Bio-Rad Laboratories (BIO) Shares Fell -1.0% Friday — Is This a Bargain?

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.