Bio-Rad Laboratories, Inc. (NYSE:BIO): A Fundamentally Attractive Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Bio-Rad Laboratories, Inc. (NYSE:BIO), it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Bio-Rad Laboratories here.

Flawless balance sheet with solid track record

Over the past few years, BIO has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 26%, which is what investors like to see! BIO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. BIO’s has produced operating cash levels of 0.57x total debt over the past year, which implies that BIO’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

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Next Steps:

For Bio-Rad Laboratories, I’ve put together three fundamental factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for BIO’s future growth? Take a look at our free research report of analyst consensus for BIO’s outlook.
2. Valuation: What is BIO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BIO is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BIO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at [email protected].