Exact Sciences Corp (NASDAQ: EXAS)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001124140
Market Cap 19.53 Bn
P/B 8.13
P/E -93.92
P/S 6.01
ROIC (Qtr) -4.19
Div Yield % 0.00
Rev 1y % (Qtr) 23.12
Total Debt (Qtr) 2.52 Bn
Debt/Equity (Qtr) 1.05
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About

Investment thesis

Bull case

  • Healthy cash reserves of 956M provide 28.46x coverage of short-term debt 33.59M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 491.44M provides exceptional 12.49x coverage of interest expenses 39.36M, showing strong debt service capability.
  • Robust free cash flow of 356.78M exceeds capital expenditure of 134.66M by 2.65x, indicating strong organic growth funding capability.
  • Operating cash flow of 491.44M fully covers other non-current liabilities 329.32M by 1.49x, showing strong long-term stability.
  • Operating cash flow of 491.44M provides solid 0.77x coverage of current liabilities 641.15M, showing strong operational health.

Bear case

  • Investment activities of 195.12M provide weak support for R&D spending of 523M, which is 0.37x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 956M provide limited coverage of acquisition spending of (47.03M), which is -20.33x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 491.44M shows concerning coverage of stock compensation expenses of 217.67M, with a 2.26 ratio indicating potential earnings quality issues.
  • Operating earnings of (164.53M) show weak coverage of depreciation charges of 248.62M, with a -0.66 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 356.78M represents just -1.43x of debt issuance (249.17M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 195.62 Bn 145.81 18.20 35.68 Bn
2 DHR Danaher Corp /De/ 150.95 Bn 25.70 7.18 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 50.58 Bn 49.23 12.14 1.09 Bn
4 A Agilent Technologies, Inc. 35.16 Bn 26.99 5.06 3.35 Bn
5 DGX Quest Diagnostics Inc 32.69 Bn 61.34 4.50 6.38 Bn
6 NTRA Natera, Inc. 28.52 Bn -92.25 13.48 0.18 Bn
7 IQV Iqvia Holdings Inc. 28.27 Bn 20.79 1.73 15.95 Bn
8 MTD Mettler Toledo International Inc/ 27.89 Bn 32.09 6.93 2.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.63 2.51
EV to Cash from Ops. EV/CFO 43.27 23.19
EV to Debt EV to Debt 8.43 49.21
EV to EBIT EV/EBIT -129.23 13.76
EV to EBITDA EV/EBITDA 502.41 15.54
EV to Free Cash Flow [EV/FCF] EV/FCF 59.60 16.92
EV to Market Cap EV to Market Cap 1.09 1.99
EV to Revenue EV/Rev 6.55 4.86
Price to Book Value [P/B] P/B 8.13 -21.66
Price to Earnings [P/E] P/E -93.92 12.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.84
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) -4.18 -137.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.98 -37.66
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 59.10 23.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 83.25 28.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 105.24 27.21
EBIT Growth (1y) % EBIT 1y % (Qtr) 83.70 25.03
EBT Growth (1y) % EBT 1y % (Qtr) 80.32 9.12
EPS Growth (1y) % EPS 1y % (Qtr) 80.32 32.52
FCF Growth (1y) % FCF 1y % (Qtr) 378.60 61.96
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.93 185.72
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.49 1.29
Current Ratio Curr Ratio (Qtr) 2.43 2.91
Debt to Equity Ratio Debt/Equity (Qtr) 1.05 -2.51
Interest Cover Ratio Int Coverage (Qtr) -4.18 -137.21
Times Interest Earned Times Interest Earned (Qtr) -4.18 -137.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.60 -96.62
EBIT Margin % EBIT Margin % (Qtr) -5.07 -115.03
EBT Margin % EBT Margin % (Qtr) -6.28 -113.62
Gross Margin % Gross Margin % (Qtr) 69.70 44.75
Net Profit Margin % Net Margin % (Qtr) -6.40 -112.47