NasdaqGS:TECH

Stock Analysis Report

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Executive Summary

Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells biotechnology reagents, instruments and services for the research and clinical diagnostic markets worldwide.


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

How has Bio-Techne's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TECH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

TECH

2.3%

US Life Sciences

2.3%

US Market


1 Year Return

30.1%

TECH

19.7%

US Life Sciences

6.7%

US Market

Return vs Industry: TECH exceeded the US Life Sciences industry which returned 19.7% over the past year.

Return vs Market: TECH exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

TECHIndustryMarket
7 Day1.2%2.3%2.3%
30 Day12.5%9.9%7.4%
90 Day41.4%21.5%17.9%
1 Year30.9%30.1%20.0%19.7%9.0%6.7%
3 Year141.7%136.4%85.7%84.5%36.6%27.7%
5 Year175.2%162.3%125.0%122.1%64.2%46.1%

Price Volatility Vs. Market

How volatile is Bio-Techne's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bio-Techne undervalued compared to its fair value and its price relative to the market?

55.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TECH ($272.4) is trading above our estimate of fair value ($167.34)

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


Price To Earnings Ratio

PE vs Industry: TECH is poor value based on its PE Ratio (55.6x) compared to the US Life Sciences industry average (36.1x).

PE vs Market: TECH is poor value based on its PE Ratio (55.6x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: TECH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TECH is overvalued based on its PB Ratio (8x) compared to the US Life Sciences industry average (5.8x).


Next Steps

Future Growth

How is Bio-Techne forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TECH's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: TECH's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: TECH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TECH's revenue (12.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: TECH's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TECH's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Bio-Techne performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TECH has a large one-off gain of $94.8M impacting its March 31 2020 financial results.

Growing Profit Margin: TECH's current net profit margins (24.8%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: TECH's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: TECH's earnings growth over the past year (54.4%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: TECH earnings growth over the past year (54.4%) exceeded the Life Sciences industry 9.7%.


Return on Equity

High ROE: TECH's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Bio-Techne's financial position?


Financial Position Analysis

Short Term Liabilities: TECH's short term assets ($491.9M) exceed its short term liabilities ($105.0M).

Long Term Liabilities: TECH's short term assets ($491.9M) do not cover its long term liabilities ($602.8M).


Debt to Equity History and Analysis

Debt Level: TECH's debt to equity ratio (34%) is considered satisfactory.

Reducing Debt: TECH's debt to equity ratio has increased from 18.7% to 34% over the past 5 years.

Debt Coverage: TECH's debt is well covered by operating cash flow (49.3%).

Interest Coverage: TECH's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Bio-Techne current dividend yield, its reliability and sustainability?

0.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TECH's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: TECH's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (4.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TECH is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Chuck Kummeth (60yo)

7.25yrs

Tenure

US$11,011,139

Compensation

Mr. Charles R. Kummeth, also known as Chuck, has been the Chief Executive Officer and President of Bio-Techne Corporation since April 1, 2013 and served as its Chief Financial Officer since January 2014. M ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD11.01M) is about average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Kummeth
CEO, President & Director7.25yrsUS$11.01m0.36% $37.7m
James Hippel
Senior VP of Finance & CFO6.25yrsUS$2.76m0.024% $2.5m
Brenda Furlow
Senior VP5.92yrsUS$1.44m0.011% $1.2m
N. Eansor
President of Protein Sciences Segment6yrsUS$2.32mno data
Kim Kelderman
President of Diagnostics & Genomics2.25yrsUS$1.57m0.0044% $454.0k
David Clair
Senior Director of Investor Relations & Corporate Developmentno datano datano data
Gerry Andros
Vice President of Sales and Marketingno datano datano data
Luca Cicchetti
Managing Director4yrsno datano data

6.0yrs

Average Tenure

59yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Charles Kummeth
CEO, President & Director7.25yrsUS$11.01m0.36% $37.7m
Robert Baumgartner
Independent Chairman of the Board7.67yrsUS$318.08k0.024% $2.5m
John Higgins
Independent Director11.17yrsUS$278.08k0.011% $1.1m
Joseph Keegan
Independent Director3.5yrsUS$253.08k0.0046% $475.8k
Harold Wiens
Independent Director6.17yrsUS$253.08k0.013% $1.3m
Randolph Steer
Independent Director30.5yrsUS$270.58k0.012% $1.3m
Roeland Nusse
Independent Director10.17yrsUS$268.08k0.032% $3.4m
John Denu
Member of Scientific Advisory Boardno datano datano data
Sachdev Sidhu
Member of Scientific Advisory Boardno datano datano data
David Artis
Member of Scientific Advisory Boardno datano datano data

7.7yrs

Average Tenure

66yo

Average Age

Experienced Board: TECH's board of directors are considered experienced (7.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Bio-Techne Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bio-Techne Corporation
  • Ticker: TECH
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$10.412b
  • Shares outstanding: 38.22m
  • Website: https://www.bio-techne.com

Number of Employees


Location

  • Bio-Techne Corporation
  • 614 McKinley Place NE
  • Minneapolis
  • Minnesota
  • 55413
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TECHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1989
TE1DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1989

Biography

Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells biotechnology reagents, instruments and services for the research and clinical diagnostic markets worldwide. The company operates through two segments, Protein Sciences, and Diagnostics and Genomics. The Protein Sciences segment offers proteins and reagent solutions, including cytokines and growth factors, antibodies, immunoassays, biologically active small molecule compounds, tissue culture reagents, and T-Cell activation technologies. This segment also provides manual and automated protein analysis instruments and immunoassays for use in quantifying proteins in various biological fluids. The Diagnostics and Genomics segment develops and manufactures diagnostic products, including Food and Drug Administration -regulated controls, calibrators, blood gas and clinical chemistry controls, and other reagents for original equipment manufacturers and clinical customers, as well as a portfolio of clinical molecular diagnostic oncology assays comprising the ExoDx Prostate test for prostate cancer diagnosis. This segment also manufactures and sells tissue-based in-situ hybridization assays for research and clinical use. Bio-Techne Corporation has partnership with Kantaro Biosciences to develop and scale production of COVID-19 serology test. The company was formerly known as Techne Corporation and changed its name to Bio-Techne Corporation in November 2014. Bio-Techne Corporation was founded in 1976 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 23:59
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.