1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Narrow-Moat Bio-Rad reported strong second-quarter results, with currency-neutral sales growth of 27.5% and non-GAAP diluted EPS of $3.54 compared with EPS of $1.61 in second-quarter 2020. After adjusting our model for the strong near-term results and greater flow-through equity investment income from Sartorius, we are increasing our fair value estimate to $455 from $425. Our valuation increase is moderated by incorporating a weighted average U.S. tax rate of 26%.
Bio-Rad Laboratories, headquartered in Hercules, California, develops, manufactures, and markets products and solutions for the clinical diagnostics and life sciences markets. In diagnostics (60% of sales), Bio-Rad manufactures, sells, and supports test systems and specialized quality controls for clinical laboratories. In life sciences (40% of sales), the firm develops and manufactures a range of instruments and reagents used in research, biopharmaceutical production, and food testing. The company is geographically diverse, with major markets in the United States (40% of 2020 sales), Europe (34%), and Asia (21%), with Canada and Latin America accounting for the bulk of the remaining 5%. Bio-Rad owns 37% of Sartorius AG, a laboratory and biopharmaceutical supplier.
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