Despite its growth, VERACYTE INC (NASDAQ:VCYT) remains within the realm of affordability.

Our stock screening tool has pinpointed VERACYTE INC (NASDAQ:VCYT) as a growth stock that isn't overvalued. VCYT is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Unpacking VCYT's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. VCYT has earned a 7 for growth:

• VCYT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 129.13%, which is quite impressive.
• Looking at the last year, VCYT shows a very strong growth in Revenue. The Revenue has grown by 23.46%.
• Measured over the past years, VCYT shows a very strong growth in Revenue. The Revenue has been growing by 29.93% on average per year.
• Based on estimates for the next years, VCYT will show a very strong growth in Earnings Per Share. The EPS will grow by 48.79% on average per year.
• Based on estimates for the next years, VCYT will show a quite strong growth in Revenue. The Revenue will grow by 8.69% on average per year.

Looking at the Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. VCYT has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, VCYT is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, VCYT is valued cheaply inside the industry as 91.71% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, VCYT is valued cheaper than 92.95% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, VCYT is valued cheaper than 94.36% of the companies in the same industry.
• VCYT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of VCYT may justify a higher PE ratio.
• A more expensive valuation may be justified as VCYT's earnings are expected to grow with 52.96% in the coming years.

Deciphering VCYT's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. VCYT was assigned a score of 7 for health:

• VCYT has an Altman-Z score of 11.59. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
• VCYT has a Altman-Z score of 11.59. This is amongst the best in the industry. VCYT outperforms 92.24% of its industry peers.
• VCYT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 4.73 indicates that VCYT has no problem at all paying its short term obligations.
• VCYT has a Quick Ratio of 4.46. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. VCYT has earned a 6 out of 10:

• VCYT's Return On Assets of 1.86% is amongst the best of the industry. VCYT outperforms 91.71% of its industry peers.
• VCYT's Return On Equity of 2.05% is amongst the best of the industry. VCYT outperforms 92.24% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 1.26%, VCYT belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
• VCYT has a better Profit Margin (5.41%) than 92.59% of its industry peers.
• Looking at the Operating Margin, with a value of 4.38%, VCYT belongs to the top of the industry, outperforming 92.95% of the companies in the same industry.
• VCYT's Gross Margin of 67.54% is amongst the best of the industry. VCYT outperforms 80.07% of its industry peers.

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Check the latest full fundamental report of VCYT for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.