Bio-Rad Laboratories Inc. (BIO) - Reasonably Valued With Strong Growth Indicators
Bio-Rad Laboratories shares moved -42.8% over the last 52 weeks, with a high of $752.17 and a low of $344.63. During this time, the stock lagged the S&P 500 index by -22.9%. As of January 2022, the company's 50-day average price is $401.219. Bio-Rad Laboratories, Inc. manufactures, and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. The large-cap Healthcare company has 8,200 full time employees and is based in Hercules, CA. Bio-Rad Laboratories has not offered any dividends in the last year.
The Business Has Growing Operating Margins and Earnings Per Share:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $2,312 | $2,546 | $2,923 |
| Revenue Growth | n/a | 10.12% | 14.81% |
| Gross Margins | 54.4% | 56.5% | 56.1% |
| Gross Margins Growth | n/a | 3.86% | -0.71% |
| Operating Margins | 9.9% | 16.1% | 16.8% |
| Operating Margins Growth | n/a | 62.63% | 4.35% |
| Earnings Per Share | $58.27 | $126.2 | $140.56 |
| EPS Growth | n/a | 116.58% | 11.38% |
| Free Cash Flow (MM) | $359 | $476 | $536 |
| FCF Growth | n/a | 32.57% | 12.45% |
| Capital Expenditures (MM) | -$99 | -$99 | -$121 |
| Net Debt / EBITDA | -0.5 | -1.1 | -0.66 |
Bio-Rad Laboratories Has an Attractive P/B Ratio but a Worrisome P/E Ratio:
Compared to the Healthcare sector's average of 13.21, Bio-Rad Laboratories has a trailing twelve month price to earnings (P/E) ratio of -124.1 and, based on its EPS guidance of 15.22, an expected P/E ratio of 27.6.
The firm's price to earnings growth (PEG) is 1.65, which indicates that it is overvalued in terms of its expected rate of earnings growth.
Bio-Rad Laboratories is undervalued in terms of its assets because its price to book (P/B) ratio is 1.5 compared to its sector average of 4.07.
Bio-Rad Laboratories Has an Analyst Consensus of Strong Upside Potential but a Decent Amount of Insider Shareholders:
5 analysts are following Bio-Rad Laboratories and have set target prices ranging from $550 to $640 per share. On average, they have given the company a rating of buy. At the current price of $420.49, BIO is trading -28.85% away from its average analyst target price of $591 per share, implying an analyst consensus of strong upside potential for the stock.
The company has a very low short interest since 1.1% of the company's shares are tied to short positions. Institutions own 80.7% of Bio-Rad Laboratories's shares, while the insider ownership rate stands at 14.4%. The biggest shareholder is the Vanguard Group, Inc. with a 10% stake in the company worth approximately $988,793,985.
