Veracyte, Inc.
Veracyte, Inc. Fundamental Analysis
Veracyte, Inc. (VCYT) shows weak financial fundamentals with a PE ratio of 91.99, profit margin of 6.12%, and ROE of 2.50%. The company generates $0.5B in annual revenue with strong year-over-year growth of 23.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VCYT's fundamental strength across five key dimensions:
Efficiency Score
WeakVCYT struggles to generate sufficient returns from assets.
Valuation Score
WeakVCYT trades at a premium to fair value.
Growth Score
ModerateVCYT shows steady but slowing expansion.
Financial Health Score
ExcellentVCYT maintains a strong and stable balance sheet.
Profitability Score
ModerateVCYT maintains healthy but balanced margins.
Key Financial Metrics
Is VCYT Expensive or Cheap?
P/E Ratio
VCYT trades at 91.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VCYT's PEG of 8.05 indicates potential overvaluation.
Price to Book
The market values Veracyte, Inc. at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 65.27 times EBITDA. This signals the market has high growth expectations.
How Well Does VCYT Make Money?
Net Profit Margin
For every $100 in sales, Veracyte, Inc. keeps $6.12 as profit after all expenses.
Operating Margin
Core operations generate 5.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.50 in profit for every $100 of shareholder equity.
ROA
Veracyte, Inc. generates $2.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veracyte, Inc. produces operating cash flow of $108.69M, showing steady but balanced cash generation.
Free Cash Flow
Veracyte, Inc. generates strong free cash flow of $98.61M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.25 in free cash annually.
FCF Yield
VCYT converts 3.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
91.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How VCYT Stacks Against Its Sector Peers
| Metric | VCYT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 91.99 | 29.28 | Worse (Expensive) |
| ROE | 2.50% | 820.00% | Weak |
| Net Margin | 6.12% | -19731.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 6.23 | 4.69 | Strong Liquidity |
| ROA | 2.22% | -17993.00% (disorted) | Weak |
VCYT outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veracyte, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
123.40%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
188.35%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1501.62%
Industry Style: Defensive, Growth, Innovation
High Growth