Bio-Techne Corp (TECH, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $76.41, Bio-Techne Corp has witnessed a daily gain of 3.26%, marked against a three-month change of 2.26%. A thorough analysis, underlined by the GF Score, suggests that Bio-Techne Corp is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 10/10
- Momentum rank: 5/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in financial strength, profitability, and growth, and an exceptional GF Value rank, Bio-Techne Corp's slightly lower momentum rank does little to detract from its overall impressive GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Bio-Techne Corp Business
With a market cap of $12.08 billion and sales of $1.14 billion, Bio-Techne Corp operates at the forefront of the life sciences industry. Based in Minnesota, the company supplies consumables and instruments for the pharmaceutical, biotechnology, academic, and diagnostic markets. Bio-Techne Corp reports in two segments: protein sciences, which accounts for 75% of revenue, and diagnostics and genomics, making up the remaining 25%. The protein-focused segment manufactures equipment and consumables for protein characterization and analysis and sells antibodies for research and clinical purposes. In diagnostics, Bio-Techne Corp provides controls and calibrators for diagnostic manufacturers and has a portfolio of diagnostic oncology assays. Geographically, the United States is its largest market, contributing to about 55% of revenue, followed by operations in EMEA (20% of sales), the U.K. (5%), and APAC (15%), with the rest of the world accounting for the remaining 5%.
Financial Strength Breakdown
According to the Financial Strength rating, Bio-Techne Corp's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Bio-Techne Corp stands impressively at 23.59, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5. With an Altman Z-Score of 10.92, Bio-Techne Corp exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.48, Bio-Techne Corp's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Bio-Techne Corp's impressive standing among its peers in generating profit. The company's Operating Margin has increased over the past five years, with a current margin of 25.4%, reflecting its efficiency in managing expenses relative to revenue.
Growth Rank Breakdown
Ranked highly in Growth, Bio-Techne Corp demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 14.4%, which outperforms 59.82% of companies in the Biotechnology industry. Moreover, Bio-Techne Corp has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years, with a three-year growth rate of 5.6 and a five-year rate of 16.1. This trend accentuates the company's continued capability to drive growth.
Conclusion: A Strong Investment Prospect
Considering Bio-Techne Corp's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for companies with similar robust financials and growth prospects can explore more options using the GF Score Screen. As Bio-Techne Corp continues to innovate and expand, it remains a compelling choice for value investors seeking market outperformance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
