Bio-Techne Corp (TECH, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $79.84, Bio-Techne Corp has enjoyed a daily gain of 4.35%, and a notable three-month increase of 6.96%. A detailed analysis, supported by the GF Score, indicates that Bio-Techne Corp is poised for significant 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 representing the highest potential for outperformance. Bio-Techne Corp boasts a GF Score of 95, indicating a top-tier potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 9/10
- Momentum rank: 8/10
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 products ranging from diagnostic reagents to molecular diagnostics and spatial biology 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 Breakdown
Bio-Techne Corp's financial strength is evident in its robust balance sheet and prudent capital management. The company's Interest Coverage ratio stands at an impressive 15.44, significantly above the benchmark of 5 set by investment guru Benjamin Graham. Additionally, with an Altman Z-Score of 13.03, Bio-Techne Corp demonstrates strong financial stability and a low risk of distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.36.
Profitability and Growth Metrics
Bio-Techne Corp's profitability is highlighted by its impressive Operating Margin, which has shown consistent growth over the past five years. The company's Predictability Rank of 3.0 stars further underscores its stable operational performance. In terms of growth, Bio-Techne Corp has outperformed 56.7% of its peers in the biotechnology industry with a 3-Year Revenue Growth Rate of 7.8%. The company's EBITDA has also seen a steady increase, emphasizing its capacity for sustained growth.
Conclusion
Considering Bio-Techne Corp's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the 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.
