Standard Biotools Inc. (NASDAQ: LAB)

Sector: Healthcare Industry: Medical Devices CIK: 0001162194
Market Cap 435.28 Mn
P/B 1.09
P/E -3.39
P/S 3.38
ROIC (Qtr) -27.31
Div Yield % 0.00
Rev 1y % (Qtr) -11.47
Total Debt (Qtr) 27.39 Mn
Debt/Equity (Qtr) 0.07
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About

Standard BioTools Inc. (LAB) is a life sciences company that operates in the biotechnology industry. The company is dedicated to developing, manufacturing, and selling technologies that aid biomedical researchers in accelerating breakthroughs in human health. Standard BioTools achieves this mission through its proprietary mass cytometry and microfluidics technologies. Standard BioTools' main business activities revolve around providing life science tools for single-cell proteomics analysis via mass cytometry and tissue imaging, as well as protein...

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Investment thesis

Bull case

  • Healthy cash reserves of 129.42M provide 25.31x coverage of short-term debt 5.11M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 539.64M provides 19.70x coverage of total debt 27.39M, indicating robust asset backing and low credit risk.
  • Tangible assets of 539.64M provide exceptional 10.66x coverage of deferred revenue 50.61M, showing strong service capability backing.
  • Operating cash flow of (87.21M) fully covers other non-current liabilities (40.87M) by 2.13x, showing strong long-term stability.
  • Strong free cash flow of (98.42M) provides 71.06x coverage of acquisition spending (1.39M), indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of (87.21M) barely covers its investment activities of 61.17M, with a coverage ratio of -1.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 129.42M provide limited coverage of acquisition spending of (1.39M), which is -93.44x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (87.21M) provides insufficient coverage of deferred revenue obligations of 50.61M, which is -1.72x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (87.21M) shows concerning coverage of stock compensation expenses of 31.34M, with a -2.78 ratio indicating potential earnings quality issues.
  • Free cash flow of (98.42M) provides weak coverage of capital expenditures of 11.21M, with a -8.78 ratio suggesting additional external financing needs for growth initiatives.

Consolidation Items 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 0.57 2.13
EV to Cash from Ops. EV/CFO -3.50 2.75
EV to Debt EV to Debt 11.15 17.25
EV to EBIT EV/EBIT -2.41 2.89
EV to EBITDA EV/EBITDA -2.91 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -3.10 29.36
EV to Market Cap EV to Market Cap 0.70 25.09
EV to Revenue EV/Rev 2.37 32.80
Price to Book Value [P/B] P/B 1.09 4.73
Price to Earnings [P/E] P/E -3.39 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 40.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.37
Interest Coverage Int. cover (Qtr) -37.94 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -121.92 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -38.56 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.55 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.84 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -8.08 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -4.41 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 53.52 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 33.73 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.85 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.24 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.20 1.80
Current Ratio Curr Ratio (Qtr) 4.38 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 1.20
Interest Cover Ratio Int Coverage (Qtr) -37.94 196.93
Times Interest Earned Times Interest Earned (Qtr) -37.94 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -83.20 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -98.29 -2,478.60
EBT Margin % EBT Margin % (Qtr) -100.88 -2,690.42
Gross Margin % Gross Margin % (Qtr) 47.90 30.80
Net Profit Margin % Net Margin % (Qtr) -99.60 -2,821.53