Tecan Group AG (TECN) AI Stock Analysis

• Market Cap: CHF1.89B
• Dividend Yield: 1.99%
• Average Volume (3M): 62.64K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.25
• Revenue Growth: -9.34%
• EPS Growth: -37.50%
• Country: CH
• Employees: 3,074
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.64
• Shares Outstanding: 12,825,883
• 10 Day Avg. Volume: 54,750
• 30 Day Avg. Volume: 62,638
• PEG Ratio: -0.78
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 21.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF181.80
• Price Target Upside: 24.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: CHF158.00 ▲(8.22% Upside)

Tecan Group AG's overall stock score reflects a solid financial foundation and strategic initiatives in innovation and cost reduction. However, recent revenue declines, bearish technical indicators, and valuation concerns weigh on the score. The mixed earnings call results further highlight both opportunities and challenges.

Tecan Group AG Business Overview & Revenue Model

Company Description

Tecan Group AG (TECN) is a leading global provider of laboratory instruments and solutions in the fields of life sciences and diagnostics. Founded in 1980 and headquartered in Switzerland, Tecan operates in two primary segments: Life Sciences and Partnering. The Life Sciences segment focuses on the development and manufacturing of automated laboratory instruments and consumables for research and clinical laboratories, while the Partnering segment provides OEM (original equipment manufacturer) solutions and services for companies in the life sciences industry. Tecan's core products include liquid handling systems, microplate readers, and sample management solutions, which are essential for a range of applications including drug discovery, genomics, and molecular biology.

How the Company Makes Money

Tecan Group AG generates revenue through multiple key streams primarily centered around the sale of laboratory instruments, consumables, and services. The Life Sciences segment contributes significantly to the company's earnings through the direct sale of its proprietary liquid handling systems and associated consumables, which are essential for laboratory automation. Additionally, Tecan earns revenue from service contracts and maintenance agreements, ensuring ongoing support for its instruments. The Partnering segment enhances revenue through strategic partnerships with other companies, providing OEM solutions that allow partners to integrate Tecan's technology into their own products. This revenue model is bolstered by a strong focus on innovation and R&D, which keeps Tecan competitive in the rapidly evolving life sciences market. Furthermore, Tecan benefits from a diversified customer base that includes academic institutions, pharmaceutical companies, and diagnostic laboratories, which helps stabilize revenue streams across economic fluctuations.

Tecan Group AG Financial Statement Overview

Summary

Tecan Group AG demonstrates strong financial health with a robust equity base and effective cash flow management. However, recent declines in revenue and operating cash flow highlight the need for strategic initiatives to sustain 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 146.00
• 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 CH:TECN, the sentiment is Negative. The current price of 146 is below the 20-day moving average (MA) of 149.39, below the 50-day MA of 155.09, and below the 200-day MA of 169.82, indicating a bearish trend. The MACD of -1.17 indicates Negative momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:TECN.

Tecan Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOVE	―	$2.98B	33.23	23.83%	0.46%	16.59%	65.76%
SFZN	―	$3.54B	22.30	15.79%	0.47%	0.77%	16.70%
TECN	―	CHF1.89B	29.73	4.57%	1.99%	-9.34%	-37.50%
YPSN	―	CHF4.36B	49.91	13.49%	0.71%	36.54%	11.60%
SKAN	―	CHF1.19B	73.80	―	0.74%	-3.45%	-49.82%
MED	―	CHF1.09B	282.78	―	―	7.29%	-112.70%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tecan Group AG Corporate Events

Tecan Group AG Earnings Call: Mixed Outlook Amid Challenges

The recent earnings call for Tecan Group AG painted a mixed picture for the company. While there were positive developments such as strong order entry and growth in the Life Sciences business, challenges in China, a decline in the Partnering Business, and external factors like tariffs and currency impacts posed significant hurdles. Despite these challenges, Tecan’s strategic initiatives in cost reduction and innovation were highlighted as positive steps, although the current market environment remains difficult.

Tecan Group AG Reports Resilient First Half 2025

Tecan Group AG, a Swiss-based company, specializes in laboratory automation and OEM instruments, serving sectors such as life sciences and diagnostics with a global presence. In its interim report for the first half of 2025, Tecan reported a slight decline in order entry and sales compared to the previous year, yet showed sequential improvement in the second quarter. The Life Sciences Business segment returned to growth, while the Partnering Business experienced a decrease as expected. Despite these challenges, the company managed to improve its adjusted EBITDA margin to 15.0% through cost-reduction initiatives and operational optimizations. Tecan’s cash flow from operating activities increased significantly, enhancing its net liquidity position. Looking ahead, Tecan remains cautiously optimistic, maintaining its full-year sales outlook with expectations of low single-digit percentage changes in local currencies. The company is focused on sustainable growth through innovation and strategic partnerships, while also launching a share buyback program to reinforce its confidence in long-term growth prospects.