Tecan TECN.SW
What does Tecan do?
Tecan develops, manufactures and sells laboratory instruments, automation solutions and consumables for biopharma, research, forensic laboratories and clinical diagnostics. The offering includes pipetting and automation systems, microplate readers and washers, software, reagents, as well as immunoassays and antibodies. With Labwerx, the company also offers complete solutions for laboratory automation.
The business is divided into the Life Sciences business, which serves end customers directly under its own brand, and the Partnering business, in which Tecan acts as a development and manufacturing partner supplying components and complete instruments to other diagnostics and medical technology manufacturers. Revenue comes from the instrument business as well as from recurring consumables, service and software. In terms of competition, Tecan is among the established providers of laboratory automation, with a strong position in liquid handling. The collaboration with NVIDIA aims at AI-supported, data-driven laboratories and is intended to strengthen its position in integrated solutions.
Score profile
Rank vs. Medical Instruments & Supplies (25 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Tecan ranks in the bottom fifth in the group Medical Instruments & Supplies (0.8/10). On growth, the company ranks in the bottom fifth in the group Medical Instruments & Supplies (1.8/10). On valuation (higher = cheaper), the stock ranks below average in the group Medical Instruments & Supplies (2.3/10). On financial strength, Tecan ranks in the middle in the group Medical Instruments & Supplies (4.8/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 32.3x | 18.6x | better than 22 % |
| PEG ratio | 1.7x | 1.3x | better than 31 % |
| EV/EBITDA | 41.7x | 15.7x | better than 11 % |
| Price/sales | 3.7x | 3.0x | better than 30 % |
| Price/book | 2.9x | 2.9x | better than 56 % |
| Revenue growth | -2.7% | 4.6% | better than 22 % |
| Earnings growth | -29.8% | 0.0% | better than 14 % |
| Gross margin | 34.1% | 53.8% | better than 14 % |
| Operating margin | 4.8% | 13.9% | better than 10 % |
| Net margin | -13.4% | 8.6% | better than 6 % |
| Return on equity | -9.7% | 5.9% | better than 2 % |
| Debt/equity | 19.2% | 33.6% | better than 66 % |
| Current ratio | 2.3x | 2.3x | better than 52 % |
| Free cash flow yield | 1.6% | 3.5% | better than 26 % |
| Dividend yield | 1.2% | 1.0% | – |
| Payout ratio | 60.6% | 43.3% | – |
| Beta | 1.01 | 0.87 | – |
Valuation: what is Tecan worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Tecan a model range of 149.22 CHF to 149.22 CHF per share.
8 analysts, average rating “Buy”, average price target 220.85 CHF (−14.5%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The willingness of pharma, biotech and research customers to invest largely determines demand for instruments and automation solutions.
- Recurring revenue from consumables, service and software grows with the installed base and stabilizes the business.
- Long-term development and supply contracts with OEM partners in the Partnering business depend on those partners' product success and call-off volumes.
Risks
- Fluctuating research budgets and financing conditions among biotech and academic customers can delay orders and weigh cyclically on revenue.
- Dependence on a few large Partnering customers creates concentration risk in call-offs, contract renewals and prices.
- Currency fluctuations, tariffs and supply chain disruptions weigh on margin and earnings, as production and customers are globally distributed.
What to look for with Tecan
The share of recurring revenue in total revenue is particularly informative, as it shows how stable the business is against cyclical instrument investment.