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Tecan Group AG (CH:TECN)
:TECN
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Tecan Group AG
(OTC:TECN)
Rating:66Neutral
Price Target:
CHF177.00
▲(7.08%Upside)
Tecan Group AG (TECN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$2.12B
Dividend Yield1.81%
Average Volume (3M)34.28K
Price to Earnings (P/E)31.2
Beta (1Y)1.12
Revenue Growth-13.04%
EPS Growth-48.74%
CountryCH
Employees3,074
SectorHealthcare
Sector Strength39
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)5.23
Shares Outstanding12,825,883
10 Day Avg. Volume26,512
30 Day Avg. Volume34,278
Financial Highlights & Ratios
PEG Ratio-10.26
Price to Book (P/B)3.86
Price to Sales (P/S)0.00
P/FCF Ratio57.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$186.36Price Target Upside12.74% Upside
Rating ConsensusHold
Number of Analyst Covering5
Tecan Group AG Business Overview & Revenue Model
Company DescriptionTecan Group AG is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics, and clinical diagnostics. The company specializes in the development, manufacturing, and distribution of automated workflow solutions and laboratory instruments, including liquid handling and robotics, detection devices, and customized automation solutions. Tecan serves a diverse range of industries, offering products that enhance efficiency, accuracy, and safety in laboratory processes.
How the Company Makes MoneyTecan Group AG generates revenue primarily through the sale of its laboratory instruments and solutions, which are utilized in research, diagnostics, and various scientific applications. The company's key revenue streams include the sales of automated liquid handling systems, microplate readers, washers, and customized automation solutions. Additionally, Tecan provides consumables and services such as installation, maintenance, and training, contributing to recurring revenue. Strategic partnerships and collaborations with leading pharmaceutical and biotechnology companies also play a significant role in driving the company's earnings, as these collaborations often involve co-development and co-marketing agreements, expanding Tecan's market reach and customer base.
Tecan Group AG Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2024)
| % Change Since: -8.89%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Tecan Group. While the company made significant strides in operational resilience, innovation, and sustainability, it faced notable challenges, including declines in order entry and sales, market weakness in China and the U.S., and a decrease in gross profit and EBITDA margins.Q4-2024 Updates
Positive Updates
Operational Resilience and Cost Reduction
Implemented a comprehensive cost reduction program and consolidated sites, enhancing global organizational footprint. Successfully transferred Cavro component production to facilities in Morgan Hill, California, and Penang, Malaysia, and closed the San Jose site.
Innovation and Product Launches
Advanced product portfolio with significant launches in genomics, proteomics, and cell biology. Previewed groundbreaking multiomics liquid handling workstation, Veya, and expanded digital ecosystem to enhance laboratory productivity.
Sustainability Initiatives
Completed a climate scenario risk analysis and integrated ESG data management into finance function. Increased purchase of electricity from renewable sources to 87%.
Financial Performance in Life Sciences
Life Sciences business showed moderate order entry growth in local currencies during the second half of 2024, with consumable sales recovery and strong demand for newly launched products.
Negative Updates
Decline in Order Entry and Sales
Order entry for the full year totaled CHF 903.6 million, reflecting a year-on-year decrease of 12.1%. Reported sales for the group decreased by 13% in Swiss francs to CHF 934.3 million.
Challenges in China and U.S.
Market weakness in China negatively impacted instrument demand, and U.S. academic and governmental accounts faced reduced CapEx spending, affecting demand for life science-related instruments.
Partnering Business Segment Decline
Partnering business segment generated sales of CHF 537.3 million, marking a decrease of 13.7% in Swiss francs, with significant impact from customer-specific factors and normalized demand patterns.
Gross Profit and EBITDA Margin Decrease
Gross profit decreased by 17.9% to CHF 320.6 million, with a gross profit margin decrease of 200 basis points. Adjusted EBITDA margin decreased to 17.6% of sales.
Company Guidance
During the Tecan Group's full-year results conference call for 2024, the company provided guidance for 2025, anticipating a sales outlook ranging from a low single-digit decline to low single-digit growth in local currencies. This forecast considers several market challenges, including reduced CapEx spending in the biopharmaceutical industry and uncertainties related to the U.S. government's budget, particularly impacting academic and governmental accounts. For 2024, Tecan reported an order entry of CHF 903.6 million, a year-on-year decrease of 12.1%, with sales totaling CHF 934.3 million, down 13% in Swiss francs. The adjusted EBITDA margin was 17.6%, aligning with the revised margin outlook. The company anticipates a return to a more positive sales trajectory in the second half of 2025, driven by new product launches and partnerships. Additionally, Tecan plans to maintain its operational resilience through a comprehensive cost reduction program, targeting an adjusted EBITDA margin of 17.5% to 18.5% for 2025.Tecan Group AG Financial Statement Overview
Summary
Tecan Group AG exhibits strong financial health with a stable equity base and effective cash flow management. However, recent declines in revenue and operating cash flow suggest the need for strategic initiatives to maintain growth and profitability.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 934.28M | 1.07B | 1.14B | 946.62M | 730.88M |
| Gross Profit | 320.60M | 390.47M | 405.32M | 388.02M | 339.86M |
| EBITDA | 147.80M | 205.57M | 210.85M | 201.22M | 154.99M |
| Net Income | 67.66M | 132.07M | 121.13M | 121.66M | 103.69M |
Balance Sheet | |||||
| Total Assets | 2.12B | 2.07B | 2.16B | 2.04B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 406.01M | 366.42M | 293.24M | 241.91M | 470.92M |
| Total Debt | 321.35M | 316.09M | 307.68M | 313.66M | 38.73M |
| Total Liabilities | 686.15M | 725.06M | 776.40M | 800.26M | 380.48M |
| Stockholders Equity | 1.44B | 1.35B | 1.36B | 1.22B | 733.65M |
Cash Flow | |||||
| Free Cash Flow | 117.86M | 125.63M | 91.24M | 126.12M | 166.13M |
| Operating Cash Flow | 148.54M | 160.57M | 127.47M | 165.84M | 207.42M |
| Investing Cash Flow | -48.61M | -84.23M | -88.22M | -651.95M | -288.77M |
| Financing Cash Flow | -81.30M | -50.57M | -47.82M | 458.53M | -35.33M |
Tecan Group AG Technical Analysis
Positive
165.30
Price Trends
163.88
Positive
169.39
Negative
196.07
Negative
Market Momentum
-0.44
Negative
53.94
Neutral
77.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:TECN, the sentiment is Positive. The current price of 165.3 is above the 20-day moving average (MA) of 163.92, above the 50-day MA of 163.88, and below the 200-day MA of 196.07, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 77.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:TECN.
Tecan Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | CHF4.35B | 36.20 | 8.87% | 1.20% | 4.84% | 7.45% | |
75 Outperform | CHF569.85M | 7.31 | ― | 32.30% | 631.04% | ||
66 Neutral | $2.72B | 38.95 | 20.81% | 0.41% | 13.35% | 50.65% | |
66 Neutral | $2.12B | 31.19 | 4.84% | 1.81% | -13.04% | -48.74% | |
64 Neutral | $1.03B | ― | -6.44% | ― | 125.11% | 69.27% | |
60 Neutral | HK$15.58B | 5.65 | -7.43% | 4.32% | 11.60% | -21.06% |
* Healthcare Sector Average
Performance Comparison
CH:TECN
Tecan Group AG
165.30
-149.01
-47.41%
CH:BSLN
Basilea Pharmaceutica
46.80
7.25
18.33%
CH:KURN
Kuros Biosciences
28.10
16.68
146.06%
CH:MOVE
Medacta Group SA
133.80
13.20
10.94%
CH:BANB
Bachem Holding AG
58.05
-28.54
-32.96%
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.