Though the healthcare industry is known for high margins, the biotechnology sector is infamous with investors for prolonged developmental phases. Therefore, a stock from this futuristic area with more than 11% return on average equity over the last four quarters is very interesting. The stock has a net margin on Trailing Twelve Months (TTM) basis approaching nearly 25%.
The company has direct impact on corporate R&D in all Life Science applications. It sells software and highly specialized equipment to link individual laboratories, to provide vast and convenient information support, and to automate laborious processes. The business therefore relates to making company innovation competitive and productive. Rapid developments in new materials and chemical industries makes this company a strategic business ally for the largest players in the field.
The management is not wholly dependent on the discoveries of its client companies and their Research and Development budgets: it also licenses its internal discoveries and has developed some five new materials of its own. It also has other intellectual property of commercial significance.
The management has forged a strong presence in the discovery of new catalysts. This opens doors for the business in specialized materials and bulk production of generics as well. The core capability of the company has versatile applications in a number of industries, and is global in outlook.
The business in specialized test equipment and robots strengthens the company position as an indispensable industrial partner for all companies developing new proprietary products. It has recently entered the high growth area of sensors through a dedicated corporate arm.
Let us hear your thoughts below: