As of July 19, 2023, the stock price of Revvity Inc (RVTY, Financial) has seen a change of 3.48%, with the price per share standing at $126.53. With a market cap of $15.9 billion and sales reaching $3.4 billion, the company's GF Value, an intrinsic value indicator calculated by GuruFocus, is estimated at $116.28. This suggests that Revvity (RVTY) is fairly valued.
Revvity, a prominent player in the pharmaceutical, biomedical, chemical, environmental, and general industrial markets, provides an extensive array of products and services. From genetic screening and environmental analytical tools to informatics and enterprise software, Revvity's offerings span across two key segments - diagnostics and discovery & analytical solutions.
GF Value of Revvity (RVTY, Financial)
The GF Value of Revvity (RVTY) is calculated based on historical trading multiples, an adjustment factor from GuruFocus based on past performance and growth, and estimates of future business performance. Currently, the GF Value indicates that Revvity's stock is fairly valued. This implies that the long-term return of Revvity's stock is likely to align closely with the rate of its business growth.
Financial Strength of Revvity
To avoid potential capital loss, it's crucial to examine a company's financial strength before investing. Key indicators such as the cash-to-debt ratio can provide valuable insights. Revvity's cash-to-debt ratio stands at 0.55, ranking lower than 65.98% of companies in the Medical Diagnostics & Research industry. This suggests that Revvity's financial strength is fair.
Profitability and Growth of Revvity
Revvity has consistently demonstrated profitability over the past 10 years. With revenues of $3.4 billion and an EPS of $7.68 in the last 12 months, its operating margin of 17.11% ranks better than 78.51% of companies in the same industry. However, Revvity's 3-year average revenue growth rate is lower than 74.88% of companies in the Medical Diagnostics & Research industry. On a positive note, its 3-year average EBITDA growth rate of 26.5% ranks better than 67.88% of its industry counterparts.
ROIC vs WACC
Comparing a company's return on invested capital (ROIC) with its weighted average cost of capital (WACC) offers another perspective on profitability. For Revvity, the ROIC stands at 3.58, while the WACC is 7.26, indicating that the company is creating value for its shareholders.
Conclusion
In conclusion, Revvity Inc (RVTY, Financial) appears to be fairly valued. The company's financial condition is fair, and its profitability is strong. Despite some challenges in revenue growth, its EBITDA growth rate outperforms a significant portion of the Medical Diagnostics & Research industry. To learn more about Revvity's financials, you can check out its 30-Year Financials here.
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