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Bio-Reference Laboratories is the third-largest full service clinical diagnostic laboratory in the U.S., providing testing and related services to physician offices, clinics, hospitals, long term care facilities, employers, governmental units and correctional institutions. It has a market cap of $1-billion (U.S.).
Earnings per share have risen in every year of the past decade, impressing the Warren Buffett-based model. The Buffett-based model also likes that BRLI has three times as much in annual earnings ($47-million) as long-term debt ($15.4-million). It has a 16.6-per-cent return on equity over the past ten years, a sign of the "durable competitive advantage" that Warren Buffett cherishes.
The James O'Shaughnessy-based growth model likes that it has upped EPS in each year of past half decade. The O'Shaughnessy approach also likes its combo of a strong 12 month relative strength of 82 and a reasonable price/sales ratio of 1.1.
The Benjamin Graham-inspired model likes its balance sheet: 2.4 current ratio and $207-million net current assets vs. $15.4-million long-term debt.
The company has grown EPS at a 14-per-cent clip and sales at an 18-per-cent pace over the long term (using avg of 3, 4 and 5yr EPS/sales growth rates), doubling the health-care facilities industry average on both counts.
It has averaged net profit margin of 6.3 per cent over past three years, which the Kenneth Fisher-based model likes.
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