Revvity, Inc. (NYSE: RVTY)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0000031791
Market Cap 12.46 Bn
P/B 1.69
P/E 52.48
P/S 4.43
ROIC (Qtr) 2.84
Div Yield % 0.34
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,...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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. 234.48 Bn 35.69 5.36 35.68 Bn
2 DHR Danaher Corp /De/ 171.11 Bn 48.85 7.05 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.62 Bn 56.08 13.83 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.37 Bn 33.03 2.66 15.19 Bn
5 A Agilent Technologies, Inc. 42.16 Bn 32.36 6.07 3.35 Bn
6 NTRA Natera, Inc. 31.64 Bn -102.32 14.95 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.89 Bn 36.96 7.84 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.37 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.22 2.82
EV to Cash from Ops. EV/CFO 25.81 19.55
EV to Debt EV to Debt 4.41 54.87
EV to EBIT EV/EBIT 40.27 18.82
EV to EBITDA EV/EBITDA 19.26 4.36
EV to Free Cash Flow [EV/FCF] EV/FCF 29.85 17.63
EV to Market Cap EV to Market Cap 1.19 1.58
EV to Revenue EV/Rev 5.28 5.06
Price to Book Value [P/B] P/B 1.69 1.35
Price to Earnings [P/E] P/E 52.48 18.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 7.11 -2.00
Dividend Payout Ratio % Div Payout % (Qtr) 14.10 2.86
Dividend per Basic Share Div per Share (Qtr) 0.28 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 6.50 1.94
Interest Coverage Int. cover (Qtr) 3.99 -128.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.85 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -24.26 23.84
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.01 9.72
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.10 -444.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 22.39 8.29
EBT Growth (1y) % EBT 1y % (Qtr) 10.95 -6.03
EPS Growth (1y) % EPS 1y % (Qtr) -4.33 15.59
FCF Growth (1y) % FCF 1y % (Qtr) -11.87 56.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.06 185.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.23 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.05 0.01
Cash Ratio Cash Ratio (Qtr) 0.76 1.23
Current Ratio Curr Ratio (Qtr) 1.75 2.70
Debt to Equity Ratio Debt/Equity (Qtr) 0.46 -0.84
Interest Cover Ratio Int Coverage (Qtr) 3.99 -128.90
Times Interest Earned Times Interest Earned (Qtr) 3.99 -128.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.60 -97.22
EBIT Margin % EBIT Margin % (Qtr) 13.10 -115.64
EBT Margin % EBT Margin % (Qtr) 9.82 -114.24
Gross Margin % Gross Margin % (Qtr) 55.30 44.76
Net Profit Margin % Net Margin % (Qtr) 8.40 -113.12