SWX:TECN

Stock Analysis Report

Executive Summary

Tecan Group Ltd. provides laboratory instruments and solutions for pharmaceutical and biotechnology companies, university research departments, and forensic and diagnostic laboratories.

Rewards

PE ratio (51.5x) is below the Life Sciences industry average (55.1x)

Earnings are forecast to grow 15.68% per year

Risk Analysis

No risks detected for TECN from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Tecan Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TECN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

TECN

1.2%

CH Life Sciences

-0.2%

CH Market


1 Year Return

27.8%

TECN

45.0%

CH Life Sciences

16.2%

CH Market

Return vs Industry: TECN underperformed the Swiss Life Sciences industry which returned 45% over the past year.

Return vs Market: TECN exceeded the Swiss Market which returned 16.2% over the past year.


Shareholder returns

TECNIndustryMarket
7 Day-3.0%1.2%-0.2%
30 Day1.3%6.2%1.7%
90 Day6.3%20.3%6.0%
1 Year29.0%27.8%46.4%45.0%21.8%16.2%
3 Year77.7%72.5%112.6%101.7%40.6%23.4%
5 Year168.5%154.5%251.4%225.3%44.9%21.9%

Price Volatility Vs. Market

How volatile is Tecan Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tecan Group undervalued compared to its fair value and its price relative to the market?

50.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TECN (CHF291.8) is trading above our estimate of fair value (CHF266.18)

Significantly Below Fair Value: TECN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TECN is good value based on its PE Ratio (51.5x) compared to the Life Sciences industry average (55.1x).

PE vs Market: TECN is poor value based on its PE Ratio (51.5x) compared to the Swiss market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: TECN is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: TECN is overvalued based on its PB Ratio (5.6x) compared to the XE Life Sciences industry average (4.5x).


Next Steps

Future Growth

How is Tecan Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECN's forecast earnings growth (15.7% per year) is above the savings rate (-0.6%).

Earnings vs Market: TECN's earnings (15.7% per year) are forecast to grow faster than the Swiss market (10.5% per year).

High Growth Earnings: TECN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TECN's revenue (7.7% per year) is forecast to grow faster than the Swiss market (3.3% per year).

High Growth Revenue: TECN's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TECN's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Tecan Group performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TECN has high quality earnings.

Growing Profit Margin: TECN's current net profit margins (10.8%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: TECN's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: TECN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TECN had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Life Sciences industry average (11.5%).


Return on Equity

High ROE: TECN's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tecan Group's financial position?


Financial Position Analysis

Short Term Liabilities: TECN's short term assets (CHF572.9M) exceed its short term liabilities (CHF160.7M).

Long Term Liabilities: TECN's short term assets (CHF572.9M) exceed its long term liabilities (CHF126.7M).


Debt to Equity History and Analysis

Debt Level: TECN's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: TECN's debt to equity ratio has reduced from 2.1% to 0.8% over the past 5 years.

Debt Coverage: TECN's debt is well covered by operating cash flow (1752.2%).

Interest Coverage: TECN's interest payments on its debt are well covered by EBIT (103.1x coverage).


Balance Sheet

Inventory Level: TECN has a high level of physical assets or inventory.

Debt Coverage by Assets: TECN's debt is covered by short term assets (assets are 111.2x debt).


Next Steps

Dividend

What is Tecan Group's current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.7%markettop25%3.4%industryaverage0.7%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: TECN's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.74%).

High Dividend: TECN's dividend (0.72%) is low compared to the top 25% of dividend payers in the Swiss market (3.38%).


Stability and Growth of Payments

Stable Dividend: TECN is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.

Growing Dividend: TECN is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TECN is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TECN's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Achim von Leoprechting (51yo)

0.8yrs

Tenure

0

Dr. Achim Von Leoprechting, Ph.D., has been Chief Executive Officer of Tecan Group Ltd., since April 1, 2019. He has been Head of the Partnering Business division at Tecan Group Ltd. since October 1, 2013  ...


Leadership Team

NamePositionTenureCompensationOwnership
Rudolf Eugster
Group CFO & Member of Management Board17.2yrsCHF1.20m0.094% CHF3.2m
Achim von Leoprechting
Head of the Partnering Business Division0.8yrsno data0.045% CHF1.5m
Andreas Wilhelm
Executive VP8.1yrsno data0.038% CHF1.3m
Markus Schmid
Executive VP9.1yrsno data0.038% CHF1.3m
Klaus Lun
Executive VP6.7yrsno data0.043% CHF1.4m
Ulrich Kanter
Executive VP5.6yrsno data0.044% CHF1.5m
Erik Norström
Head of Corporate Development2.2yrsno data0.011% CHF389.3k
Wael Yared
CTO, Executive VP0.5yrsno datano data
Martin Brändle
Vice President of Communications & Investor Relations5.1yrsno datano data
Wolfgang Deuringer
President of Sales International0yrsno datano data

5.6yrs

Average Tenure

51yo

Average Age

Experienced Management: TECN's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Marshak
Director1.8yrsCHF105.00kno data
Oliver Fetzer
Independent Director8.8yrsCHF141.00k0.021% CHF716.0k
Heinrich Fischer
Vice Chairman12.8yrsCHF171.00k0.14% CHF4.7m
Lars Holmqvist
Director4.8yrsCHF128.00k0.0074% CHF250.8k
Lukas Braunschweiler
Chairman1.8yrsCHF259.00kno data
Karen Huebscher
Independent Director7.8yrsCHF139.00kno data
Christa Kreuzburg
Independent Director6.8yrsCHF150.00k0.022% CHF745.0k

6.8yrs

Average Tenure

60yo

Average Age

Experienced Board: TECN's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tecan Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tecan Group Ltd.
  • Ticker: TECN
  • Exchange: SWX
  • Founded: 1980
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CHF3.403b
  • Shares outstanding: 11.87m
  • Website: https://www.tecan.com

Number of Employees


Location

  • Tecan Group Ltd.
  • Seestrasse 103
  • Männedorf
  • Zurich
  • 8708
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TENDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 1999
TECNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJun 1999
TCHB.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJun 1999
0QLNLSE (London Stock Exchange)YesRegistered SharesGBCHFJun 1999

Biography

Tecan Group Ltd. provides laboratory instruments and solutions for pharmaceutical and biotechnology companies, university research departments, and forensic and diagnostic laboratories. It operates through Life Sciences Business and Partnering Business segments. The company develops, produces, markets, and supports automated workflow solutions, including laboratory instruments, software packages, application knowhow, services, consumables, and spare parts for molecular diagnostics, tissue diagnostics, immunodiagnostics, and mass spectrometry diagnostics; and develops and manufactures original equipment manufacturer instruments and components. Its products include liquid handling and automation products, microplate readers and washers, software, consumables, immunoassays and antibodies, and microarray products. The company operates in Switzerland, the Americas, Other European countries, Asia, and internationally. Tecan Group Ltd. was founded in 1980 and is headquartered in Männedorf, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:05
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.