_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Bruker Corporation (XNAS:BRKR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
BRKR
Name:
BRUKER CORPORATION (XNAS:BRKR)
Sector:
58.80M
Industry:
Medical Devices
CEO:
Dr. Frank Laukien
Total Employees:
7,765
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 57.49% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF BRUKER CORPORATION(BRKR) 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 ($) :
56.07
One Month Price Target:
$56.45
Six Month Price Target :
$58.37
Likely Price in One Year's Time:
Ticker:
$60.67
Likely Trading Range Today Under (Normal Volatility)
$55.86
Price Upper limit ($) :
$56.33
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$53.24
This week:
$49.73
This month :
$43.4
Other Primary facts
Market Cap:
8.20B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
148.14M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.85%
-15.14%
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:
$69.22
$63.18
$42.92
$48.96
Medium risk (<10%) entry points
Buy Call
Sell Call
$61.21
Buy Put:
Sell Put:
$59.92
$50.91
$52.22
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
BRKR
Sharpe Ratio:
1.62%
Comparison:
BRKR, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 7.07% higher than the industry
& is -28.85% lower than the market/S&P 500 average
Average Returns/Yield of
BRKR
Daily returns:
0.05%
Weekly returns:
0.25%
Monthly returns:
0.98%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is -23.21% below industry average
Classification:
BRKR, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.66
Statistical test of Returns:
BRKR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.48%
Weekly Volatility:
5.56%
Monthly Volatility:
11.11%
Yearly Volatility:
38.49%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.92%
Volatility in last five trading days has been -62.98% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.05%
Weekly VaR:
-11.30%
Monthly VaR:
-22.60%
How Much Can the price of
BRKR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-19%
Worst case (decline):
-78.28%
This translates to price declining to:
$45.18
This translates to price declining to:
$12.18
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
BRKR is a 59.49% riskier investment compared to the market/S&P 500 & is 36.64% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -20.87% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
BRKR
Beta in relation to market/S&P 500--1.22
Expected beta in 1 year's time:
0.973
Expected beta in 3 year's time:
1.377
Unlevered (debt free) Beta:
0.664
Beta in relation to Nasdaq (XNAS):
0.617
Beta in relation to all global stocks::
0.795
Beta Comparison & Analysis
Beta of competitors/peers::
1.259
Beta is -2.95% lower than peers
Average Industry Beta:
1.065
Beta is 14.71% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
24.52%
Sustainable growth rate is 88.29% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.003
Alpha is -94.38% below industry average alpha yield
Alpha is 18% compared to market & is healthy
Analysis of Cost of Capital of
BRKR
Equity cost of capital:
0.115
Equity cost of capital is 10.28% above industry mean WACC
Unlevered (without debt) cost of capital:
6.26%
Before-tax cost of debt:
0.28%
After-tax cost of debt:
0.22%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.22%
WACC is -1.47% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$16.59
Revenue growth rate per share of (3Y):
8.05
Annual revenue growth rate is -91.99% below industry average
EPS:
$1.85
Expected Annual growth rate of EPS (3Y):
12.54%
Expected future EPS growth rate is 8.25% higher than the Medical Devices industry
Free cash flow (FCF) per share:
$1.16
Balance sheet equity growth per share: -1.83%
Equity growth rate per share is 1292.40% higher than the industry
Debt per share
$8.14
EBITDA per share
$3.32
Valuation Analysis Today of
BRKR
P/E Ratio:
31.09
P/E Ratio of Competitors/Peers:
174.87
P/E ratio is -82.22% lower than main peers & is -87.23% lower than the industry
Stock price/value with industry average P/E ratio: $450.56
BRKR is -87.56% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $30.70
Present value of the expected future dividends only: $2.05
P/S (Price to Sales ratio):
3.38
Price to sales ratio is -63.70% below the industry mean
P/B (Price to book value ratio):
8.05
Price to free cash flow: 48.54
Price to free cash flow ratio is -19.47% lower than the industry
Net income growth rate (3Y):
57.02%
Net income growth rate is -41.30% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 2.66%
Dividend yeild: 0.32%
Previous Dividend: $0.05
Previous adjusted dividend: $0.05
Previous Dividend: $0.18
Expected next dividend best case: $0.05
Expected next dividend worst case: $0.05
Average dividend payment (long-term): $0.04
Average dividend increase/decrease (growth rate) % per period: 2.50%
Expected next dividend payment date: 15/09/2022
Expected next dividend record date: 30/08/2022
-
Previous dividend payment date: 17/06/2022
Previous dividend record date: 06/01/2022
-
Dividend History:
2022-05-31--$0.05
2021-11-30--$0.04
2021-05-28--$0.04
2022-02-28--$0.05
2021-08-31--$0.04
2021-03-04--$0.04
Dividend growth rate is 249.39% higher than the average industry
In-depth Debt & Leverage Analysis
Debt to equity ratio:
118.53%
Net debt to equity ratio:
39.36%
Debt to assets ratio:
33.95%
Net debt to assets ratio:
11.27%
Debt-to-asset ratio is -12.38% below industry average
Ability to repay debt:
Interest coverage ratio:
144.5
Interest coverage ratio is 983.27% more than industry average
Looking forward:
Debt growth rate:
54.10%
Annual debt growth is -78% lower than industry average debt growth rate
Debt repayment rate in last quarter: 8.10%
Analysis of Key Statistics
Correlation of price movement with the market:
0.508
Statistical significance of correlation:
BRKR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is 8.71% 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):
-0.012
Covariance of price movement with the market:
-0.017
Kurtosis
4.343
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.436
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
BRKR
Gross Profit Margin Ratio:
201%
Operating Profit Margin Ratio:
17.11%
Operating profit margin is -200.24% lower than the industry
Net Profit Margin Ratio:
201%
Effective Tax Rate:
29.18%
Effective tax rate is -46.87% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
27.73%
Return on equity (ROE) is -382.82% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.94%
Return on assets (ROA) is -335.58% lower than the industry
Financial Leverage:
1.5x
Current Ratio:
2.56
Current ratio is -60.46% below industry average
Cash Conversion Cycle (days):
71.3
Cash conversion cycle is 27.80% above industry average
The remaining useful life of property plant & equipment is: 2.6 years
Stock based compensation to net income ratio:
2.84%
In-depth Efficiency Analysis
Revenue generated per employee:
316.6K
Each employee generates -16% less revenue than industry average revenue per employee
EBITDA generated per employee:
63.3K
Each employee generates 911% more EBITDA than industry average revenue per employee
Profit generated per employee:
36.3K
Each employee generates -222% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
7.6K
Each employee generates -153% less free cash flow than industry average revenue per employee
Assets/Capital per employee
167.4K
Each employee generates -153% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 11.52%
Growth rate in R&D investment/expenditure is -8881.69% lower than the industry
Competitors/Peer firms of
BRKR
REPLIGEN CORPORATION (XNAS:RGEN)
HENRY SCHEIN, INC. (XNAS:HSIC)
XLRN
GOODRX HOLDINGS, INC. (XNAS:GDRX)
DENTSPLY SIRONA INC. (XNAS:XRAY)
NOVAVAX, INC. (XNAS:NVAX)
SYNEOS HEALTH, INC. (XNAS:SYNH)
EXACT SCIENCES CORPORATION (XNAS:EXAS)
UNITED THERAPEUTICS CORPORATION (XNAS:UTHR)
Current Analyst Ratings
Strong buy�8%
Buy�0%
Hold�42%
Sell�4%
Strong sell�4%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
2.46B
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:
1.22B
1.24B
222.60M
422.20M
575.50M
-
2.90M
801.00M
-
3.40M
88.50M
491.30M
420.70M
282.00M
402.30M
117.40M
282.00M
Statement of Cash Flow
Date:
Period:
21.70M
Differed Income Tax :
- 4000.00K
Stock Based Compensation :
8.00M
Change in Working Capital :
- 3800.00K
Accounts Receivables:
- 2400.00K
Other Working Capital:
47.10M
Other Non-Cash Items:
- 6200.00K
Net Cash Provided by Operating Activities:
77.80M
Investments in PP&E:
- 19000.00K
Net Acquisitions:
- 83800.00K
Purchases of Investments:
- 12000.00K
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
816.10M
100.00M
916.10M
413.80M
739.90M
181.00M
2.25B
403.80M
384.30M
227.50M
-
-
284.30M
1.30B
-
3.55B
161.20M
11.00M
-
214.70M
493.60M
880.50M
1.21B
433.50M
1.64B
-
2.52B
1.70M
-
- 17100.0K
1.03B
March 31, 2022 at 6:00:00 AM
2.02B
1.02B
3.54B
-
1.22B
400.3M
300.00K
12.70M
- 101800.00K
- 106200.00K
3.10M
- 105600.00K
- 7500.00K
- 1200.00K
- 217400.00K
- 10700.00K
- 252100.00K
819.60M
1.07B
77.80M
- 19000.00K
58.80M
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
BRKR
2023
2024
2025
2026
2027
$60.97
$157.03
$169.92
$183.86
$198.96