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Tecan Group AG (CH:TECN)
:TECN
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Tecan Group AG
(TECN)
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Rating:65Neutral
Price Target:
CHF143.00
▲(6.24% Upside)
Action:ReiteratedDate:01/10/26
The score is driven primarily by solid financial health and cash generation, supported by a mixed but constructive earnings outlook (strong orders, maintained guidance, buyback) offset by revenue softness and external headwinds. Technicals look stretched with overbought signals, and valuation appears relatively expensive at ~30x earnings.
Positive Factors
Free cash flow generation
Consistent strong free cash flow provides durable financial flexibility: it funds R&D, service networks, and the CHF 120m buyback without increasing leverage. Over 2-6 months this cash conversion supports reinvestment, steadies dividends/buybacks and buffers cyclical revenue swings.
Strong equity position
A robust equity ratio and declining leverage enhance resilience to macro shocks and give management scope for strategic investments or M&A. This durable balance-sheet strength lowers refinancing risk, supports capital spending for automation product lines and preserves optionality through downturns.
Healthy orderbook & innovation
A book-to-bill >1 plus new products (Veya workstation, Duo Digital Dispenser) point to sustainable demand and expanding addressable market in Life Sciences. Durable product pipeline and improving Life Sciences sales underpin recurring consumable/service revenue and long-term customer stickiness.
Negative Factors
Revenue decline trend
Sustained revenue declines reduce operating leverage and can compress margins and ROE over multiple quarters. If top-line weakness persists it limits reinvestment capacity, pressurizes realized margins and may force deeper cost actions that impair long-term growth initiatives.
China demand weakness
Prolonged weakness in China, a key market for diagnostics and automation, is a structural risk to growth. Delays in tenders and subdued demand can persist for quarters, reducing partner activity, slowing consumable repeat sales and limiting expansion in a market critical to global life-science end demand.
Partnering business contraction
A material decline in the Partnering segment signals revenue concentration and execution risk from partners and inventory normalization. Structural partner volatility lowers predictability of service and royalty flows, making overall revenue growth and margin recovery more uncertain over the medium term.
Tecan Group AG (TECN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF1.70B
Dividend Yield2.31%
Average Volume (3M)44.12K
Price to Earnings (P/E)26.8
Beta (1Y)1.19
Revenue Growth-9.34%
EPS Growth-37.50%
CountryCH
Employees3,074
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.64
Shares Outstanding12,825,883
10 Day Avg. Volume56,389
30 Day Avg. Volume44,118
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)1.80
Price to Sales (P/S)2.77
P/FCF Ratio21.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF164.88Price Target Upside22.50% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)6.24
Revenue Forecast (FY)CHF888.90M
Tecan Group AG Business Overview & Revenue Model
Company DescriptionTecan Group AG provides laboratory instruments and solutions for pharmaceutical and biotechnology companies, university research departments, and forensic and diagnostic laboratories. It operates through Life Sciences Business and Partnering Business segments. The company offers liquid handling and automation, microplate readers and washers, consumables, NGS reagents, immunoassays and microbodies, and software; Tecan Laberwax, an automation solution; Resolvex, a smart sample preparation solution for use in genomics, synthetic biology, drug discovery, analytical chemistry, cell biology, protein science, applied markets, and ELISA solutions. It also develops and manufactures laboratory instrument manufacturers with essential components comprising precision pumps, valves, robotic arms, and developer software for life science research, diagnostics, and various other industries; Synergence, platform-based automation solution; and Freedom EVO and Fluent instruments. The company operates in Switzerland and Other European countries, North America, Asia, and internationally. Tecan Group AG was founded in 1980 and is headquartered in Männedorf, Switzerland.
How the Company Makes MoneyTecan generates revenue primarily through the sale of its laboratory instruments, systems, and services. Key revenue streams include the sale of automated liquid handling solutions, which are critical for high-throughput laboratories, as well as software and accessories that complement their hardware offerings. Additionally, Tecan earns income from ongoing service contracts, maintenance, and support services associated with its products. The company also benefits from significant partnerships with other life sciences companies and research institutions, which can lead to collaborative projects and expanded market reach. Factors such as innovation in technology, strong customer relationships, and a growing demand for automation in laboratories contribute to Tecan's earnings.
Tecan Group AG Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 16, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Tecan reported strong order entry and growth in the Life Sciences business, challenges in China, a decline in the Partnering Business, and external factors such as tariffs and currency impacts posed significant challenges. The company's strategic initiatives in cost reduction and innovation are positive, but the current market environment remains difficult.Q2-2025 Updates
Positive Updates
Revenue and EBITDA
Tecan delivered CHF 439.5 million in revenue for H1 2025, with an adjusted EBITDA of CHF 65.7 million and an adjusted EBITDA margin of 15%.
Positive Order Entry
Order entry for the first 6 months was CHF 458.3 million, with a sequential improvement in Q2, reflecting mid-single-digit growth in local currencies.
Life Sciences Business Growth
The Life Sciences business returned to growth with a 1.6% increase in local currencies, driven by clinical diagnostics and recovery in consumable sales.
Operational Resilience and Cost Reduction
Tecan realized benefits from cost reduction programs, including a streamlined R&D process in the Cavro business and improved supply chain efficiency.
Innovation Achievements
The company launched new products such as the Veya workstation and Duo Digital Dispenser, receiving strong customer interest and initial orders.
Share Buyback Program
Tecan announced a share buyback program of up to CHF 120 million, reflecting confidence in long-term growth prospects and financial strength.
Negative Updates
Revenue Decline
Overall revenue for H1 2025 was down 5.9% in Swiss francs and 3.7% in local currencies, mainly due to lower sales volumes.
Challenges in China
Sales in China declined as expected, with subdued demand and delays in government tenders, contributing to overall sales challenges.
Partnering Business Decline
The Partnering Business saw a 9.2% decrease in sales in Swiss francs and a 7.1% decrease in local currencies, impacted by weak China demand and inventory reductions.
Currency and Tariff Impacts
Adverse exchange rate movements and U.S. tariffs negatively impacted profitability, with potential further effects depending on tariff developments.
Company Guidance
During the Tecan Half Year Results 2025 Conference Call, several key financial metrics and guidance for the remainder of the year were discussed. For the first half of 2025, Tecan reported revenue of CHF 439 million, with an adjusted EBITDA of CHF 65.7 million, yielding a margin of 15%. The order entry was CHF 458.3 million, with a book-to-bill ratio above 1, indicating a healthy demand pipeline. The Life Sciences segment returned to growth with sales of CHF 185.7 million, up 1.6% in local currencies, while the Partnering Business faced a 7.1% decline in local currencies. Tecan maintained its full-year guidance, anticipating sales to range from a low single-digit percentage decline to growth, with an adjusted EBITDA margin between 17.5% and 18.5%, contingent on currency and tariff impacts. The company also announced a share buyback program of up to CHF 120 million, reflecting confidence in its long-term growth prospects.Tecan Group AG Financial Statement Overview
Summary
Solid overall fundamentals supported by a strong equity base and good free cash flow generation, but recent revenue and operating cash flow declines and weaker ROE temper the strength.Income Statement
Tecan Group AG has shown consistent revenue generation over the years, although recent revenue has declined from 2023 to 2024. Gross profit margin and net profit margin remain healthy, with a slight reduction in net income impacting overall profitability. The EBIT and EBITDA margins indicate stable operational efficiency, albeit with room for improvement.65
Positive
Balance Sheet
The company maintains a strong equity position with a declining debt-to-equity ratio over the years, indicating reduced financial leverage. The equity ratio is robust, reflecting the company's reliance on equity financing. However, the return on equity has seen a decline, reflecting a need for more efficient use of equity capital.70
Positive
Cash Flow
Tecan Group AG exhibits strong free cash flow generation, despite fluctuations in operating cash flow. The high free cash flow to net income ratio underscores efficient cash management. However, operating cash flow has declined recently, pointing to potential operational adjustments needed to sustain cash generation.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 906.60M | 934.28M | 1.07B | 1.14B | 946.62M | 730.88M |
| Gross Profit | 319.03M | 320.60M | 390.47M | 405.32M | 388.02M | 339.86M |
| EBITDA | 132.74M | 147.80M | 205.57M | 210.85M | 201.22M | 154.99M |
| Net Income | 63.13M | 67.66M | 132.07M | 121.13M | 121.66M | 103.69M |
Balance Sheet | ||||||
| Total Assets | 1.94B | 2.12B | 2.07B | 2.16B | 2.04B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 397.00M | 406.01M | 366.42M | 293.24M | 241.91M | 470.92M |
| Total Debt | 322.04M | 321.35M | 316.09M | 307.68M | 313.66M | 38.73M |
| Total Liabilities | 656.74M | 686.15M | 725.06M | 776.40M | 800.26M | 380.48M |
| Stockholders Equity | 1.28B | 1.44B | 1.35B | 1.36B | 1.22B | 733.65M |
Cash Flow | ||||||
| Free Cash Flow | 150.10M | 117.86M | 125.63M | 91.24M | 126.12M | 166.13M |
| Operating Cash Flow | 166.71M | 148.54M | 160.57M | 127.47M | 165.84M | 207.42M |
| Investing Cash Flow | 60.69M | -48.61M | -84.23M | -88.22M | -651.95M | -288.77M |
| Financing Cash Flow | -76.95M | -81.30M | -50.57M | -47.82M | 458.53M | -35.33M |
Tecan Group AG Technical Analysis
Neutral
134.60
Price Trends
136.06
Negative
139.01
Negative
150.80
Negative
Market Momentum
-1.04
Negative
49.34
Neutral
52.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:TECN, the sentiment is Neutral. The current price of 134.6 is above the 20-day moving average (MA) of 133.47, below the 50-day MA of 136.06, and below the 200-day MA of 150.80, indicating a neutral trend. The MACD of -1.04 indicates Negative momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:TECN.
Tecan Group AG Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | CHF3.03B | 33.72 | 23.83% | 0.45% | 16.59% | 65.76% | |
70 Outperform | CHF3.70B | 19.10 | 27.15% | 0.67% | 27.63% | 160.67% | |
65 Neutral | CHF1.70B | 26.83 | 4.57% | 2.31% | -9.34% | -37.50% | |
62 Neutral | CHF3.64B | 20.94 | 15.79% | 0.51% | 0.77% | 16.70% | |
62 Neutral | CHF1.25B | -2,346.94 | ― | ― | 7.29% | -112.70% | |
55 Neutral | CHF1.17B | 72.27 | ― | 0.77% | -3.45% | -49.82% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CH:TECN
Tecan Group AG
134.60
-56.63
-29.61%
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-22.45%
CH:SKAN
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CH:MED
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92.50
18.60
25.17%
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.