VERACYTE INC (VCYT) Stock Fundamental Analysis
NASDAQ:VCYT - Nasdaq - US92337F1075 - Common Stock - Currency: USD
VCYT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 557 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 valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VCYT had positive earnings in the past year.
In the past year VCYT had a positive cash flow from operations.
In the past 5 years VCYT reported 4 times negative net income.
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
Looking at the Return On Assets, with a value of 2.51%, VCYT belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
VCYT has a better Return On Equity (2.77%) than 92.46% of its industry peers.
With an excellent Return On Invested Capital value of 1.70%, VCYT belongs to the best of the industry, outperforming 92.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 2.77% | ||
| ROIC | 1.7% |
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's Profit Margin of 7.13% is amongst the best of the industry. VCYT outperforms 91.92% of its industry peers.
VCYT has a better Operating Margin (5.75%) than 93.00% of its industry peers.
The Gross Margin of VCYT (68.02%) is better than 81.51% of its industry peers.
VCYT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.75% | ||
| PM (TTM) | 7.13% | ||
| GM | 68.02% |
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.
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 10.55. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
VCYT has a better Altman-Z score (10.55) than 87.79% 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 | 10.55 |
ROIC/WACC0.19
WACC9.05%
2.3 Liquidity
A Current Ratio of 5.10 indicates that VCYT has no problem at all paying its short term obligations.
VCYT's Current ratio of 5.10 is in line compared to the rest of the industry. VCYT outperforms 53.50% of its industry peers.
A Quick Ratio of 4.78 indicates that VCYT has no problem at all paying its short term obligations.
VCYT has a Quick ratio (4.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.1 | ||
| Quick Ratio | 4.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 143.62% over the past year.
Looking at the last year, VCYT shows a very strong growth in Revenue. The Revenue has grown by 23.42%.
VCYT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.93% yearly.
EPS 1Y (TTM)143.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
Revenue 1Y (TTM)23.42%
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 47.45% yearly.
VCYT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y113.52%
EPS Next 2Y62.22%
EPS Next 3Y72.13%
EPS Next 5Y47.45%
Revenue Next Year10.8%
Revenue Next 2Y10.32%
Revenue Next 3Y9.96%
Revenue Next 5Y6.28%
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 64.98, which means the current valuation is very expensive for VCYT.
91.92% of the companies in the same industry are more expensive than VCYT, based on the Price/Earnings ratio.
VCYT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.57.
VCYT is valuated quite expensively with a Price/Forward Earnings ratio of 33.74.
Based on the Price/Forward Earnings ratio, VCYT is valued cheaply inside the industry as 90.13% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.41. VCYT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.98 | ||
| Fwd PE | 33.74 |
4.2 Price Multiples
VCYT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VCYT is cheaper than 92.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VCYT is valued cheaper than 93.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.59 | ||
| EV/EBITDA | 33.72 |
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 72.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
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 |
26.64
+0.2 (+0.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.22%
Inst Owner Change7.07%
Ins Owners0.51%
Ins Owner Change3.56%
Market Cap2.09B
Analysts82.11
Price Target42.28 (58.71%)
Short Float %6.69%
Short Ratio4.97
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)11.82%
Min EPS beat(2)-48.53%
Max EPS beat(2)72.17%
EPS beat(4)3
Avg EPS beat(4)281.26%
Min EPS beat(4)-48.53%
Max EPS beat(4)579.09%
EPS beat(8)5
Avg EPS beat(8)93.98%
EPS beat(12)9
Avg EPS beat(12)77.77%
EPS beat(16)12
Avg EPS beat(16)61.88%
Revenue beat(2)1
Avg Revenue beat(2)0.31%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)1.01%
Revenue beat(4)3
Avg Revenue beat(4)3.98%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)11.88%
Revenue beat(8)7
Avg Revenue beat(8)4.2%
Revenue beat(12)11
Avg Revenue beat(12)5.14%
Revenue beat(16)15
Avg Revenue beat(16)6.03%
PT rev (1m)-5.2%
PT rev (3m)-10.47%
EPS NQ rev (1m)-31.65%
EPS NQ rev (3m)-29.35%
EPS NY rev (1m)0%
EPS NY rev (3m)16.57%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.98 | ||
| Fwd PE | 33.74 | ||
| P/S | 4.5 | ||
| P/FCF | 26.59 | ||
| P/OCF | 23.33 | ||
| P/B | 1.75 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 33.72 |
EPS(TTM)0.41
EY1.54%
EPS(NY)0.79
Fwd EY2.96%
FCF(TTM)1
FCFY3.76%
OCF(TTM)1.14
OCFY4.29%
SpS5.92
BVpS15.26
TBVpS4.36
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 2.77% | ||
| ROCE | 2.15% | ||
| ROIC | 1.7% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 21.14% | ||
| OM | 5.75% | ||
| PM (TTM) | 7.13% | ||
| GM | 68.02% | ||
| FCFM | 16.93% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.23% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 179.31% | ||
| Profit Quality | 237.38% | ||
| Current Ratio | 5.1 | ||
| Quick Ratio | 4.78 | ||
| Altman-Z | 10.55 |
F-Score7
WACC9.05%
ROIC/WACC0.19
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 5Y47.45%
Revenue 1Y (TTM)23.42%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%18.2%
Revenue Next Year10.8%
Revenue Next 2Y10.32%
Revenue Next 3Y9.96%
Revenue Next 5Y6.28%
EBIT growth 1Y311.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year250.71%
EBIT Next 3Y66.1%
EBIT Next 5Y36.78%
FCF growth 1Y997.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y527.98%
OCF growth 3YN/A
OCF growth 5YN/A