CAREDX INC (CDNA) Stock Fundamental Analysis
NASDAQ:CDNA - Nasdaq - US14167L1035 - Common Stock - Currency: USD
CDNA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 560 industry peers in the Biotechnology industry. CDNA has an excellent financial health rating, but there are some minor concerns on its profitability. CDNA is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
CDNA had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 12.02%, CDNA belongs to the top of the industry, outperforming 95.36% of the companies in the same industry.
CDNA has a Return On Equity of 15.51%. This is amongst the best in the industry. CDNA outperforms 95.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 15.51% | ||
| 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
Looking at the Profit Margin, with a value of 16.99%, CDNA belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
CDNA's Gross Margin of 67.64% is amongst the best of the industry. CDNA outperforms 80.71% of its industry peers.
In the last couple of years the Gross Margin of CDNA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 16.99% | ||
| GM | 67.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.01%
GM growth 5Y0.9%
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 4.27. This indicates that CDNA is financially healthy and has little risk of bankruptcy at the moment.
CDNA has a Altman-Z score of 4.27. This is in the better half of the industry: CDNA outperforms 78.93% 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 | 4.27 |
ROIC/WACCN/A
WACC9.47%
2.3 Liquidity
A Current Ratio of 4.11 indicates that CDNA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.11, CDNA is in line with its industry, outperforming 47.68% of the companies in the same industry.
CDNA has a Quick Ratio of 3.84. This indicates that CDNA is financially healthy and has no problem in meeting its short term obligations.
CDNA has a Quick ratio (3.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 3.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 217.86% 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 a strong growth in Revenue. In the last year, the Revenue has grown by 25.92%.
The Revenue has been growing by 21.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)217.86%
EPS 3Y23.03%
EPS 5Y37.47%
EPS Q2Q%400%
Revenue 1Y (TTM)25.92%
Revenue growth 3Y4.04%
Revenue growth 5Y21.3%
Sales Q2Q%17.54%
3.2 Future
The Earnings Per Share is expected to grow by 38.27% on average over the next years. This is a very strong growth
CDNA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.45% yearly.
EPS Next Y13.93%
EPS Next 2Y39.54%
EPS Next 3Y38.27%
EPS Next 5YN/A
Revenue Next Year11.98%
Revenue Next 2Y13.64%
Revenue Next 3Y13.45%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.74, CDNA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CDNA is valued cheaply inside the industry as 94.64% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CDNA to the average of the S&P500 Index (26.25), we can say CDNA is valued inline with the index average.
A Price/Forward Earnings ratio of 16.16 indicates a correct valuation of CDNA.
Based on the Price/Forward Earnings ratio, CDNA is valued cheaper than 93.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, CDNA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CDNA indicates a rather cheap valuation: CDNA is cheaper than 93.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CDNA does not grow enough to justify the current Price/Earnings ratio.
CDNA's earnings are expected to grow with 38.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)0.69
EPS Next 2Y39.54%
EPS Next 3Y38.27%
5. Dividend
5.1 Amount
No dividends for CDNA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.99
+0.43 (+2.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change5.87%
Ins Owners2.87%
Ins Owner Change3.94%
Market Cap946.00M
Analysts80
Price Target29.2 (71.87%)
Short Float %11.48%
Short Ratio6.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.65%
Min EPS beat(2)36.04%
Max EPS beat(2)37.26%
EPS beat(4)4
Avg EPS beat(4)404.01%
Min EPS beat(4)36.04%
Max EPS beat(4)1272.55%
EPS beat(8)8
Avg EPS beat(8)229.71%
EPS beat(12)11
Avg EPS beat(12)158.53%
EPS beat(16)13
Avg EPS beat(16)133.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)8.38%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)33.31%
Revenue beat(8)7
Avg Revenue beat(8)10.24%
Revenue beat(12)7
Avg Revenue beat(12)5.45%
Revenue beat(16)9
Avg Revenue beat(16)4.44%
PT rev (1m)-10.72%
PT rev (3m)-11.58%
EPS NQ rev (1m)-8.55%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 16.16 | ||
| P/S | 2.73 | ||
| P/FCF | 46.95 | ||
| P/OCF | 35.33 | ||
| P/B | 2.49 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.66
EY3.88%
EPS(NY)1.05
Fwd EY6.19%
FCF(TTM)0.36
FCFY2.13%
OCF(TTM)0.48
OCFY2.83%
SpS6.22
BVpS6.81
TBVpS5.42
PEG (NY)1.85
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 15.51% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 16.99% | ||
| GM | 67.64% | ||
| FCFM | 5.82% |
ROA(3y)-14.72%
ROA(5y)-10.93%
ROE(3y)-25.57%
ROE(5y)-18.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.01%
GM growth 5Y0.9%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 47.43% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 34.24% | ||
| Current Ratio | 4.11 | ||
| Quick Ratio | 3.84 | ||
| Altman-Z | 4.27 |
F-Score6
WACC9.47%
ROIC/WACCN/A
Cap/Depr(3y)106.55%
Cap/Depr(5y)139.53%
Cap/Sales(3y)4.27%
Cap/Sales(5y)5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)217.86%
EPS 3Y23.03%
EPS 5Y37.47%
EPS Q2Q%400%
EPS Next Y13.93%
EPS Next 2Y39.54%
EPS Next 3Y38.27%
EPS Next 5YN/A
Revenue 1Y (TTM)25.92%
Revenue growth 3Y4.04%
Revenue growth 5Y21.3%
Sales Q2Q%17.54%
Revenue Next Year11.98%
Revenue Next 2Y13.64%
Revenue Next 3Y13.45%
Revenue Next 5YN/A
EBIT growth 1Y57.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year132.16%
EBIT Next 3Y84.29%
EBIT Next 5YN/A
FCF growth 1Y193.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y963.74%
OCF growth 3YN/A
OCF growth 5YN/A