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Here's How Much You'd Have If You Invested $1000 in Bio-Rad Laboratories a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Bio-Rad Laboratories (BIO - Free Report) ten years ago? It may not have been easy to hold on to BIO for all that time, but if you did, how much would your investment be worth today?
Bio-Rad Laboratories' Business In-Depth
With that in mind, let's take a look at Bio-Rad Laboratories' main business drivers.
Hercules, CA-headquartered Bio-Rad Laboratories is a manufacturer and global supplier of clinical diagnostics and life science research products in the healthcare, analytical chemistry life science research and other markets. It offers a wide portfolio of products and systems which allow the separation of complex chemical and biological materials and discovery, analysis and purification of their components.
Bio-Rad has extensive and direct distribution channels in over 35 countries outside the United States through subsidiaries which focus on sales, customer service and product distribution.
The company operates through two reportable segments. Together, these segments offer over 9,000 different products and services. The details are as follows:
Life Science (47.9% of total revenues in 2021; constant exchange rate or CER growth rate was 12% from 2020): This segment designs, manufactures, markets and services reagents, apparatus and instruments utilized for biological research. The products manufactured are marketed in university and medical school laboratories, pharmaceutical and biotechnology companies, food testing laboratories and government and industrial research facilities. The company believes Life Science Segment represents a global market opportunity of approximately $9 billion annually.
Clinical Diagnostics (51.8%; down 13.6%): This business markets and distributes products to reference laboratories, hospital laboratories, state newborn screening facilities, physicians’ office laboratories, transfusion laboratories as well as insurance and forensic testing laboratories. It designs, manufactures, distributes and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. According to Bio-Rad, the Clinical Diagnostics segment presents an annual global market opportunity of roughly $12 billion.
In October 2019, Bio-Rad acquired all the issued and outstanding shares of a foreign distributor for approximately $4.2 million. In August 2019, the company acquired all the issued and outstanding membership interests of Exact Diagnostics, LLC for approximately $60.0 million. Both buyouts added to the Clinical Diagnostics arm.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Bio-Rad Laboratories ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $5,918.60, or a gain of 491.86%, as of February 25, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 214.02% and gold's return of 2.85% over the same time frame.
Going forward, analysts are expecting more upside for BIO.
Bio-Rad exited the fourth quarter of 2021 on a mixed note with better-than-expected earnings and a revenue miss. The company continued to experience solid recovery in most of its key global markets, as well as an uptick in demand for COVID-related products, driven byspread of the new Omicron variant. Further, strength in its key product lines across major geographic regions buoys optimism. The Diagnostics business registered growth across all of its product lines, driven by a recovery of routine testing. Over the past year, Bio-Rad has outperformed its industry. However, Bio-Rad’s Life Sciences arm registered a year-over-year decline, primarily attributed to lower qPCR product revenues resulting from the decline in COVID-related demand. The year-over-year rise in operating costs and contraction of both margins are worrying.
Shares have gained 5.98% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Bio-Rad Laboratories a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Bio-Rad Laboratories (BIO - Free Report) ten years ago? It may not have been easy to hold on to BIO for all that time, but if you did, how much would your investment be worth today?
Bio-Rad Laboratories' Business In-Depth
With that in mind, let's take a look at Bio-Rad Laboratories' main business drivers.
Hercules, CA-headquartered Bio-Rad Laboratories is a manufacturer and global supplier of clinical diagnostics and life science research products in the healthcare, analytical chemistry life science research and other markets. It offers a wide portfolio of products and systems which allow the separation of complex chemical and biological materials and discovery, analysis and purification of their components.
Bio-Rad has extensive and direct distribution channels in over 35 countries outside the United States through subsidiaries which focus on sales, customer service and product distribution.
The company operates through two reportable segments. Together, these segments offer over 9,000 different products and services. The details are as follows:
Life Science (47.9% of total revenues in 2021; constant exchange rate or CER growth rate was 12% from 2020): This segment designs, manufactures, markets and services reagents, apparatus and instruments utilized for biological research. The products manufactured are marketed in university and medical school laboratories, pharmaceutical and biotechnology companies, food testing laboratories and government and industrial research facilities. The company believes Life Science Segment represents a global market opportunity of approximately $9 billion annually.
Clinical Diagnostics (51.8%; down 13.6%): This business markets and distributes products to reference laboratories, hospital laboratories, state newborn screening facilities, physicians’ office laboratories, transfusion laboratories as well as insurance and forensic testing laboratories. It designs, manufactures, distributes and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. According to Bio-Rad, the Clinical Diagnostics segment presents an annual global market opportunity of roughly $12 billion.
In October 2019, Bio-Rad acquired all the issued and outstanding shares of a foreign distributor for approximately $4.2 million. In August 2019, the company acquired all the issued and outstanding membership interests of Exact Diagnostics, LLC for approximately $60.0 million. Both buyouts added to the Clinical Diagnostics arm.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Bio-Rad Laboratories ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $5,918.60, or a gain of 491.86%, as of February 25, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 214.02% and gold's return of 2.85% over the same time frame.
Going forward, analysts are expecting more upside for BIO.
Bio-Rad exited the fourth quarter of 2021 on a mixed note with better-than-expected earnings and a revenue miss. The company continued to experience solid recovery in most of its key global markets, as well as an uptick in demand for COVID-related products, driven byspread of the new Omicron variant. Further, strength in its key product lines across major geographic regions buoys optimism. The Diagnostics business registered growth across all of its product lines, driven by a recovery of routine testing. Over the past year, Bio-Rad has outperformed its industry. However, Bio-Rad’s Life Sciences arm registered a year-over-year decline, primarily attributed to lower qPCR product revenues resulting from the decline in COVID-related demand. The year-over-year rise in operating costs and contraction of both margins are worrying.
Shares have gained 5.98% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.