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CFA Institute Research Challenge
Hosted by Swiss CFA Society, Switzerland
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Anonymous team
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Anonymous University Student Research
Health Care Equipment & Services
This report is published for educational purposes only by student competing in the CFA
Institute Research Challenge.
TECAN&Group&Ltd&
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Date: 5th December 2012
Ticker: TECN (Swiss Exchange)
Price (05.12.12): 71 CHF
Recommendation: BUY
Price Target: 85 CHF
Highlights: TE CAN SUCCEED!
Market profile
High
Low
52 weeks price range
74.5
59.5
Market Cap (mio)
793.11
30 day avg volume
17509
3 month
12 month
Stock evolution
8.90%
11.20%
Shares outstanding
11445000
Free float
86%
Volatility
3%
Beta
1.32
Key ratio 2011
ROE
ROA
19.1%
13.1%
Profitability
Net Margin
EBIT Margin
Gross Margin
Efficiency
Asset turnover
Leverage
Avg total asset/Avg Equity
Liquidity ratio
Current ratio
Quick ratio
Solvency ratio
LT DEBT/EQUITY
DEBT/EQUITY
EQUITY/TOTAL ASSETS
ROIC (%)
12.6%
13.6%
50.9%
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Forecast summary
FY2010
FY2011
Net Sales
370.55
376.97
Growth %
-5.5%
1.7%
2.0%
EBITDA
Net Income
64.75
16.20
60.37
47.56
57.84
41.76
EPS
1.55
4.42
3.85
DPS
1
1
1.25
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146.5%
•
1.2%
1.6%
0.69
40.4%
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Porter Five Forces
Bargaining
Power of
Suppliers
Threat of
Subsitute
Products
4!
3!
2!
1!
0!
Competitive
Rivalry
within
Industry
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Bargaining
Power of
Customers
413.38
2014E
2015E
450.59
498.35
7.5%
9.0%
10.6%
67.90
49.29
73.47
53.16
90.62
66.18
4.54
4.90
6.09
1.25
1.25
1.25
We recommend a BUY on Tecan, with a 12-month target price of CHF 85, corresponding to
a 22% upside from current stock price. Despite its little size, Tecan is a leader in the lab
automation market with 10% market share and is growing by innovation and...