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 556 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 valued too expensively and it also shows a decent growth rate.
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.
In multiple years VCYT reported negative operating cash flow during the last 5 years.
1.2 Ratios
VCYT has a Return On Assets of 2.51%. This is amongst the best in the industry. VCYT outperforms 91.35% of its industry peers.
Looking at the Return On Equity, with a value of 2.77%, VCYT belongs to the top of the industry, outperforming 92.43% of the companies in the same industry.
VCYT's Return On Invested Capital of 1.70% is amongst the best of the industry. VCYT outperforms 92.07% of its industry peers.
| 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 has a Profit Margin of 7.13%. This is amongst the best in the industry. VCYT outperforms 91.89% of its industry peers.
VCYT has a better Operating Margin (5.75%) than 92.97% of its industry peers.
Looking at the Gross Margin, with a value of 68.02%, VCYT belongs to the top of the industry, outperforming 81.26% 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 | 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
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.
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 10.96. This indicates that VCYT is financially healthy and has little risk of bankruptcy at the moment.
VCYT has a better Altman-Z score (10.96) than 87.03% 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 | 10.96 |
ROIC/WACC0.18
WACC9.63%
2.3 Liquidity
A Current Ratio of 5.10 indicates that VCYT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.10, VCYT is in line with its industry, outperforming 53.69% of the companies in the same industry.
VCYT has a Quick Ratio of 4.78. This indicates that VCYT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VCYT (4.78) 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%.
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)23.42%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%18.2%
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 47.45% on average per year.
VCYT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y72.83%
EPS Next 2Y53.72%
EPS Next 3Y43.73%
EPS Next 5Y47.45%
Revenue Next Year10.86%
Revenue Next 2Y10.26%
Revenue Next 3Y9.8%
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
A Price/Earnings ratio of 67.10 indicates a quite expensive valuation of VCYT.
Based on the Price/Earnings ratio, VCYT is valued cheaper than 91.89% 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 27.45.
A Price/Forward Earnings ratio of 38.81 indicates a quite expensive valuation of VCYT.
Based on the Price/Forward Earnings ratio, VCYT is valued cheaply inside the industry as 89.91% of the companies are valued more expensively.
VCYT is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.1 | ||
| Fwd PE | 38.81 |
4.2 Price Multiples
VCYT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VCYT is cheaper than 92.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VCYT indicates a rather cheap valuation: VCYT is cheaper than 93.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.46 | ||
| EV/EBITDA | 35.4 |
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.
VCYT's earnings are expected to grow with 43.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y53.72%
EPS Next 3Y43.73%
5. Dividend
5.1 Amount
No dividends for VCYT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.51
-0.07 (-0.25%)
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 Change5.07%
Market Cap2.15B
Analysts83.33
Price Target42.74 (55.36%)
Short Float %7.63%
Short Ratio5.78
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)-4.18%
PT rev (3m)-7.71%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-29.35%
EPS NY rev (1m)-19.06%
EPS NY rev (3m)-17.06%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.1 | ||
| Fwd PE | 38.81 | ||
| P/S | 4.65 | ||
| P/FCF | 27.46 | ||
| P/OCF | 24.09 | ||
| P/B | 1.8 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 35.4 |
EPS(TTM)0.41
EY1.49%
EPS(NY)0.71
Fwd EY2.58%
FCF(TTM)1
FCFY3.64%
OCF(TTM)1.14
OCFY4.15%
SpS5.92
BVpS15.26
TBVpS4.36
PEG (NY)0.92
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 | 10.96 |
F-Score7
WACC9.63%
ROIC/WACC0.18
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 Y72.83%
EPS Next 2Y53.72%
EPS Next 3Y43.73%
EPS Next 5Y47.45%
Revenue 1Y (TTM)23.42%
Revenue growth 3Y26.64%
Revenue growth 5Y29.93%
Sales Q2Q%18.2%
Revenue Next Year10.86%
Revenue Next 2Y10.26%
Revenue Next 3Y9.8%
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