Bio-Rad Laboratories (BIO) AI Stock Analysis

Compare

892 Followers

Top Page

Bio-Rad Laboratories

(NYSE:BIO)

Rating:56Neutral

Price Target:

$248.00

▼(-0.66%Downside)

The overall stock score reflects significant financial challenges due to declining revenues and negative profitability metrics. However, technical indicators suggest moderate positive momentum, and the recent acquisition provides strategic growth potential. The stock is currently overvalued with a negative P/E ratio, which contributes to a cautious outlook.

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.

Management Changes

The management team has undergone significant changes that may lead to better operations.

Operational Strategy

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

Negative Factors

Financial Performance

Forecasts for Bio-Rad's revenue and adjusted EBITDA have been reduced, reflecting a less optimistic outlook.

Growth Outlook

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.

Price Target

The price target for Bio-Rad Laboratories has been lowered from $260 to $245 due to revised assumptions for growth.

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

Market Cap

$6.73B

Dividend YieldN/A

Average Volume (3M)344.71K

Price to Earnings (P/E)―

Beta (1Y)0.89

Revenue Growth-2.46%

EPS Growth-637.11%

CountryUS

Employees7,700

SectorHealthcare

Sector Strength44

IndustryMedical - Devices

Share Statistics

EPS (TTM)2.54

Shares Outstanding22,142,422

10 Day Avg. Volume208,224

30 Day Avg. Volume344,706

Financial Highlights & Ratios

PEG Ratio0.18

Price to Book (P/B)1.04

Price to Sales (P/S)0.00

P/FCF Ratio20.38

Enterprise Value/Market Cap1.13

Enterprise Value/Revenue0.74

Enterprise Value/Gross Profit5.58

Enterprise Value/Ebitda-1.10

Forecast

1Y Price Target

$323.00

Price Target Upside29.38% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

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

Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

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: 3.83%|

Next Earnings Date:Jul 31, 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, notably declining revenues and persistent net losses. The negative ROE and inconsistent free cash flow growth highlight financial instability, though a conservative leverage position provides some balance.

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

Bio-Rad Laboratories Technical Analysis

Technical Analysis Sentiment

Positive

Last Price249.65

Price Trends

50DMA

238.04

Positive

100DMA

243.35

Positive

200DMA

290.55

Negative

Market Momentum

MACD

4.34

Positive

RSI

55.98

Neutral

STOCH

15.83

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIO, the sentiment is Positive. The current price of 249.65 is above the 20-day moving average (MA) of 246.25, above the 50-day MA of 238.04, and below the 200-day MA of 290.55, indicating a neutral trend. The MACD of 4.34 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRKR	73 Outperform	$6.29B	80.35	4.92%	0.48%	14.84%	-80.87%
ITGR	71 Outperform	$4.10B	55.58	4.98%	―	7.41%	-22.10%
INSP	67 Neutral	$3.76B	58.97	10.86%	―	27.11%	―
LIVN	61 Neutral	$2.37B	30.62	-19.69%	―	7.97%	-592.40%
BIO	56 Neutral	$6.73B	―	-27.51%	―	-2.46%	-637.11%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%
IRTC	46 Neutral	$4.28B	―	-111.13%	―	20.54%	25.73%

* Healthcare Sector Average

Performance Comparison

BIO

Bio-Rad Laboratories

249.65

-50.62

-16.86%

BRKR

Bruker

42.19

-20.08

-32.25%

ITGR

Integer Holdings

114.64

-8.66

-7.02%

LIVN

LivaNova

42.54

-10.56

-19.89%

IRTC

Irhythm Technologies

135.76

37.25

37.81%

INSP

Inspire Medical Systems

127.97

-9.85

-7.15%

Bio-Rad Laboratories Corporate Events

M&A TransactionsBusiness Operations and Strategy

Bio-Rad Completes Acquisition of Stilla Technologies

Positive

Jun 30, 2025

Bio-Rad Laboratories, Inc. announced on February 13, 2025, that it had entered into a binding offer to acquire all equity interests of Stilla Technologies, a French corporation. The acquisition was completed by an affiliate of Bio-Rad on June 30, 2025, marking a significant expansion of the company’s operations.

The most recent analyst rating on (BIO) stock is a Buy with a $390.00 price target. To see the full list of analyst forecasts on Bio-Rad Laboratories stock, see the BIO Stock Forecast page.

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: Jul 01, 2025