CASTLE BIOSCIENCES INC (CSTL) Stock Fundamental Analysis
NASDAQ:CSTL - Nasdaq - US14843C1053 - Common Stock - Currency: USD
CSTL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. No worries on liquidiy or solvency for CSTL as it has an excellent financial health rating, but there are worries on the profitability. CSTL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSTL was profitable.
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 (-1.01%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -1.15%, CSTL is in line with its industry, outperforming 51.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | -1.15% | ||
| ROIC | N/A |
ROA(3y)-8.08%
ROA(5y)-6.67%
ROE(3y)-9.16%
ROE(5y)-7.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CSTL's Profit Margin has been stable in the last couple of years.
CSTL's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 81.94%, CSTL belongs to the best of the industry, outperforming 95.10% 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.
The Profit Margin and Operating Margin are not available for CSTL so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.94% |
OM growth 3YN/A
OM growth 5Y-28.6%
PM growth 3YN/A
PM growth 5Y-1.01%
GM growth 3Y-0.54%
GM growth 5Y-0.96%
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
Compared to 1 year ago, CSTL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.52 indicates that CSTL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.52, CSTL belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
The Debt to FCF ratio of CSTL is 0.25, which is an excellent value as it means it would take CSTL, only 0.25 years of fcf income to pay off all of its debts.
CSTL's Debt to FCF ratio of 0.25 is amongst the best of the industry. CSTL outperforms 92.16% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that CSTL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.02, CSTL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.52 |
ROIC/WACCN/A
WACC9.86%
2.3 Liquidity
A Current Ratio of 9.37 indicates that CSTL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 9.37, CSTL belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
CSTL has a Quick Ratio of 9.19. This indicates that CSTL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CSTL (9.19) is better than 98.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.37 | ||
| Quick Ratio | 9.19 |
3. Growth
3.1 Past
CSTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 145.22%, which is quite impressive.
Measured over the past years, CSTL shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.69% on average per year.
The Revenue has grown by 38.43% 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 44.95% yearly.
EPS 1Y (TTM)145.22%
EPS 3YN/A
EPS 5Y29.69%
EPS Q2Q%-122.22%
Revenue 1Y (TTM)38.43%
Revenue growth 3Y52.25%
Revenue growth 5Y44.95%
Sales Q2Q%20.57%
3.2 Future
The Earnings Per Share is expected to decrease by -20.44% on average over the next years. This is quite bad
Based on estimates for the next years, CSTL will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y-341.51%
EPS Next 2Y-119.11%
EPS Next 3Y-69.92%
EPS Next 5Y-20.44%
Revenue Next Year-10.49%
Revenue Next 2Y-4.54%
Revenue Next 3Y0.07%
Revenue Next 5Y3.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.85, the valuation of CSTL can be described as expensive.
CSTL's Price/Earnings ratio is in line with the industry average.
CSTL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.52.
The Forward Price/Earnings Ratio is negative for CSTL. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.85 | ||
| Fwd PE | N/A |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than CSTL, based on the Enterprise Value to EBITDA ratio.
CSTL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSTL is cheaper than 81.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 1.44 |
4.3 Compensation for Growth
CSTL's earnings are expected to decrease with -69.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-119.11%
EPS Next 3Y-69.92%
5. Dividend
5.1 Amount
CSTL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.6
+0.58 (+3.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.85%
Inst Owner Change-1.93%
Ins Owners2.84%
Ins Owner Change5.33%
Market Cap508.11M
Analysts88
Price Target39.1 (122.16%)
Short Float %4.45%
Short Ratio2.88
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)1
Avg EPS beat(2)191.52%
Min EPS beat(2)-175.74%
Max EPS beat(2)558.79%
EPS beat(4)3
Avg EPS beat(4)204.82%
Min EPS beat(4)-175.74%
Max EPS beat(4)558.79%
EPS beat(8)7
Avg EPS beat(8)133.25%
EPS beat(12)10
Avg EPS beat(12)96.68%
EPS beat(16)12
Avg EPS beat(16)73.04%
Revenue beat(2)2
Avg Revenue beat(2)5.34%
Min Revenue beat(2)3.31%
Max Revenue beat(2)7.37%
Revenue beat(4)4
Avg Revenue beat(4)9.76%
Min Revenue beat(4)3.31%
Max Revenue beat(4)23.01%
Revenue beat(8)8
Avg Revenue beat(8)12.22%
Revenue beat(12)12
Avg Revenue beat(12)11.16%
Revenue beat(16)16
Avg Revenue beat(16)10%
PT rev (1m)-1.43%
PT rev (3m)-5.74%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)23.7%
EPS NY rev (1m)5.66%
EPS NY rev (3m)17.03%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)7.1%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)6.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.85 | ||
| Fwd PE | N/A | ||
| P/S | 1.46 | ||
| P/FCF | 12.17 | ||
| P/OCF | 7.74 | ||
| P/B | 1.15 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 1.44 |
EPS(TTM)0.52
EY2.95%
EPS(NY)-1.76
Fwd EYN/A
FCF(TTM)1.45
FCFY8.22%
OCF(TTM)2.27
OCFY12.92%
SpS12.02
BVpS15.25
TBVpS12.55
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.01% | ||
| ROE | -1.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.94% | ||
| FCFM | 12.03% |
ROA(3y)-8.08%
ROA(5y)-6.67%
ROE(3y)-9.16%
ROE(5y)-7.51%
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 5Y-28.6%
PM growth 3YN/A
PM growth 5Y-1.01%
GM growth 3Y-0.54%
GM growth 5Y-0.96%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 56.37% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 229.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 9.37 | ||
| Quick Ratio | 9.19 | ||
| Altman-Z | 5.52 |
F-Score7
WACC9.86%
ROIC/WACCN/A
Cap/Depr(3y)113.65%
Cap/Depr(5y)290.73%
Cap/Sales(3y)6.28%
Cap/Sales(5y)6.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)145.22%
EPS 3YN/A
EPS 5Y29.69%
EPS Q2Q%-122.22%
EPS Next Y-341.51%
EPS Next 2Y-119.11%
EPS Next 3Y-69.92%
EPS Next 5Y-20.44%
Revenue 1Y (TTM)38.43%
Revenue growth 3Y52.25%
Revenue growth 5Y44.95%
Sales Q2Q%20.57%
Revenue Next Year-10.49%
Revenue Next 2Y-4.54%
Revenue Next 3Y0.07%
Revenue Next 5Y3.86%
EBIT growth 1Y67.12%
EBIT growth 3YN/A
EBIT growth 5Y3.5%
EBIT Next Year-124.79%
EBIT Next 3Y-124.92%
EBIT Next 5Y-26.67%
FCF growth 1Y176.98%
FCF growth 3YN/A
FCF growth 5Y43.14%
OCF growth 1Y243.78%
OCF growth 3YN/A
OCF growth 5Y56%