9
LIFE's Shiller P/E is ranked lower than
100% of the Companies
in the Global Diagnostics & Research industry.

( Industry Median: vs. LIFE: 45.9 )
LIFE' s 10-Year Shiller P/E Range
Min: 31.24   Max: 1045.25
Current: 45.9
31.24
1045.25

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 18
LIFE's Price/Net Current Asset Value is ranked higher than
53% of the 131 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 18.30 vs. LIFE: 18 )
LIFE' s 10-Year Price/Net Current Asset Value Range
Min: 4.1   Max: 31
Current: 18
4.1
31
Price/DCF (Projected) 1.2
LIFE's Price/DCF (Projected) is ranked higher than
72% of the 61 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.40 vs. LIFE: 1.2 )
LIFE' s 10-Year Price/DCF (Projected) Range
Min: 0.7   Max: 2.5
Current: 1.2
0.7
2.5
Price/Median PS Value 1.2
LIFE's Price/Median PS Value is ranked lower than
51% of the 144 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.00 vs. LIFE: 1.2 )
LIFE' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 4.1
Current: 1.2
0.5
4.1
Price/Peter Lynch Fair Value 2.1
LIFE's Price/Peter Lynch Fair Value is ranked higher than
62% of the 24 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.10 vs. LIFE: 2.1 )
LIFE' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.8   Max: 5.5
Current: 2.1
0.8
5.5
Earnings Yield (Greenblatt) 4.30
LIFE's Earnings Yield (Greenblatt) is ranked higher than
75% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.00 vs. LIFE: 4.30 )
LIFE' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.5   Max: 9.1
Current: 4.3
0.5
9.1
Forward Rate of Return (Yacktman) 18.22
LIFE's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 178 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LIFE: 18.22 )
LIFE' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.4   Max: 61.9
Current: 18.22
0.4
61.9

Business Description

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. Life Technologies Corporation is a global biotechnology tools 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 variet
Company Website
SEC Reports
Industry: Diagnostics & Research
Compare:LH, ALR, DGX, ENZ, IDXX
Traded in other countries:IVN.Germany
» More Articles for LIFE

Headlines

Articles On GuruFocus.com
52-Week Highs Jun 03 2013 
RS Investment Management Comments on Life Technologies May 28 2013 
RS Value Fund First Quarter 2013 Mutual Fund Commentary May 28 2013 
Three Gurus Hold a Major Stake in LIFE Mar 26 2013 
Why Is Life (LIFE) Cheap? Mar 18 2013 
Quick Rise, Sharp Pullback- That’s LIFE Feb 24 2013 
Delphi Management's Scott Black Releases Fourth Quarter New Stocks Jan 31 2013 
John Rogers' Ariel Fund Q3 Commentary Oct 25 2012 
Good growth - buy<$3 May 25 2012 
Larry Robbins' Top Conviction Picks - 'In Glenview, we like health care and industrial solid compani Jan 31 2012 


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