Azenta (AZTA) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 825.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -2.76%
• EPS Growth: 48.51%
• Country: US
• Employees: 3,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.05
• Shares Outstanding: 45,779,945
• 10 Day Avg. Volume: 622,961
• 30 Day Avg. Volume: 825,547
• PEG Ratio: 4.62
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.91
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 9.53
• Enterprise Value/Ebitda: 42.48
• 1Y Price Target: $35.00
• Price Target Upside: 18.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $32.00 ▲(7.96%Upside)

Azenta's overall stock score is driven by strong earnings call performance and positive technical indicators, offset by significant financial challenges and valuation concerns. The company's financial stability is overshadowed by ongoing profitability issues, despite strong cash flow management.

Positive Factors

Financial Performance

AZTA’s F2Q25 revenue and EBITDA both beat consensus and management maintained its FY25 guidance.

Operational Restructuring

The planned divestiture of the underperforming B Medical segment is expected to be a key catalyst for improving the stock's performance.

Strategic Partnerships

A new partnership in cell and gene therapy expands Azenta's business portfolio and enhances growth opportunities.

Negative Factors

Geopolitical and Funding Concerns

Uncertainties around NIH funding and trade tensions with China are significant concerns for investors due to Azenta's exposure in the multiomics segment.

Geopolitical Tensions

China is expected to remain a double-edged sword that could keep Azenta at a higher risk of exposure if geopolitical tensions continue.

Peer Comparisons

The price target is lowered to $40 due to lower peer multiples.

Azenta Business Overview & Revenue Model

Company Description

Azenta, Inc. provides life science sample exploration and management solutions for the life sciences market in North America, Europe, China, the Asia Pacific, and internationally. The company operates through two reportable segments, Life Sciences Products and Life Sciences Services. The Life Sciences Products segment offers automated cold sample management systems for compound and biological sample storage; equipment for sample preparation and handling; consumables; and instruments that help customers in managing samples throughout their research discovery and development workflows. The Life Sciences Services segment provides comprehensive sample management programs, integrated cold chain solutions, informatics, and sample-based laboratory services to advance scientific research and support drug development. This segment's services include sample storage, genomic sequencing, gene synthesis, laboratory processing, laboratory analysis, biospecimen procurement, and other support services. It serves a range of life science customers, including pharmaceutical companies, biotechnology companies, biorepositories, and research institutes. The company was formerly known as Brooks Automation, Inc. and changed its name to Azenta, Inc. in December 2021. Azenta, Inc. was founded in 1978 and is headquartered in Chelmsford, Massachusetts.

How the Company Makes Money

Azenta generates revenue primarily through its diversified portfolio of life sciences solutions and services. Key revenue streams include the provision of genomic services, which involve sequencing and analytical services to assist researchers in understanding genetic information. Another significant source of income is the company's sample management services, which encompass storage, transport, and management of biological samples under highly controlled conditions. Additionally, Azenta offers automation systems designed to streamline laboratory processes, further contributing to its revenue. Strategic partnerships with research institutions, pharmaceutical companies, and biotechnology firms play a crucial role in driving sales and expanding its market reach.

Azenta Financial Statement Overview

Summary

Azenta shows strong financial stability with a solid equity position and low leverage. However, it faces significant profitability challenges, indicated by negative margins and declining revenues. Positive signs in cash flow management are present, but overall financial health is weakened by ongoing losses and efficiency issues.

Income Statement

Azenta's income statement reveals declining revenue with a negative trend in profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 43%, which indicates a reasonable ability to control production costs. However, the company has faced significant challenges with negative net and EBIT margins, reflecting ongoing struggles with profitability. There is a concerning downward trend in revenue growth, leading to an overall weak income statement performance.

Balance Sheet

The balance sheet shows a strong equity base with low leverage, indicated by a debt-to-equity ratio of 0.03 in the TTM. The equity ratio of 83% highlights financial stability and strong asset backing. However, the return on equity remains negative due to ongoing net losses, indicating inefficiencies in generating profits from shareholders' equity.

Cash Flow

Azenta's cash flow statement shows positive operating cash flow in the TTM, which is a positive indicator of potential liquidity. The free cash flow has improved, showing growth, but the operating cash flow to net income ratio indicates challenges in converting net income into cash. Despite some positive movements, cash flow generation remains a concern amidst profitability issues.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
633.80M	656.32M	665.07M	555.50M	513.70M	897.27M
	Gross Profit
273.03M	263.37M	263.14M	255.58M	243.81M	380.02M
	EBIT
-51.86M	-200.68M	-73.13M	-4.00M	-46.55M	78.46M
	EBITDA
-1.53M	21.80M	55.15M	48.35M	9.94M	28.15M
	Net Income Common Stockholders
-65.36M	-164.17M	-14.26M	-11.29M	-28.87M	64.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
328.34M	462.09M	1.02B	1.57B	227.51M	295.72M
	Total Assets
2.04B	2.10B	2.89B	3.72B	1.82B	1.56B
	Total Debt
53.70M	58.79M	60.44M	49.23M	94.77M	82.27M
	Net Debt
-199.95M	-252.14M	-618.47M	-609.05M	-132.66M	-213.38M
	Total Liabilities
340.43M	331.07M	351.22M	352.74M	494.18M	345.51M
	Stockholders Equity
1.70B	1.77B	2.53B	3.36B	1.33B	1.21B
Cash Flow		Free Cash Flow
25.90M	12.90M	-21.95M	-543.48M	97.05M	-2.06M
	Operating Cash Flow
59.70M	50.29M	17.49M	-466.05M	149.86M	37.87M
	Investing Cash Flow
335.37M	224.74M	431.38M	1.47B	-146.35M	-22.74M
	Financing Cash Flow
-482.27M	-659.21M	-844.08M	-62.76M	-25.91M	-27.02M

Azenta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZTA, the sentiment is Negative. The current price of 29.64 is above the 20-day moving average (MA) of 28.78, above the 50-day MA of 27.55, and below the 200-day MA of 40.99, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZTA.

Azenta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICUI	68 Neutral	$3.16B	―	-4.62%	―	7.19%	-56.19%
ATRC	68 Neutral	$1.56B	―	-8.38%	―	15.79%	-1.20%
AZTA	62 Neutral	$1.37B	―	-2.00%	―	-2.76%	48.51%
BLFS	56 Neutral	$1.02B	―	-3.29%	―	-23.12%	97.46%
STAA	54 Neutral	$834.52M	55.81	-19.14%	―	-14.44%	-557.38%
Sector *	53 Neutral	$5.22B	3.33	-44.36%	7.55%	16.78%	-0.12%
QDEL	52 Neutral	$1.92B	―	-10.59%	―	-3.18%	81.18%

Azenta Corporate Events

Azenta Announces Leadership Change with New General Counsel

On May 12, 2025, Azenta, Inc. announced that Jason W. Joseph, Senior Vice President, General Counsel, and Secretary, will step down from his role effective May 15, 2025, with his employment ending on June 30, 2025. In return for a release of claims and consulting services, Joseph will receive benefits including accelerated vesting of stock units and continued vesting of equity awards. Ephraim Starr has been appointed to succeed Joseph, bringing extensive experience from roles at Lean Focus, LLC, PHC Holdings Corporation, and Danaher Corporation.

The most recent analyst rating on (AZTA) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Azenta stock, see the AZTA Stock Forecast page.

Azenta Announces Departure of Key Executive David Wang

On April 7, 2025, Azenta, Inc. announced that David Wang, President of Sample Management Solutions, will leave the company effective April 9, 2025. As part of his severance agreement, Mr. Wang will serve as a consultant until December 9, 2025, and will receive a pro-rated annual performance incentive and accelerated vesting of certain stock awards.