Tecan Group (SWX:TECN) - Share price, News & Analysis

Q: What is the Fair Price of TECN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TECN (CHF287.6) is trading below our estimate of [[fair value]] (CHF487.74)

TECN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

TECN Stock Overview

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

Rewards

Trading at 41% below our estimate of its fair value

Earnings are forecast to grow 13.04% per year

Earnings have grown 19% per year over the past 5 years

Risk Analysis

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Tecan Group Competitors

Bachem Holding

SWX:BANB

CHF5.4b

Siegfried Holding

SWX:SFZN

CHF2.7b

PolyPeptide Group

SWX:PPGN

CHF2.3b

SKAN Group

SWX:SKAN

CHF1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Tecan Group
Historical stock prices
Current Share Price	CHF287.60
52 Week High	CHF602.00
52 Week Low	CHF264.60
Beta	0.39
1 Month Change	-8.47%
3 Month Change	-23.18%
1 Year Change	-40.06%
3 Year Change	11.99%
5 Year Change	60.31%
Change since IPO	513.22%

Recent News & Updates

Jun 15

Should You Be Adding Tecan Group (VTX:TECN) To Your Watchlist Today?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

	TECN	CH Life Sciences	CH Market
7D	6.4%	4.9%	3.8%
1Y	-40.1%	-25.2%	-11.8%

Return vs Industry: TECN underperformed the Swiss Life Sciences industry which returned -24.7% over the past year.

Return vs Market: TECN underperformed the Swiss Market which returned -12.4% over the past year.

Price Volatility

Is TECN's price volatile compared to industry and market?
TECN volatility
TECN Average Weekly Movement	6.5%
Life Sciences Industry Average Movement	6.5%
Market Average Movement	4.6%
10% most volatile stocks in CH Market	7.6%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: TECN is more volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TECN's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Swiss stocks.

About the Company

Founded	Employees	CEO	Website
1980	3,291	Achim von Leoprechting	https://www.tecan.com

Tecan Group AG 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 offers liquid handling and automation, microplate readers and washers, consumables, NGS reagents, immunoassays and microbodies, and software; Tecan Laberwax, an automation solution; Resolvex, a smart sample preparation solution for use in genomics, synthetic biology, drug discovery, analytical chemistry, cell biology, protein science, applied markets, and ELISA solutions.

Tecan Group Fundamentals Summary

How do Tecan Group's earnings and revenue compare to its market cap?
TECN fundamental statistics
Market Cap	CHF3.66b
Earnings (TTM)	CHF121.66m
Revenue (TTM)	CHF946.62m

30.1x

P/E Ratio

3.9x

P/S Ratio

Is TECN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TECN income statement (TTM)
Revenue	CHF946.62m
Cost of Revenue	CHF538.05m
Gross Profit	CHF408.57m
Other Expenses	CHF286.91m
Earnings	CHF121.66m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)	9.56
Gross Margin	43.16%
Net Profit Margin	12.85%
Debt/Equity Ratio	20.4%

How did TECN perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

28%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TECN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TECN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TECN. This is calculated by dividing TECN's market cap by their current preferred multiple.
What is TECN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF3.66b

TECN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.9x
Enterprise Value/EBITDA	20.3x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does TECN's PE Ratio compare to its peers?

TECN PE Ratio vs Peers

The above table shows the PE ratio for TECN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	59x
BANB Bachem Holding	47.2x	16.5%	CHF5.4b
SFZN Siegfried Holding	28.3x	12.1%	CHF2.7b
PPGN PolyPeptide Group	47.6x	15.3%	CHF2.3b
SKAN SKAN Group	112.7x	24.1%	CHF1.2b
TECN Tecan Group	30.1x	13.0%	CHF3.7b

Forward PE

Price-To-Earnings vs Peers: TECN is good value based on its Price-To-Earnings Ratio (30.1x) compared to the peer average (59x).

Price to Earnings Ratio vs Industry

How does TECN's PE Ratio compare vs other companies in the European Life Sciences Industry?

Price-To-Earnings vs Industry: TECN is good value based on its Price-To-Earnings Ratio (30.1x) compared to the Swiss Life Sciences industry average (46.2x)

Price to Earnings Ratio vs Fair Ratio

What is TECN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TECN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.1x
Fair PE Ratio	35.3x

Price-To-Earnings vs Fair Ratio: TECN is good value based on its Price-To-Earnings Ratio (30.1x) compared to the estimated Fair Price-To-Earnings Ratio (35.3x).

Share Price vs Fair Value

What is the Fair Price of TECN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TECN (CHF287.6) is trading below our estimate of fair value (CHF487.74)

Significantly Below Fair Value: TECN is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: TECN is poor value based on its PEG Ratio (2.3x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECN's forecast earnings growth (13% per year) is above the savings rate (-0.3%).

Earnings vs Market: TECN's earnings (13% per year) are forecast to grow faster than the Swiss market (6.1% per year).

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

Revenue vs Market: TECN's revenue (8% per year) is forecast to grow faster than the Swiss market (4.2% per year).

High Growth Revenue: TECN's revenue (8% 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%).

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Past Performance

How has Tecan Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TECN has high quality earnings.

Growing Profit Margin: TECN's current net profit margins (12.9%) are lower than last year (14.2%).

Past Earnings Growth Analysis

Earnings Trend: TECN's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: TECN's earnings growth over the past year (17.3%) is below its 5-year average (19% per year).

Earnings vs Industry: TECN earnings growth over the past year (17.3%) underperformed the Life Sciences industry 50.8%.

Return on Equity

High ROE: TECN's Return on Equity (9.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Tecan Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TECN's short term assets (CHF671.9M) exceed its short term liabilities (CHF306.4M).

Long Term Liabilities: TECN's short term assets (CHF671.9M) exceed its long term liabilities (CHF464.9M).

Debt to Equity History and Analysis

Debt Level: TECN's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: TECN's debt to equity ratio has increased from 0.6% to 20.4% over the past 5 years.

Debt Coverage: TECN's debt is well covered by operating cash flow (67.9%).

Interest Coverage: TECN's interest payments on its debt are well covered by EBIT (35.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TECN's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.99%).

High Dividend: TECN's dividend (0.97%) is low compared to the top 25% of dividend payers in the Swiss market (4.14%).

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

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Management

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

6.0yrs

Average management tenure

CEO

Achim von Leoprechting (53 yo)

9.42yrs

Tenure

CHF3,141,000

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Achim's total compensation ($USD3.29M) is above average for companies of similar size in the Swiss market ($USD1.84M).

Compensation vs Earnings: Achim's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TECN's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: TECN's board of directors are considered experienced (9.2 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 been diluted in the past year, with total shares outstanding growing by 5.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31