VERACYTE INC (VCYT) Stock Fundamental Analysis
NASDAQ:VCYT - Nasdaq - US92337F1075 - Common Stock - Currency: USD
Taking everything into account, VCYT scores 6 out of 10 in our fundamental rating. VCYT was compared to 561 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make VCYT a good candidate 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
With an excellent Return On Assets value of 1.86%, VCYT belongs to the best of the industry, outperforming 91.27% of the companies in the same industry.
VCYT's Return On Equity of 2.05% is amongst the best of the industry. VCYT outperforms 91.98% of its industry peers.
The Return On Invested Capital of VCYT (1.26%) is better than 92.16% 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 91.80% of its industry peers.
VCYT has a Operating Margin of 4.38%. This is amongst the best in the industry. VCYT outperforms 92.51% of its industry peers.
With an excellent Gross Margin value of 67.54%, VCYT belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
VCYT's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for VCYT has been increased compared to 1 year ago.
Compared to 5 years ago, VCYT has more shares outstanding
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 11.10. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
VCYT's Altman-Z score of 11.10 is amongst the best of the industry. VCYT outperforms 87.88% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.1 |
ROIC/WACC0.12
WACC10.1%
2.3 Liquidity
A Current Ratio of 4.73 indicates that VCYT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.73, VCYT is in line with its industry, outperforming 52.58% of the companies in the same industry.
A Quick Ratio of 4.46 indicates that VCYT has no problem at all paying its short term obligations.
The Quick ratio of VCYT (4.46) 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 143.62% over the past year.
The Revenue has grown by 23.46% in the past year. This is a very strong growth!
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)143.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
Revenue 1Y (TTM)23.46%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%18.2%
3.2 Future
VCYT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.44% yearly.
The Revenue is expected to grow by 8.53% on average over the next years. This is quite good.
EPS Next Y113.52%
EPS Next 2Y62.22%
EPS Next 3Y72.13%
EPS Next 5Y48.44%
Revenue Next Year10.82%
Revenue Next 2Y10.43%
Revenue Next 3Y10.18%
Revenue Next 5Y8.53%
3.3 Evolution
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
The Price/Earnings ratio is 67.34, which means the current valuation is very expensive for VCYT.
Compared to the rest of the industry, the Price/Earnings ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 91.44% of the companies listed in the same industry.
VCYT is valuated expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.97, the valuation of VCYT can be described as expensive.
Based on the Price/Forward Earnings ratio, VCYT is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VCYT to the average of the S&P500 Index (21.94), we can say VCYT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.34 | ||
| Fwd PE | 34.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 92.34% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VCYT is valued cheaper than 94.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.88 | ||
| EV/EBITDA | 44.6 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as VCYT's earnings are expected to grow with 72.13% in the coming years.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y62.22%
EPS Next 3Y72.13%
5. Dividend
5.1 Amount
VCYT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.61
-1.2 (-4.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.95%
Inst Owner Change7.03%
Ins Owners0.58%
Ins Owner Change2.47%
Market Cap2.16B
Analysts82.11
Price Target44.6 (61.54%)
Short Float %7.15%
Short Ratio5.32
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)-3.61%
PT rev (3m)-1.74%
EPS NQ rev (1m)5.13%
EPS NQ rev (3m)-43.06%
EPS NY rev (1m)5.55%
EPS NY rev (3m)16.57%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.34 | ||
| Fwd PE | 34.97 | ||
| P/S | 4.85 | ||
| P/FCF | 33.88 | ||
| P/OCF | 28.79 | ||
| P/B | 1.84 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 44.6 |
EPS(TTM)0.41
EY1.48%
EPS(NY)0.79
Fwd EY2.86%
FCF(TTM)0.81
FCFY2.95%
OCF(TTM)0.96
OCFY3.47%
SpS5.69
BVpS15.02
TBVpS4.19
PEG (NY)0.59
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 | 11.1 |
F-Score7
WACC10.1%
ROIC/WACC0.12
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)143.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
EPS Next Y113.52%
EPS Next 2Y62.22%
EPS Next 3Y72.13%
EPS Next 5Y48.44%
Revenue 1Y (TTM)23.46%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%18.2%
Revenue Next Year10.82%
Revenue Next 2Y10.43%
Revenue Next 3Y10.18%
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