1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Bio-Rad saw a strong quarter across the board in the third quarter, with currency neutral sales growth of 13.8% and EPS growth of 24%, excluding income and taxes from Sartorius. We are maintaining our $455 fair value estimate and our narrow moat and high uncertainty ratings. We continue to believe the market is overestimating Bio-Rad’s postpandemic growth prospects.
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.
