BIO-TECHNE Corp (NASDAQ: TECH)

Sector: Healthcare Industry: Biotechnology CIK: 0000842023
Market Cap 10.07 Bn
P/B 5.12
P/E 129.16
P/S 8.28
ROIC (Qtr) 3.70
Div Yield % 0.62
Rev 1y % (Qtr) -1.00
Total Debt (Qtr) 394.47 Mn
Debt/Equity (Qtr) 0.20

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 251.25M provides robust 0.64x coverage of total debt 394.47M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 144.96M provide 10.53x coverage of short-term debt 13.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.20B provides 3.03x coverage of total debt 394.47M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 251.25M provides exceptional 29.53x coverage of interest expenses 8.51M, showing strong debt service capability.
  • Robust free cash flow of 224.06M exceeds capital expenditure of 27.20M by 8.24x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 251.25M barely covers its investment activities of (12.89M), with a coverage ratio of -19.49, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 251.25M provides thin coverage of dividend payments of (50.15M) with a -5.01 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (12.89M) provide weak support for R&D spending of 99.87M, which is -0.13x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 114.79M show weak coverage of depreciation charges of 106.11M, with a 1.08 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 106.11M relative to operating cash flow of 251.25M, which is 0.42x suggests significant maintenance capital requirements affecting free cash flow.

Geographical 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. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.10 12.96
EV to Cash from Ops. EV/CFO 41.21 23.73
EV to Debt EV to Debt 26.25 772.65
EV to EBIT EV/EBIT 90.20 -11.30
EV to EBITDA EV/EBITDA 47.93 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 46.21 22.12
EV to Market Cap EV to Market Cap 1.03 68.89
EV to Revenue EV/Rev 8.51 199.70
Price to Book Value [P/B] P/B 5.12 22.62
Price to Earnings [P/E] P/E 129.16 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.56 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 64.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.32 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 22.21 -0.15
Interest Coverage Int. cover (Qtr) 13.49 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 53.48 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.70 747.06
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -48.69 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -28.49 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -40.23 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -39.72 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -47.37 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -8.56 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.62 227.96
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) 1.00 3.79
Current Ratio Curr Ratio (Qtr) 4.22 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.42
Interest Cover Ratio Int Coverage (Qtr) 13.49 857.11
Times Interest Earned Times Interest Earned (Qtr) 13.49 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.20 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 9.43 -18,862.18
EBT Margin % EBT Margin % (Qtr) 8.74 -19,783.19
Gross Margin % Gross Margin % (Qtr) 65.40 -8.62
Net Profit Margin % Net Margin % (Qtr) 6.40 -19,732.60