Revvity, Inc. (RVTY) Stock Analysis and Metrics

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000031791

P/B 1.63

P/E 50.50

P/S 4.26

Market Cap 11.99 Bn

ROIC (Qtr) 2.84

Div Yield % 0.35

Rev 1y % (Qtr) 2.18

Total Debt (Qtr) 3.37 Bn

Debt/Equity (Qtr) 0.46

About

Revvity, Inc., a prominent company in the health science industry, operates under two segments: Life Sciences and Diagnostics. Its stock is publicly traded, often recognized by the symbols 'RVTY' and 'RVTYW' (Revvity, Inc.). The company specializes in providing health science solutions, technologies, expertise, and services, with a significant presence in both the Life Sciences and Diagnostics sectors. The Life Sciences segment at Revvity offers an extensive range of products and services, encompassing radiometric detection solutions, imaging technologies,...

Revvity, Inc., a prominent company in the health science industry, operates under two segments: Life Sciences and Diagnostics. Its stock is publicly traded, often recognized by the symbols 'RVTY' and 'RVTYW' (Revvity, Inc.). The company specializes in providing health science solutions, technologies, expertise, and services, with a significant presence in both the Life Sciences and Diagnostics sectors.

The Life Sciences segment at Revvity offers an extensive range of products and services, encompassing radiometric detection solutions, imaging technologies, cell and gene engineering tools, and bioinformatics software. Some of the principal products and services include radiometric detection solutions, such as over 750 radiochemicals and instrumentation like the Tri-Carb and Quantulus families of liquid scintillation analyzers. Additionally, the company provides imaging technologies like the Opera Phenix Plus high-content screening system and the Operetta CLS high-content analysis system.

Revvity's Life Sciences segment caters to a diverse market, including pharmaceutical, biotech, and contract research organizations, as well as academic institutions. The company's products and services are employed to support drug discovery and development, genetic driver identification in human disease, diagnostic workflow development, and biotherapeutics delivery.

In the Diagnostics segment, Revvity offers instruments, reagents, assay platforms, and software to hospitals, medical labs, clinicians, and medical research professionals. The principal products and services include instruments, such as the DELFIA Xpress screening platform and the NeoBase non-derivatized MS/MS AAAC kits. Moreover, the segment provides reagents, assay platforms, and software for various markets, including reproductive health, immunodiagnostics, emerging market diagnostics, and applied genomics.

Within the industry, Revvity maintains a strong position, competing with key players in the Life Sciences segment such as Thermo Fisher Scientific, Agilent Technologies, and Merck KGaA. In the Diagnostics segment, the company's competitors include Abbott Laboratories, Roche Diagnostics, and Siemens Healthineers. Revvity's competitive advantages include its extensive product and service portfolio, robust research and development capabilities, and global presence.

Revvity's customers encompass a wide range of organizations, including pharmaceutical, biotech, and contract research organizations, as well as academic institutions and hospitals. The company's products and services cater to various markets, including pharmaceutical, biotech, and contract research organizations, academic institutions, and hospitals.

Regarding the company's products and services, Revvity offers a comprehensive portfolio in both the Life Sciences and Diagnostics segments. Some notable offerings include radiometric detection solutions, imaging technologies, cell and gene engineering tools, bioinformatics software, instruments, reagents, assay platforms, and software. These products and services facilitate optimized workflows, increase productivity, and accelerate various stages of the drug discovery and development pipeline.

Stock Price Chart

Analysis

Pros

Operating cash flow of 575.20M provides strong 17.99x coverage of stock compensation 31.97M, indicating sustainable incentive practices.
Robust free cash flow of 497.40M exceeds capital expenditure of 77.81M by 6.39x, indicating strong organic growth funding capability.
Cash reserves of 931.39M provide ample 4067.19x coverage of acquisition spending 229000, enabling strategic growth opportunities.
Strong free cash flow of 497.40M provides 2172.04x coverage of acquisition spending 229000, indicating disciplined M&A strategy.
Robust tangible asset base of 3.11B provides 3.38x coverage of working capital 921.04M, indicating strong operational backing.

Cons

Operating cash flow of 575.20M barely covers its investment activities of (14.23M), with a coverage ratio of -40.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 575.20M provides thin coverage of dividend payments of (33.38M) with a -17.23 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Investment activities of (14.23M) provide weak support for R&D spending of 206.87M, which is -0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating earnings of 368.62M show weak coverage of depreciation charges of 407.29M, with a 0.91 ratio indicating high capital intensity and potential reinvestment needs.
Free cash flow of 497.40M represents just -144.01x of debt issuance (3.45M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer Comparison

Companies in the Diagnostics & Research

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	TMO	Thermo Fisher Scientific Inc.	216.83 Bn	33.00	4.96	35.68 Bn
2	DHR	Danaher Corp /De/	162.47 Bn	46.38	6.69	16.86 Bn
3	IDXX	Idexx Laboratories Inc /De	56.88 Bn	55.36	13.65	1.09 Bn
4	A	Agilent Technologies, Inc.	39.82 Bn	32.64	5.87	3.41 Bn
5	IQV	Iqvia Holdings Inc.	38.85 Bn	30.28	2.44	15.19 Bn
6	NTRA	Natera, Inc.	31.32 Bn	-101.29	14.80	0.18 Bn
7	MTD	Mettler Toledo International Inc/	28.99 Bn	34.68	7.35	2.21 Bn
8	WAT	Waters Corp /De/	22.92 Bn	35.32	7.38	1.49 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.18	2.69
EV to Cash from Ops.	24.99	18.14
EV to Debt	4.27	52.51
EV to EBIT	39.00	19.22
EV to EBITDA	18.65	4.35
EV to Free Cash Flow [EV/FCF]	28.90	2.84
EV to Market Cap	1.20	1.52
EV to Revenue	5.11	4.79
Price to Book Value [P/B]	1.63	1.34
Price to Earnings [P/E]	50.50	22.02

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	7.11	-1.96
Dividend Payout Ratio %	14.10	2.83
Dividend per Basic Share	0.28	0.19
FCF Dividend Payout Ratio %	6.50	1.92
Interest Coverage	3.99	-126.58

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	9.85	-31.50
Cash and Equivalents Growth (1y) %	-24.26	21.37
Dividend Growth (1y) %	0.00	0.24
EBIAT Growth (1y) %	3.01	-55.24
EBITDA Growth (1y) %	5.10	-447.96
EBIT Growth (1y) %	22.39	-40.50
EBT Growth (1y) %	10.95	-70.94
EPS Growth (1y) %	-4.33	-70.02
FCF Growth (1y) %	-11.87	56.33
Gross Profit Growth (1y) %	3.06	185.11

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.23	0.56
Cash Payout Ratio	0.05	0.01
Cash Ratio	0.76	1.21
Current Ratio	1.75	2.64
Debt to Equity Ratio	0.46	-0.80
Interest Cover Ratio	3.99	-126.58
Times Interest Earned	3.99	-126.58

Profitability

Metric	Value	Industry
EBITDA Margin %	27.60	-129.91
EBIT Margin %	13.10	-156.71
EBT Margin %	9.82	-162.23
Gross Margin %	55.30	47.70
Net Profit Margin %	8.40	-189.30

Revvity, Inc. (NYSE: RVTY)