Bio-Techne Corp

Bio-Techne Corp (NASDAQ: TECH) is engaged in the manufacturing of life sciences instruments for the pharma, biotech, academic, and diagnostic markets.

The Company will pay a quarterly dividend of USD 0.18 per share on 27 August 2021, while the ex-dividend date was 13 August 2021.

Investment Rationale – EXPENSIVE at USD 492.49

• The stock is trading very close to the 52-week high, which could raise doubts regarding the upside potential.
• The stock went ex-dividend on 13 August 2021
• On the profitability front, the diluted earnings per share had dropped from USD 5.82 during FY20 to USD 3.47 for FY21.
• From a technical standpoint, the stock price is hovering around the upper Bollinger band, indicating a correction in the stock price.
• Moreover, the 14-days RSI of ~65.02 is approaching towards the overbought zone, which may cause a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the decline in the bottom-line profitability during FY21 and overstretched valuations, we have given an “EXPENSIVE” recommendation on Bio-Techne Corp at the closing market price of USD 492.49 (as on 24 August 2021).

RPM International Inc

RPM International Inc (NYSE: RPM) is one of the leading providers of a variety of paints, coatings, and adhesives.

RPM had paid a quarterly dividend of USD 0.38 per share on 30 July 2021, while the ex-dividend date was 14 July 2021.

Investment Rationale – WATCH at USD 83.31

• The Company stated that supply constraints had slowed production in several product categories.
• The inventory turnover ratio of 4.2x remained slightly less than the industry median of 4.4x during FY21, indicating excess inventory levels when compared with the industry.
• Moreover, the margin pressure would persist during H1 FY22.
• On the leverage front, the debt-to-equity ratio of 1.37x remained more than the industry median of 0.84x during FY21.
• From a technical standpoint, the 20-days exponential moving average of USD 85.47 is indicating a correction in the stock price.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the higher leverage as compared to the industry and unfavourable technical indicators, we have given a “WATCH” recommendation on RPM International Inc at the closing market price of USD 83.31 (as on 24 August 2021).

Diversey Holdings, Ltd

Diversey Holdings, Ltd (NASDAQ: DSEY) is a provider of high-performance cleaning, sanitation, and hygiene products.

Investment Rationale – EXPENSIVE at USD 16.29

• On the profitability front, the net margin remained in the negative territory for the last two quarters (Q1 FY21 to Q2 FY21), while the respective industry median remained in a positive zone.
• Moreover, the Company had slipped into net loss during Q2 FY21, while it had achieved profitability during an equivalent period of the prior year.
• In terms of a technical indicator, the current price of DSEY is sustaining between the upper Bollinger band and the middle Bollinger band, indicating a correction in the stock price.
• The top-line revenue witnessed a downward trend during Q2 FY21 when compared with an equivalent period of 2019.

Share Price Chart (since 25 March 2021)

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the lower profitability levels as compared to the industry and unfavourable technical indicators, we have given an “EXPENSIVE” recommendation on Diversey Holdings, Ltd at the closing market price of USD 16.29 (as on 24 August 2021).

*The reference data in this report has been partly sourced from REFINITIV.

*Dividend Yield may vary as per the stock price movement. 

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