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Tecan Group AG (TCHBF)
OTHER OTC:TCHBF
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Tecan Group AG (TCHBF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.55B
Dividend Yield1.74%
Average Volume (3M)0.00
Price to Earnings (P/E)32.9
Beta (1Y)1.06
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees3,074
SectorHealthcare
Sector Strength41
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)6.37
Shares Outstanding12,825,883
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.93
Price to Book (P/B)1.46
Price to Sales (P/S)0.00
P/FCF Ratio15.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$247.29Price Target Upside23.64% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 Money
Tecan Group AG Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2024)
| % Change Since: -3.68%|
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 maintains strong financial health with a robust equity base and effective cash flow management. However, the recent decline in revenue and operating cash flow suggests the need for strategic initiatives to reinvigorate growth. Overall, the company is well-positioned but must address these challenges to enhance long-term financial performance.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 | EBIT |
| 75.57M | 135.97M | 145.95M | 141.13M | 123.00M | EBITDA |
| 147.80M | 205.57M | 210.85M | 201.22M | 154.99M | Net Income Common Stockholders |
| 67.66M | 132.07M | 121.13M | 121.66M | 103.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 406.01M | 366.42M | 293.24M | 241.91M | 470.92M | Total Assets |
| 2.12B | 2.07B | 2.16B | 2.04B | 1.13B | Total Debt |
| 321.35M | 316.09M | 307.68M | 313.66M | 38.73M | Net Debt |
| 167.15M | 183.13M | 196.24M | 192.65M | -109.72M | 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $2.55B | 32.91 | 4.84% | 1.74% | ― | ― | ||
75 Outperform | CHF613.65M | 7.87 | ― | 32.30% | 631.04% | ||
54 Neutral | $5.31B | 3.26 | -45.10% | 2.79% | 16.76% | 0.02% | |
| CHF4.05B | 33.70 | 8.87% | 1.57% | ― | ― | ||
| $1.10B | ― | -6.44% | ― | ― | ― | ||
| $3.28B | 41.43 | 20.81% | 0.48% | ― | ― | ||
| CHF1.05B | 289.13 | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
TCHBF
Tecan Group AG
200.00
-149.48
-42.77%
CH:BSLN
Basilea Pharmaceutica
50.40
8.90
21.45%
GB:0QND
Bachem Holding AG
54.05
-21.95
-28.88%
CSBTF
Kuros Biosciences
29.54
16.14
120.45%
MEDGF
Medacta Group SA
164.33
26.53
19.25%
CH:MED
Medartis Holding AG
77.40
4.20
5.74%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.