Bio-Rad Laboratories (BIO) AI Stock Analysis

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Bio-Rad Laboratories

(NYSE:BIO)

Rating:53Neutral

Price Target:

$234.00

▼(-2.90%Downside)

The overall stock score for Bio-Rad Laboratories reflects significant financial challenges, including declining revenues and net losses, which are the most impactful factors. The technical analysis provides mixed signals, with no clear trend, and valuation metrics are unattractive due to the negative P/E ratio. The earnings call offered some positive developments but was overshadowed by substantial challenges. The company's ability to improve operational efficiencies and revenue growth will be critical for future performance.

Positive Factors

Management Strategy

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

Operational Improvements

The company is focusing on self-help measures and new management is executing strategies to improve margins and free cash flow.

Valuation Potential

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

Negative Factors

Earnings Guidance

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.

Growth Projections

Bio-Rad Laboratories is expected to experience lower growth in their Life Sciences segment due to recent US policy changes and uncertainty around NIH funding.

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.

Bio-Rad Laboratories (BIO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.55B

Dividend YieldN/A

Average Volume (3M)405.82K

Price to Earnings (P/E)―

Beta (1Y)0.90

Revenue Growth-2.46%

EPS Growth-637.11%

CountryUS

Employees7,700

SectorHealthcare

Sector Strength49

IndustryMedical - Devices

Share Statistics

EPS (TTM)2.54

Shares Outstanding22,142,422

10 Day Avg. Volume536,232

30 Day Avg. Volume405,824

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)1.30

Price to Sales (P/S)0.00

P/FCF Ratio155.99

Enterprise Value/Market Cap2.03

Enterprise Value/Revenue1.30

Enterprise Value/Gross Profit9.77

Enterprise Value/Ebitda-1.94

Forecast

1Y Price Target

$314.20

Price Target Upside30.38% 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 Key Performance Indicators (KPIs)

Any

Revenue by Geography

Chart InsightsBio-Rad's revenue in the United States and APAC regions shows a declining trend, with recent quarters reflecting significant drops. EMEA, while more stable, also faces challenges. The earnings call highlights a 4.2% revenue decline, impacted by softness in biotech and academic research, and tariffs affecting margins. However, the Process Chromatography business shows strong growth, and strategic investments like the Stilla Technologies acquisition could bolster future performance. Despite current challenges, Bio-Rad remains focused on operational efficiency and strategic growth initiatives.

Data provided by:

Main Street Data

Bio-Rad Laboratories Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 0.23%|

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 faces significant financial challenges with declining revenues and persistent net losses. Although leverage is conservative, negative ROE and inconsistent cash flow growth highlight risks. Stability in cash generation is positive, but operational inefficiencies and revenue growth need improvement.

Income Statement

Neutral

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

Neutral

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

Neutral

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	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
EBITDA	-2.52B	-2.10B	-608.26M	-4.49B	5.63B	5.10B
Net Income	-2.23B	-1.84B	-637.32M	-3.63B	4.25B	3.81B
Balance Sheet
Total Assets	9.53B	9.36B	12.30B	13.50B	17.78B	12.97B
Cash, Cash Equivalents and Short-Term Investments	1.66M	1.66B	1.61B	1.80B	875.48M	996.68M
Total Debt	1.37B	1.37B	1.41B	1.20B	11.00M	14.06M
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	669.46M	584.97M
Investing Cash Flow	-114.21M	-160.20M	20.21M	-1.21B	-797.38M	-69.89M
Financing Cash Flow	-316.52M	-218.80M	-425.65M	973.58M	-55.43M	-523.04M

Bio-Rad Laboratories Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price240.98

Price Trends

50DMA

235.97

Positive

100DMA

252.45

Negative

200DMA

296.03

Negative

Market Momentum

MACD

1.38

Negative

RSI

60.51

Neutral

STOCH

87.98

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIO, the sentiment is Neutral. The current price of 240.98 is above the 20-day moving average (MA) of 229.34, above the 50-day MA of 235.97, and below the 200-day MA of 296.03, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 0 New Risks

Bio-Rad Laboratories Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRKR	73 Outperform	$6.20B	75.53	4.92%	0.49%	14.84%	-80.87%
INSP	67 Neutral	$3.89B	60.83	10.86%	―	27.11%	―
ITGR	67 Neutral	$4.21B	57.32	4.98%	―	7.41%	-22.10%
LIVN	66 Neutral	$2.50B	30.62	-19.69%	―	7.97%	-592.40%
IRTC	64 Neutral	$4.84B	―	-111.13%	―	20.54%	25.73%
BIO	53 Neutral	$6.55B	―	-27.51%	―	-2.46%	-637.11%
Sector *	51 Neutral	$7.39B	0.31	-61.07%	2.34%	17.46%	1.71%

* Healthcare Sector Average

Performance Comparison

BIO

Bio-Rad Laboratories

243.47

-29.64

-10.85%

BRKR

Bruker

42.18

-21.38

-33.64%

ITGR

Integer Holdings

121.87

6.08

5.25%

LIVN

LivaNova

45.87

-8.95

-16.33%

IRTC

Irhythm Technologies

152.69

45.05

41.85%

INSP

Inspire Medical Systems

129.71

-4.12

-3.08%

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

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 18, 2025