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1. Company Snapshot

1.a. Company Description

Tecan Group AG provides laboratory instruments and solutions for pharmaceutical and biotechnology companies, university research departments, and forensic and diagnostic laboratories.It operates through Life Sciences Business and Partnering Business segments.The company offers liquid handling and automation, microplate readers and washers, consumables, NGS reagents, immunoassays and microbodies, and software; Tecan Laberwax, an automation solution; Resolvex, a smart sample preparation solution for use in genomics, synthetic biology, drug discovery, analytical chemistry, cell biology, protein science, applied markets, and ELISA solutions.


It also develops and manufactures laboratory instrument manufacturers with essential components comprising precision pumps, valves, robotic arms, and developer software for life science research, diagnostics, and various other industries; Synergence, platform-based automation solution; and Freedom EVO and Fluent instruments.The company operates in Switzerland and Other European countries, North America, Asia, and internationally.Tecan Group AG was founded in 1980 and is headquartered in Männedorf, Switzerland.

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1.b. Last Insights on TECN

Tecan Group AG's recent performance was impacted by a decline in sales, with a 3.7% decrease in local currencies or 5.9% in Swiss francs, primarily due to a challenging market environment. The company's Life Sciences Business segment returned to growth, but its Partnering Business experienced a decline. Additionally, Tecan's EPS decreased to CHF 1.41 from CHF 1.76 in the first half of 2024. The company has also issued a CHF 150 million straight bond to optimize its financial structure.

1.c. Company Highlights

2. Tecan's Half Year Results: Return to Growth in Life Sciences Amidst Challenging Environment

Tecan's half-year results for 2025 showed a mixed bag, with revenue reaching CHF 439 million, resulting in an adjusted EBITDA of CHF 65.7 million and an adjusted EBITDA margin of 15%. The results were in line with expectations, despite a 7% decline in the Partnering Business. The Life Sciences business returned to growth in local currencies, driven by a favorable product mix, price increases, and ongoing efficiency and cost improvements. As Monica Manotas, CEO, noted, "Pharma spending remains conservative, while clinical diagnostics continues to grow."

Publication Date: Aug -14

📋 Highlights

Financial Performance

The company's order entry for the first half was CHF 458.3 million, down 2.9% year-over-year, but with a sequential improvement in Q2. Sales were CHF 439.5 million, down 5.9% in Swiss francs and 3.7% in local currencies. Operating expenses, excluding cost of sales, increased by CHF 1 million, driven by higher exceptional costs. The company's cash flow from operating activities was strong, reaching CHF 60 million, up from CHF 43.4 million in the prior year period.

Guidance and Outlook

The company is confirming its full-year sales outlook, with sales in local currencies expected to be within a range from a low single-digit percentage decline to a low single-digit percentage growth for the full year. The company expects an adjusted EBITDA margin of 17.5% to 18.5% of sales for full year 2025, which does not include any impact from U.S. government tariffs. The company has initiated mitigation measures to reduce the annualized negative impact of tariffs, estimated to be in the low teens of millions of Swiss francs.

Valuation

With a P/E Ratio of 31.37, P/B Ratio of 1.48, and EV/EBITDA of 16.63, Tecan's valuation appears to be relatively rich compared to its peers. However, the company's strong cash flow generation, with a Free Cash Flow Yield of 6.37%, and robust return on equity (ROE) of 4.76% support its current valuation. The company's dividend yield of 1.8% is also attractive, providing a cushion for investors in a volatile market.

3. NewsRoom

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Changes to Tecan’s Board of Directors proposed to shareholders at the upcoming Annual General Meeting 2026

Dec -04

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Tecan expands robotic workcell offering with acquisition of Wako Automation assets

Dec -02

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CFO Tania Micki to leave Tecan for new role in 2026

Nov -17

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Is There An Opportunity With Tecan Group AG's (VTX:TECN) 49% Undervaluation?

Oct -28

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Q3 2025 Qualitative Update: Tecan reports mid-single-digit local currency growth in the third quarter and confirms full-year 2025 outlook

Oct -13

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Should You Investigate Tecan Group AG (VTX:TECN) At CHF154?

Oct -09

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Is Tecan Group AG's (VTX:TECN) Stock Price Struggling As A Result Of Its Mixed Financials?

Sep -21

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Tecan Group: Quiet Giant in Lab Automation with a Decade of Discipline

Sep -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.84%)

6. Segments

Partnering

Expected Growth: 5%

Tecan Group AG's partnering strategy drives growth through expanded market access, increased R&D capabilities, and improved operational efficiency. This partnership enables Tecan to leverage its partner's expertise, accelerating innovation and time-to-market for new products. Additionally, it enhances Tecan's competitive position, allowing the company to capitalize on emerging trends in life sciences and diagnostics.

Life Sciences

Expected Growth: 7%

Tecan Group AG's Life Sciences segment growth is driven by increasing demand for automated laboratory workflows, rising adoption of genomics and precision medicine, and growing investments in biotech and pharma R&D. Additionally, the segment benefits from the company's strong brand reputation, innovative product offerings, and strategic partnerships.

7. Detailed Products

Liquid Handling Systems

Automated liquid handling systems for laboratory applications, including pipetting, dispensing, and sampling.

Detection Instruments

Microplate readers and washers for biochemical and cell-based assays, including absorbance, fluorescence, and luminescence detection.

Automation Platforms

Customizable automation platforms for laboratory workflows, including sample preparation, liquid handling, and detection.

Software and Informatics

Data management and analysis software for laboratory workflows, including data integration, visualization, and reporting.

OEM and Partnering Solutions

Customized OEM solutions for instrument manufacturers and partnering opportunities for life science companies.

Services and Support

Comprehensive service and support offerings, including maintenance, repair, and training for Tecan's products.

8. Tecan Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tecan Group AG is moderate, as there are alternative products and services available in the market, but they are not significantly cheaper or better than Tecan's offerings.

Bargaining Power Of Customers

The bargaining power of customers is low, as Tecan Group AG has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Tecan Group AG relies on a few key suppliers for critical components, but it also has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants is low, as entering the life sciences industry requires significant investments in research and development, manufacturing, and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high, as Tecan Group AG operates in a highly competitive industry with several established players, and the company needs to continuously innovate and improve its products and services to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.98%
Debt Cost 3.95%
Equity Weight 81.02%
Equity Cost 7.04%
WACC 6.45%
Leverage 23.43%

11. Quality Control: Tecan Group AG 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

Stock-Card
Ypsomed

A-Score: 3.9/10

Value: 2.9

Growth: 8.2

Quality: 5.7

Yield: 0.6

Momentum: 2.0

Volatility: 4.0

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Tecan

A-Score: 3.6/10

Value: 4.4

Growth: 4.1

Quality: 5.7

Yield: 2.5

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Elekta

A-Score: 3.5/10

Value: 4.3

Growth: 4.0

Quality: 3.1

Yield: 6.9

Momentum: 0.5

Volatility: 2.3

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Gerresheimer

A-Score: 3.3/10

Value: 8.8

Growth: 4.6

Quality: 4.1

Yield: 1.2

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Carl Zeiss Meditec

A-Score: 3.3/10

Value: 3.9

Growth: 5.0

Quality: 5.9

Yield: 1.9

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Amplifon

A-Score: 3.2/10

Value: 4.3

Growth: 5.4

Quality: 4.8

Yield: 2.5

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

133.7$

Current Price

133.7$

Potential

-0.00%

Expected Cash-Flows