Unveiling Bio-Techne Corp's Market Potential: A Comprehensive GF Score Analysis
Bio-Techne Corp (NASDAQ:TECH) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at 78.19, Bio-Techne Corp has witnessed a decline of 0.06% over a period, marked against a three-month change of -7.05%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that Bio-Techne Corp is well-positioned for substantial growth in the near future.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Here is a breakdown of Bio-Techne Corp's GF Score:
1. Financial strength rank: 8/10
2. Profitability rank: 9/10
3. Growth rank: 9/10
4. GF Value rank: 9/10
5. Momentum rank: 8/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in financial strength, profitability, and growth, and slightly lower ranks in GF value and momentum, GuruFocus assigned Bio-Techne Corp the GF Score of 95 out of 100, which signals the highest outperformance potential.
Understanding Bio-Techne Corp's Business
Based in Minnesota, Bio-Techne Corp is a life sciences manufacturer supplying consumables and instruments for the pharma, biotech, academic, and diagnostic markets. The company reports in two segments, protein sciences (75% of revenue), and diagnostics and genomics (25%). The protein-focused segment makes equipment and associated consumables for protein characterization and analysis and sells antibodies for research and clinical purposes. In diagnostics, Bio-Techne provides controls and calibrators for diagnostic manufacturers and has a portfolio of diagnostic oncology assays. The United States accounts for about 55% of revenue, and the firm also has operations in EMEA (20% of sales), the U.K. (5%), and APAC (15%), with the rest of the world accounting for the remaining 5%.
Financial Strength Breakdown
According to the Financial Strength rating, Bio-Techne Corp's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Bio-Techne Corp stands impressively at 39.79, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 12.08, Bio-Techne Corp exhibits a strong defense against financial distress. With a favorable Debt-to-Revenue ratio of 0.4, Bio-Techne Corp's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Bio-Techne Corp's impressive standing among its peers in generating profit. Bio-Techne Corp Operating Margin has increased over the past five years, as shown by the following data: 2019: 20.60; 2020: 20.15; 2021: 26.07; 2022: 26.76; 2023: 26.30; .
Growth Rank Breakdown
Ranked highly in Growth, Bio-Techne Corp demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 14.4%, which outperforms better than 60.39% of 765 companies in the Biotechnology industry. Moreover, Bio-Techne Corp has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 1.5, and the rate over the past five years is 14.1. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given Bio-Techne Corp's strong financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential outperformance. This analysis underscores the company's robust financial health and its potential to deliver substantial returns to investors. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
