CASTLE BIOSCIENCES INC (CSTL)

US14843C1053 - Common Stock

23.26  -0.95 (-3.92%)

After market: 23.26 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CSTL. CSTL was compared to 116 industry peers in the Health Care Providers & Services industry. While CSTL seems to be doing ok healthwise, there are quite some concerns on its profitability. CSTL is valied quite expensively at the moment, while it does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

CSTL had negative earnings in the past year.
In the past year CSTL had a positive cash flow from operations.
In the past 5 years CSTL reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: CSTL reported negative operating cash flow in multiple years.

1.2 Ratios

CSTL has a Return On Assets of -6.72%. This is in the lower half of the industry: CSTL underperforms 61.74% of its industry peers.
With a Return On Equity value of -7.65%, CSTL perfoms like the industry average, outperforming 53.91% of the companies in the same industry.
Industry RankSector Rank
ROA -6.72%
ROE -7.65%
ROIC N/A
ROA(3y)-11.48%
ROA(5y)-6.86%
ROE(3y)-13.03%
ROE(5y)-7.61%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

CSTL has a Gross Margin of 80.58%. This is amongst the best in the industry. CSTL outperforms 94.78% of its industry peers.
In the last couple of years the Gross Margin of CSTL has remained more or less at the same level.
CSTL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 80.58%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.06%
GM growth 5Y0.71%

6

2. Health

2.1 Basic Checks

CSTL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for CSTL has been increased compared to 1 year ago.
CSTL has more shares outstanding than it did 5 years ago.
CSTL has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 7.42 indicates that CSTL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.42, CSTL belongs to the top of the industry, outperforming 93.04% of the companies in the same industry.
CSTL has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
CSTL has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. CSTL outperforms 84.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF N/A
Altman-Z 7.42
ROIC/WACCN/A
WACC9.19%

2.3 Liquidity

A Current Ratio of 9.25 indicates that CSTL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 9.25, CSTL belongs to the top of the industry, outperforming 98.26% of the companies in the same industry.
CSTL has a Quick Ratio of 9.02. This indicates that CSTL is financially healthy and has no problem in meeting its short term obligations.
CSTL has a Quick ratio of 9.02. This is amongst the best in the industry. CSTL outperforms 98.26% of its industry peers.
Industry RankSector Rank
Current Ratio 9.25
Quick Ratio 9.02

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 57.56% over the past year.
Looking at the last year, CSTL shows a very strong growth in Revenue. The Revenue has grown by 64.70%.
CSTL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 57.33% yearly.
EPS 1Y (TTM)57.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%91.82%
Revenue 1Y (TTM)64.7%
Revenue growth 3Y51.99%
Revenue growth 5Y57.33%
Sales Q2Q%73.59%

3.2 Future

Based on estimates for the next years, CSTL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.49% on average per year.
Based on estimates for the next years, CSTL will show a quite strong growth in Revenue. The Revenue will grow by 11.14% on average per year.
EPS Next Y23.4%
EPS Next 2Y4.85%
EPS Next 3Y13.61%
EPS Next 5Y17.49%
Revenue Next Year23.61%
Revenue Next 2Y11.33%
Revenue Next 3Y12.16%
Revenue Next 5Y11.14%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

0

4. Valuation

4.1 Price/Earnings Ratio

CSTL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year CSTL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

CSTL's earnings are expected to grow with 13.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.85%
EPS Next 3Y13.61%

0

5. Dividend

5.1 Amount

CSTL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CASTLE BIOSCIENCES INC

NASDAQ:CSTL (5/31/2024, 7:00:00 PM)

After market: 23.26 0 (0%)

23.26

-0.95 (-3.92%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap642.21M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.72%
ROE -7.65%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 80.58%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 9.25
Quick Ratio 9.02
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)57.56%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y23.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)64.7%
Revenue growth 3Y51.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y