Bruker (BRKR) AI Stock Analysis

• Market Cap: $6.10B
• Dividend Yield: 0.53%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 76.7
• Beta (1Y): 1.18
• Revenue Growth: 14.84%
• EPS Growth: -80.87%
• Country: US
• Employees: 11,396
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Devices
• EPS (TTM): 0.47
• Shares Outstanding: 151,531,800
• 10 Day Avg. Volume: 2,770,917
• 30 Day Avg. Volume: 2,762,221
• PEG Ratio: -0.80
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.81
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 4.70
• Enterprise Value/Ebitda: 3.60
• 1Y Price Target: $55.00
• Price Target Upside: 36.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Bruker's overall stock score reflects solid revenue growth and strategic initiatives, offset by challenges in profitability, high leverage, and valuation concerns. Technical indicators suggest bearish momentum, while earnings call insights provide a balanced outlook with significant challenges due to policy changes and tariffs. The valuation remains a concern due to a high P/E ratio and low dividend yield.

Positive Factors

Financial Performance

The company expects to deliver $795-$800M in revenue, which is well ahead of the Street's $758.4M estimate and BRKR's expectation implied in the guide.

Growth Potential

Management is confident in their ability to mitigate 50%+ of the gross impact on EBIT with potential upside from China, South Korea, Germany, and Europe defense stimulus and secular AI/ML tailwinds.

Market Position

BRKR is expected to emerge longer-term as a diversified life science tools company positioned across attractive markets in Spatial, Microbiology, and AI/MR.

Negative Factors

Earnings Guidance

FY25 organizational guidance was cut to 0-2% from 3-4% prior, with margins now guided flat and EPS expectations lowered.

Market Challenges

US Academic/Gov't customers are facing significant headwinds, with a majority of the $100M in gross revenue headwinds attributed to weakness in this market.

Policy Impact

Management expects a $100 million gross hit to FY25 revenues from US policy and funding changes, lower China stimulus, and temporary revenue impact from China tariffs.

Bruker Business Overview & Revenue Model

Company Description

Bruker Corporation develops, manufactures, and distributes scientific instruments, and analytical and diagnostic solutions in the United States and internationally. The company operates through three segments: Bruker Scientific Instruments (BSI) Life Science, BSI NANO, and Bruker Energy & Supercon Technologies. It offers life science tools, and single and multiple modality systems; life science mass spectrometry; MALDI Biotyper rapid pathogen identification platform and related test kits, DNA test strips, and fluorescence-based polymerase chain reaction technology; genotype and fluorotype molecular diagnostics kits; research, analytical, and process analysis instruments and solutions; SARS-CoV 2 testing for the diagnosis of COVID-19 infection; and Fluorotyper-SARS-CoV 2 plus kits. It also provides range of portable analytical and bioanalytical detection systems, and related products; X-ray instruments; analytical tools for electron microscopes, as well as handheld, portable, and mobile X-ray fluorescence spectrometry instruments; atomic force microscopy instrumentation; non-contact nanometer resolution solution topography; and automated X-ray metrology, automated AFM defect-detection, and photomask repair and cleaning equipment. In addition, the company offers advanced optical fluorescence microscopy instruments; products and services to support the multi-omics needs of researchers in translational research, drug, and biomarker discovery; superconducting materials, such as metallic low temperature superconductors; devices and complex tools based on metallic low temperature superconductors; and non-superconducting high technology tools, such as synchrotron and beamline instrumentation. Bruker Corporation has a collaboration with Newomics Inc. on a LC-MS platform for drug discovery. The company was incorporated in 1991 and is headquartered in Billerica, Massachusetts.

How the Company Makes Money

Bruker makes money through the sale of its scientific instruments and related services. The company's revenue streams are primarily derived from the BSI segment, which includes the sale of products such as mass spectrometers, X-ray systems, and nuclear magnetic resonance (NMR) instruments. These products are essential for research and development in various scientific fields, contributing significantly to Bruker's earnings. Additionally, the company offers after-sales services, including maintenance and support, which provide a steady source of recurring revenue. Strategic partnerships and collaborations with research institutions and industry leaders also play a critical role in enhancing Bruker's market presence and driving sales.

Bruker Financial Statement Overview

Summary

Bruker demonstrates strong revenue growth in the medical equipment sector, but faces challenges in profitability and leverage. While operational efficiency is notable, the falling net income and increased debt levels warrant attention. Effective cash management is crucial to maintain financial health amidst these fluctuations.

Income Statement

Bruker's income statement reveals robust revenue growth, with a TTM (Trailing-Twelve-Months) increase from $2.96 billion to $3.37 billion, reflecting a 13.55% growth rate. Despite this, the net profit margin has decreased significantly from 14.41% in 2023 to 3.36% in TTM, primarily due to a decline in net income. Gross profit margin remains strong at 49.00%, indicating efficient production, but the drop in EBIT and EBITDA margins suggests rising operational expenses.

Balance Sheet

The balance sheet indicates moderate stability, with a debt-to-equity ratio rising to 1.17, suggesting increased leverage. However, the equity ratio has improved slightly to 30.93%, indicating a decent portion of assets financed by equity. Return on equity fell to 6.29%, reflecting pressure on profitability. The company maintains a solid asset base but should be cautious of increasing debt levels.

Cash Flow

Bruker's cash flow statement shows a decline in free cash flow from $243.2 million in 2023 to $133.8 million in TTM, marking a 44.99% decrease. The operating cash flow to net income ratio remains strong at 2.22, suggesting effective cash generation relative to profits. However, the drop in free cash flow indicates potential challenges in liquidity management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.37B	2.96B	2.53B	2.42B	1.99B
	Gross Profit
1.65B	1.51B	1.31B	1.21B	939.80M
	EBIT
253.10M	436.90M	432.70M	413.30M	248.30M
	EBITDA
438.60M	599.00M	545.30M	497.10M	320.70M
	Net Income Common Stockholders
113.10M	427.20M	296.60M	277.10M	157.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.40M	488.30M	645.50M	1.17B	731.80M
	Total Assets
5.81B	4.25B	3.62B	3.65B	3.05B
	Total Debt
2.25B	1.38B	1.22B	1.33B	891.50M
	Net Debt
2.06B	891.30M	573.70M	266.00M	209.70M
	Total Liabilities
3.99B	2.84B	2.49B	2.57B	2.07B
	Stockholders Equity
1.78B	1.38B	1.13B	1.08B	975.60M
Cash Flow		Free Cash Flow
136.00M	243.20M	143.00M	190.40M	235.00M
	Operating Cash Flow
251.30M	350.10M	262.00M	282.40M	333.20M
	Investing Cash Flow
-1.76B	-326.00M	-239.30M	-192.40M	-193.70M
	Financing Cash Flow
1.23B	-193.40M	-415.20M	318.70M	-161.60M

Bruker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRKR, the sentiment is Positive. The current price of 40.26 is above the 20-day moving average (MA) of 38.99, below the 50-day MA of 41.64, and below the 200-day MA of 55.41, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 32.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRKR.

Bruker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITGR	68 Neutral	$4.13B	56.20	4.98%	―	7.41%	-22.10%
IRTC	64 Neutral	$4.40B	―	-111.13%	―	20.54%	25.73%
BRKR	62 Neutral	$6.10B	76.67	4.92%	0.53%	14.84%	-80.87%
LIVN	61 Neutral	$2.47B	30.62	-19.69%	―	7.97%	-592.40%
XTNT	58 Neutral	$70.18M	―	-34.88%	―	28.44%	-61600.00%
BIO	54 Neutral	$6.97B	―	-27.51%	―	-2.46%	-637.11%
Sector *	52 Neutral	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%

Bruker Corporate Events

Bruker Expands Board with Appointment of Laura Francis

On February 18, 2025, Bruker Corporation expanded its Board of Directors to ten members, appointing Laura Francis as an independent director and future member of the Audit Committee. Francis, the CEO of SI-BONE, Inc., brings extensive experience in the medtech and life science industries, which is expected to aid Bruker’s growth and strategy execution.