BIO-TECHNE Corp (NASDAQ: TECH)

Sector: Healthcare Industry: Biotechnology CIK: 0000842023
Market Cap 10.42 Bn
P/B 5.18
P/E 128.42
P/S 8.57
ROIC (Qtr) 3.71
Div Yield % 0.48
Rev 1y % (Qtr) -0.39
Total Debt (Qtr) 350.90 Mn
Debt/Equity (Qtr) 0.17

About

BIO-TECHNE Corp, a Minnesota-based company listed on the NASDAQ under the symbol "TECH," operates in the life science research industry. The company's primary business activities include the development, manufacturing, and selling of life science reagents, instruments, and services for research, diagnostics, and bioprocessing markets worldwide. With a global presence, Bio-Techne operates in two segments: Protein Sciences and Diagnostics and Genomics. The Protein Sciences segment, which accounts for approximately 74% of the company's net sales in...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 249.32M provides robust 0.71x coverage of total debt 350.89M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 172.88M provide 12.61x coverage of short-term debt 13.71M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.21B provides 3.44x coverage of total debt 350.89M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 249.32M provides exceptional 29.30x coverage of interest expenses 8.51M, showing strong debt service capability.
  • Robust free cash flow of 223.02M exceeds capital expenditure of 26.30M by 8.48x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 249.32M barely covers its investment activities of (13.78M), with a coverage ratio of -18.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (13.78M) provide weak support for R&D spending of 97.98M, which is -0.14x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 249.32M provides thin coverage of dividend payments of (49.88M) with a -5 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 122.70M show weak coverage of depreciation charges of 103.73M, with a 1.18 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 103.73M relative to operating cash flow of 249.32M, which is 0.42x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.23 11.11
EV to Cash from Ops. EV/CFO 42.78 26.32
EV to Debt EV to Debt 30.39 688.48
EV to EBIT EV/EBIT 86.92 -10.97
EV to EBITDA EV/EBITDA 48.32 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF 47.82 25.03
EV to Market Cap EV to Market Cap 1.02 163.46
EV to Revenue EV/Rev 8.77 148.57
Price to Book Value [P/B] P/B 5.18 20.73
Price to Earnings [P/E] P/E 128.42 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.63 -12.47
Dividend Payout Ratio % Div Payout % (Qtr) 61.50 0.17
Dividend per Basic Share Div per Share (Qtr) 0.32 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 22.36 -0.14
Interest Coverage Int. cover (Qtr) 14.42 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 47.84 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -2.63 756.75
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -49.19 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -28.99 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -39.12 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) -38.54 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) -48.00 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) -12.30 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.01 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.18 0.00
Cash Ratio Cash Ratio (Qtr) 1.23 3.81
Current Ratio Curr Ratio (Qtr) 4.54 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.17 0.43
Interest Cover Ratio Int Coverage (Qtr) 14.42 860.86
Times Interest Earned Times Interest Earned (Qtr) 14.42 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.60 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 10.09 -18,101.92
EBT Margin % EBT Margin % (Qtr) 9.39 -18,961.86
Gross Margin % Gross Margin % (Qtr) 65.20 -9.24
Net Profit Margin % Net Margin % (Qtr) 6.70 -18,911.61