Bruker Corp (NASDAQ: BRKR)

Sector: Healthcare Industry: Medical Devices CIK: 0001109354
Market Cap 6.36 Bn
P/B 7.52
P/E 79.42
P/S 3.46
ROIC (Qtr) 1.19
Div Yield % 0.13
Rev 1y % (Qtr) -0.45
Total Debt (Qtr) 2.01 Bn
Debt/Equity (Qtr) 0.83
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About

Investment thesis

Bull case

  • Healthy cash reserves of 293.10M provide 12.06x coverage of short-term debt 24.30M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 94.30M provides strong 13.87x coverage of stock compensation 6.80M, indicating sustainable incentive practices.
  • Tangible assets of 3.97B provide exceptional 8.71x coverage of deferred revenue 455.40M, showing strong service capability backing.
  • Cash reserves of 293.10M provide solid 1.06x coverage of other non-current liabilities 277.70M, indicating strong liquidity.
  • Retained earnings of 2.35B provide full 1.19x coverage of long-term debt 1.98B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 94.30M barely covers its investment activities of (201.60M), with a coverage ratio of -0.47, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 293.10M against inventory of 1.20B, the 0.24 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 94.30M provides thin coverage of dividend payments of (22.90M) with a -4.12 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (201.60M) provide weak support for R&D spending of 400M, which is -0.50x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 293.10M provide limited coverage of acquisition spending of (94.90M), which is -3.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.00 2.13
EV to Cash from Ops. EV/CFO 44.21 2.75
EV to Debt EV to Debt 3.19 17.25
EV to EBIT EV/EBIT 52.16 2.89
EV to EBITDA EV/EBITDA 30.60 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 66.70 29.36
EV to Market Cap EV to Market Cap 1.01 25.09
EV to Revenue EV/Rev 3.48 32.80
Price to Book Value [P/B] P/B 7.52 4.73
Price to Earnings [P/E] P/E 79.42 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.92 40.22
Dividend Payout Ratio % Div Payout % (Qtr) -125.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.20 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -289.86 -0.37
Interest Coverage Int. cover (Qtr) 1.57 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 4.73 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 97.91 8,476.58
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -118.39 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -38.35 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -92.28 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -97.12 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) -107.69 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) -106.63 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.23 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.02
Cash Ratio Cash Ratio (Qtr) 0.23 1.80
Current Ratio Curr Ratio (Qtr) 1.85 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.83 1.20
Interest Cover Ratio Int Coverage (Qtr) 1.57 196.93
Times Interest Earned Times Interest Earned (Qtr) 1.57 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.20 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) 0.91 -2,478.60
EBT Margin % EBT Margin % (Qtr) 0.33 -2,690.42
Gross Margin % Gross Margin % (Qtr) 47.20 30.80
Net Profit Margin % Net Margin % (Qtr) -0.70 -2,821.53