CASTLE BIOSCIENCES INC (CSTL)
US14843C1053 - Common Stock
We assign a fundamental rating of 4 out of 10 to CSTL. CSTL was compared to 118 industry peers in the Health Care Providers & Services industry. The financial health of CSTL is average, but there are quite some concerns on its profitability. CSTL is quite expensive at the moment. It does show a decent growth rate.
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.
CSTL had negative earnings in 4 of the past 5 years.
In multiple years CSTL reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of CSTL (-6.72%) is worse than 62.39% of its industry peers.
CSTL has a Return On Equity (-7.65%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
With an excellent Gross Margin value of 80.58%, CSTL belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
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 Rank | Sector 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%
2. Health
2.1 Basic Checks
CSTL does not have a ROIC to compare to the WACC, probably because it is not profitable.
CSTL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CSTL has more shares outstanding
CSTL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.29 indicates that CSTL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.29, CSTL belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that CSTL is not too dependend on debt financing.
CSTL has a better Debt to Equity ratio (0.02) than 85.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.29 |
ROIC/WACCN/A
WACC9.13%
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 98.29% 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.
Looking at the Quick ratio, with a value of 9.02, CSTL belongs to the top of the industry, outperforming 98.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.25 | ||
| Quick Ratio | 9.02 |
3. Growth
3.1 Past
CSTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.56%, which is quite impressive.
The Revenue has grown by 64.70% in the past year. This is a very strong growth!
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 growth Q2Q91.82%
Revenue 1Y (TTM)64.7%
Revenue growth 3Y51.99%
Revenue growth 5Y57.33%
Revenue growth Q2Q73.58%
3.2 Future
The Earnings Per Share is expected to grow by 17.49% on average over the next years. This is quite good.
CSTL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.14% yearly.
EPS Next Y-1.14%
EPS Next 2Y5.13%
EPS Next 3Y18.67%
EPS Next 5Y17.49%
Revenue Next Year12.55%
Revenue Next 2Y10.49%
Revenue Next 3Y11.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CSTL. In the last year negative earnings were reported.
Also next year CSTL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as CSTL's earnings are expected to grow with 18.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.13%
EPS Next 3Y18.67%
5. Dividend
5.1 Amount
CSTL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CASTLE BIOSCIENCES INC
NASDAQ:CSTL (5/8/2024, 3:01:49 PM)
After market: 23.54 0 (0%)23.54
-0.25 (-1.05%)
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 Cap649.47M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)57.56%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)64.7%
Revenue growth 3Y51.99%
Revenue growth 5Y
Revenue growth 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