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Technology Sector Report

Scientific Instruments Industry Report

Market Cap: $1.2T
Stocks: 67
Median P/E: 32.4x
Median ROIC: 2.7%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Technology sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+1.4%+0.5%
1 Week-3.2%-1.1%
1 Month
3 Months
6 Months
YTD+2.5%+1.2%
1 Year+54.4%+4.8%
3 Years+103.2%-0.7%
5 Years+121.8%-16.0%

Today's Breadth: 40 advancing · 23 declining · 3 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E32.4x10.9x39.8x+7%
P/B2.4x1.0x4.1x-10%
P/S2.3x1.1x4.7x
P/FCF25.1x15.7x37.3x
EV/EBITDA22.3x18.3x26.9x
EV/EBIT28.1x25.6x32.3x
Earnings Yield
2.8%
FCF Yield
2.3%
Below Fair Value
43% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin48.3%48.5%39.0%59.3%
Operating Margin6.6%-8.6%17.4%
Net Margin5.2%4.5%-7.4%15.4%
FCF Margin10.1%0.8%17.7%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE0.7%-19.8%13.4%
ROA0.1%-24.4%7.7%
ROIC2.7%5.6%-23.2%14.1%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+4.2%+5.1%+6.3%
EPS+9.7%+1.5%+6.5%
Free Cash Flow+2.4%+6.8%+6.1%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.3x
Net Debt / EBITDA
0.9x
Interest Coverage
6.9x
Current Ratio
2.3x

Altman Z-Score

Safe (>3): 29 (46%)
Gray (1.8–3): 14 (22%)
Distress (<1.8): 20 (32%)

Piotroski F-Score

Strong (7–9): 10 (15%)
Moderate (4–6): 37 (56%)
Weak (0–3): 19 (29%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
KLAC1$236.6B29.1x22.5x65.5%33.4%+23.9%0.8%+5.1%7/9
TMO2$194.3B32.7x24.0x8.8%15.1%+3.9%0.3%-0.7%2/9
DHR3$140.2B45.6x25.0x6.1%14.7%+2.9%0.5%+4.8%4/9
TER4$59.1B57.3x41.2x27.2%17.4%+13.1%0.2%+4.5%5/9
KEYS5$57.3B34.6x28.0x17.1%15.8%+8.0%+1.6%6/9
AME6$54.2B32.6x21.8x12.7%20.0%+6.6%0.1%0.0%3/9
COHR7$47.7B25.9x0.3%-1.4%+23.4%0.1%+6.0%1/9
ROK8$46.2B44.5x20.2x22.9%10.4%+0.9%1.5%-0.2%4/9
BRKRP9$44.8B195.1x1.1%-0.7%+2.1%0.0%-4.0%1/9
ROP10$38.6B31.7x18.5x6.3%19.4%+12.3%0.8%+1.8%4/9
A11$33.5B31.9x23.4x20.4%18.8%+6.7%0.7%-0.0%6/9
MTD12$27.8B33.8x27.0x44.8%21.6%+4.0%+3.3%6/9
VLTO13$22.7B27.0x18.2x42.2%17.1%+6.0%0.4%+1.4%4/9
FTV14$20.0B32.2x19.0x5.7%13.9%+1.9%0.5%+3.4%3/9
ILMN15$19.8B24.8x20.3x25.4%19.6%-0.7%+1.6%4/9
WAT16$19.4B35.9x26.7x22.3%20.3%+7.0%+4.8%5/9
MKSI17$18.4B37.5x5.6x7.9%7.5%+9.6%0.5%+7.2%2/9
TRMB18$16.1B39.8x22.4x8.0%11.8%-2.6%+1.4%4/9
ONTO19$12.4B13.6%+1.8%+3.7%3/9
RVTY20$10.8B46.7x17.4x3.6%8.4%+3.7%0.3%+3.1%4/9

Industry Composition

IndustryStocksMarket Cap%
Industrial Instruments For Measurement, Display, And Control17$349.9B29.4%
Optical Instruments & Lenses5$293.3B24.6%
Measuring & Controlling Devices, Nec11$274.8B23.1%
Laboratory Analytical Instruments24$181.1B15.2%
Instruments For Meas & Testing Of Electricity & Elec Signals10$92.8B7.8%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
3%
Median Piotroski F
5/9
Profitable Years
6 of 10

Dividends & Shareholder Returns

Paying Dividends
31%
Median Div Yield
0.5%
Median Buyback Yield
1.0%
Shareholder Yield
1.2%
Payout Ratio
21.7%
Div Growth (3Y)
5.7%
Div Growth (5Y)
6.0%

Strengths & Weaknesses

Strengths

No notable strengths identified.

Weaknesses

  • [Financial Health]31.7% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Profitability]Below-average capital returns with a median ROIC of 2.7%, suggesting limited pricing power or capital-intensive operations.
  • [Quality]Only 3.0% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.

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