April 22, 2025 a 03:31 am
TECH: Dividend Analysis - Bio-Techne Corporation
Bio-Techne Corporation presents a modest dividend yield reflective of its stable financial foundation. While its dividend per share has seen minimal changes over the years, the company's payout ratios suggest prudential management. This indicates a sustainable approach to dividend distribution, without compromising growth opportunities.
📊 Overview
Bio-Techne operates in the biotechnology sector with an emphasis on maintaining steady dividends.
| Key Metric | Value |
|---|---|
| Sector | Biotechnology |
| Dividend yield | 0.49% |
| Current dividend per share | 0.32 USD |
| Dividend history | 18 years |
| Last cut or suspension | None |
📈 Dividend History
The firm boasts an 18-year dividend history, underscoring its commitment to returning value to shareholders. Historical consistency in dividends can appeal to risk-averse investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.08 |
| 2024 | 0.32 |
| 2023 | 0.32 |
| 2022 | 0.32 |
| 2021 | 0.32 |
📉 Dividend Growth
Despite the absence of growth in its dividends over recent years, maintaining a flat dividend suggests a focus on financial stasis instead of expansionary payouts.
| Time | Growth |
|---|---|
| 3 years | 0% |
| 5 years | 0% |
The average dividend growth is 0% over 5 years. This shows moderate but steady dividend growth due to its stable dividend history rather than a dynamic increment.
✅ Payout Ratio
Payout ratios are crucial for assessing a company's ability to sustain dividend payments. A lower ratio indicates ample room for reinvestment and future dividend growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 32.03% |
| Free cash flow-based | 19.87% |
The EPS payout ratio of 32.03% and FCF payout ratio of 19.87% suggest Bio-Techne is comfortably managing its dividends, leaving ample room for internal investments.
🗣️ Cashflow & Capital Efficiency
Understanding cash flow and capital efficiency metrics is vital to assess how effectively a company generates cash and utilizes its capital for growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.09% | 1.68% | 2.06% |
| Earnings Yield | 1.49% | 2.22% | 2.00% |
| CAPEX to Operating Cash Flow | 21.03% | 15.03% | 13.81% |
| Stock-based Compensation to Revenue | 3.28% | 3.45% | 3.82% |
| Free Cash Flow / Operating Cash Flow Ratio | 78.97% | 84.97% | 86.19% |
The continuity in cash flow ratios reflects robust financial health, indicating Bio-Techne's prowess in capital allocation and efficient cash management strategies.
⚠️ Balance Sheet & Leverage Analysis
A sound balance sheet is vita for long-term viability. Key leverage ratios offer insight into potential risks relating to debt and financial obligations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.20 | 0.23 | 0.19 |
| Debt-to-Assets | 0.16 | 0.17 | 0.14 |
| Debt-to-Capital | 0.17 | 0.19 | 0.16 |
| Net Debt to EBITDA | 0.86 | 0.60 | 0.37 |
| Current Ratio | 3.94 | 4.84 | 3.44 |
| Quick Ratio | 2.75 | 3.50 | 2.64 |
| Financial Leverage | 1.31 | 1.34 | 1.35 |
Bio-Techne's conservative debt profile ensures financial flexibility. The increasing current ratio indicates improved liquidity positions over time, supporting future growth strategies.
🗣️ Fundamental Strength & Profitability
Examining profitability metrics helps investors understand the company's efficiency in generating returns from its assets and equity.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.13% | 14.51% | 15.99% |
| Return on Assets | 6.22% | 10.81% | 11.86% |
| Net Margin | 14.50% | 25.10% | 24.61% |
| EBIT Margin | 17.38% | 30.78% | 28.28% |
| EBITDA Margin | 26.78% | 40.52% | 38.00% |
| Gross Margin | 66.41% | 67.72% | 68.42% |
| R&D to Revenue | 8.25% | 8.14% | 7.88% |
Bio-Techne's solidity in profit margins accentuates not only its operational effectiveness but also its commitment to research and development, fostering long-term growth potential.
🏷️ Price Development
💡 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 2 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 5 |
Total Score: 30/40
🗣️ Rating
Bio-Techne Corporation garners a solid rating with a strong focus on maintaining dividend stability and conservative payout ratios. Its robust financial metrics and commitment to research and development foster a positive outlook for long-term investors. Overall, Bio-Techne presents a sound opportunity for those valuing stability and steady income growth.