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 568 industry peers in the Biotechnology industry. VCYT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. VCYT is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make VCYT a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year VCYT was profitable.
VCYT had a positive operating cash flow in the past year.
In the past 5 years VCYT reported 4 times negative net income.
In multiple years VCYT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of VCYT (1.86%) is better than 91.90% of its industry peers.
With an excellent Return On Equity value of 2.05%, VCYT belongs to the best of the industry, outperforming 92.25% of the companies in the same industry.
With an excellent Return On Invested Capital value of 1.26%, VCYT belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
| 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
VCYT has a better Profit Margin (5.41%) than 92.61% of its industry peers.
VCYT has a better Operating Margin (4.38%) than 92.96% of its industry peers.
VCYT has a better Gross Margin (67.54%) than 80.28% of its industry peers.
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.
The number of shares outstanding for VCYT has been increased compared to 5 years ago.
VCYT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 12.05 indicates that VCYT is not in any danger for bankruptcy at the moment.
The Altman-Z score of VCYT (12.05) is better than 90.32% 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 | 12.05 |
ROIC/WACC0.12
WACC10.3%
2.3 Liquidity
A Current Ratio of 4.73 indicates that VCYT has no problem at all paying its short term obligations.
The Current ratio of VCYT (4.73) is comparable to the rest of the industry.
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's Quick ratio of 4.46 is in line compared to the rest of the industry. VCYT outperforms 52.11% of its industry peers.
| 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.
Looking at the last year, VCYT shows a very strong growth in Revenue. The Revenue has grown by 23.46%.
VCYT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.93% yearly.
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
Based on estimates for the next years, VCYT will show a very strong growth in Earnings Per Share. The EPS will grow by 48.44% on average per year.
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 Year10.14%
Revenue Next 2Y10.61%
Revenue Next 3Y10.28%
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 104.88, which means the current valuation is very expensive for VCYT.
Based on the Price/Earnings ratio, VCYT is valued cheaper than 92.25% of the companies in the same industry.
VCYT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.64.
Based on the Price/Forward Earnings ratio of 51.85, the valuation of VCYT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 91.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, VCYT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.88 | ||
| Fwd PE | 51.85 |
4.2 Price Multiples
92.96% 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 94.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.43 | ||
| EV/EBITDA | 49.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VCYT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VCYT's earnings are expected to grow with 52.96% in the coming years.
PEG (NY)1.03
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 |
31.465
+0.34 (+1.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners103.95%
Inst Owner Change0.54%
Ins Owners0.58%
Ins Owner Change2.13%
Market Cap2.45B
Analysts82.11
Price Target46.27 (47.05%)
Short Float %4.39%
Short Ratio3.64
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)-2.02%
PT rev (3m)1.94%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-44.06%
EPS NY rev (1m)10.44%
EPS NY rev (3m)12.8%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.88 | ||
| Fwd PE | 51.85 | ||
| P/S | 5.5 | ||
| P/FCF | 38.43 | ||
| P/OCF | 32.66 | ||
| P/B | 2.09 | ||
| P/tB | 7.48 | ||
| EV/EBITDA | 49.17 |
EPS(TTM)0.3
EY0.95%
EPS(NY)0.61
Fwd EY1.93%
FCF(TTM)0.82
FCFY2.6%
OCF(TTM)0.96
OCFY3.06%
SpS5.72
BVpS15.09
TBVpS4.21
PEG (NY)1.03
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 | 12.05 |
F-Score7
WACC10.3%
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)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 Year10.14%
Revenue Next 2Y10.61%
Revenue Next 3Y10.28%
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