We assign a fundamental rating of 6 out of 10 to VCYT. VCYT was compared to 525 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make VCYT suitable for growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VCYT was profitable.
VCYT had a positive operating cash flow in the past year.
VCYT had negative earnings in 4 of the past 5 years.
In multiple years VCYT reported negative operating cash flow during the last 5 years.

1.2 Ratios

With an excellent Return On Assets value of 2.22%, VCYT belongs to the best of the industry, outperforming 89.33% of the companies in the same industry.
The Return On Equity of VCYT (2.41%) is better than 90.29% of its industry peers.
VCYT's Return On Invested Capital of 2.93% is amongst the best of the industry. VCYT outperforms 90.10% of its industry peers.

		Industry Rank	Sector Rank
ROA	2.22%
ROE	2.41%
ROIC	2.93%

ROA(3y)-2.66%

ROA(5y)-4.4%

ROE(3y)-2.83%

ROE(5y)-4.73%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 6.12%, VCYT belongs to the top of the industry, outperforming 90.10% of the companies in the same industry.
VCYT has a Operating Margin of 9.70%. This is amongst the best in the industry. VCYT outperforms 91.62% of its industry peers.
The Gross Margin of VCYT (68.53%) is better than 81.14% 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	9.7%
PM (TTM)	6.12%
GM	68.53%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

VCYT has an Altman-Z score of 17.07. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VCYT (17.07) is better than 87.62% of its industry peers.
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	17.07

ROIC/WACC0.33

WACC8.9%

2.3 Liquidity

VCYT has a Current Ratio of 6.23. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.
VCYT has a Current ratio of 6.23. This is in the better half of the industry: VCYT outperforms 63.81% of its industry peers.
A Quick Ratio of 5.94 indicates that VCYT has no problem at all paying its short term obligations.
VCYT's Quick ratio of 5.94 is fine compared to the rest of the industry. VCYT outperforms 63.24% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.23
Quick Ratio	5.94

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 353.33% over the past year.
VCYT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.41%.
The Revenue has been growing by 29.93% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)353.33%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%26.32%

Revenue 1Y (TTM)16.41%

Revenue growth 3Y26.64%

Revenue growth 5Y29.93%

Sales Q2Q%13.82%

3.2 Future

VCYT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.21% yearly.
The Revenue is expected to grow by 11.52% on average over the next years. This is quite good.

EPS Next Y79.07%

EPS Next 2Y88.85%

EPS Next 3Y64.96%

EPS Next 5Y51.21%

Revenue Next Year14.79%

Revenue Next 2Y13.07%

Revenue Next 3Y12.72%

Revenue Next 5Y11.52%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 100.21, the valuation of VCYT can be described as expensive.
VCYT's Price/Earnings ratio is rather cheap when compared to the industry. VCYT is cheaper than 89.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.30, VCYT is valued quite expensively.
VCYT is valuated quite expensively with a Price/Forward Earnings ratio of 35.59.
Based on the Price/Forward Earnings ratio, VCYT is valued cheaper than 91.43% of the companies in the same industry.
VCYT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	100.21
Fwd PE	35.59

4.2 Price Multiples

91.81% of the companies in the same industry are more expensive than VCYT, based on the Enterprise Value to EBITDA ratio.
VCYT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VCYT is cheaper than 94.10% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	30.72
EV/EBITDA	37.72

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 64.96% in the coming years.