Bio-Rad Laboratories (BIO) AI Stock Analysis

• Market Cap: $6.44B
• Dividend Yield: N/A
• Average Volume (3M): 413.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -2.46%
• EPS Growth: -637.11%
• Country: US
• Employees: 7,700
• Sector: Healthcare
• Sector Strength: 56
• Industry: Medical - Devices
• EPS (TTM): 2.54
• Shares Outstanding: 22,142,422
• 10 Day Avg. Volume: 332,128
• 30 Day Avg. Volume: 413,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $321.40
• Price Target Upside: 35.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Bio-Rad Laboratories faces significant financial and operational challenges, primarily due to declining revenues and persistent net losses that weigh heavily on its overall score. While the company has some strengths, such as a conservative leverage position and product innovations, these are overshadowed by weak technical indicators and a negative valuation stance. Earnings call insights provide a balanced view, with notable achievements in certain business segments but also substantial challenges. The stock's outlook would benefit from improved operational efficiency and revenue growth.

Positive Factors

Financial Strategies

The CFO is targeting a significant increase in free cash flow by improving terms with suppliers and employing lean methods to reduce inventories.

Operational Leadership

New operational leaders are emphasizing cost efficiencies and prioritizing high-growth areas.

Valuation and Growth Potential

The valuation suggests potential for growth if management successfully executes its strategies and improves future earnings and cash flow projections.

Negative Factors

Growth Forecast

Management lowered the FY CC growth guide by 225bps to (1%)-1.5% CC from prior +1.5-3.5% to reflect softer demand among US academic/government and biotech customers particularly on the instrument business.

Profit Margins

Tariffs are expected to be ~130bps headwind to operating profit margins, with US exports to China (in the Diagnostics segment) being the most significant piece.

Working Capital Efficiency

The company has more cash tied up in working capital than its peers, with inventory turns significantly down compared to pre-COVID levels.

Bio-Rad Laboratories Business Overview & Revenue Model

Company Description

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 company operates through Life Science and Clinical Diagnostics segments. The Life Science segment develops, manufactures, and markets a range of reagents, apparatus, and laboratory instruments that are used in research techniques, biopharmaceutical production processes, and food testing regimes. It focuses on selected segments of the life sciences market in proteomics, genomics, biopharmaceutical production, cellular biology, and food safety. This segment serves universities and medical schools, industrial research organizations, government agencies, pharmaceutical manufacturers, biotechnology researchers, food producers, and food testing laboratories. The Clinical Diagnostics segment designs, manufactures, sells, and supports test systems, informatics systems, test kits, and specialized quality controls for clinical laboratories in the diagnostics market. This segment offers reagents, instruments, and software, which address specific niches within the in vitro diagnostics test market. It sells its products to reference laboratories, hospital laboratories, state newborn screening facilities, physicians' office laboratories, and transfusion laboratories. In addition, the company offers products and systems to separate complex chemical and biological materials, as well as to identify, analyze, and purify components. The company offers its products through its direct sales force, as well as through distributors, agents, brokers, and resellers. Bio-Rad Laboratories, Inc. was founded in 1952 and is headquartered in Hercules, California.

How the Company Makes Money

Bio-Rad Laboratories generates revenue primarily through the sale of its products and services in the Life Science and Clinical Diagnostics segments. The Life Science segment offers tools and technologies that facilitate research in genomics, proteomics, cell biology, and food safety. Products in this segment include reagents, laboratory instruments, and software that researchers and scientists use in experiments and analyses. The Clinical Diagnostics segment provides a wide range of products for blood testing, diabetes monitoring, quality control, and infectious disease testing. Revenue is derived from the direct sale of these products to hospitals, laboratories, and research institutions worldwide. Additionally, Bio-Rad benefits from strategic partnerships and collaborations with academic institutions, research organizations, and other companies in the biotechnology and healthcare sectors, which further enhance its market reach and innovation capabilities.

Bio-Rad Laboratories Financial Statement Overview

Summary

Bio-Rad Laboratories is facing significant financial challenges, particularly with declining revenues and persistent net losses impacting profitability. While the company maintains a conservative leverage position, the negative ROE and inconsistent cash flow growth highlight underlying risks. Stability in cash generation is a positive factor, but the company needs to address operational inefficiencies and boost revenue growth to improve its financial health.

Income Statement

Bio-Rad Laboratories has experienced significant challenges in its profitability metrics. The TTM gross profit margin stands at approximately 53.86%, which is reasonable. However, the net profit margin is deeply negative due to substantial net losses, marking a concerning trend. The revenue has been declining, with a negative growth rate over the recent periods, indicating shrinking sales. EBIT and EBITDA margins are also under pressure, with EBITDA being negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet of Bio-Rad Laboratories shows mixed signals. The debt-to-equity ratio is low, indicating a conservative leverage position, which is a positive aspect. However, the equity ratio has been declining, which suggests a reduction in equity relative to total assets. ROE is negative due to net losses, which is a critical weakness. Overall, while leverage is under control, the negative ROE poses risks to financial stability.

Cash Flow

Bio-Rad Laboratories' cash flow profile presents both strengths and challenges. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from its operations despite net losses. However, free cash flow growth has been inconsistent, with recent periods showing declines, which could affect future investments and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.57B	2.67B	2.80B	2.92B	2.55B
	Gross Profit
1.38B	1.43B	1.57B	1.64B	1.44B
	EBIT
269.00M	337.80M	482.62M	489.43M	410.96M
	EBITDA
-2.10B	-608.26M	-4.49B	5.63B	5.10B
	Net Income Common Stockholders
-1.84B	-637.32M	-3.63B	4.25B	3.81B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	1.61B	1.80B	875.48M	996.68M
	Total Assets
9.36B	12.30B	13.50B	17.78B	12.97B
	Total Debt
1.37B	1.41B	1.20B	11.00M	14.06M
	Net Debt
886.60M	1.00B	763.97M	-459.78M	-648.15M
	Total Liabilities
2.79B	3.56B	3.89B	4.11B	3.09B
	Stockholders Equity
6.57B	8.74B	9.62B	13.67B	9.88B
Cash Flow		Free Cash Flow
266.20M	218.26M	80.29M	535.72M	476.41M
	Operating Cash Flow
455.20M	374.94M	194.45M	656.52M	575.33M
	Investing Cash Flow
-160.20M	20.21M	-1.21B	-784.44M	-60.25M
	Financing Cash Flow
-218.80M	-425.65M	973.58M	-55.43M	-523.04M

Bio-Rad Laboratories Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 236.34
• 50DMA: Negative
• 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 BIO, the sentiment is Negative. The current price of 236.34 is below the 20-day moving average (MA) of 241.09, below the 50-day MA of 248.67, and below the 200-day MA of 312.12, indicating a bearish trend. The MACD of -2.94 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIO.

Bio-Rad Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSP	71 Outperform	$4.39B	85.11	8.48%	―	28.49%	―
ITGR	70 Outperform	$4.38B	59.62	4.98%	―	7.41%	-22.10%
IRTC	64 Neutral	$4.19B	―	-111.13%	―	20.54%	25.73%
BRKR	60 Neutral	$6.13B	53.46	7.16%	0.49%	13.56%	-73.92%
LIVN	54 Neutral	$2.00B	32.03	4.87%	―	8.33%	256.54%
Sector *	52 Neutral	$5.35B	3.81	-42.57%	2.86%	17.10%	1.33%
BIO	49 Neutral	$6.44B	―	-27.51%	―	-2.46%	-637.11%

Bio-Rad Laboratories Corporate Events

Bio-Rad Laboratories Updates on Sartorius Investment

Bio-Rad Laboratories has provided an update regarding its investment in Sartorius AG, which disclosed its financial results for the year ending December 31, 2024, on February 17, 2025. Sartorius AG reported sales revenue of €3,380.7 million, a gross profit of €1,524.4 million, and a net profit of €137.4 million, reflecting its financial performance and operational insights.