Bio-Techne Corp (TECH, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance and promising growth trajectory. Despite a slight daily loss of 0.49%, the company's stock price has increased by 14.7% over the past three months, currently standing at $76.92. This performance is underscored by the GF Score, which indicates that Bio-Techne Corp is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are crucial for evaluating a company's long-term performance and potential for returns. Bio-Techne Corp boasts an impressive GF Score of 92 out of 100, reflecting its high potential for outperformance. The company excels in profitability and growth, with scores of 9/10 in both categories, and shows strong financial strength and GF Value, scoring 8/10 and 7/10 respectively. However, its momentum rank is slightly lower at 5/10.
Understanding Bio-Techne Corp's Business
Bio-Techne Corp, headquartered in Minnesota, operates primarily in the life sciences sector, providing essential products for pharmaceutical, biotechnological, academic, and diagnostic applications. The company is divided into two main segments: protein sciences, which accounts for 75% of its revenue, and diagnostics and genomics, making up the remaining 25%. Bio-Techne's protein sciences segment offers equipment and consumables for protein analysis and sells research and clinical antibodies. The diagnostics segment delivers controls and calibrators to diagnostic manufacturers and has a range of oncology diagnostic assays. With a market cap of $12.09 billion and annual sales of $1.15 billion, Bio-Techne has a significant presence in the United States, which generates about 55% of its revenue, with additional operations in EMEA, the U.K., and APAC.
Financial Strength and Profitability
Bio-Techne Corp's financial robustness is evident through its impressive Interest Coverage ratio of 19.15 and an Altman Z-Score of 11.24, indicating low risk of financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.43. These metrics not only demonstrate Bio-Techne's financial health but also its efficiency in managing obligations and sustaining growth.
The company's profitability is equally impressive, with a consistent increase in Operating Margin over the past five years, reaching 25.60% in 2023. This growth in profitability, alongside a steady Gross Margin of 67.72% in 2023, underscores Bio-Techne's capability to convert revenue into profit effectively.
Growth Trajectory
Bio-Techne Corp's commitment to expansion is evident from its 3-Year Revenue Growth Rate of 14.4%, which surpasses 66.45% of its peers in the biotechnology industry. The company's EBITDA has also seen significant growth, with a three-year growth rate of 5.6 and a five-year rate of 16.1. These figures highlight Bio-Techne's ongoing efforts to enhance its market position and financial performance.
Conclusion
Considering Bio-Techne Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for solid investment opportunities may find Bio-Techne Corp an attractive option. For more insights into companies with strong GF Scores, consider exploring our GF Score Screen.
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.
