VERACYTE INC (VCYT) Stock Fundamental Analysis
NASDAQ:VCYT - Nasdaq - US92337F1075 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to VCYT. VCYT was compared to 566 industry peers in the Biotechnology industry. While VCYT has a great health rating, its profitability is only average at the moment. VCYT is not overvalued while it is showing excellent growth. This is an interesting combination. This makes VCYT very considerable for growth investing!
1. Profitability
1.1 Basic Checks
VCYT had positive earnings in the past year.
VCYT had a positive operating cash flow in the past year.
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 Return On Assets of 1.86%. This is amongst the best in the industry. VCYT outperforms 91.87% of its industry peers.
Looking at the Return On Equity, with a value of 2.05%, VCYT belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
VCYT has a Return On Invested Capital of 1.26%. This is amongst the best in the industry. VCYT outperforms 92.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 2.05% | ||
| ROIC | 1.26% |
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
The Profit Margin of VCYT (5.41%) is better than 92.58% of its industry peers.
Looking at the Operating Margin, with a value of 4.38%, VCYT belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
VCYT's Gross Margin of 67.54% is amongst the best of the industry. VCYT outperforms 80.04% 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 | 4.38% | ||
| PM (TTM) | 5.41% | ||
| GM | 67.54% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VCYT is destroying value.
Compared to 1 year ago, VCYT has more shares outstanding
The number of shares outstanding for VCYT has been increased compared to 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 11.68. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.68, VCYT belongs to the best of the industry, outperforming 89.40% 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 | 11.68 |
ROIC/WACC0.13
WACC9.91%
2.3 Liquidity
A Current Ratio of 4.73 indicates that VCYT has no problem at all paying its short term obligations.
VCYT has a Current ratio of 4.73. This is comparable to the rest of the industry: VCYT outperforms 53.53% of its industry peers.
VCYT has a Quick Ratio of 4.46. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.
VCYT has a Quick ratio (4.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.73 | ||
| Quick Ratio | 4.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 129.13% over the past year.
The Revenue has grown by 23.46% in the past year. This is a very strong growth!
The Revenue has been growing by 29.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)129.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.38%
Revenue 1Y (TTM)23.46%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%20.81%
3.2 Future
The Earnings Per Share is expected to grow by 48.44% on average over the next years. This is a very strong growth
VCYT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.53% yearly.
EPS Next Y102.3%
EPS Next 2Y62.2%
EPS Next 3Y52.96%
EPS Next 5Y48.44%
Revenue Next Year10.06%
Revenue Next 2Y10.54%
Revenue Next 3Y10.2%
Revenue Next 5Y8.53%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 101.67, which means the current valuation is very expensive for VCYT.
Based on the Price/Earnings ratio, VCYT is valued cheaply inside the industry as 92.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.88. VCYT is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 50.26, the valuation of VCYT can be described as expensive.
Based on the Price/Forward Earnings ratio, VCYT is valued cheaply inside the industry as 91.70% of the companies are valued more expensively.
VCYT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.67 | ||
| Fwd PE | 50.26 |
4.2 Price Multiples
93.29% of the companies in the same industry are more expensive than VCYT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 94.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.25 | ||
| EV/EBITDA | 47.41 |
4.3 Compensation for Growth
VCYT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VCYT may justify a higher PE ratio.
VCYT's earnings are expected to grow with 52.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y62.2%
EPS Next 3Y52.96%
5. Dividend
5.1 Amount
VCYT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.5
-0.88 (-2.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.95%
Inst Owner Change0.24%
Ins Owners0.58%
Ins Owner Change2.13%
Market Cap2.38B
Analysts82.11
Price Target44.6 (46.23%)
Short Float %6.61%
Short Ratio4.99
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)265.28%
Min EPS beat(2)-48.53%
Max EPS beat(2)579.09%
EPS beat(4)3
Avg EPS beat(4)285.14%
Min EPS beat(4)-48.53%
Max EPS beat(4)579.09%
EPS beat(8)5
Avg EPS beat(8)87.38%
EPS beat(12)9
Avg EPS beat(12)73.22%
EPS beat(16)12
Avg EPS beat(16)58%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)3.44%
Revenue beat(4)3
Avg Revenue beat(4)4.15%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)11.88%
Revenue beat(8)7
Avg Revenue beat(8)4.89%
Revenue beat(12)11
Avg Revenue beat(12)5.61%
Revenue beat(16)15
Avg Revenue beat(16)6.6%
PT rev (1m)-5.56%
PT rev (3m)-1.74%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-44.06%
EPS NY rev (1m)-2.91%
EPS NY rev (3m)12.8%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.67 | ||
| Fwd PE | 50.26 | ||
| P/S | 5.33 | ||
| P/FCF | 37.25 | ||
| P/OCF | 31.66 | ||
| P/B | 2.02 | ||
| P/tB | 7.25 | ||
| EV/EBITDA | 47.41 |
EPS(TTM)0.3
EY0.98%
EPS(NY)0.61
Fwd EY1.99%
FCF(TTM)0.82
FCFY2.68%
OCF(TTM)0.96
OCFY3.16%
SpS5.72
BVpS15.09
TBVpS4.21
PEG (NY)0.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 2.05% | ||
| ROCE | 1.6% | ||
| ROIC | 1.26% | ||
| ROICexc | 1.65% | ||
| ROICexgc | 18.38% | ||
| OM | 4.38% | ||
| PM (TTM) | 5.41% | ||
| GM | 67.54% | ||
| FCFM | 14.31% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 48.11% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 174.77% | ||
| Profit Quality | 264.35% | ||
| Current Ratio | 4.73 | ||
| Quick Ratio | 4.46 | ||
| Altman-Z | 11.68 |
F-Score7
WACC9.91%
ROIC/WACC0.13
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)129.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.38%
EPS Next Y102.3%
EPS Next 2Y62.2%
EPS Next 3Y52.96%
EPS Next 5Y48.44%
Revenue 1Y (TTM)23.46%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%20.81%
Revenue Next Year10.06%
Revenue Next 2Y10.54%
Revenue Next 3Y10.2%
Revenue Next 5Y8.53%
EBIT growth 1Y211.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year239.54%
EBIT Next 3Y67.14%
EBIT Next 5Y41.39%
FCF growth 1Y86.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y69.82%
OCF growth 3YN/A
OCF growth 5YN/A