BIO

Bio-Rad Laboratories Inc

Healthcare


Presented:04/11/2018
Price:$247.44
Cap:$7.45B
Current Price:$342.16
Cap:$9.54B

Presented

Date04/11/2018
Price$247.44
Market Cap$7.45B
Ent Value$6.86B
P/E Ratio64.94x
Book Value$95.70
Div Yield0%
Shares O/S30.11M
Ave Daily Vol160,919
Short IntN/A

Current

Price$342.16
Market Cap$9.54B
Bio-Rad Laboratories, Inc. engages in the development and production of specialty chemicals used in biochemical, pharmaceutical, and other life science research applications. The company operates through followings segments: Life Science and Clinical Diagnostics. The Life Science segment develops, manufactures and markets reagents, apparatus, and laboratory instruments. The Clinical Diagnostics segment designs, manufactures, sells and supports test systems, informatics systems, test kits and specialize in quality controls that serve clinical laboratories in the global diagnostics market. Bio-Rad Laboratories was founded by David S. Schwartz and Alice N. Schwartz in 1952 and is headquartered in Hercules, CA.

Publicly traded companies mentioned herein: Bio-Rad Laboratories Inc (BIO), Sartorius AG (SRT GR), Thermo Fisher Scientific Inc (TMO)

Highlights

The presenter is long shares of Bio-Rad Laboratories (BIO) and believes the steadily growing, family-controlled manufacturer of a wide variety of clinical diagnostics and life sciences research products is well positioned to continue to benefit from its investment in a new enterprise resource planning (ERP). EBITDA margins should continue to improve toward the 20% 2020 target (up from ~14%), and there is potentially optionality around i) its 35% stake in Sartorius, a German supplier of bioprocess solutions and laboratory products/equipment; and ii) continued growth of Droplet Digital PCR applications. With the stock trading at just 7x his 2020 EBITDA forecast (ex Sartorius), there could be substantial upside for patient shareholders if CEO Norman Schwartz can execute and meet what appear to be reasonable growth and operational targets.

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Idea Discussion

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