Azenta (NasdaqGS:AZTA) - Share price, News & Analysis

AZTA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

AZTA Stock Overview

Azenta, Inc. provides life science sample exploration and management solutions for the life sciences market in North America, Europe, China, the Asia Pacific, and internationally.

Rewards

Trading at 31.3% below our estimate of its fair value

Revenue is forecast to grow 20.06% per year

Risk Analysis

Earnings are forecast to decline by an average of 103.2% per year for the next 3 years

Azenta Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Azenta
Historical stock prices
Current Share Price	US$74.29
52 Week High	US$124.79
52 Week Low	US$61.35
Beta	1.66
1 Month Change	1.38%
3 Month Change	-12.91%
1 Year Change	-21.19%
3 Year Change	91.72%
5 Year Change	242.51%
Change since IPO	642.90%

Shareholder Returns

	AZTA	US Life Sciences	US Market
7D	8.2%	8.4%	6.6%
1Y	-21.2%	-15.9%	-18.4%

Return vs Industry: AZTA underperformed the US Life Sciences industry which returned -15.9% over the past year.

Return vs Market: AZTA underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is AZTA's price volatile compared to industry and market?
AZTA volatility
AZTA Average Weekly Movement	7.3%
Life Sciences Industry Average Movement	11.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: AZTA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AZTA's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1978	2,900	Steve Schwartz	https://www.azenta.com

Azenta, Inc. provides life science sample exploration and management solutions for the life sciences market in North America, Europe, China, the Asia Pacific, and internationally. The company operates through two reportable segments, Life Sciences Products and Life Sciences Services. The Life Sciences Products segment offers automated cold sample management systems for compound and biological sample storage; equipment for sample preparation and handling; consumables; and instruments that help customers in managing samples throughout their research discovery and development workflows.

Azenta Fundamentals Summary

How do Azenta's earnings and revenue compare to its market cap?
AZTA fundamental statistics
Market Cap	US$5.53b
Earnings (TTM)	-US$23.20m
Revenue (TTM)	US$551.22m

10.0x

P/S Ratio

-238.4x

P/E Ratio

Is AZTA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AZTA income statement (TTM)
Revenue	US$551.22m
Cost of Revenue	US$284.78m
Gross Profit	US$266.44m
Other Expenses	US$289.64m
Earnings	-US$23.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.31
Gross Margin	48.34%
Net Profit Margin	-4.21%
Debt/Equity Ratio	0%

How did AZTA perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

-64%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales 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 AZTA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AZTA. This is calculated by dividing AZTA's market cap by their current preferred multiple.
What is AZTA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.53b

AZTA 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	4.7x
Enterprise Value/EBITDA	38.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does AZTA's PS Ratio compare to its peers?

AZTA PS Ratio vs Peers

The above table shows the PS ratio for AZTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	4.1x

Forward PS

Price-To-Sales vs Peers: AZTA is expensive based on its Price-To-Sales Ratio (10x) compared to the peer average (4.1x).

Price to Earnings Ratio vs Industry

How does AZTA's PE Ratio compare vs other companies in the U.S. Life Sciences Industry?

Price-To-Sales vs Industry: AZTA is expensive based on its Price-To-Sales Ratio (10x) compared to the US Life Sciences industry average (5.2x)

Price to Sales Ratio vs Fair Ratio

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

AZTA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	10x
Fair PS Ratio	5.4x

Price-To-Sales vs Fair Ratio: AZTA is expensive based on its Price-To-Sales Ratio (10x) compared to the estimated Fair Price-To-Sales Ratio (5.4x).

Share Price vs Fair Value

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

Below Fair Value: AZTA ($74.29) is trading below our estimate of fair value ($108.06)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AZTA's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Azenta forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

-103.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZTA's earnings are forecast to decline over the next 3 years (-103.2% per year).

Earnings vs Market: AZTA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AZTA is expected to become profitable in the next 3 years.

Revenue vs Market: AZTA's revenue (20.1% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: AZTA's revenue (20.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AZTA's Return on Equity is forecast to be low in 3 years time (2.2%).

Discover growth companies

Past Performance

How has Azenta performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-50.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AZTA is currently unprofitable.

Growing Profit Margin: AZTA is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: AZTA is unprofitable, and losses have increased over the past 5 years at a rate of 50.6% per year.

Accelerating Growth: Unable to compare AZTA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AZTA is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (21%).

Return on Equity

High ROE: AZTA has a negative Return on Equity (-0.67%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Azenta's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AZTA's short term assets ($3.0B) exceed its short term liabilities ($618.0M).

Long Term Liabilities: AZTA's short term assets ($3.0B) exceed its long term liabilities ($76.1M).

Debt to Equity History and Analysis

Debt Level: AZTA is debt free.

Reducing Debt: AZTA had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AZTA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AZTA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Discover healthy companies

Dividend

What is Azenta 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

0.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AZTA's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: AZTA's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: AZTA is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: AZTA is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

7.9yrs

Average management tenure

CEO

Steve Schwartz (62 yo)

11.67yrs

Tenure

US$5,290,656

Compensation

Dr. Stephen S. Schwartz, also known as Steve, is a Director Azenta US, Inc. He is President and Chief Executive Officer at Azenta US, Inc. He has been Chief Executive Officer of Azenta, Inc. (formerly know...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD5.29M) is below average for companies of similar size in the US market ($USD8.44M).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: AZTA's management team is seasoned and experienced (7.9 years average tenure).

Board Members

Experienced Board: AZTA's board of directors are seasoned and experienced ( 11 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: AZTA insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30