Insights

Company diagnostic

Diagnostics and life science tools

BIO

Bio-Rad Laboratories

Net income of $759.9M rests on $948.3M of non-operating gains, mainly the Sartorius stake; adjusted operating margin of 8.5% trails the 12.8% median and inventory sits at 217.4 days.

Why now

In the news

Bio-Rad reported third-quarter 2026 net sales of $656.4 million on November 4, 2026, up 0.5%, with another fair value gain on its Sartorius stake and $77.2 million of restructuring costs, per the company's results release.

Business health score

39

Out of 100

Addressable estimate

$124.5M addressable estimate (observed gap $273.3M)

Revenue

$2,583.2M (FY2025)

Operating margin

8.5% adjusted (1.8% reported)

As reported

Filing

Form 10-K, fiscal year 2025 (year ended December 31, 2025)

Run

November 10, 2026

Processing

8

minutes

Output

37

-page PDF and Excel model

Data quality

90

Point-in-time analysis from the filing and run date shown. The news context reflects reporting available on that date, and this page is not updated as events move on.

Score by dimension

Financial health

43

Growth potential

Strategic readiness

Market position

Innovation and digital

Operational efficiency

34

First 100-day action

Set up a cross-functional steering committee (CFO, COO, supply chain, commercial) to run the inventory reduction, SG&A rationalization and gross margin work, with defined decision rights and a weekly cadence.

How it compares

Against the median of the report's benchmark peer set

  • Revenue growth: 0.7% vs peer median 2.3% (Behind median)
  • Gross margin: 51.9% vs peer median 56.7% (Well behind median)
  • Operating margin, adjusted: 8.5% (1.8% reported) vs peer median 12.8% (Well behind median)
  • EBITDA margin, adjusted: 14.9% (8.2% reported) vs peer median 26.7% (Well behind median)
  • SG&A, % of revenue: 32.7% vs peer median 27.9% (Behind median)
  • R&D, % of revenue: 10.7% vs peer median 7.6% (Top quartile)
  • Debt to equity: 0.16x vs peer median 0.44x (Top quartile)
  • Inventory turnover: 1.68x vs peer median 2.55x (Well behind median)
  • Days sales outstanding: 65.1 days vs peer median 69 days (Better than median)
  • Days inventory outstanding: 217.4 days vs peer median 143 days (Well behind median)
  • Days payable outstanding: 37.9 days vs peer median 52 days (Well behind median)

Top three levers

Lever 1

SG&A overhead rationalization and shared services expansion

Medium complexity, 18 months

Why this lever

SG&A of $844.3M is 32.7% of revenue against a 27.9% diagnostics median, a 4.8-point gap and an observed $124M. The report points to consolidating administrative functions and regional management layers into shared services, and treats 40% of the gap as addressable, an estimate to be tested.

Size

$49.6M

Observed gap $124M

Lever 2

Gross margin recovery through COGS efficiency and manufacturing yield

High complexity, 24 months

Why this lever

Gross margin of 51.9% trails the 56.7% median by 4.8 points, an observed gap of $124M. The report points to raw material procurement, direct manufacturing cost and production yield across Life Science reagents and Clinical Diagnostics, and treats 40% as addressable.

Size

$49.6M

Observed gap $124M

Lever 3

Inventory reduction and supply chain optimization

High complexity, 24 months

Why this lever

Inventory at 217.4 days trails the 143-day median by 74.4 days. Closing the gap is a one-time cash release; the recurring benefit is the carrying cost.

Size

$25.3M a year

Carrying benefit on a one-time $253.4M cash release

Questions for management

  1. What is the current status of the July 2026 restructuring plan? Which specific functions and geographies are being consolidated, and what is the timeline for headcount reductions and facility closures?
  2. How much of the $124M gross margin gap (51.9% vs. 56.7% sector median) is attributable to product mix (Life Science vs. Diagnostics), manufacturing yield, or procurement costs? What are the specific cost-reduction targets by category?
  3. What is the addressable share of the $124M SG&A gap (32.7% vs. 27.9% sector median)? Which cost categories (sales, marketing, G&A, IT, HR, finance) are most elevated, and what is the timeline for shared services consolidation?

Summary

Bio-Rad Laboratories reported fiscal 2025 revenue of $2,583.2M, up 0.7%, and net income of $759.9M. That profit rests on $948.3M of non-operating gains, mainly the fair value of its Sartorius stake: operating income was $47.2M, a 1.8% margin, after $172.8M of non-cash intangible impairments. Adjusted for the impairment, operating margin is 8.5%. Net margin and returns are therefore observed, not scored.

Against global diagnostics peers, adjusted operating margin trails the 12.8% median, gross margin of 51.9% trails 56.7% and SG&A at 32.7% of revenue trails 27.9%. The report sizes three levers, $124.5M in total against observed gaps of $273.3M, and labels the addressable shares estimates. Inventory at 217.4 days against a 143-day median would release $253.4M of cash once if closed; only the $25.3M annual carrying benefit counts in the value bridge.

The balance sheet is a strength. Cash of $529.8M and short-term investments of $1,010.9M exceed total debt of $1,203M, a net cash position of $337.7M, and debt to equity of 0.16x is top quartile. The first 100-day move is a steering committee for the inventory, SG&A and gross margin work. The questions for management cover the July 2026 restructuring, the sources of the gross margin gap and the addressable share of SG&A.

What this report does not cover

Net margin, return on assets, return on equity and total-asset turnover are observed, not scored: $948.3M of $995.5M pre-tax income was earned outside operations, and $6,103.6M of $10,576.5M total assets is a non-current investment (turnover on operating assets is 0.58x). Four of six health dimensions are not rated, because fewer than two benchmarked metrics were available for each. The July 2026 restructuring plan and later results come from market intelligence and are not reflected in the FY2025 figures.

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This analysis is generated by the ValueChaser platform from the company's public Form 10-K, ValueChaser benchmarks and public market intelligence. It is not investment advice, does not reflect any non-public information and is not affiliated with or endorsed by the company.

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