Exchange: LSE | Sector: Healthcare | Industry: Medical Diagnostics Research
Q4 2024
Published: Feb 25, 2025
Earnings Highlights
Revenue of $729.37M up 5.5% year-over-year
EPS of $0.78 increased by 21.6% from previous year
Gross margin of 49.3%
Net income of 95.04M
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Revvity Inc (0KHE.L) QQ4 2024 Results — Revenue Up 5.5%, Robust Free Cash Flow, and Solid Profitability Amid High Intangibles
Executive Summary
Revvity Inc delivered a solid Q4 2024 performance, with revenue of USD 729.372 million, up 5.5% year over year, and a robust EBITDA margin of approximately 30.5%. Net income stood at USD 95.036 million, translating to earnings per share of USD 0.78, up about 21.6% on a year-over-year basis. The company generated strong operating cash flow of USD 174.230 million and free cash flow of USD 149.776 million, supporting a cash balance of USD 1.164 billion at period end. The quarter also featured meaningful capital allocation activity, including a USD 185.157 million worth of share repurchases and USD 8.539 million in dividends, signaling confidence in the business and a focus on returning capital to shareholders.
From a financial-health perspective, Revvity maintains a comfortable liquidity profile (current ratio 3.60, quick ratio 3.03, cash ratio 1.781) and a solid balance sheet foundation with total assets of USD 12.393 billion and stockholders’ equity of USD 7.667 billion. However, the company carries substantial goodwill and intangible assets (approximately USD 9.104 billion combined) and a net debt load of USD 2.162 billion, resulting in a total debt position of USD 3.325 billion. This balance sheet setup implies substantial scale and asset intensity, with ongoing reliance on R&D and strategic investments to sustain growth.
Overall, the QQ4 2024 results reflect durable top-line growth within Revvity’s two-segment portfolio (Discovery Analytical Solutions and Diagnostics), a trajectory of improving profitability, and meaningful cash generation that supports prudent capital deployment. The absence of explicit quarterly guidance in the data requires a cautious stance on forward-looking targets, but the company’s cash flow generation and margin profile position it well to fund R&D and potential strategic initiatives in genomic workflows and diagnostic platforms.
Cash flow and balance sheet highlights:
- Net cash provided by operating activities: 174.230
- Free cash flow: 149.776
- Capital expenditure: -24.455
- Net change in cash: -66.356
- Cash and cash equivalents at period end: 1,163.396
- Debt: 3,325.805; Net debt: 2,162.409
- Total assets: 12,392.478; Total stockholders’ equity: 7,666.874
- Goodwill: 6,463.619; Intangible assets: 2,640.921; Goodwill & Intangibles: 9,104.540
- Liquidity ratios: Current 3.60x; Quick 3.03x; Cash ratio 1.781x
- Leverage: Debt to equity 0.431x; Debt to capital 0.301x; Interest coverage 5.21x
- Shareholder returns: Shares repurchased 185.157; Dividends paid 8.539; Payout ratio 9.02%
- Valuation context (as of QQ4 2024): P/E 37.7x; P/S 19.6x; P/B 1.86x; EV/Revenue 73.5x; EV/EBITDA not provided in dataset
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
729.37M
5.45%
0.00%
Gross Profit
359.69M
-6.70%
0.00%
Operating Income
132.29M
30.30%
0.00%
Net Income
95.04M
20.13%
0.00%
EPS
0.78
21.63%
0.00%
Key Financial Ratios
currentRatio
3.6
grossProfitMargin
56.5%
operatingProfitMargin
16.3%
netProfitMargin
13%
returnOnAssets
0.76%
returnOnEquity
1.23%
debtEquityRatio
0.43
operatingCashFlowPerShare
$1.34
freeCashFlowPerShare
$1.15
dividendPayoutRatio
9.02%
priceToBookRatio
1.86
priceEarningsRatio
37.67
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Notes on management commentary and call materials:
- No earnings-call transcript data were provided in the dataset. As a result, direct quotes from management are unavailable within this analysis. The synthesis below relies on the QQ4 2024 results and the accompanying financial disclosures.
- Observed themes from the earnings release indicate emphasis on durable profitability, robust cash generation, and disciplined capital allocation (e.g., USD 185.157 million of share repurchases and USD 8.539 million in dividends in Q4).
- Operationally, Revvity demonstrated margin resilience with a strong EBITDA margin (~30.5%) and an expanding operating margin (18.14%), supported by efficiency in cost of revenue and controlled opex relative to topline growth. Management commentary (as reflected in the release) underscored ongoing investment in innovation and platform development to sustain long-term growth in Diagnostics and Discovery Analytical Solutions.
- The lack of explicit forward guidance in the provided data introduces a degree of earnings visibility uncertainty, though the balance sheet shows strong liquidity to fund R&D and capital initiatives.
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Forward Guidance
Guidance not disclosed in the provided QQ4 2024 data. Given Revvity’s lifecycle in two high-innovation segments (Discovery Analytical Solutions and Diagnostics), the near-to-medium term trajectory will plausibly depend on: (1) continued demand for genomic workflows, early-detection platforms, and associated informatics; (2) successful product introductions and lifecycle management that support gross margin stability or improvement; and (3) cadence of acquisitions or collaborations that can enhance scale and recurring software/subscriptions. Key monitorables for investors include: expansion of high-margin software subscriptions, uptake of new assay platforms, gross margin trajectory as product mix shifts, and the pace of debt reduction or deleveraging aided by cash flow generation. Management commentary in future releases should clarify any updated targets for revenue growth, margin progression, and capital allocation framework.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0KHE.L Focus
49.32%
16.30%
1.23%
37.67%
0LWG.L
25.20%
8.96%
0.83%
63.07%
0JT5.L
47.80%
29.40%
11.90%
33.95%
0HUR.L
21.40%
9.07%
-37.00%
-98.10%
0LTI.L
58.70%
33.60%
12.70%
24.24%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Moderate-to-positive medium-term stance underpinned by durable revenue generation, a strong EBITDA and free cash flow profile, and a robust balance sheet. The company’s cash-rich position and shareholder-friendly capital allocation support ongoing investments in R&D and potential strategic initiatives while facilitating deleveraging over time. However, the stock faces valuation headwinds given high earnings multiples and the significant goodwill/intangible asset base that warrants monitoring for potential impairment. Key catalysts to watch include margin stabilization or improvement through favorable product mix, successful commercialization of new diagnostics platforms, expansion of software/subscriptions, and any strategic actions that enhance recurring revenue and operating leverage. Investors should monitor quarterly progression in gross margin by segment, deleveraging trajectory, and management commentary on long-term guidance.
Key Investment Factors
Growth Potential
Sustained revenue growth supported by resilient demand in diagnostics and life sciences, potential monetization of advanced informatics platforms, and an incremental contribution from genomic workflows across pharma and biotech applications. The record of USD 729.4m quarterly revenue with mid-single-digit YoY growth and an EBITDA margin near 30% suggests a scalable base unlikely to yield exponential margin expansion without further product mix changes or pricing initiatives.
Profitability Risk
High goodwill and intangible asset base (~USD 9.10bn) raises impairment risk during growth slowdowns; leverage (USD 3.33bn debt; net debt USD 2.16bn) constrains financial flexibility; reliance on R&D and regulatory/commercial acceptance of new platforms; potential FX exposure given a multinational footprint; valuation multiples appear elevated vs some industry benchmarks; potential earnings volatility from cinching procurement cycles and reimbursement dynamics in diagnostics.
Financial Position
Healthy liquidity with cash balance ~USD 1.16bn and current ratio of 3.60 supports working capital needs and R&D funding. However, sizable long-term assets (goodwill and intangibles) and a net debt position imply ongoing capital expenditure and debt service considerations. Free cash flow generation of USD 149.8m in Q4 supports shareholder returns (USD 185.2m of buybacks in the quarter) and potential deleveraging, albeit gradual given scale.
SWOT Analysis
Strengths
Revenue growth of 5.45% YoY in Q4 2024 with solid profitability (EBITDA margin ~30.5%, net margin ~13.0%)