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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Bio-Rad Laboratories, Inc. (XNYS:BIO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
BIO
Name:
BIO-RAD LABORATORIES, INC. (XNYS:BIO)
Sector:
46.32M
Industry:
Medical Devices
CEO:
Mr. Norman Schwartz
Total Employees:
7,900
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -104.69% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF BIO-RAD LABORATORIES, INC.(BIO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL DEVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
478.32
One Month Price Target:
$480.97
Six Month Price Target :
$494.2
Likely Price in One Year's Time:
Ticker:
$510.07
Likely Trading Range Today Under (Normal Volatility)
$476.84
Price Upper limit ($) :
$480.47
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$456.68
This week:
$429.93
This month :
$381.54
Other Primary facts
Market Cap:
14.41B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
29.70M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
8.83%
-9.87%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$578.69
$532.31
$377.95
$424.33
Medium risk (<10%) entry points
Buy Call
Sell Call
$517.22
Buy Put:
Sell Put:
$507.32
$439.30
$449.32
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
BIO
Sharpe Ratio:
2.72%
Comparison:
BIO, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 79.59% higher than the industry
& ratio is 19.34% higher than the market/S&P 500 average
Average Returns/Yield of
BIO
Daily returns:
0.07%
Weekly returns:
0.35%
Monthly returns:
1.39%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is 8.92% above industry average
Classification:
BIO, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.07
Statistical test of Returns:
BIO has yielded a higher return than the market, the results are statistically significant
Volatility (measured by Standard Deviation)
Daily Volatility:
2.24%
Weekly Volatility:
5.00%
Monthly Volatility:
10.00%
Yearly Volatility:
34.66%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.96%
Volatility in last five trading days has been -57.24% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.52%
Weekly VaR:
-10.12%
Monthly VaR:
-20.23%
How Much Can the price of
BIO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-17%
Worst case (decline):
-70.09%
This translates to price declining to:
$396.56
This translates to price declining to:
$143.05
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
BIO is a 42.81% riskier investment compared to the market/S&P 500 & is 22.35% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -28.75% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
BIO
Beta in relation to market/S&P 500--0.99
Expected beta in 1 year's time:
0.696
Expected beta in 3 year's time:
0.984
Unlevered (debt free) Beta:
0.476
Beta in relation to Nasdaq (XNAS):
0.754
Beta in relation to all global stocks::
0.649
Beta Comparison & Analysis
Beta of competitors/peers::
0.973
Beta is 1.52% higher than peers
Average Industry Beta:
1.065
Beta is -7.23% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
25.91%
Sustainable growth rate is 98.95% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.068
Alpha is 38.62% above industry average alpha yield
Alpha is 434% higher than market/& is unsustainably high
Analysis of Cost of Capital of
BIO
Equity cost of capital:
0.099
Equity cost of capital is -5.05% below industry mean WACC
Unlevered (without debt) cost of capital:
4.78%
Before-tax cost of debt:
0.46%
After-tax cost of debt:
0.36%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.36%
WACC is 17.51% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$97.51
Revenue growth rate per share of (3Y):
1.39
Annual revenue growth rate is -92.51% below industry average
EPS:
-$4.88
Expected Annual growth rate of EPS (3Y):
33.61%
Expected future EPS growth rate is 190.24% higher than the Medical Devices industry
Free cash flow (FCF) per share:
$16.07
-
-
Debt per share
$40.30
EBITDA per share
$64.36
Valuation Analysis Today of
BIO
P/E Ratio:
2.48
P/E Ratio of Competitors/Peers:
28.03
P/E ratio is -91.15% lower than main peers & is -98.98% lower than the industry
-
BIO is -140.25% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
4.91
Price to sales ratio is -47.30% below the industry mean
P/B (Price to book value ratio):
1.39
Price to free cash flow: 29.77
-
Net income growth rate (3Y):
1063.96%
Net income growth rate is 995.44% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: -20449.94%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
11.75%
Net debt to equity ratio:
3.88%
Debt to assets ratio:
8.33%
Net debt to assets ratio:
2.75%
Debt-to-asset ratio is -78.51% below industry average
Ability to repay debt:
Interest coverage ratio:
347.46
Interest coverage ratio is 2504.77% more than industry average
Looking forward:
Debt growth rate:
-1.03%
Annual debt growth is -100% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.01%
Analysis of Key Statistics
Correlation of price movement with the market:
0.578
Statistical significance of correlation:
BIO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is 23.69% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.468
Correlation of price movement with Nasdaq (^IXIC):
-0.047
Covariance of price movement with the market:
-0.061
Kurtosis
2.147
Returns are more concentrated around the mean (platykurtic), compared to a normal distribution
Skewness of returns:
-0.02
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
BIO
Gross Profit Margin Ratio:
227%
Operating Profit Margin Ratio:
18.37%
Operating profit margin is -207.60% lower than the industry
Net Profit Margin Ratio:
227%
Effective Tax Rate:
-814.47%
Effective tax rate is -1582.90% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-0.99%
Return on equity (ROE) is -89.87% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-0.70%
Return on assets (ROA) is -79.13% lower than the industry
Financial Leverage:
1.1x
Current Ratio:
5.1
Current ratio is -21.18% below industry average
Cash Conversion Cycle (days):
52.7
Cash conversion cycle is -5.61% below industry average
The remaining useful life of property plant & equipment is: 0.7 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
366.6K
Each employee generates -3% less revenue than industry average revenue per employee
EBITDA generated per employee:
241.9K
Each employee generates 3767% more EBITDA than industry average revenue per employee
Profit generated per employee:
- 12.8K
Each employee generates -57% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
5.9K
Each employee generates -141% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.4M
Each employee generates -141% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 19.88%
Growth rate in R&D investment/expenditure is -15264.70% lower than the industry
Competitors/Peer firms of
BIO
Catalent, Inc. (XNYS:CTLT)
STERIS PUBLIC LIMITED COMPANY (XNYS:STE)
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (XNYS:CRL)
TELEFLEX INCORPORATED (XNYS:TFX)
SMITH & NEPHEW PLC (XNYS:SNN)
WATERS CORPORATION (XNYS:WAT)
QUEST DIAGNOSTICS INCORPORATED (XNYS:DGX)
CARDINAL HEALTH, INC. (XNYS:CAH)
THE COOPER COMPANIES, INC. (XNYS:COO)
Current Analyst Ratings
Strong buy�8%
Buy�8%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
2.90B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.25B
1.64B
260.29M
-
851.32M
-
-
1.11B
900.00K
5.50M
133.11M
1.91B
531.99M
- 101125.00K
- 230071.00K
1.87B
- 101125.00K
Statement of Cash Flow
Date:
Period:
32.01M
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
1.35B
Accounts Receivables:
-
Other Working Capital:
2.66B
Other Non-Cash Items:
2.04B
Net Cash Provided by Operating Activities:
46.32M
Investments in PP&E:
- 28899000.00K
Net Acquisitions:
-
Purchases of Investments:
- 960940.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
802.32M
1.28B
2.08B
464.11M
605.49M
154.78M
3.30B
684.20M
345.73M
247.14M
9.69B
-
103.93M
11.07B
-
14.37B
160.65M
504.00K
54.31M
-
487.18M
648.33M
1.20B
349.82M
3.54B
-
4.19B
2.00K
10.14B
- 307856.0K
45.29M
March 31, 2022 at 6:00:00 AM
2.36B
10.18B
14.37B
10.97B
1.20B
394.9M
77.88B
- 48929022.00K
- 911962.00K
- 104.00K
-
4.18B
- 20680000.00K
17.69B
1.19B
6.88M
331.52M
802.66M
471.13M
46.32M
- 28899000.00K
46.32M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
BIO
2023
2024
2025
2026
2027
$396.59
$422.91
$450.98
$480.92
$512.84