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Bio-Rad Laboratories (BIO)
NYSE:BIO
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Bio-Rad Laboratories
(NYSE:BIO)
Rating:49Neutral
Price Target:
$227.00
▲(4.82%Upside)
Positive Factors
Cash Flow Management
The CFO is targeting a significant increase in free cash flow by improving terms with suppliers and employing lean methods to reduce inventories.
Leadership Changes
The management team has undergone significant changes that may lead to better operations.
Operational Strategies
The company is focusing on self-help measures and new management is executing strategies to improve margins and free cash flow.
Negative Factors
Guidance Reduction
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.
Tariff Impact
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, indicating inefficiencies.
Bio-Rad Laboratories (BIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.19B
Dividend YieldN/A
Average Volume (3M)336.90K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-2.46%
EPS Growth-637.11%
CountryUS
Employees7,700
SectorHealthcare
Sector Strength42
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.54
Shares Outstanding22,142,422
10 Day Avg. Volume350,101
30 Day Avg. Volume336,900
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.00
Price to Sales (P/S)0.00
P/FCF Ratio19.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$321.40Price Target Upside48.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Bio-Rad Laboratories Business Overview & Revenue Model
Company DescriptionBio-Rad Laboratories, Inc. is a global leader in developing, manufacturing, and marketing a broad range of innovative products for the life science research and clinical diagnostics markets. Founded in 1952 and headquartered in Hercules, California, Bio-Rad provides instruments, software, consumables, reagents, and content for the areas of cell biology, gene expression, protein purification, protein quantitation, drug discovery and manufacture, food safety, and science education. The company's products are used by hospitals, public health laboratories, universities, research institutions, biotechnology companies, and pharmaceutical firms worldwide.
How the Company Makes MoneyBio-Rad Laboratories generates revenue primarily through the sale of its life science research and clinical diagnostics products. The Life Science segment offers tools for cell biology research, gene expression analysis, protein purification, and various other applications, contributing significantly to the company's revenue. The Clinical Diagnostics segment provides products and systems for blood testing, diabetes monitoring, autoimmune testing, and other diagnostics, which are used in hospital laboratories, reference laboratories, transfusion laboratories, and physician office laboratories. Bio-Rad also earns from service contracts, training, and the sale of replacement parts for its instruments. The company benefits from strategic partnerships and collaborations with academic institutions and industry players, enhancing its product offerings and market reach. Additionally, Bio-Rad invests in research and development to drive innovation and maintain its competitive edge in the market.
Bio-Rad Laboratories Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -9.93%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call detailed both positive developments, such as the outperformance of the Clinical Diagnostics business, product innovations, and strong free cash flow, alongside significant challenges, including a decline in revenue, softness in the Life Science segment, and impacts from tariffs and macroeconomic conditions. The sentiment of the call is balanced with notable achievements and substantial challenges.Q1-2025 Updates
Positive Updates
Clinical Diagnostics Business Outperformance
The Clinical Diagnostics business performed slightly better than forecast despite reimbursement reductions in China, with nearly 3% growth in the rest of the world.
Process Chromatography Business Growth
The process chromatography business experienced mid-teens growth on a year-over-year basis, contributing positively to the Life Science segment.
Product Innovation and Expansion
Bio-Rad launched several key menu expansions for their life science portfolio, including a new PCR-based salmonella test for food safety and advances in ddPCR Vericheck assays for cell and gene therapy.
Stilla Technologies Acquisition on Track
The acquisition of Stilla Technologies is on track for closing by the end of the third quarter, which will expand Bio-Rad's offering in the digital PCR segment.
Strong Free Cash Flow
For Q1 2025, Bio-Rad reported free cash flow of $96 million, compared to $30 million in Q1 2024.
Negative Updates
Decline in Revenue and Operating Income
Q1 2025 net sales were approximately $585 million, representing a 4.2% decline on a reported basis and a 1.5% decline on a currency-neutral basis. Operating income decreased to $24 million or 4% of sales compared to $45 million or 7.3% of sales in Q1 of 2024.
Life Science Segment Softness
Sales of the Life Science Group in Q1 2025 were $229 million, a decline of 5.4% on a reported basis and 3.5% on a currency-neutral basis, primarily due to ongoing softness in the biotech and academic research market.
Impact of Tariffs and Macro Environment
The updated guidance for 2025 considers tariffs and macroeconomic changes, causing a 130 basis points headwind to operating margin, primarily due to U.S.-manufactured products imported into China.
Increased Restructuring Costs
The decrease in gross margin was primarily driven by restructuring expenses related to workforce reduction announced during Q1 2025.
Reduced Academic and Biotech Research Funding
Bio-Rad reduced its Life Science business outlook due to softer academic and biotech research funding, expecting flat-to-down 3% growth for the full year.
Company Guidance
During the Bio-Rad first-quarter 2025 earnings call, the company provided guidance reflecting both achievements and ongoing challenges. Bio-Rad reported Q1 revenue of approximately $585 million, a 4.2% decline from the previous year on a reported basis, with a 1.5% decrease on a currency-neutral basis. The Life Science Group experienced a 5.4% drop in sales, primarily due to softness in the biotech and academic research markets, while the Clinical Diagnostics Group saw a 3.2% decline. Despite these declines, the Process Chromatography business experienced mid-teens growth year-over-year, and the company maintained strong demand for consumables. The company updated its 2025 full-year guidance to reflect these results and the current macroeconomic environment, anticipating total currency-neutral revenue to range from a 1% decline to 1.5% growth. Challenges such as softer academic research funding and the impact of tariffs were considered, with tariffs alone representing a 130 basis points headwind to the operating margin. Despite these headwinds, the company remains focused on operational efficiency and expects non-GAAP operating margins to be between 10% and 12% for the year. Additionally, Bio-Rad aims for a full-year free cash flow target of approximately $310 million to $330 million, with plans to continue share repurchases and strategic investments.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.42
Neutral
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.60
Neutral
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.55
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.54B | 2.57B | 2.67B | 2.80B | 2.92B | 2.55B | Gross Profit |
| 1.36B | 1.38B | 1.43B | 1.57B | 1.64B | 1.44B | EBIT |
| 246.79M | 269.00M | 337.80M | 482.62M | 489.43M | 410.96M | EBITDA |
| -2.52B | -2.10B | -608.26M | -4.49B | 5.63B | 5.10B | Net Income Common Stockholders |
| -2.23B | -1.84B | -637.32M | -3.63B | 4.25B | 3.81B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.66M | 1.66B | 1.61B | 1.80B | 875.48M | 996.68M | Total Assets |
| 9.53B | 9.36B | 12.30B | 13.50B | 17.78B | 12.97B | Total Debt |
| 1.37B | 1.37B | 1.41B | 1.20B | 11.00M | 14.06M | Net Debt |
| 848.10M | 886.60M | 1.00B | 763.97M | -459.78M | -648.15M | Total Liabilities |
| 2.85B | 2.79B | 3.56B | 3.89B | 4.11B | 3.09B | Stockholders Equity |
| 6.68B | 6.57B | 8.74B | 9.62B | 13.67B | 9.88B |
| Cash Flow | Free Cash Flow | ||||
| 332.08M | 266.20M | 218.26M | 80.29M | 535.72M | 476.41M | Operating Cash Flow |
| 515.31M | 455.20M | 374.94M | 194.45M | 656.52M | 575.33M | Investing Cash Flow |
| -114.21M | -160.20M | 20.21M | -1.21B | -784.44M | -60.25M | Financing Cash Flow |
| -316.52M | -218.80M | -425.65M | 973.58M | -55.43M | -523.04M |
Bio-Rad Laboratories Technical Analysis
Negative
216.56
Price Trends
239.90
Negative
273.05
Negative
304.05
Negative
Market Momentum
-5.46
Positive
36.11
Neutral
16.23
Positive
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 216.56 is below the 20-day moving average (MA) of 236.40, below the 50-day MA of 239.90, and below the 200-day MA of 304.05, indicating a bearish trend. The MACD of -5.46 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIO.
Bio-Rad Laboratories Risk Analysis
Bio-Rad Laboratories disclosed 28 risk factors in its most recent earnings report. Bio-Rad Laboratories reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Use of generative AI and other AI technologies presents risks and challenges due to the evolving nature of AI. Q4, 2024
Bio-Rad Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.08B | 63.69 | 10.86% | ― | 27.11% | ― | |
70 Neutral | $4.14B | 56.35 | 4.98% | ― | 7.41% | -22.10% | |
68 Neutral | $5.56B | 69.89 | 4.92% | 0.54% | 14.84% | -80.87% | |
64 Neutral | $4.49B | ― | -111.13% | ― | 20.54% | 25.73% | |
63 Neutral | $2.36B | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
53 Neutral | $5.24B | 3.28 | -44.98% | 2.81% | 16.82% | -0.32% | |
49 Neutral | $6.19B | ― | -27.51% | ― | -2.46% | -637.11% |
* Healthcare Sector Average
Performance Comparison
BIO
Bio-Rad Laboratories
216.56
-72.40
-25.06%
BRKR
Bruker
36.73
-27.61
-42.91%
ITGR
Integer Holdings
117.69
-3.63
-2.99%
LIVN
LivaNova
43.41
-16.78
-27.88%
IRTC
Irhythm Technologies
140.65
56.58
67.30%
INSP
Inspire Medical Systems
133.73
-14.78
-9.95%
Bio-Rad Laboratories Corporate Events
Financial Disclosures
Bio-Rad Laboratories Updates on Sartorius Investment
Neutral
Feb 21, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.