Bio-Techne Corp (TECH, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial position. Despite a daily loss of 1.21% and a three-month decline of 5.18%, the company's stock price stands at $72.89, reflecting significant interest. A detailed analysis, supported by the GF Score, indicates that Bio-Techne Corp is poised for substantial growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Bio-Techne Corp boasts a GF Score of 95, signaling significant growth potential.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding Bio-Techne Corp's Business
Bio-Techne Corp, headquartered in Minnesota, is a prominent life sciences manufacturer that serves the pharmaceutical, biotechnology, academic, and diagnostic markets. The company operates through two main segments: protein sciences and diagnostics and genomics. Protein sciences, which account for 75% of revenue, include reagents and instruments for research, such as antibodies for protein analysis. The diagnostics and genomics segment, making up 25% of revenue, offers diagnostic reagents and molecular diagnostics products. Bio-Techne Corp generates approximately 55% of its revenue from the United States, with additional operations in Europe, the Middle East, Africa, the UK, and the Asia-Pacific region.
Financial Strength and Stability
Bio-Techne Corp's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 15.44, showcasing its ability to comfortably cover interest expenses. Furthermore, with an Altman Z-Score of 12.62, Bio-Techne Corp demonstrates strong financial health and low risk of distress. The strategic management of its debt, reflected by a Debt-to-Revenue ratio of 0.36, further solidifies its financial stability.
Profitability and Growth Metrics
The Profitability Rank highlights Bio-Techne Corp's efficiency in generating profits, with an increasing Operating Margin over the past five years. The company's commitment to growth is also evident in its Growth Rank, with a 3-Year Revenue Growth Rate of 7.8%, outperforming 56.83% of its peers in the biotechnology industry. This is complemented by a consistent increase in EBITDA, highlighting its capability to expand and generate earnings.
Conclusion
Considering Bio-Techne Corp's impressive financial strength, profitability, and growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
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.
