Bio-Techne (TECH) AI Stock Analysis

• Market Cap: $7.98B
• Dividend Yield: 0.63%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 51.3
• Beta (1Y): 0.97
• Revenue Growth: 4.46%
• EPS Growth: -29.62%
• Country: US
• Employees: 3,100
• Sector: Healthcare
• Sector Strength: 57
• Industry: Biotechnology
• EPS (TTM): 0.98
• Shares Outstanding: 158,087,680
• 10 Day Avg. Volume: 1,787,176
• 30 Day Avg. Volume: 2,081,335
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 15.31
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $78.80
• Price Target Upside: 56.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Bio-Techne's strength lies in its robust financial performance and positive earnings call guidance. However, technical indicators suggest bearish momentum, and valuation concerns persist. A legal dispute poses a financial risk, though strategic board changes and revenue growth offer some optimism.

Positive Factors

Growth Potential

Bio-Techne is a premium growth asset with strong core business segments and growth verticals, making it well-positioned for sustainable growth.

Market Recovery

Despite current stock volatility, there is a favorable entry point as end markets recover and the strong operational margin story unfolds.

Therapy Programs

There is clear positive momentum in late-stage and approved therapy programs, with TECH having a rapidly growing revenue exposure to GMP proteins.

Negative Factors

Academic Funding Cuts

With federal government funding cuts in NIH/academic research, increased risk is seen stemming from TECH's high exposure to this market.

Macro Headwinds

Macro headwinds in academic markets could significantly impact near-term financial performance due to budget freezes.

Revenue Growth Concerns

Expected acceleration in organic growth appears in question given the slowdown in academic spending following NIH budget cuts, potentially creating a headwind to revenue growth in the coming quarters.

Bio-Techne Business Overview & Revenue Model

Company Description

Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets worldwide. The company operates through two segments, Protein Sciences, and Diagnostics and Genomics. The Protein Sciences segment develops and manufactures biological reagents used in various aspects of life science research, diagnostics, and cell and gene therapy, such as cytokines and growth factors, antibodies, small molecules, tissue culture sera, and cell selection technologies. This segment also offers proteomic analytical tools for automated western blot and multiplexed ELISA workflow consists of manual and automated protein analysis instruments and immunoassays for use in quantifying proteins in various biological fluids. The Diagnostics and Genomics segment develops and manufactures diagnostic products, including controls, calibrators, and diagnostic assays for regulated diagnostics market, exosome-based molecular diagnostic assays, advanced tissue-based in-situ hybridization assays for spatial genomic and tissue biopsy analysis, and genetic and oncology kits for research and clinical applications; and sells products for genetic carrier screening, oncology diagnostics, molecular controls, and research, as well as instruments and process control products for hematology, blood chemistry and gases, and coagulation controls and reagents used in various diagnostic applications. It offers its products under R&D Systems, Tocris Biosciences, Novus Biologicals, ProteinSimple, Advanced Cell Diagnostics, Exosome Diagnostics, and Asuragen brands. The company was formerly known as Techne Corporation and changed its name to Bio-Techne Corporation in November 2014. Bio-Techne Corporation was founded in 1976 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Bio-Techne makes money through the sale of its diverse portfolio of life science and diagnostic products. The company's revenue model is primarily based on product sales, with key revenue streams coming from its Protein Sciences segment, which includes proteins, antibodies, and immunoassays, and its Diagnostics and Genomics segment, which provides diagnostic reagents and instruments. Bio-Techne also generates income through collaborations and partnerships with academic institutions, pharmaceutical companies, and healthcare organizations. These partnerships often involve co-development agreements, licensing deals, and supply agreements, which contribute to the company's earnings.

Bio-Techne Financial Statement Overview

Summary

Bio-Techne exhibits solid financial health with strong revenue growth and profitability. Despite some challenges in net profit margins and increasing debt, the company's overall financial position is strong, supporting continued growth and resilience in the biotechnology sector.

Income Statement

Bio-Techne demonstrates strong revenue growth with a consistent upward trajectory over the years, evidenced by a 3.3% increase in revenue from 2023 to 2024 (TTM). The company maintains robust profitability with a gross profit margin of 65.8% and an EBIT margin of 19.9% for TTM. However, the net profit margin has decreased, reflecting a decline in net income, suggesting potential cost pressures or other operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a Debt-to-Equity ratio of 0.18 in TTM, indicating low leverage and financial stability. The equity ratio stands at 78.2%, showcasing strong equity backing. However, there is a slight increase in total debt, which could pose a risk if not managed well.

Cash Flow

Operating cash flow remains strong with a 1.93 ratio to net income in TTM, indicating efficient cash generation. Free cash flow shows growth, although at a slower pace compared to previous years. The company efficiently converts its earnings into cash flow, supporting its operational liquidity and investment activities.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.16B	1.14B	1.11B	931.03M	738.69M
	Gross Profit
769.73M	769.82M	756.50M	632.85M	483.19M
	EBIT
206.69M	298.94M	296.59M	149.55M	74.68M
	EBITDA
310.37M	460.56M	420.12M	258.47M	373.91M
	Net Income Common Stockholders
168.10M	285.26M	272.05M	140.41M	229.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.86M	204.31M	247.03M	231.55M	270.89M
	Total Assets
2.70B	2.64B	2.29B	2.26B	2.03B
	Total Debt
419.54M	454.96M	325.97M	420.55M	433.53M
	Net Debt
267.75M	274.39M	153.40M	221.46M	286.90M
	Total Liabilities
635.02M	672.18M	593.79M	691.72M	646.40M
	Stockholders Equity
2.07B	1.97B	1.70B	1.57B	1.38B
Cash Flow		Free Cash Flow
236.10M	216.15M	280.36M	307.86M	153.47M
	Operating Cash Flow
298.98M	254.39M	325.27M	352.16M	205.22M
	Investing Cash Flow
-203.03M	-265.65M	-96.85M	-243.52M	27.09M
	Financing Cash Flow
-122.40M	22.62M	-242.85M	-62.55M	-183.80M

Bio-Techne Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 50.49
• 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 TECH, the sentiment is Neutral. The current price of 50.49 is above the 20-day moving average (MA) of 50.38, below the 50-day MA of 56.80, and below the 200-day MA of 69.60, indicating a neutral trend. The MACD of -2.06 indicates Negative momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 50.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TECH.

Bio-Techne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRN	77 Outperform	$11.89B	28.20	9.64%	―	17.35%	151.40%
KRYS	77 Outperform	$4.80B	55.61	10.34%	―	473.02%	1620.44%
INCY	75 Outperform	$12.10B	193.47	0.47%	―	17.13%	-88.78%
TECH	68 Neutral	$7.98B	51.32	7.82%	0.63%	4.46%	-29.62%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
NAMS	51 Neutral	$2.25B	―	-61.35%	―	―	―
MRNA	45 Neutral	$10.68B	―	-29.34%	―	-38.25%	44.29%

Bio-Techne Corporate Events

Bio-Techne Ordered to Pay $35M in Stock Option Dispute

Bio-Techne Corporation faced a legal dispute regarding the expiration dates of stock options granted to its former CEO, Charles R. Kummeth. An administrative error led to a discrepancy in the expiration date of these options, resulting in arbitration. On February 26, 2025, an arbitrator ruled in favor of Mr. Kummeth, ordering the company to pay him approximately $35,978,000 for the options, along with interest and legal fees, due to the administrative error.

Bio-Techne Appoints New Board Member and Reports Revenue Growth

On January 30, 2025, Bio-Techne Corporation announced the appointment of Dr. Amy Herr to its Board of Directors, starting February 1, 2025. Dr. Herr will serve on the Science & Technology Committee, bringing her expertise as a bioengineering professor and Vice President at Chan Zuckerberg Biohub Network. This appointment was part of a two-year process to replace retiring directors, highlighting Bio-Techne’s strategic focus on enhancing its board with industry experts. In its financial results for the second quarter of fiscal 2025, Bio-Techne reported a 9% increase in organic revenue, reaching $297.0 million. The Protein Sciences segment showed 8% organic growth, while the Diagnostics and Spatial Biology segment had a 12% increase. The company’s strong performance is attributed to improved biopharma end-market conditions and successful execution in cell and gene therapy workflow solutions, indicating a positive outlook for stakeholders.