Bio-Techne Corp (TECH, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance and promising growth prospects. With a current share price of $72.97, the company has experienced a significant daily gain of 15.44%, and an impressive three-month growth of 8.25%. A detailed analysis, supported by the GF Score, indicates that Bio-Techne Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key dimensions: financial strength, profitability, growth, GF Value, and momentum. These dimensions are proven indicators of a stock's long-term performance, with higher scores typically forecasting higher returns. Bio-Techne Corp boasts an impressive GF Score of 95 out of 100, suggesting a strong potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 10/10
- Momentum rank: 7/10
Understanding Bio-Techne Corp's Business
Bio-Techne Corp, headquartered in Minnesota, is a prominent player in the life sciences sector, providing essential consumables and instruments primarily to the pharmaceutical, biotechnology, academic, and diagnostic markets. The company operates through two main segments: protein sciences and diagnostics and genomics. The protein sciences segment, which accounts for 75% of its revenue, focuses on the production of equipment and consumables for protein analysis and research. The diagnostics segment contributes the remaining 25% of revenue, offering critical diagnostic assays and products. With a market cap of $11.47 billion and annual sales of $1.145 billion, Bio-Techne Corp maintains a strong presence in the U.S., which constitutes about 55% of its revenue, with significant operations in EMEA, the U.K., and APAC.
Financial Strength and Profitability
Bio-Techne Corp's financial robustness is reflected in its Interest Coverage ratio of 18.24, significantly above the benchmark set by investing legend Benjamin Graham. The company's Altman Z-Score of 9.36 further underscores its financial stability, indicating a low probability of financial distress. Additionally, a Debt-to-Revenue ratio of 0.49 showcases prudent debt management.
The company's profitability is equally impressive, with an Operating Margin that has consistently improved over the past five years, reaching 25.60% in 2023. This trend is supported by a strong Gross Margin of 67.72% in the same year, highlighting Bio-Techne Corp's efficiency in converting sales into profits.
Growth Trajectory
Bio-Techne Corp's commitment to growth is evident from its 3-Year Revenue Growth Rate of 14.4%, outperforming 65.73% of its peers in the biotechnology industry. The company's EBITDA has also seen a significant increase, with a five-year growth rate of 16.1, emphasizing its ongoing expansion and operational efficiency.
Conclusion
Considering Bio-Techne Corp's strong financial metrics, profitability, and growth indicators, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen available to GuruFocus Premium members.
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.
