Stock Analysis: Affordable Growth

Fundamental Rating

Taking everything into account, VCYT scores 6 out of 10 in our fundamental rating. VCYT was compared to 563 industry peers in the Biotechnology industry. While VCYT has a great health rating, its profitability is only average at the moment. VCYT is growing strongly while it is still valued neutral. This is a good combination! This makes VCYT very considerable for growth investing!

1. Profitability

1.1 Basic Checks

VCYT had positive earnings in the past year.

VCYT had a positive operating cash flow in the past year.

VCYT had negative earnings in 4 of the past 5 years.

The reported operating cash flow has been mixed in the past 5 years: VCYT reported negative operating cash flow in multiple years.

1.2 Ratios

VCYT has a Return On Assets of 1.86%. This is amongst the best in the industry. VCYT outperforms 91.65% of its industry peers.

VCYT has a better Return On Equity (2.05%) than 92.01% of its industry peers.

VCYT has a Return On Invested Capital of 1.26%. This is amongst the best in the industry. VCYT outperforms 92.54% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.86%
ROE	2.05%
ROIC	1.26%

ROA(3y)-2.66%

ROA(5y)-4.4%

ROE(3y)-2.83%

ROE(5y)-4.73%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 5.41%, VCYT belongs to the best of the industry, outperforming 92.36% of the companies in the same industry.

The Operating Margin of VCYT (4.38%) is better than 92.90% of its industry peers.

The Gross Margin of VCYT (67.54%) is better than 79.93% of its industry peers.

In the last couple of years the Gross Margin of VCYT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	4.38%
PM (TTM)	5.41%
GM	67.54%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.39%

GM growth 5Y-0.79%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VCYT is destroying value.

The number of shares outstanding for VCYT has been increased compared to 1 year ago.

VCYT has more shares outstanding than it did 5 years ago.

There is no outstanding debt for VCYT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 11.86 indicates that VCYT is not in any danger for bankruptcy at the moment.

VCYT has a better Altman-Z score (11.86) than 90.76% of its industry peers.

There is no outstanding debt for VCYT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	11.86

ROIC/WACC0.13

WACC10.03%

2.3 Liquidity

VCYT has a Current Ratio of 4.73. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.

Looking at the Current ratio, with a value of 4.73, VCYT is in line with its industry, outperforming 53.46% of the companies in the same industry.

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.

The Quick ratio of VCYT (4.46) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	4.73
Quick Ratio	4.46

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

VCYT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 167.02%, which is quite impressive.

The Revenue has grown by 23.46% in the past year. This is a very strong growth!

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.

EPS 1Y (TTM)167.02%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%1650%

Revenue 1Y (TTM)23.46%

Revenue growth 3Y26.64%

Revenue growth 5Y29.93%

Sales Q2Q%18.2%

3.2 Future

The Earnings Per Share is expected to grow by 48.44% on average over the next years. This is a very strong growth

VCYT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.53% yearly.

EPS Next Y102.3%

EPS Next 2Y62.2%

EPS Next 3Y52.96%

EPS Next 5Y48.44%

Revenue Next Year10.06%

Revenue Next 2Y10.54%

Revenue Next 3Y10.2%

Revenue Next 5Y8.53%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 48.95, which means the current valuation is very expensive for VCYT.

Based on the Price/Earnings ratio, VCYT is valued cheaply inside the industry as 92.90% of the companies are valued more expensively.

Compared to an average S&P500 Price/Earnings ratio of 23.99, VCYT is valued quite expensively.

VCYT is valuated quite expensively with a Price/Forward Earnings ratio of 39.08.

Compared to the rest of the industry, the Price/Forward Earnings ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 91.30% of the companies listed in the same industry.

When comparing the Price/Forward Earnings ratio of VCYT to the average of the S&P500 Index (20.35), we can say VCYT is valued expensively.

		Industry Rank	Sector Rank
PE	48.95
Fwd PE	39.08

4.2 Price Multiples

VCYT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VCYT is cheaper than 92.72% of the companies in the same industry.

VCYT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VCYT is cheaper than 94.32% of the companies in the same industry.