CASTLE BIOSCIENCES INC (CSTL) Stock Fundamental Analysis
NASDAQ:CSTL - Nasdaq - US14843C1053 - Common Stock - Currency: USD
Taking everything into account, CSTL scores 5 out of 10 in our fundamental rating. CSTL was compared to 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 valied quite expensively at the moment, while 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.
In the past 5 years CSTL reported 4 times negative net income.
In multiple years CSTL reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -1.01%, CSTL perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
CSTL has a Return On Equity (-1.15%) which is comparable to the rest of the 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.
In the last couple of years the Operating Margin of CSTL has declined.
The Gross Margin of CSTL (81.94%) is better than 94.12% of its industry peers.
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.
Compared to 1 year ago, CSTL has more shares outstanding
Compared to 5 years ago, CSTL has more shares outstanding
CSTL has a worse debt/assets ratio than last year.
2.2 Solvency
CSTL has an Altman-Z score of 5.17. This indicates that CSTL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.17, 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.
Looking at the Debt to FCF ratio, with a value of 0.25, CSTL belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
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 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.17 |
ROIC/WACCN/A
WACC9.05%
2.3 Liquidity
CSTL has a Current Ratio of 9.37. This indicates that CSTL is financially healthy and has no problem in meeting its short term obligations.
CSTL has a better Current ratio (9.37) than 98.04% of its industry peers.
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.
With an excellent Quick ratio value of 9.19, CSTL belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 29.69% on average over the past years. This is a very strong growth
Looking at the last year, CSTL shows a very strong growth in Revenue. The Revenue has grown by 38.43%.
The Revenue has been growing by 44.95% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, CSTL will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.44% on average per year.
The Revenue is expected to grow by 3.86% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
CSTL is valuated quite expensively with a Price/Earnings ratio of 31.21.
Compared to the rest of the industry, the Price/Earnings ratio of CSTL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CSTL to the average of the S&P500 Index (26.17), we can say CSTL is valued inline with the index average.
CSTL is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| 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.
83.33% of the companies in the same industry are more expensive than CSTL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.22 | ||
| EV/EBITDA | 0.21 |
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)1.05
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 |
16.23
+0.43 (+2.72%)
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-2.01%
Ins Owners2.84%
Ins Owner Change5.33%
Market Cap468.56M
Analysts88
Price Target39.1 (140.91%)
Short Float %5.39%
Short Ratio3.22
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)-3.36%
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 | 31.21 | ||
| Fwd PE | N/A | ||
| P/S | 1.35 | ||
| P/FCF | 11.22 | ||
| P/OCF | 7.14 | ||
| P/B | 1.06 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 0.21 |
EPS(TTM)0.52
EY3.2%
EPS(NY)-1.76
Fwd EYN/A
FCF(TTM)1.45
FCFY8.91%
OCF(TTM)2.27
OCFY14.01%
SpS12.02
BVpS15.25
TBVpS12.55
PEG (NY)N/A
PEG (5Y)1.05
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 | 5.17 |
F-Score7
WACC9.05%
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%