CDNA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. CDNA has an excellent financial health rating, but there are some minor concerns on its profitability. CDNA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CDNA was profitable.
In the past year CDNA had a positive cash flow from operations.
CDNA had negative earnings in 4 of the past 5 years.
In multiple years CDNA reported negative operating cash flow during the last 5 years.

1.2 Ratios

CDNA has a better Return On Assets (14.06%) than 95.05% of its industry peers.
CDNA's Return On Equity of 19.53% is amongst the best of the industry. CDNA outperforms 95.81% of its industry peers.

		Industry Rank	Sector Rank
ROA	14.06%
ROE	19.53%
ROIC	N/A

ROA(3y)-14.72%

ROA(5y)-10.93%

ROE(3y)-25.57%

ROE(5y)-18.01%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 16.97%, CDNA belongs to the best of the industry, outperforming 92.95% of the companies in the same industry.
With an excellent Gross Margin value of 67.62%, CDNA belongs to the best of the industry, outperforming 80.76% of the companies in the same industry.
CDNA's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	16.97%
GM	67.62%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.01%

GM growth 5Y0.9%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CDNA does not have a ROIC to compare to the WACC, probably because it is not profitable.
CDNA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CDNA has more shares outstanding
There is no outstanding debt for CDNA. 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

CDNA has an Altman-Z score of 3.98. This indicates that CDNA is financially healthy and has little risk of bankruptcy at the moment.
CDNA's Altman-Z score of 3.98 is fine compared to the rest of the industry. CDNA outperforms 70.86% of its industry peers.
CDNA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	3.98

ROIC/WACCN/A

WACC8.88%

2.3 Liquidity

CDNA has a Current Ratio of 3.03. This indicates that CDNA is financially healthy and has no problem in meeting its short term obligations.
CDNA has a worse Current ratio (3.03) than 63.62% of its industry peers.
A Quick Ratio of 2.75 indicates that CDNA has no problem at all paying its short term obligations.
CDNA's Quick ratio of 2.75 is on the low side compared to the rest of the industry. CDNA is outperformed by 65.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.03
Quick Ratio	2.75

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 242.11% over the past year.
Measured over the past years, CDNA shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.47% on average per year.
CDNA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.46%.
Measured over the past years, CDNA shows a very strong growth in Revenue. The Revenue has been growing by 21.30% on average per year.

EPS 1Y (TTM)242.11%

EPS 3Y23.03%

EPS 5Y37.47%

EPS Q2Q%100%

Revenue 1Y (TTM)14.46%

Revenue growth 3Y4.04%

Revenue growth 5Y21.3%

Sales Q2Q%20.72%

3.2 Future

CDNA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.18% yearly.
Based on estimates for the next years, CDNA will show a quite strong growth in Revenue. The Revenue will grow by 13.01% on average per year.

EPS Next Y32.33%

EPS Next 2Y31.12%

EPS Next 3Y32.58%

EPS Next 5Y38.18%

Revenue Next Year13.08%

Revenue Next 2Y12.19%

Revenue Next 3Y11.6%

Revenue Next 5Y13.01%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 31.42 indicates a quite expensive valuation of CDNA.
Based on the Price/Earnings ratio, CDNA is valued cheaper than 92.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. CDNA is around the same levels.
CDNA is valuated rather expensively with a Price/Forward Earnings ratio of 22.00.
93.33% of the companies in the same industry are more expensive than CDNA, based on the Price/Forward Earnings ratio.
CDNA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	31.42
Fwd PE	22

4.2 Price Multiples

94.29% of the companies in the same industry are more expensive than CDNA, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	28.84
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CDNA's earnings are expected to grow with 32.58% in the coming years. This may justify a more expensive valuation.