Bio-Techne Corp (TECH, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With its shares currently priced at $75.77, the company has experienced a daily gain of 0.61%, despite a three-month change of -8.45%. 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 indicating the highest potential for outperformance. Bio-Techne Corp boasts a GF Score of 95, signaling strong future performance potential.
- 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 supplies consumables and instruments primarily to the pharmaceutical, biotechnology, academic, and diagnostic markets. The company operates through two main segments: protein sciences and diagnostics and genomics. Protein sciences, which accounts for 75% of revenue, includes reagents and analytical instruments for life sciences research. The diagnostics and genomics segment, making up 25% of revenue, offers diagnostic reagents and molecular diagnostics products. Geographically, the United States represents about 55% of its revenue, with significant operations in Europe, the Middle East, Africa, the UK, and Asia-Pacific.
Financial Strength Breakdown
Bio-Techne Corp's financial robustness is evident in its impressive Interest Coverage ratio of 17.6, significantly surpassing the benchmark set by Benjamin Graham. Additionally, with an Altman Z-Score of 12.88, the company demonstrates a strong buffer against financial distress. Its strategic debt management is reflected in a Debt-to-Revenue ratio of 0.34, further solidifying its financial health.
Profitability and Growth Metrics
Bio-Techne Corp's Profitability Rank is outstanding, indicating its superior ability to generate profits compared to its peers. The company's consistent operational performance is highlighted by a Predictability Rank of 3.0 stars. In terms of growth, Bio-Techne Corp has demonstrated a commendable 3-Year Revenue Growth Rate of 7.8%, outperforming 56.67% of companies in the Biotechnology industry. This growth trajectory is supported by a strong increase in EBITDA over recent years.
Conclusion
Considering Bio-Techne Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using 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.
