As of July 19, 2023, Bio-Rad Laboratories Inc (BIO, Financial) has experienced a day's change of 3.24%, with a current stock price of $397.07. The company, boasting a market cap of $11.6 billion, has a GF Value of $612.23, indicating that it is significantly undervalued. Despite a negative EPS of $-6.54, Bio-Rad Laboratories has maintained a steady sales figure of $2.8 billion.
Headquartered in Hercules, California, Bio-Rad Laboratories is a global leader in the development, manufacture, and marketing of products and solutions for the clinical diagnostics and life sciences markets. With major markets across the Americas, Europe and Africa, and Asia-Pacific, the company owns a 37% stake in Sartorius AG, a renowned laboratory and biopharmaceutical supplier.
GF Value: A Beacon of Fair Value
The GF Value of Bio-Rad Laboratories (BIO, Financial) indicates a significant undervaluation. The GF Value is a unique measure of a stock's intrinsic worth, derived from historical trading multiples, an adjustment factor from GuruFocus based on past performance and growth, and estimates of future business performance. The stock's current price of $397.07 per share suggests a promising future return given its undervalued status.
Financial Strength and Profitability
Examining a company's financial strength is crucial before investing. Bio-Rad Laboratories' cash-to-debt ratio stands at 1.34, which is lower than 60.81% of companies in the Medical Devices & Instruments industry. However, the overall financial strength of Bio-Rad Laboratories is rated 7 out of 10, indicating fair financial health.
Profitability is another critical factor for potential investors. Bio-Rad Laboratories' operating margin of 14.16% ranks better than 72.96% of companies in its industry. The company's profitability is ranked 7 out of 10, indicating fair profitability.
Growth and Value Creation
Growth is a vital factor in a company's valuation. Bio-Rad Laboratories' 3-year average revenue growth rate is lower than 50.56% of companies in its industry. However, the company's 3-year average EBITDA growth rate is 0%.
Comparing a company's return on invested capital (ROIC) to its weighted average cost of capital (WACC) is another way to evaluate profitability. Bio-Rad Laboratories' ROIC stands at 2.73, while its WACC is at 8.02. This indicates that the company may be creating value for its shareholders.
Conclusion
In conclusion, the stock of Bio-Rad Laboratories Inc (BIO, Financial) appears to be significantly undervalued. Despite its fair financial condition and profitability, its growth ranks lower than many companies in the Medical Devices & Instruments industry. To learn more about Bio-Rad Laboratories stock, you can check out its 30-Year Financials here.
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