Bio Rad Laboratories Inc
NYSE:BIO
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Intrinsic Value
The intrinsic value of one BIO stock under the Base Case scenario is 376.25 USD. Compared to the current market price of 332.91 USD, Bio Rad Laboratories Inc is Undervalued by 12%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
Valuation Backtest
Bio Rad Laboratories Inc
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Fundamental Analysis
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Bio-Rad Laboratories Inc. is a global leader in the life sciences and clinical diagnostics industries, renowned for its innovative technologies that empower researchers and healthcare professionals. Founded in 1952, Bio-Rad has developed a diverse portfolio of products that serve a wide range of applications, from advancing scientific research in genomics and proteomics to enhancing diagnostic capabilities in clinical laboratories. The company operates through two key segments: Life Science and Diagnostics, which together create synergies that drive growth. With a commitment to quality and customer satisfaction, Bio-Rad has built a reputation for reliability and technical excellence, making...
Bio-Rad Laboratories Inc. is a global leader in the life sciences and clinical diagnostics industries, renowned for its innovative technologies that empower researchers and healthcare professionals. Founded in 1952, Bio-Rad has developed a diverse portfolio of products that serve a wide range of applications, from advancing scientific research in genomics and proteomics to enhancing diagnostic capabilities in clinical laboratories. The company operates through two key segments: Life Science and Diagnostics, which together create synergies that drive growth. With a commitment to quality and customer satisfaction, Bio-Rad has built a reputation for reliability and technical excellence, making it a trusted partner in the quest for scientific breakthroughs and improved patient care.
Investors looking at Bio-Rad will find a resilient company with strong fundamentals and a consistent track record of performance. The firm benefits from ongoing trends in healthcare and biotechnology, with increasing demand for precision medicine and advanced molecular diagnostics leading to robust revenue streams. Bio-Rad's global footprint and extensive distribution network not only mitigate risks associated with market fluctuations but also position the company to capitalize on emerging technologies and expanding international markets. With a strategic focus on innovation and a history of prudent financial management, Bio-Rad Laboratories offers investors an opportunity to be part of a company that is at the forefront of scientific advancement while also delivering solid returns.
Bio-Rad Laboratories, Inc. operates in two primary business segments:
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Life Science Division:
- This segment focuses on providing products and systems used in research, analytical testing, and quality control in life sciences laboratories. Key offerings include:
- Molecular Biology Products: Instruments and reagents for DNA, RNA, and protein analysis.
- Protein Purification and Analysis: Tools for protein electrophoresis and Western blotting.
- Cell Culture and Imaging: Solutions for cell biology and microscopy applications.
- Quality Control and Assurance: Products for ensuring the quality of biopharmaceuticals and diagnostics.
- This segment focuses on providing products and systems used in research, analytical testing, and quality control in life sciences laboratories. Key offerings include:
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Clinical Diagnostics Division:
- This segment is centered on developing and manufacturing diagnostic products used in hospitals and reference laboratories. Major product lines include:
- Immunology: Assays and systems for detecting proteins and hormones.
- Clinical Chemistry: Analyzers and reagents for the analysis of blood and other bodily fluids.
- Microbiology: Tools for the detection and identification of microorganisms.
- Quality Assurance Solutions: Quality control materials and software to support clinical testing.
- This segment is centered on developing and manufacturing diagnostic products used in hospitals and reference laboratories. Major product lines include:
Bio-Rad is known for evolving its product offerings to meet the changing needs of the market and advancements in technology, making it a significant player in both life sciences and clinical diagnostics sectors.
Bio-Rad Laboratories Inc. holds several unique competitive advantages that help it maintain a strong position in the life sciences and clinical diagnostics markets:
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Diverse Product Portfolio: Bio-Rad offers a wide range of products and services across various segments, including life science research, clinical diagnostics, and quality control. This diversification allows the company to cater to numerous markets and customer needs, reducing dependence on any single segment.
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Strong Brand Reputation: Established in 1952, Bio-Rad has built a strong reputation for quality and reliability in its products. This brand loyalty can create a competitive edge, as customers often prefer tried-and-true solutions from reputable companies.
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Innovative Technology: The company invests heavily in research and development, leading to advanced technologies and innovative product offerings. This focus on innovation ensures that Bio-Rad stays at the forefront of scientific advancements, providing cutting-edge solutions to its customers.
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Robust Distribution Network: Bio-Rad has a well-established global distribution network, enabling it to efficiently deliver products and services worldwide. This extensive reach helps the company serve a broader customer base quickly, enhancing customer satisfaction and loyalty.
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Acquisitions and Strategic Partnerships: Bio-Rad has effectively acquired complementary businesses and formed strategic partnerships, enhancing its capabilities and expanding its market presence. These actions help the company stay competitive by expanding its product offerings and entering new markets.
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High Switching Costs: Many of Bio-Rad’s products are integrated into customers' workflows, making it costly and time-consuming for clients to switch to competitors. This creates a natural barrier to entry for new entrants and helps retain existing customers.
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Customer-Centric Approach: Bio-Rad focuses on building long-term relationships with its customers by providing exceptional support and personalized solutions. This customer-centric approach fosters loyalty and can lead to repeat business.
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Regulatory Expertise: As a player in the healthcare sector, Bio-Rad’s understanding of regulatory requirements and compliance provides it with an advantage, ensuring that its products meet the stringent standards necessary for market acceptance.
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Global Presence with Local Expertise: Operating in multiple countries allows Bio-Rad to understand and cater to local market needs effectively, adapting its products and strategies to meet regional demands.
By leveraging these competitive advantages, Bio-Rad Laboratories Inc. can navigate challenges in the marketplace more effectively than many of its rivals.
Bio-Rad Laboratories, Inc., a global leader in life science research and clinical diagnostics, faces several risks and challenges in the near future:
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Regulatory and Compliance Risks: The biotechnology and clinical diagnostics sectors are heavily regulated. Any changes in regulations, compliance requirements, or failures in meeting these can impact operations and product approvals.
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Competition: The life sciences and diagnostics markets are increasingly competitive. Bio-Rad must contend with established companies and new entrants that may disrupt markets with innovative products or lower pricing.
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Technological Advancements: Rapid technological changes require continuous innovation. Failing to keep up with advancements in areas like genomics, proteomics, and diagnostic technologies could hinder their market position.
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Supply Chain Disruptions: Global supply chain issues, exacerbated by events like the COVID-19 pandemic, remain a concern. Disruptions in the supply of raw materials or components can impact production and lead to delayed product launches.
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Economic Conditions: Economic downturns or budget cuts in public health and research funding may result in reduced spending by laboratories and healthcare institutions, affecting demand for Bio-Rad’s products.
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Currency Fluctuations: Bio-Rad operates in multiple countries, making it vulnerable to exchange rate fluctuations, which can impact profitability and financial performance.
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Intellectual Property Risks: Protecting intellectual property is crucial in biotech. Infringements or challenges to Bio-Rad’s patents could lead to costly legal battles and loss of competitive advantage.
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Cybersecurity Threats: As a technology-driven company, Bio-Rad is at risk of cyberattacks that could compromise sensitive data, disrupt operations, or lead to reputational damage.
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Shifts in Healthcare Policy: Changes in healthcare regulations and reimbursement policies can impact the demand for diagnostic products. For example, changes to Medicare and Medicaid can greatly influence market dynamics.
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Market Accessibility: Entry into emerging markets may present regulatory hurdles, economic instability, and logistical challenges that could limit Bio-Rad’s growth opportunities in these regions.
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Diversity of Product Portfolio: Relying heavily on a narrow range of products could be risky if demand shifts or if competitors offer superior alternatives. Diversification is important, but it involves significant investment and resources.
Identifying these risks allows Bio-Rad Laboratories to develop strategic plans to mitigate them while continuing to innovate and grow in the life sciences and clinical diagnostics fields.
Revenue & Expenses Breakdown
Bio Rad Laboratories Inc
Balance Sheet Decomposition
Bio Rad Laboratories Inc
Current Assets | 3.1B |
Cash & Short-Term Investments | 1.6B |
Receivables | 461.9m |
Other Current Assets | 971.2m |
Non-Current Assets | 7.5B |
Long-Term Investments | 6B |
PP&E | 719.2m |
Intangibles | 722.4m |
Other Non-Current Assets | 103.6m |
Current Liabilities | 497.9m |
Accounts Payable | 390.4m |
Accrued Liabilities | 188.9m |
Other Current Liabilities | -81.3m |
Non-Current Liabilities | 2.6B |
Long-Term Debt | 1.2B |
Other Non-Current Liabilities | 1.4B |
Earnings Waterfall
Bio Rad Laboratories Inc
Revenue
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2.6B
USD
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Cost of Revenue
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-1.2B
USD
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Gross Profit
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1.4B
USD
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Operating Expenses
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-1.1B
USD
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Operating Income
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343.3m
USD
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Other Expenses
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-1.1B
USD
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Net Income
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-778.7m
USD
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Free Cash Flow Analysis
Bio Rad Laboratories Inc
USD | |
Free Cash Flow | USD |
In Q3 2024, Bio-Rad reported net sales of $650 million, up 2.8% year-over-year, primarily driven by clinical diagnostics. Despite a mix of strong growth in quality control products and ongoing destocking challenges, the company improved its non-GAAP gross margin to 55.6%. Free cash flow rose significantly to $123 million, and guidance for full-year revenue expects a decline of 2.5% to 4%. Importantly, the gross margin outlook was lifted to 55%-55.5%, reflecting effective cost management. Looking ahead, the recovery pace in biopharma markets may continue into 2025, indicating cautious optimism for sustained growth.
What is Earnings Call?
BIO Profitability Score
Profitability Due Diligence
Bio Rad Laboratories Inc's profitability score is 43/100. The higher the profitability score, the more profitable the company is.
Score
Bio Rad Laboratories Inc's profitability score is 43/100. The higher the profitability score, the more profitable the company is.
BIO Solvency Score
Solvency Due Diligence
Bio Rad Laboratories Inc's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Score
Bio Rad Laboratories Inc's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
BIO Price Targets Summary
Bio Rad Laboratories Inc
According to Wall Street analysts, the average 1-year price target for BIO is 405.28 USD with a low forecast of 318.15 USD and a high forecast of 492.45 USD.
Dividends
Current shareholder yield for BIO is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Ownership
BIO Insider Trading
Buy and sell transactions by insiders
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Profile
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Dividend Yield
Description
Bio-Rad Laboratories, Inc. engages in the development and production of specialty chemicals used in biochemical, pharmaceutical, and other life science research applications. The company is headquartered in Hercules, California and currently employs 7,900 full-time employees. Its segments include Life Science and Clinical Diagnostics. Its Life Science segment markets and develops, manufactures and markets approximately 9,000 reagents, apparatus and laboratory instruments that serve a global customer base. Its products are used in research techniques, biopharmaceutical production processes and food testing regimes. Its Clinical Diagnostics segment designs, manufactures, sells and supports test systems, informatics systems, test kits and specialized quality controls that serve clinical laboratories in the global diagnostics market. The company supplies approximately 3,000 different products that cover over 300 clinical diagnostic tests to the in vitro diagnostics (IVD) test market.
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Employees
Officers
The intrinsic value of one BIO stock under the Base Case scenario is 376.25 USD.
Compared to the current market price of 332.91 USD, Bio Rad Laboratories Inc is Undervalued by 12%.