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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Bio-Techne Corporation (XNAS:TECH) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
TECH
Name:
BIO-TECHNE CORPORATION (XNAS:TECH)
Sector:
42.36M
Industry:
Biotechnology
CEO:
Mr. Charles Kummeth
Total Employees:
3,000
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 12.26% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF BIO-TECHNE CORPORATION(TECH) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BIOTECHNOLOGY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
330.03
One Month Price Target:
$332.35
Six Month Price Target :
$343.97
Likely Price in One Year's Time:
Ticker:
$357.9
Likely Trading Range Today Under (Normal Volatility)
$329.01
Price Upper limit ($) :
$331.64
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$314.47
This week:
$295.23
This month :
$260.42
Other Primary facts
Market Cap:
12.90B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
39.21M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.01%
-10.27%
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:
$402.20
$368.73
$257.86
$291.33
Medium risk (<10%) entry points
Buy Call
Sell Call
$357.83
Buy Put:
Sell Put:
$350.69
$302.14
$309.37
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
TECH
Sharpe Ratio:
3.43%
Comparison:
TECH, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 76.49% higher than the industry
& ratio is 50.56% higher than the market/S&P 500 average
Average Returns/Yield of
TECH
Daily returns:
0.09%
Weekly returns:
0.45%
Monthly returns:
1.78%
Yearly returns:
25.22%
Comparison of returns:
Average annual returns/yield (last 3 years) is -15.18% below industry average
Classification:
TECH, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.33
Statistical test of Returns:
TECH has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.34%
Weekly Volatility:
5.23%
Monthly Volatility:
10.46%
Yearly Volatility:
36.25%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.51%
Volatility in last five trading days has been -78.25% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.72%
Weekly VaR:
-10.55%
Monthly VaR:
-21.09%
How Much Can the price of
TECH
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-73.06%
This translates to price declining to:
$271.86
This translates to price declining to:
$88.91
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
TECH is a 48.86% riskier investment compared to the market/S&P 500 & is 27.53% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -50.79% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
TECH
Beta in relation to market/S&P 500--1.26
Expected beta in 1 year's time:
0.82
Expected beta in 3 year's time:
1.159
Unlevered (debt free) Beta:
1.045
Beta in relation to Nasdaq (XNAS):
0.839
Beta in relation to all global stocks::
0.537
Beta Comparison & Analysis
Beta of competitors/peers::
0.845
Beta is 48.75% higher than peers
Average Industry Beta:
1.152
Beta is 9.11% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
9.94%
Sustainable growth rate is -81.04% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.096
Alpha is -32.06% below industry average alpha yield
Alpha is 613% higher than market/& is unsustainably high
Analysis of Cost of Capital of
TECH
Equity cost of capital:
0.118
Equity cost of capital is 6.51% above industry mean WACC
Unlevered (without debt) cost of capital:
9.78%
Before-tax cost of debt:
3.21%
After-tax cost of debt:
2.53%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.53%
WACC is 12.74% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$27.45
Revenue growth rate per share of (3Y):
7.86
Annual revenue growth rate is -93.01% below industry average
EPS:
$5.48
Expected Annual growth rate of EPS (3Y):
26.32%
Expected future EPS growth rate is 163.75% higher than the Biotechnology industry
Free cash flow (FCF) per share:
$7.55
Balance sheet equity growth per share: 0.04%
Equity growth rate per share is -101.24% lower than the industry
Debt per share
$9.00
EBITDA per share
$8.95
Valuation Analysis Today of
TECH
P/E Ratio:
49.85
P/E Ratio of Competitors/Peers:
102.8
P/E ratio is -51.51% lower than main peers & is -44.45% lower than the industry
Stock price/value with industry average P/E ratio: $491.71
TECH is -32.88% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $23.46
Present value of the expected future dividends only: $10.89
P/S (Price to Sales ratio):
12.02
Price to sales ratio is -70.32% below the industry mean
P/B (Price to book value ratio):
7.86
Price to free cash flow: 43.74
Price to free cash flow ratio is 39.33% higher than the industry
Net income growth rate (3Y):
7.65%
Net income growth rate is -89.16% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 5.54%
Dividend yeild: 0.39%
Previous Dividend: $0.32
Previous adjusted dividend: $0.32
Previous Dividend: $1.28
-
-
Average dividend payment (long-term): $0.32
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 25/08/2022
Expected next dividend record date: 15/08/2022
-
Previous dividend payment date: 27/05/2022
Previous dividend record date: 16/05/2022
-
Dividend History:
2022-05-13--$0.32
2021-11-10--$0.32
2021-05-14--$0.32
2022-02-10--$0.32
2021-08-13--$0.32
2021-02-11--$0.32
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
21.52%
Net debt to equity ratio:
11.04%
Debt to assets ratio:
15.54%
Net debt to assets ratio:
7.97%
Debt-to-asset ratio is -63.14% below industry average
Ability to repay debt:
Interest coverage ratio:
29.03
Interest coverage ratio is -124.53% less than industry average
Looking forward:
Debt growth rate:
14.82%
Annual debt growth is -89% lower than industry average debt growth rate
Debt repayment rate in last quarter: 12.66%
Analysis of Key Statistics
Correlation of price movement with the market:
0.585
Statistical significance of correlation:
TECH has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.34
Stock price is 72.10% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.34
Correlation of price movement with Nasdaq (^IXIC):
-0.032
Covariance of price movement with the market:
-0.043
Kurtosis
3.276
Returns are, approximately, normally distributed (mesokurtic)
Skewness of returns:
0.321
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
TECH
Gross Profit Margin Ratio:
272%
Operating Profit Margin Ratio:
26.44%
Operating profit margin is -106.17% lower than the industry
Net Profit Margin Ratio:
272%
Effective Tax Rate:
5.94%
Effective tax rate is 4.06% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
13.75%
Return on equity (ROE) is -123.99% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
9.93%
Return on assets (ROA) is -148.68% lower than the industry
Financial Leverage:
1.2x
Current Ratio:
4.06
Current ratio is -49.87% below industry average
Cash Conversion Cycle (days):
-11.6
Cash conversion cycle is -102.18% below industry average
The remaining useful life of property plant & equipment is: 7.0 years
Stock based compensation to net income ratio:
5.21%
In-depth Efficiency Analysis
Revenue generated per employee:
358.8K
Each employee generates -78% less revenue than industry average revenue per employee
EBITDA generated per employee:
117.0K
Each employee generates -70% less EBITDA than industry average revenue per employee
Profit generated per employee:
75.2K
Each employee generates -41% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
14.1K
Each employee generates -90% less free cash flow than industry average revenue per employee
Assets/Capital per employee
575.5K
Each employee generates -90% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 8.30%
Growth rate in R&D investment/expenditure is -331.35% lower than the industry
Competitors/Peer firms of
TECH
Grifols SA (XNAS:GRFS)
PPD
HOLOGIC, INC. (XNAS:HOLX)
VIATRIS INC. (XNAS:VTRS)
INSULET CORPORATION (XNAS:PODD)
ALNYLAM PHARMACEUTICALS, INC. (XNAS:ALNY)
DENTSPLY SIRONA INC. (XNAS:XRAY)
EXACT SCIENCES CORPORATION (XNAS:EXAS)
INCYTE CORPORATION (XNAS:INCY)
Current Analyst Ratings
Strong buy�17%
Buy�8%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.08B
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:
344.31M
732.09M
84.71M
-
327.75M
-
29.63M
442.10M
773.00K
12.10M
99.88M
351.08M
284.60M
225.49M
229.45M
13.62M
225.49M
Statement of Cash Flow
Date:
Period:
24.73M
Differed Income Tax :
5.41M
Stock Based Compensation :
11.74M
Change in Working Capital :
- 53524.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
- 9535.00K
Net Cash Provided by Operating Activities:
48.43M
Investments in PP&E:
- 6070.00K
Net Acquisitions:
-
Purchases of Investments:
- 13500.00K
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):
9/30/21
2022
Q1
196.32M
38.74M
235.06M
147.55M
117.37M
43.77M
543.75M
278.53M
840.02M
596.30M
-
-
11.59M
1.73B
-
2.27B
25.62M
24.50M
6.51M
19.12M
64.75M
133.99M
352.78M
37.65M
489.24M
-
623.23M
393.00K
1.12B
- 64216.0K
583.85M
September 30, 2021 at 6:00:00 AM
786.41M
1.64B
2.26B
-
377.28M
181.0M
12.45M
-
- 7120.00K
- 51125.00K
-
-
- 12493.00K
23.93M
- 39684.00K
- 4400.00K
- 2770.00K
196.32M
199.09M
48.43M
- 6070.00K
42.36M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
TECH
2023
2024
2025
2026
2027
$359.69
$529.06
$573.74
$622.19
$674.73