Qiagen (QGEN) AI Stock Analysis

• Market Cap: $11.04B
• Dividend Yield: 2.46%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 122.1
• Beta (1Y): 0.73
• Revenue Growth: 3.31%
• EPS Growth: -72.63%
• Country: US
• Employees: 5,700
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.55
• Shares Outstanding: 216,556,000
• 10 Day Avg. Volume: 1,651,168
• 30 Day Avg. Volume: 1,390,226
• PEG Ratio: 7.59
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.13
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 14.49
• Enterprise Value/Ebitda: 8.35
• 1Y Price Target: $52.37
• Price Target Upside: 2.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $58.00 ▲(13.77%Upside)

Qiagen's overall stock score reflects strong financial health and technical momentum, albeit with some valuation concerns. The company's robust earnings performance and strategic initiatives enhance its appeal, despite potential risks in market overvaluation and specific geographical challenges.

Positive Factors

Capital Allocation

Qiagen's announcement of its first-ever dividend and a $500 million share buyback demonstrates a strong capital allocation strategy.

Management and Strategy

Management is executing well on margin expansion and is confident in exceeding its 2028 operating margin target ahead of schedule.

Research and Development

The European Commission's Horizon Europe framework is expected to boost Qiagen's growth potential through increased R&D investment and participation in Horizon-funded projects.

Negative Factors

Growth Challenges

There is uncertainty about the durability of Qiagen's top-line growth, impacting the immediate upgrade of stock ratings.

Product Launch and Performance

Sample technologies experienced a decline in core growth due to ongoing instrument softness ahead of new product launches.

Segment Performance

Core growth in Qiagen's genomics and NGS segment declined and fell below expectations, indicating challenges in certain areas.

Qiagen Business Overview & Revenue Model

Company Description

Qiagen N.V. is a Netherlands-based holding company and a leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights. The company operates in the life sciences and molecular diagnostics sectors, offering an extensive range of products including instruments, consumables, and bioinformatics solutions for laboratories in the healthcare, academia, and industrial sectors. Qiagen's core services assist in the extraction, purification, and analysis of DNA, RNA, and proteins, catering to areas such as infectious diseases, oncology, and genomics research.

How the Company Makes Money

Qiagen generates revenue through the sale of its comprehensive portfolio of products and services tailored for molecular testing and diagnostics. The company's revenue model is primarily based on selling consumables such as reagents, test kits, and cartridges, which are used in sample preparation and analysis workflows. Additionally, Qiagen earns significant income from its instruments, which are designed to automate laboratory processes and improve efficiency. The company also provides bioinformatics software and services that enhance data analysis capabilities for its users. Key revenue streams include direct sales to laboratories, hospitals, and research institutions, as well as strategic partnerships and collaborations with pharmaceutical and biotechnology companies. Qiagen's position in the market is strengthened by its continuous investment in research and development, enabling it to innovate and expand its product offerings in response to the evolving needs of its customers.

Qiagen Financial Statement Overview

Summary

Qiagen demonstrates stable financial health with strong cash flow management and a balanced capital structure. While revenue and profit margins face industry pressures, the company's operational efficiency and sound balance sheet provide a firm foundation for future growth. Continued focus on improving profitability and maintaining cash flow strength will be key to enhancing financial performance.

Income Statement

Qiagen's TTM revenue of $2.00 billion is slightly higher than the previous annual revenue of $1.98 billion, indicating modest growth. The gross profit margin is 50.0%, showing solid profitability, although it's a decline from past years. The net profit margin stands at 4.7%, which is relatively low but consistent with industry standards in challenging periods. EBIT and EBITDA margins are 5.9% and 18.6%, respectively, suggesting stable operational efficiency despite fluctuations in EBIT over recent years.

Balance Sheet

The debt-to-equity ratio is 0.41, indicating a solid capital structure with manageable debt levels. Return on Equity (ROE) is a modest 2.7%, reflecting challenges in generating strong returns on equity, partially due to reduced profitability. The equity ratio is a healthy 61.5%, showcasing a strong reliance on equity financing and solid asset backing, which bolsters financial stability.

Cash Flow

The TTM operating cash flow to net income ratio is robust at 7.26, indicating efficient cash conversion from profits. Free cash flow remains strong at $503 million, with a free cash flow to net income ratio of 5.37, highlighting effective cash management and investment capacity. Free cash flow growth is steady, reinforcing cash flow resilience even as net income fluctuates.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.97B	2.14B	2.25B	1.87B
Gross Profit	1.32B	1.23B	1.38B	1.45B	1.23B
EBITDA	368.26M	688.55M	779.36M	895.24M	715.80M
Net Income	83.59M	341.30M	423.21M	512.60M	73.64M
Balance Sheet
Total Assets	5.69B	6.12B	6.29B	6.15B	5.97B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.06B	1.42B	1.07B	714.25M
Total Debt	1.42B	1.61B	1.88B	1.96B	2.03B
Total Liabilities	2.12B	2.31B	2.82B	3.05B	3.49B
Stockholders Equity	3.57B	3.81B	3.47B	3.10B	2.48B
Cash Flow
Free Cash Flow	506.38M	296.65M	565.93M	432.47M	188.03M
Operating Cash Flow	673.55M	459.45M	715.26M	639.00M	492.27M
Investing Cash Flow	-249.23M	-87.66M	-726.76M	-202.43M	-453.29M
Financing Cash Flow	-422.90M	-433.83M	-125.80M	-150.37M	-74.32M

Qiagen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QGEN, the sentiment is Positive. The current price of 50.98 is above the 20-day moving average (MA) of 48.77, above the 50-day MA of 46.58, and above the 200-day MA of 43.26, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 68.22 is Neutral, neither overbought nor oversold. The STOCH value of 89.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QGEN.

Qiagen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QGEN	75 Outperform	$11.04B	122.14	2.67%	2.46%	3.31%	-72.63%
DGX	71 Outperform	$18.85B	20.15	13.65%	1.85%	12.58%	13.00%
RVTY	67 Neutral	$12.22B	40.99	3.70%	0.29%	3.33%	―
NTRA	64 Neutral	$18.97B	―	-18.66%	―	51.50%	53.23%
ILMN	55 Neutral	$17.39B	―	-23.82%	―	-3.47%	25.55%
EXAS	54 Neutral	$9.06B	―	-36.89%	―	11.57%	-315.25%
Sector *	52 Neutral	$7.59B	0.18	-63.14%	2.16%	16.34%	0.64%