Inquiry Into Agilent Technologies's Competitor Dynamics In Life Sciences Tools & Services Industry

In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Agilent Technologies A in relation to its major competitors in the Life Sciences Tools & Services industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in the industry.

Agilent Technologies Background

Originally spun out of Hewlett-Packard in 1999, Agilent has evolved into a leading life sciences and diagnostics firm. Today, Agilent's measurement technologies serve a broad base of customers with its three operating segments: life science and applied tools, cross lab (consisting of consumables and services related to life science and applied tools), and diagnostics and genomics. Over half of its sales are generated from the biopharmaceutical, chemical, and advanced materials end markets, but it also supports clinical lab, environmental, forensics, food, academic, and government-related organizations. The company is geographically diverse, with operations in the U.S. and China representing the largest country concentrations.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Agilent Technologies Inc 34.82 6.89 6.38 5.78% $0.49 $0.91 -5.58%
Thermo Fisher Scientific Inc 37.12 4.68 5.19 3.54% $2.97 $4.39 -4.93%
Danaher Corp 43.86 3.43 7.71 2.04% $1.03 $1.62 -23.95%
IQVIA Holdings Inc 34.14 7.41 3.09 7.87% $0.87 $1.39 3.45%
West Pharmaceutical Services Inc 49.29 9.87 9.91 4.77% $0.21 $0.28 3.29%
Waters Corp 31.62 17.64 6.87 21.03% $0.32 $0.5 -4.55%
Avantor Inc 53.28 3.23 2.44 1.9% $0.29 $0.57 -4.02%
Charles River Laboratories International Inc 28.81 3.79 3.31 5.42% $0.32 $0.36 -7.85%
Bruker Corp 32.09 9.30 4.62 15.89% $0.28 $0.43 20.62%
Revvity Inc 71.53 1.62 4.67 1.01% $0.16 $0.38 -6.11%
Medpace Holdings Inc 45.30 22.14 6.79 15.2% $0.1 $0.14 26.47%
Bio-Techne Corp 49.80 5.54 9.76 1.39% $0.07 $0.18 0.37%
Repligen Corp 249.84 5.23 16.32 -1.29% $0.01 $0.07 -16.61%
Stevanato Group SPA 52.60 6.78 7.06 4.06% $0.08 $0.1 9.77%
Sotera Health Co 65.28 7.49 3.17 9.44% $0.15 $0.18 23.31%
Average 60.33 7.72 6.49 6.59% $0.49 $0.76 1.38%

Upon closer analysis of Agilent Technologies, the following trends become apparent:

  • The Price to Earnings ratio of 34.82 is 0.58x lower than the industry average, indicating potential undervaluation for the stock.

  • The current Price to Book ratio of 6.89, which is 0.89x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • The Price to Sales ratio is 6.38, which is 0.98x the industry average. This suggests a possible undervaluation based on sales performance.

  • With a Return on Equity (ROE) of 5.78% that is 0.81% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • The company exhibits Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $490 Million, which is in line with the industry average. This implies comparable profitability and operational efficiency in the market.

  • With higher gross profit of $910 Million, which indicates 1.2x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of -5.58% compared to the industry average of 1.38%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By evaluating Agilent Technologies against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

  • Agilent Technologies has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.41.

  • This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.

Key Takeaways

For Agilent Technologies in the Life Sciences Tools & Services industry, the PE, PB, and PS ratios are all low compared to peers, indicating potential undervaluation. However, the low ROE suggests lower profitability relative to industry peers. EBITDA is in line with competitors, while high gross profit signifies strong revenue generation. The low revenue growth rate may pose a challenge for future performance compared to industry counterparts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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