Bio-Rad Laboratories, Inc. (BIO) | Investment Case

1. Company Snapshot

1.a. Company Description

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 a range of 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.

Show Full description

1.b. Last Insights on BIO

Bio-Rad Laboratories' recent performance was driven by strong Q2 earnings, with a 51% jump in EPS, and revenue growth across all three segments. The company's launch of four new ddPCR platforms, expanding its offerings to over 400,000 assays, contributed to its growth. Additionally, the acquisition of Stilla fueled the launch of these new platforms.

1.c. Company Highlights

Last Price	317.69
Change Percentage	-0.74%
Open	322.74
Previous Close	320.06
Market Cap ( Millions)	8570
Volume	94846
Year High	373.69
Year Low	211.43
M A 50	312.07
M A 200	269.0

FCF Yield	3.93%
Dividend Yield	0.00%
ROE	-9.97%
Debt / Equity	20.71%
Net Debt / EBIDTA	-160.55%
Price To Book	1.27
Price Earnings Ratio	-12.65
Price To FCF	25.45
Price To sales	3.35
EV / EBITDA	-15.4

2. Bio-Rad's Q3 2025 Earnings: A Closer Look at Financial Performance

Bio-Rad reported revenue of $653 million for the third quarter of 2025, a 0.5% increase from $650 million in Q3 2024. On a currency-neutral basis, revenue actually decreased by 1.7%. The company's non-GAAP gross margin stood at 53.5%, while the non-GAAP operating margin was 11.8%. Non-GAAP net income was $61 million, translating to $2.26 diluted earnings per share, slightly below estimates of $2.3. The Life Science segment reported $262 million in sales, flat on a reported basis but down 1.5% on a currency-neutral basis. In contrast, the Clinical Diagnostics segment saw sales of $391 million, a 0.6% increase on a reported basis but a 1.8% decrease on a currency-neutral basis.

Publication Date: Nov -03

                                    📋 Highlights
                                    Flat Revenue Growth:
                                                Bio-Rad’s Q3 2025 revenue rose 0.5% YoY to $653M but declined 1.7% on a currency-neutral basis, reflecting FX headwinds.
Segment Volatility:
                                                Life Science sales were flat ($262M) and Clinical Diagnostics rose 0.6% ($391M), both segments down 1.5–1.8% on currency-neutral basis.
Margin Resilience:
                                                Non-GAAP gross margin held steady at 53.5%, while operating margin was 11.8%, with 80 bps sequential improvement expected in Q4.
2026 Growth Outlook:
                                                Targets 3–5% revenue growth, driven by margin expansion via operational efficiency and biotech recovery, despite China softness.
ddPCR Momentum:
                                                Droplet Digital PCR strategy advanced with new products and partnerships, though 2025 results remain flat; Q4 and 2026 growth anticipated.

                                

Guidance and Outlook for 2025 and 2026

The company expects 2025 total currency-neutral revenue growth to be flat to 1%, with a non-GAAP gross margin between 53.5% and 54.5% and an operating margin ranging from 12% to 13%. For the fourth quarter, Bio-Rad anticipates a modest revenue improvement in Life Sciences and a return to growth in Clinical Diagnostics. Looking ahead to 2026, the company expects low single-digit growth, around 3-5%, driven in part by a high single-digit growth rate in its process chromatography business. This growth is expected to facilitate margin expansion through operational initiatives, lean initiatives, productivity improvements, and buying power leverage.

Segment Performance and Key Highlights

In the third quarter, the ddPCR instruments generated excitement due to the expanded portfolio, although consumables sales were slow. The company expects growth to rebound in Q4 and 2026. Process chromatography was down high single digits, but when adjusting for one-timers, the company saw a couple of percent growth, with pressure mainly in North America. The company is optimistic about demand for digital PCR, with a growing pipeline and strong interest in demos. For 2026, Bio-Rad targets margin expansion, driven by operational efficiencies and other initiatives.

Valuation and Future Prospects

With a P/E Ratio of -12.73 and an EV/EBITDA of -51.42, the market's expectations for Bio-Rad's future performance are already quite muted. Analysts estimate next year's revenue growth at 3.2%, which is within the company's guided range of 3-5%. The current valuation metrics suggest that the market has already priced in some of the challenges the company is facing. As Bio-Rad continues to navigate the complexities of its business, particularly in regions like China and in segments such as Life Sciences, its ability to achieve margin expansion and drive growth will be closely watched.

3. NewsRoom

Fisher Asset Management LLC Sells 5,884 Shares of Bio-Rad Laboratories, Inc. $BIO

Dec -03

Source: defenseworld.net

Dyadic and BRIG BIO Sign Development & Commercialization Agreement to Bring Animal-Free Bovine Alpha-Lactalbumin to Global Nutrition Markets

Dec -01

Source: globenewswire.com

Artisan Partners Limited Partnership Sells 1,670 Shares of Bio-Rad Laboratories, Inc. $BIO

Nov -22

Source: defenseworld.net

Digital Identity and Biometric Access Management Provider BIO-key Reports Q3 Results; Highlights Enhanced Post Quarter Balance Sheet to Support 2026 Growth Goals; Holds Investor Call 10am ET Today

Nov -14

Source: globenewswire.com

BIO-key Partners with VaporVM to Expand Reach of its Advanced Identity and Access Management and Biometric Cybersecurity Solutions in Middle East and Africa

Nov -12

Source: globenewswire.com

BIO-key Showcases Biometric Identity Innovations at Africa Tech Festival 2025, November 10-13

Nov -10

Source: globenewswire.com

Digital Identity and Biometric Solutions Provider BIO-key Hosts Q3 Investor Call Friday, November 14th at 10am ET

Nov -07

Source: globenewswire.com

BIO-key Secures Significant Identity and Biometric Security Deployment with a Major Middle East Defense Sector Organisation

Nov -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.63%)

6. Segments

Clinical Diagnostics

Expected Growth: 3.5%

Bio-Rad Laboratories' Clinical Diagnostics segment growth of 3.5% is driven by increasing demand for infectious disease testing, expansion in emerging markets, and adoption of digital PCR technology. Additionally, the company's strategic acquisitions and investments in product development have enhanced its portfolio, contributing to revenue growth.

Life Science

Expected Growth: 3.8%

Bio-Rad Laboratories, Inc.'s Life Science segment growth of 3.8% is driven by increasing demand for genomic research, proteomics, and cell biology products. The rise of precision medicine, gene editing, and COVID-19 research also contribute to growth. Additionally, the company's investments in digital PCR and Droplet Digital PCR technologies, as well as its expanding presence in emerging markets, support segment growth.

Other

Expected Growth: 3.2%

Bio-Rad Laboratories' 3.2% growth in 'Other' segment is driven by increasing demand for its digital biology and synthetic biology products, expansion into new geographies, and strategic partnerships. Additionally, the company's focus on innovation and R&D investments in emerging technologies such as CRISPR and gene editing are contributing to growth.

7. Detailed Products

PCR (Polymerase Chain Reaction) Instruments

Bio-Rad's PCR instruments are designed for amplifying specific DNA sequences, enabling researchers to analyze and detect genetic material.

Real-Time PCR Systems

Bio-Rad's real-time PCR systems provide accurate and sensitive detection of nucleic acids, enabling researchers to quantify and analyze gene expression.

Droplet Digital PCR Systems

Bio-Rad's droplet digital PCR systems enable precise and sensitive detection of nucleic acids, allowing researchers to analyze rare mutations and genetic variations.

Protein Purification and Analysis

Bio-Rad's protein purification and analysis products enable researchers to isolate, purify, and analyze proteins, facilitating the study of protein function and structure.

Western Blotting and Imaging

Bio-Rad's western blotting and imaging products enable researchers to analyze protein expression and modification, facilitating the study of protein function and disease mechanisms.

Cell Isolation and Analysis

Bio-Rad's cell isolation and analysis products enable researchers to isolate, analyze, and characterize cells, facilitating the study of cell biology and disease mechanisms.

Food Safety Testing

Bio-Rad's food safety testing products enable the detection of pathogens, toxins, and other contaminants in food, ensuring a safe food supply.

Quality Control and Process Validation

Bio-Rad's quality control and process validation products enable the development and validation of diagnostic tests, ensuring the accuracy and reliability of test results.

8. Bio-Rad Laboratories, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bio-Rad Laboratories, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the ongoing development of new technologies and products.

Bargaining Power Of Customers

Bio-Rad Laboratories, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Bio-Rad Laboratories, Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The life science research and clinical diagnostics markets are highly regulated, and new entrants would need to invest heavily in research and development, manufacturing, and regulatory compliance to compete with Bio-Rad Laboratories, Inc.

Intensity Of Rivalry

The life science research and clinical diagnostics markets are highly competitive, with several established players competing for market share. Bio-Rad Laboratories, Inc. faces intense competition from companies such as Thermo Fisher Scientific, Inc. and Danaher Corporation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.34%
Debt Cost	4.69%
Equity Weight	87.66%
Equity Cost	8.63%
WACC	8.15%
Leverage	14.08%

11. Quality Control: Bio-Rad Laboratories, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Insulet

A-Score: 5.1/10

Value: 0.2

Growth: 9.6

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

Inari Medical

A-Score: 5.1/10

Value: 6.0

Growth: 8.0

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

CONMED

A-Score: 4.8/10

Value: 6.4

Growth: 6.4

Quality: 5.9

Yield: 3.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

iRhythm Technologies

A-Score: 4.6/10

Value: 4.2

Growth: 6.1

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Bio-Rad

A-Score: 3.8/10

Value: 6.4

Growth: 2.3

Quality: 5.9

Yield: 0.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

Integra LifeSciences

A-Score: 3.3/10

Value: 9.0

Growth: 2.3

Quality: 3.5

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.69%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.15%

Bio-Rad Laboratories, Inc. - US0905722072

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BIO

1.c. Company Highlights

Less Volatile

Fairly Valued

Stable Momentum

Earnings Beats

Revenues Miss

Average Growth

Revenues Beats

Average Yield

Average Quality

Medium Volatility

Expensive

Lower Growth

Earnings Miss

2. Bio-Rad's Q3 2025 Earnings: A Closer Look at Financial Performance

Guidance and Outlook for 2025 and 2026

Segment Performance and Key Highlights

Valuation and Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.63%)

6. Segments

Clinical Diagnostics

Expected Growth: 3.5%

Life Science

Expected Growth: 3.8%

Other

Expected Growth: 3.2%

7. Detailed Products

PCR (Polymerase Chain Reaction) Instruments

Real-Time PCR Systems

Droplet Digital PCR Systems

Protein Purification and Analysis

Western Blotting and Imaging

Cell Isolation and Analysis

Food Safety Testing

Quality Control and Process Validation

8. Bio-Rad Laboratories, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bio-Rad Laboratories, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

317.69$

Current Price

317.69$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA