Azenta (AZTA) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: N/A
• Average Volume (3M): 593.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -8.15%
• EPS Growth: 13.50%
• Country: US
• Employees: 3,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.19
• Shares Outstanding: 45,839,730
• 10 Day Avg. Volume: 680,700
• 30 Day Avg. Volume: 593,817
• PEG Ratio: -0.01
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 3.92
• P/FCF Ratio: 199.72
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 31.49
• 1Y Price Target: $34.60
• Price Target Upside: 10.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $31.00 ▼(-1.21% Downside)

Azenta's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and negative profitability. While technical analysis shows a neutral trend, the valuation remains unattractive due to a negative P/E ratio. The earnings call provided some optimism with guidance reaffirmation and margin expansion, but core product revenue declines remain a concern.

Positive Factors

Strong Financial Position

A strong cash position and no debt provide Azenta with financial flexibility to invest in growth opportunities and weather economic uncertainties.

Growth in Next-Gen Sequencing

Sustained growth in next-gen sequencing indicates strong demand and positions Azenta well in a rapidly evolving market, supporting future revenue growth.

Adjusted EBITDA Margin Expansion

Margin expansion reflects operational efficiencies and cost management, enhancing profitability and providing a buffer against revenue fluctuations.

Negative Factors

Decline in Core Products Revenue

Weakness in core product revenue suggests challenges in maintaining market share and customer demand, potentially impacting long-term revenue stability.

Gene Synthesis Revenue Decline

Declining gene synthesis revenue indicates potential competitive pressures and shifts in customer priorities, which could hinder future growth in this segment.

Sanger Sequencing Revenue Decline

The decline in Sanger sequencing revenue highlights the need for innovation and adaptation to new technologies to remain competitive in the sequencing market.

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 through multiple streams, primarily by providing biobanking and laboratory services to research institutions, pharmaceutical companies, and biotechnology firms. Key revenue sources include fees from sample storage and management services, genomic analysis services, and sales of related products such as laboratory equipment and consumables. Additionally, Azenta may benefit from partnerships with academic institutions and commercial organizations that require biobanking services, which can provide steady income through long-term contracts. The company's focus on innovation and the expanding market for life sciences research also contribute to its revenue growth.

Azenta Financial Statement Overview

Summary

Azenta's financial performance is challenged by declining revenues and negative profit margins, despite a strong balance sheet with low leverage. Cash flow metrics show moderate cash generation, indicating the need for operational improvements.

Income Statement

Azenta's income statement shows a declining revenue trend with a negative revenue growth rate of -4.56% in the TTM period. The company is experiencing negative net profit margins, indicating profitability challenges. Gross profit margins have slightly improved to 44.92% in the TTM, but EBIT and EBITDA margins remain negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a strong equity position with a low debt-to-equity ratio of 0.031 in the TTM, suggesting financial stability. However, the return on equity is negative, highlighting profitability issues. The equity ratio remains robust, indicating a solid capital structure.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 76.35% in the TTM. However, the operating cash flow to net income ratio is low at 0.34, and the free cash flow to net income ratio is 0.55, indicating moderate cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	604.93M	656.32M	665.07M	555.50M	513.70M	897.27M
Gross Profit	271.73M	263.37M	263.14M	255.58M	243.81M	380.02M
EBITDA	36.22M	17.85M	55.15M	48.35M	9.94M	28.15M
Net Income	-111.59M	-164.17M	-14.26M	-11.29M	-28.87M	64.85M
Balance Sheet
Total Assets	2.02B	2.10B	2.89B	3.72B	1.82B	1.56B
Cash, Cash Equivalents and Short-Term Investments	318.86M	462.09M	1.02B	1.57B	227.51M	295.72M
Total Debt	52.63M	70.68M	60.44M	49.23M	94.77M	82.27M
Total Liabilities	345.50M	331.07M	351.22M	352.74M	494.18M	345.51M
Stockholders Equity	1.67B	1.77B	2.53B	3.36B	1.33B	1.21B
Cash Flow
Free Cash Flow	45.67M	12.90M	-21.95M	-543.48M	97.05M	-2.06M
Operating Cash Flow	83.72M	50.29M	17.49M	-466.05M	149.86M	37.87M
Investing Cash Flow	104.05M	224.74M	431.38M	1.47B	-146.35M	-22.74M
Financing Cash Flow	-257.95M	-659.21M	-844.08M	-62.76M	-25.91M	-27.02M

Azenta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZTA, the sentiment is Positive. The current price of 31.38 is above the 20-day moving average (MA) of 30.25, above the 50-day MA of 30.92, and below the 200-day MA of 36.37, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZTA.

Azenta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRC	61 Neutral	1.86B	-47.64	-7.83%	―	16.28%	10.63%
SMTI	61 Neutral	301.12M	-28.50	-28.07%	―	34.29%	-49.21%
BLFS	60 Neutral	1.21B	-209.04	-1.59%	―	-18.61%	92.36%
AZTA	56 Neutral	$1.44B	―	-1.74%	―	-8.15%	13.50%
STAA	56 Neutral	1.33B	-13.74	-28.31%	―	-32.59%	-667.81%
QDEL	55 Neutral	1.93B	-4.20	-16.70%	―	-3.00%	76.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%