4. Bruker Corporation (NASDAQ:BRKR)
TTM Net Income: $352.1 Million
5-Year Net Income CAGR: 13.27%
Market Capitalization: $9.64 Billion
Number of Hedge Fund Holders: 32
Bruker Corporation (NASDAQ:BRKR) is an American manufacturer of high-performance scientific instruments used for molecular and materials research, as well as industrial analysis. The company develops scientific instruments and high-value analytical and diagnostic solutions that enable detailed exploration at molecular, cellular, and microscopic levels, supporting various fields such as life sciences, pharmaceuticals, and industrial applications. The company drives innovation and productivity in areas like microscopy, nanoanalysis, and clinical research.
The company is actively enhancing its market position through its dual strategy of Project Accelerate 2.0 focused on portfolio transformation and operational excellence. Bruker Corporation (NASDAQ:BRKR) is capitalizing on robust demand for its scientific instruments and life science solutions. Additionally, the company continues to benefit from strong orders in semiconductor metrology, which supports high-performance computing trends related to AI.
The recent strategic acquisitions of Chemspeed, NanoString, and ELITech are pivotal to the company’s growth strategy, allowing for expansion into spatial biology, molecular diagnostics, and laboratory automation and digitization.
Bruker Corporation (NASDAQ:BRKR) reported revenues of $800.7 million for the second quarter of 2024, reflecting a 17.4% increase compared to $681.9 million in the same quarter last year. Acquisitions contributed 11.1% to the overall revenue growth.
Over the past five years, Bruker Corporation (NASDAQ:BRKR) has grown its revenue at a compound annual growth rate (CAGR) of 9.61%, while its net income has increased at a CAGR of 13.27% during the same period. Over the past 5 years, the company has also grown its levered free cash flow at a CAGR of more than 22%. BRKR is one of the most profitable mid-cap stocks to invest in.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 32 hedge funds held stakes in Bruker Corporation (NASDAQ:BRKR). The London Company stated the following regarding Bruker Corporation (NASDAQ:BRKR) in its “The London Company SMID Cap Strategy” second quarter 2024 investor letter:
“Bruker Corporation (NASDAQ:BRKR) – BRKR designs and manufactures advanced scientific instruments as well as analytical and diagnostic solutions for a number of differentiated end markets in the life sciences arena. Its solutions enable its customers to explore life and materials at microscopic, molecular, and cellular levels. With a global presence and a focus on life sciences, it benefits from long-term drivers like proteomics research. BRKR derives its competitive moat from its highly innovative instruments that push the cutting edge of science, enabling strong pricing power and market leadership. BRKR’s management team has an excellent track record of capital allocation and delivering on their promises that help create shareholder value. Over time, BRKR has reduced its reliance on government/academic customers, diversified away from Europe, increased growth, and expanded margins meaningfully. BRKR also possesses many characteristics we look for in a company, including a strong balance sheet, high ROIC (>20%), improving margin (close to 20%), and high inside ownership. BRKR is also owned in our Mid Cap portfolio.”
