Bruker (BRKR) AI Stock Analysis

• Market Cap: $5.17B
• Dividend Yield: 0.6%
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): 65.0
• Beta (1Y): 1.13
• Revenue Growth: 10.36%
• EPS Growth: -78.26%
• Country: US
• Employees: 11,396
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Devices
• EPS (TTM): 0.32
• Shares Outstanding: 151,719,360
• 10 Day Avg. Volume: 2,273,061
• 30 Day Avg. Volume: 3,501,616
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 33.92
• 1Y Price Target: $46.90
• Price Target Upside: 39.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 59 Neutral
• Price Target: $36.00 ▲(7.17% Upside)

Bruker's overall stock score is primarily impacted by its challenging financial performance, with declining revenue growth and profitability, increased leverage, and cash flow issues. Technical analysis indicates bearish trends, and valuation metrics suggest the stock is overpriced. The earnings call provides some optimism with product innovations and cost-saving initiatives, but current market conditions remain difficult.

Positive Factors

Cost Savings Initiatives

A $100 million+ cost saving program is expected to bolster operating margins in 2026, helping BRKR to deliver significant margin expansion and earnings growth even with flat revenue.

Potential Upside

Potential upside is seen from China stimulus, which should become more pronounced as the year progresses.

Valuation and Market Sentiment

The analyst reiterates a Buy rating, believing the valuation reflects BRKR’s current situation, with potential upside when conditions improve.

Negative Factors

Debt and Leverage

Gross leverage breached 4x at 2Q-end, and management noted that subsequent to 2Q-end, they had borrowed an additional $457M of debt under the credit agreement, which brings calculations closer to 5x.

Demand Pressure

BRKR continues to face broad-based demand pressure with no near-term relief in sight across academic, government, industrial, and biopharma sectors.

Guidance Cuts

Steady guide cuts this year starting from 3-4% org growth in Feb to now -2% to -4% decline have driven the stock to its 5-yr low and valuation of ~10.5x EV/EBITDA 2026, as BRKR faces multiple macro headwinds with academic/NIH impact being most significant.

Bruker Business Overview & Revenue Model

Company Description

Bruker Corporation develops, manufactures, and distributes scientific instruments, and analytical and diagnostic solutions in the United States and internationally. The company operates through three segments: Bruker Scientific Instruments (BSI) Life Science, BSI NANO, and Bruker Energy & Supercon Technologies. It offers life science tools, and single and multiple modality systems; life science mass spectrometry; MALDI Biotyper rapid pathogen identification platform and related test kits, DNA test strips, and fluorescence-based polymerase chain reaction technology; genotype and fluorotype molecular diagnostics kits; research, analytical, and process analysis instruments and solutions; SARS-CoV 2 testing for the diagnosis of COVID-19 infection; and Fluorotyper-SARS-CoV 2 plus kits. It also provides range of portable analytical and bioanalytical detection systems, and related products; X-ray instruments; analytical tools for electron microscopes, as well as handheld, portable, and mobile X-ray fluorescence spectrometry instruments; atomic force microscopy instrumentation; non-contact nanometer resolution solution topography; and automated X-ray metrology, automated AFM defect-detection, and photomask repair and cleaning equipment. In addition, the company offers advanced optical fluorescence microscopy instruments; products and services to support the multi-omics needs of researchers in translational research, drug, and biomarker discovery; superconducting materials, such as metallic low temperature superconductors; devices and complex tools based on metallic low temperature superconductors; and non-superconducting high technology tools, such as synchrotron and beamline instrumentation. Bruker Corporation has a collaboration with Newomics Inc. on a LC-MS platform for drug discovery. The company was incorporated in 1991 and is headquartered in Billerica, Massachusetts.

How the Company Makes Money

Bruker generates revenue through multiple streams, primarily from the sale of its scientific instruments and related services. The company markets its products to a diverse range of sectors, including academic research, pharmaceuticals, biotechnology, and environmental testing. Key revenue streams include instrument sales, service contracts, and consumables that support ongoing operations of the instruments. Additionally, Bruker benefits from partnerships and collaborations with research institutions and pharmaceutical companies, which can lead to increased sales and joint development opportunities. The company's focus on innovation and expanding its product portfolio, along with a strong customer base, contributes significantly to its earnings.

Bruker Financial Statement Overview

Summary

Bruker faces a challenging financial landscape with declining revenue growth and profitability. The balance sheet shows increased leverage, and cash flow issues are evident with significant declines in free cash flow growth. To improve its financial health, Bruker must focus on enhancing revenue growth, managing debt levels, and improving cash flow generation.

Income Statement

Bruker's income statement shows a mixed performance. The TTM data reveals a decline in revenue growth rate by 9.6%, indicating a slowdown compared to previous periods. Gross profit margin remains stable at around 48%, but net profit margin has decreased to 2.31%, reflecting reduced profitability. EBIT and EBITDA margins have also contracted, suggesting operational challenges. Despite these issues, the company has shown resilience in maintaining a positive gross profit margin.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio has increased to 1.34 in the TTM, highlighting rising leverage, which could pose a risk if not managed. Return on equity has decreased to 4.40%, reflecting lower profitability for shareholders. However, the equity ratio remains healthy, indicating a stable asset base. The company needs to manage its debt levels to maintain financial stability.

Cash Flow

Bruker's cash flow statement shows significant challenges. The TTM free cash flow growth rate has sharply declined by 71.76%, indicating cash flow pressures. The operating cash flow to net income ratio is low at 0.12, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is also low at 0.30, indicating potential liquidity constraints. The company needs to improve its cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.44B	3.37B	2.96B	2.53B	2.42B	1.99B
Gross Profit	1.65B	1.65B	1.51B	1.31B	1.21B	939.80M
EBITDA	255.20M	438.60M	599.00M	545.30M	497.10M	320.70M
Net Income	79.60M	113.10M	427.20M	296.60M	277.10M	157.80M
Balance Sheet
Total Assets	6.34B	5.81B	4.25B	3.62B	3.65B	3.05B
Cash, Cash Equivalents and Short-Term Investments	92.00M	183.40M	488.30M	645.50M	1.17B	731.80M
Total Debt	2.44B	2.25B	1.38B	1.22B	1.33B	891.50M
Total Liabilities	4.47B	3.99B	2.84B	2.49B	2.57B	2.07B
Stockholders Equity	1.82B	1.78B	1.38B	1.13B	1.08B	975.60M
Cash Flow
Free Cash Flow	49.30M	136.00M	243.20M	143.00M	190.40M	235.00M
Operating Cash Flow	165.90M	251.30M	350.10M	262.00M	282.40M	333.20M
Investing Cash Flow	-245.40M	-1.76B	-326.00M	-239.30M	-192.40M	-193.70M
Financing Cash Flow	-33.30M	1.23B	-193.40M	-415.20M	318.70M	-161.60M

Bruker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.59
• 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 BRKR, the sentiment is Negative. The current price of 33.59 is below the 20-day moving average (MA) of 33.74, below the 50-day MA of 38.13, and below the 200-day MA of 45.80, indicating a bearish trend. The MACD of -1.12 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 39.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRKR.

Bruker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIO	69 Neutral	$8.02B	24.96	4.59%	―	-0.33%	―
IRTC	66 Neutral	$5.40B	―	-91.13%	―	22.37%	31.14%
ITGR	65 Neutral	$3.80B	47.73	5.15%	―	7.21%	-23.29%
LIVN	61 Neutral	$3.09B	30.62	-17.87%	―	8.57%	-1154.64%
BRKR	59 Neutral	$5.17B	65.01	4.43%	0.60%	10.36%	-78.26%
XTNT	55 Neutral	$81.32M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%

Bruker Corporate Events

Bruker Approves 2026 Incentive Compensation Plan

Bruker Corporation’s stockholders approved the 2026 Incentive Compensation Plan during the 2025 Annual Meeting held on May 29, 2025. The plan, effective February 19, 2026, will replace the 2016 Incentive Compensation Plan and authorizes up to 12,000,000 shares for issuance. It will be administered by the Compensation Committee and offers various awards to non-employee directors, employees, and key advisors. The plan will terminate on May 28, 2035, unless ended earlier. Additionally, the meeting included the election of directors, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025.