Bio-rad Laboratories, Inc.

BIO

Laboratory Analytical Instruments

Mkt Cap

$8.16B

PE

-25.31

Debt

$1.2B

Cash

$433.8M

EV

$8.926B

FCF

$185.5M

Market Cap

$8.16B

P/E Ratio

-25.31

Debt

$1.2B

Cash

$433.8M

EV

$8.926B

FCF

$185.5M

Charts data: {"Earnings":[{"time":"2014-12-30","value":88845000},{"time":"2015-12-30","value":113093000},{"time":"2016-12-30","value":28125000},{"time":"2017-12-30","value":122249000},{"time":"2018-12-30","value":365614000},{"time":"2019-12-30","value":1758675000},{"time":"2020-12-30","value":3806267000},{"time":"2021-12-30","value":4245902000},{"time":"2022-12-30","value":-3627535000},{"time":"2023-12-30","value":-637324000}],"Sales":[{"time":"2014-12-30","value":2175044000},{"time":"2015-12-30","value":2019441000},{"time":"2016-12-30","value":2068200000},{"time":"2017-12-30","value":2160200000},{"time":"2018-12-30","value":2289415000},{"time":"2019-12-30","value":2311700000},{"time":"2020-12-30","value":2545626000},{"time":"2021-12-30","value":2922545000},{"time":"2022-12-30","value":2802249000},{"time":"2023-12-30","value":2671300000}],"Net Margins":[{"time":"2014-12-30","value":0.04084744952286023},{"time":"2015-12-30","value":0.05600213128286491},{"time":"2016-12-30","value":0.013598781549173194},{"time":"2017-12-30","value":0.05659151930376817},{"time":"2018-12-30","value":0.1596975646617149},{"time":"2019-12-30","value":0.7607712938530086},{"time":"2020-12-30","value":1.4952184649276838},{"time":"2021-12-30","value":1.45280979420334},{"time":"2022-12-30","value":-1.2945084466084207},{"time":"2023-12-30","value":-0.23858196383783176}],"Assets":[{"time":"2014-12-30","value":3341278000},{"time":"2015-12-30","value":3711542000},{"time":"2016-12-30","value":3850504000},{"time":"2017-12-30","value":4273012000},{"time":"2018-12-30","value":5611068000},{"time":"2019-12-30","value":8008859000},{"time":"2020-12-30","value":12972618000},{"time":"2021-12-30","value":17775795000},{"time":"2022-12-30","value":13501666000},{"time":"2023-12-30","value":12299070000}],"Stockholders Equity":[{"time":"2014-12-30","value":2185155000},{"time":"2015-12-30","value":2490503000},{"time":"2016-12-30","value":2586759000},{"time":"2017-12-30","value":2930250000},{"time":"2018-12-30","value":4020331000},{"time":"2019-12-30","value":5755057000},{"time":"2020-12-30","value":9879940000},{"time":"2021-12-30","value":13667134000},{"time":"2022-12-30","value":9615252000},{"time":"2023-12-30","value":8741133000}],"ROE":[{"time":"2014-12-30","value":0.04065844299374644},{"time":"2015-12-30","value":0.04540970237739123},{"time":"2016-12-30","value":0.01087267890050832},{"time":"2017-12-30","value":0.04171964849415579},{"time":"2018-12-30","value":0.09094126826870723},{"time":"2019-12-30","value":0.305587763943954},{"time":"2020-12-30","value":0.38525203594353813},{"time":"2021-12-30","value":0.31066513286545666},{"time":"2022-12-30","value":-0.3772688432918867},{"time":"2023-12-30","value":-0.07291091440892158}],"ROA":[{"time":"2014-12-30","value":0.045996771295294794},{"time":"2015-12-30","value":0.04513999841575281},{"time":"2016-12-30","value":0.016491867038704543},{"time":"2017-12-30","value":0.028017473388794602},{"time":"2018-12-30","value":0.0956361605312928},{"time":"2019-12-30","value":0.2852462504334263},{"time":"2020-12-30","value":0.3799926121311828},{"time":"2021-12-30","value":0.30593000200553616},{"time":"2022-12-30","value":0.03574492214516342},{"time":"2023-12-30","value":0.027465166065401694}]}

Bio-Rad Laboratories, Inc. manufactures, and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. The company operates through Life Science and Clinical Diagnostics segments. The Life Science segment develops, manufactures, and markets reagents, apparatus, and laboratory instruments that are used in research techniques, biopharmaceutical production processes, and food testing regimes. It focuses on selected segments of the life sciences market in proteomics, genomics, biopharmaceutical production, cellular biology, and food safety. This segment serves universities and medical schools, industrial research organizations, government agencies, pharmaceutical manufacturers, biotechnology researchers, food producers, and food testing laboratories. The Clinical Diagnostics segment designs, manufactures, sells, and supports test systems, informatics systems, test kits, and specialized quality controls for clinical laboratories in the diagnostics market. This segment offers reagents, instruments, and software, which address specific niches within the in vitro diagnostics test market. It sells its products to reference laboratories, hospital laboratories, state newborn screening facilities, physicians' office laboratories, and transfusion laboratories. In addition, the company offers products and systems to separate complex chemical and biological materials, as well as to identify, analyze, and purify components. The company offers its products through its direct sales force, as well as through distributors, agents, brokers, and resellers. Bio-Rad Laboratories, Inc. was founded in 1952 and is headquartered in Hercules, California.

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6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Bio-rad Laboratories, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$185.5M	$238.1M	$299.4M	$368.8M	$444.6M	$524.6M	$605.2M	$682.6M	$752.2M	$809.3M	$849.8M	$8.498B
DCF		$207M	$226.4M	$242.5M	$254.2M	$260.8M	$261.7M	$256.6M	$245.9M	$230.1M	$210.1M	$2.101B
Value	$4.496B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 120%

Earnings Stability 46%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5.6%	1.4%	5.7%	16%	76%	150%	150%	-130%	-24%	-12%
ROA	4.5%	1.6%	2.8%	9.6%	29%	38%	31%	3.6%	2.7%	5.9%
ROE	4.5%	1.1%	4.2%	9.1%	31%	39%	31%	-38%	-7.3%	-3.6%

What is the average Net Margin?

The average Net Margin over the past 5 years is +38.92%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -23.43%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +18.83%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -3.32%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.7%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -8.41%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	5.88	5.79	-58.41	2.82	1.22	0.03	0.02	14.67	5.55	6.47
Debt Equity	0.18	0.17	0.15	0.11	0.08	0.00	0.00	0.12	0.14	0.13
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	-110%	-43%	-110%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.47.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.54.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.11.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	3.7%	3.1%	1.6%	-4.7%	0.25%
Net Income	-	-	-	-	14%
Stockholders Equity	19%	17%	-4%	-9.1%	-1.8%
FCF	16%	7%	-23%	170%	11%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.13%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.25%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +13.65%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +16.8%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.8%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +6.99%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +10.89%.