VERACYTE INC (VCYT) Stock Fundamental Analysis
USA - NASDAQ:VCYT - US92337F1075 - Common Stock
35.83 USD
+0.02 (+0.06%)
35.83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VCYT. VCYT was compared to 536 industry peers in the Biotechnology industry. VCYT has an excellent financial health rating, but there are some minor concerns on its profitability. VCYT is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, VCYT could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year VCYT was profitable.
In the past year VCYT had a positive cash flow from operations.
VCYT had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: VCYT reported negative operating cash flow in multiple years.
1.2 Ratios
VCYT has a better Return On Assets (1.96%) than 90.28% of its industry peers.
Looking at the Return On Equity, with a value of 2.16%, VCYT belongs to the top of the industry, outperforming 91.22% of the companies in the same industry.
The Return On Invested Capital of VCYT (2.32%) is better than 90.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 2.16% | ||
| ROIC | 2.32% |
ROA(3y)-2.66%
ROA(5y)-4.4%
ROE(3y)-2.83%
ROE(5y)-4.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VCYT has a better Profit Margin (5.50%) than 91.22% of its industry peers.
VCYT has a better Operating Margin (7.78%) than 91.40% of its industry peers.
The Gross Margin of VCYT (68.26%) is better than 80.93% of its industry peers.
In the last couple of years the Gross Margin of VCYT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.78% | ||
| PM (TTM) | 5.5% | ||
| GM | 68.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.39%
GM growth 5Y-0.79%
2. Health
2.1 Basic Checks
VCYT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VCYT has more shares outstanding than it did 1 year ago.
VCYT has more shares outstanding than it did 5 years ago.
There is no outstanding debt for VCYT. 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
VCYT has an Altman-Z score of 14.04. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.04, VCYT belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
VCYT 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 | 14.04 |
ROIC/WACC0.25
WACC9.35%
2.3 Liquidity
VCYT has a Current Ratio of 5.43. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.
VCYT's Current ratio of 5.43 is in line compared to the rest of the industry. VCYT outperforms 59.25% of its industry peers.
VCYT has a Quick Ratio of 5.10. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.
VCYT's Quick ratio of 5.10 is in line compared to the rest of the industry. VCYT outperforms 57.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.43 | ||
| Quick Ratio | 5.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.00% over the past year.
VCYT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.91%.
Measured over the past years, VCYT shows a very strong growth in Revenue. The Revenue has been growing by 29.93% on average per year.
EPS 1Y (TTM)144%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-114.29%
Revenue 1Y (TTM)19.91%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%13.75%
3.2 Future
The Earnings Per Share is expected to grow by 51.73% on average over the next years. This is a very strong growth
Based on estimates for the next years, VCYT will show a quite strong growth in Revenue. The Revenue will grow by 10.07% on average per year.
EPS Next Y25.8%
EPS Next 2Y66.16%
EPS Next 3Y59.49%
EPS Next 5Y51.73%
Revenue Next Year12.84%
Revenue Next 2Y11.31%
Revenue Next 3Y10.68%
Revenue Next 5Y10.07%
3.3 Evolution
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
A Price/Earnings ratio of 108.58 indicates a quite expensive valuation of VCYT.
VCYT's Price/Earnings ratio is rather cheap when compared to the industry. VCYT is cheaper than 90.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of VCYT to the average of the S&P500 Index (27.40), we can say VCYT is valued expensively.
VCYT is valuated quite expensively with a Price/Forward Earnings ratio of 43.26.
89.91% of the companies in the same industry are more expensive than VCYT, based on the Price/Forward Earnings ratio.
VCYT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.58 | ||
| Fwd PE | 43.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCYT is valued cheaper than 91.59% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 93.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.57 | ||
| EV/EBITDA | 39.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VCYT has a very decent profitability rating, which may justify a higher PE ratio.
VCYT's earnings are expected to grow with 59.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.21
PEG (5Y)N/A
EPS Next 2Y66.16%
EPS Next 3Y59.49%
5. Dividend
5.1 Amount
No dividends for VCYT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.83
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners109.55%
Inst Owner Change-0.9%
Ins Owners0.56%
Ins Owner Change-0.42%
Market Cap2.82B
Analysts83.53
Price Target42.05 (17.36%)
Short Float %11.66%
Short Ratio5.82
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)-19.08%
Min EPS beat(2)-110.32%
Max EPS beat(2)72.17%
EPS beat(4)2
Avg EPS beat(4)123.1%
Min EPS beat(4)-110.32%
Max EPS beat(4)579.09%
EPS beat(8)4
Avg EPS beat(8)77.32%
EPS beat(12)8
Avg EPS beat(12)65.1%
EPS beat(16)11
Avg EPS beat(16)51.9%
Revenue beat(2)2
Avg Revenue beat(2)3.39%
Min Revenue beat(2)1.01%
Max Revenue beat(2)5.76%
Revenue beat(4)3
Avg Revenue beat(4)2.66%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)5.76%
Revenue beat(8)7
Avg Revenue beat(8)4.2%
Revenue beat(12)11
Avg Revenue beat(12)5.28%
Revenue beat(16)15
Avg Revenue beat(16)5.66%
PT rev (1m)0%
PT rev (3m)-1.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.5%
EPS NY rev (1m)0.68%
EPS NY rev (3m)-27.21%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.58 | ||
| Fwd PE | 43.26 | ||
| P/S | 5.88 | ||
| P/FCF | 33.57 | ||
| P/OCF | 30.16 | ||
| P/B | 2.31 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 39.78 |
EPS(TTM)0.33
EY0.92%
EPS(NY)0.83
Fwd EY2.31%
FCF(TTM)1.07
FCFY2.98%
OCF(TTM)1.19
OCFY3.32%
SpS6.09
BVpS15.52
TBVpS4.47
PEG (NY)4.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 2.16% | ||
| ROCE | 2.94% | ||
| ROIC | 2.32% | ||
| ROICexc | 3.11% | ||
| ROICexgc | 37.8% | ||
| OM | 7.78% | ||
| PM (TTM) | 5.5% | ||
| GM | 68.26% | ||
| FCFM | 17.52% |
ROA(3y)-2.66%
ROA(5y)-4.4%
ROE(3y)-2.83%
ROE(5y)-4.73%
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 3Y0.39%
GM growth 5Y-0.79%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.28% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.1% | ||
| Profit Quality | 318.84% | ||
| Current Ratio | 5.43 | ||
| Quick Ratio | 5.1 | ||
| Altman-Z | 14.04 |
F-Score7
WACC9.35%
ROIC/WACC0.25
Cap/Depr(3y)39.24%
Cap/Depr(5y)36.19%
Cap/Sales(3y)2.72%
Cap/Sales(5y)2.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)144%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-114.29%
EPS Next Y25.8%
EPS Next 2Y66.16%
EPS Next 3Y59.49%
EPS Next 5Y51.73%
Revenue 1Y (TTM)19.91%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%13.75%
Revenue Next Year12.84%
Revenue Next 2Y11.31%
Revenue Next 3Y10.68%
Revenue Next 5Y10.07%
EBIT growth 1Y52395.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year275.46%
EBIT Next 3Y68.01%
EBIT Next 5Y44.31%
FCF growth 1Y264.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y198.77%
OCF growth 3YN/A
OCF growth 5YN/A