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Tecan Group AG (CH:TECN)
:TECN
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Tecan Group AG
(OTC:TECN)
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Rating:67Neutral
Price Target:
CHF180.00
▲(21.29% Upside)
Tecan Group AG's overall stock score reflects strong financial health and strategic initiatives in innovation and cost reduction. However, challenges in revenue growth, valuation concerns, and external market pressures weigh on the score. The company's resilience and strategic focus provide a balanced outlook.
Tecan Group AG (TECN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$1.90B
Dividend Yield1.97%
Average Volume (3M)52.70K
Price to Earnings (P/E)28.8
Beta (1Y)1.21
Revenue Growth-9.34%
EPS Growth-37.50%
CountryCH
Employees3,074
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.64
Shares Outstanding12,825,883
10 Day Avg. Volume66,031
30 Day Avg. Volume52,700
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)1.80
Price to Sales (P/S)2.77
P/FCF Ratio21.94
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.18
Enterprise Value/Gross Profit6.19
Enterprise Value/Ebitda14.89
Forecast
1Y Price Target
$183.22Price Target Upside23.46% Upside
Rating ConsensusHold
Number of Analyst Covering5
Tecan Group AG Business Overview & Revenue Model
Company DescriptionTecan Group AG (TECN) is a leading global provider of laboratory instruments and solutions in the fields of life sciences and diagnostics. Founded in 1980 and headquartered in Switzerland, Tecan operates in two primary segments: Life Sciences and Partnering. The Life Sciences segment focuses on the development and manufacturing of automated laboratory instruments and consumables for research and clinical laboratories, while the Partnering segment provides OEM (original equipment manufacturer) solutions and services for companies in the life sciences industry. Tecan's core products include liquid handling systems, microplate readers, and sample management solutions, which are essential for a range of applications including drug discovery, genomics, and molecular biology.
How the Company Makes MoneyTecan Group AG generates revenue through multiple key streams primarily centered around the sale of laboratory instruments, consumables, and services. The Life Sciences segment contributes significantly to the company's earnings through the direct sale of its proprietary liquid handling systems and associated consumables, which are essential for laboratory automation. Additionally, Tecan earns revenue from service contracts and maintenance agreements, ensuring ongoing support for its instruments. The Partnering segment enhances revenue through strategic partnerships with other companies, providing OEM solutions that allow partners to integrate Tecan's technology into their own products. This revenue model is bolstered by a strong focus on innovation and R&D, which keeps Tecan competitive in the rapidly evolving life sciences market. Furthermore, Tecan benefits from a diversified customer base that includes academic institutions, pharmaceutical companies, and diagnostic laboratories, which helps stabilize revenue streams across economic fluctuations.
Tecan Group AG Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 17, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Tecan reported strong order entry and growth in the Life Sciences business, challenges in China, a decline in the Partnering Business, and external factors such as tariffs and currency impacts posed significant challenges. The company's strategic initiatives in cost reduction and innovation are positive, but the current market environment remains difficult.Q2-2025 Updates
Positive Updates
Revenue and EBITDA
Tecan delivered CHF 439.5 million in revenue for H1 2025, with an adjusted EBITDA of CHF 65.7 million and an adjusted EBITDA margin of 15%.
Positive Order Entry
Order entry for the first 6 months was CHF 458.3 million, with a sequential improvement in Q2, reflecting mid-single-digit growth in local currencies.
Life Sciences Business Growth
The Life Sciences business returned to growth with a 1.6% increase in local currencies, driven by clinical diagnostics and recovery in consumable sales.
Operational Resilience and Cost Reduction
Tecan realized benefits from cost reduction programs, including a streamlined R&D process in the Cavro business and improved supply chain efficiency.
Innovation Achievements
The company launched new products such as the Veya workstation and Duo Digital Dispenser, receiving strong customer interest and initial orders.
Share Buyback Program
Tecan announced a share buyback program of up to CHF 120 million, reflecting confidence in long-term growth prospects and financial strength.
Negative Updates
Revenue Decline
Overall revenue for H1 2025 was down 5.9% in Swiss francs and 3.7% in local currencies, mainly due to lower sales volumes.
Challenges in China
Sales in China declined as expected, with subdued demand and delays in government tenders, contributing to overall sales challenges.
Partnering Business Decline
The Partnering Business saw a 9.2% decrease in sales in Swiss francs and a 7.1% decrease in local currencies, impacted by weak China demand and inventory reductions.
Currency and Tariff Impacts
Adverse exchange rate movements and U.S. tariffs negatively impacted profitability, with potential further effects depending on tariff developments.
Company Guidance
During the Tecan Half Year Results 2025 Conference Call, several key financial metrics and guidance for the remainder of the year were discussed. For the first half of 2025, Tecan reported revenue of CHF 439 million, with an adjusted EBITDA of CHF 65.7 million, yielding a margin of 15%. The order entry was CHF 458.3 million, with a book-to-bill ratio above 1, indicating a healthy demand pipeline. The Life Sciences segment returned to growth with sales of CHF 185.7 million, up 1.6% in local currencies, while the Partnering Business faced a 7.1% decline in local currencies. Tecan maintained its full-year guidance, anticipating sales to range from a low single-digit percentage decline to growth, with an adjusted EBITDA margin between 17.5% and 18.5%, contingent on currency and tariff impacts. The company also announced a share buyback program of up to CHF 120 million, reflecting confidence in its long-term growth prospects.Tecan Group AG Financial Statement Overview
Summary
Tecan Group AG demonstrates strong financial health with a robust equity base and effective cash flow management. However, recent declines in revenue and operating cash flow highlight the need for strategic initiatives to sustain growth and profitability.Income Statement
Tecan Group AG has shown consistent revenue generation over the years, although recent revenue has declined from 2023 to 2024. Gross profit margin and net profit margin remain healthy, with a slight reduction in net income impacting overall profitability. The EBIT and EBITDA margins indicate stable operational efficiency, albeit with room for improvement.65
Positive
Balance Sheet
The company maintains a strong equity position with a declining debt-to-equity ratio over the years, indicating reduced financial leverage. The equity ratio is robust, reflecting the company's reliance on equity financing. However, the return on equity has seen a decline, reflecting a need for more efficient use of equity capital.70
Positive
Cash Flow
Tecan Group AG exhibits strong free cash flow generation, despite fluctuations in operating cash flow. The high free cash flow to net income ratio underscores efficient cash management. However, operating cash flow has declined recently, pointing to potential operational adjustments needed to sustain cash generation.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 906.60M | 934.28M | 1.07B | 1.14B | 946.62M | 730.88M |
| Gross Profit | 319.03M | 320.60M | 390.47M | 405.32M | 388.02M | 339.86M |
| EBITDA | 132.74M | 147.80M | 205.57M | 210.85M | 201.22M | 154.99M |
| Net Income | 63.13M | 67.66M | 132.07M | 121.13M | 121.66M | 103.69M |
Balance Sheet | ||||||
| Total Assets | 1.94B | 2.12B | 2.07B | 2.16B | 2.04B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 397.00M | 406.01M | 366.42M | 293.24M | 241.91M | 470.92M |
| Total Debt | 322.04M | 321.35M | 316.09M | 307.68M | 313.66M | 38.73M |
| Total Liabilities | 656.74M | 686.15M | 725.06M | 776.40M | 800.26M | 380.48M |
| Stockholders Equity | 1.28B | 1.44B | 1.35B | 1.36B | 1.22B | 733.65M |
Cash Flow | ||||||
| Free Cash Flow | 150.10M | 117.86M | 125.63M | 91.24M | 126.12M | 166.13M |
| Operating Cash Flow | 166.71M | 148.54M | 160.57M | 127.47M | 165.84M | 207.42M |
| Investing Cash Flow | 60.69M | -48.61M | -84.23M | -88.22M | -651.95M | -288.77M |
| Financing Cash Flow | -76.95M | -81.30M | -50.57M | -47.82M | 458.53M | -35.33M |
Tecan Group AG Technical Analysis
Negative
148.40
Price Trends
160.39
Negative
162.72
Negative
175.17
Negative
Market Momentum
-4.06
Positive
24.28
Positive
6.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:TECN, the sentiment is Negative. The current price of 148.4 is below the 20-day moving average (MA) of 154.10, below the 50-day MA of 160.39, and below the 200-day MA of 175.17, indicating a bearish trend. The MACD of -4.06 indicates Positive momentum. The RSI at 24.28 is Positive, neither overbought nor oversold. The STOCH value of 6.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:TECN.
Tecan Group AG Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | CHF2.86B | 31.80 | 19.20% | 0.48% | 16.59% | 65.76% | |
70 Outperform | CHF3.74B | 23.49 | 16.33% | 0.46% | 0.77% | 16.70% | |
67 Neutral | $1.90B | 28.83 | 4.57% | 1.97% | -9.34% | -37.50% | |
67 Neutral | CHF1.22B | 75.33 | 19.78% | 0.71% | -3.45% | -49.82% | |
61 Neutral | CHF1.18B | -2,204.08 | 1.31% | ― | 7.29% | -112.70% | |
56 Neutral | CHF4.51B | 50.85 | 12.87% | 0.67% | 36.54% | 11.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.