Exact Sciences Corp (NASDAQ: EXAS)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001124140
Market Cap 18.83 Bn
P/B 7.53
P/E -19.09
P/S 6.11
ROIC (Qtr) -22.04
Div Yield % 0.00
Rev 1y % (Qtr) 20.05
Total Debt (Qtr) 2.52 Bn
Debt/Equity (Qtr) 1.01

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 789.04M provide 24.77x coverage of short-term debt 31.85M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 247.08M exceeds capital expenditure of 139.73M by 1.77x, indicating strong organic growth funding capability.
  • Cash reserves of 789.04M provide ample 28.21x coverage of acquisition spending 27.97M, enabling strategic growth opportunities.
  • Operating cash flow of 386.81M fully covers other non-current liabilities 324.81M by 1.19x, showing strong long-term stability.
  • Operating cash flow of 386.81M provides solid 0.66x coverage of current liabilities 584.26M, showing strong operational health.

Bear case

  • Investment activities of 62.13M provide weak support for R&D spending of 431.12M, which is 0.14x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 386.81M shows concerning coverage of stock compensation expenses of 211.23M, with a 1.83 ratio indicating potential earnings quality issues.
  • Operating earnings of (955.59M) show weak coverage of depreciation charges of 244.90M, with a -3.90 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 386.81M provides minimal -47.22x coverage of tax expenses of (8.19M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 247.08M represents just -0.99x of debt issuance (249.17M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

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. 234.48 Bn 35.69 5.36 35.68 Bn
2 DHR Danaher Corp /De/ 171.11 Bn 48.85 7.05 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.62 Bn 56.08 13.83 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.37 Bn 33.03 2.66 15.19 Bn
5 A Agilent Technologies, Inc. 42.16 Bn 32.36 6.07 3.35 Bn
6 NTRA Natera, Inc. 31.64 Bn -102.32 14.95 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.89 Bn 36.96 7.84 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.37 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.51 2.82
EV to Cash from Ops. EV/CFO 53.50 19.55
EV to Debt EV to Debt 8.21 54.87
EV to EBIT EV/EBIT -21.66 18.82
EV to EBITDA EV/EBITDA -27.40 4.36
EV to Free Cash Flow [EV/FCF] EV/FCF 83.75 17.63
EV to Market Cap EV to Market Cap 1.10 1.58
EV to Revenue EV/Rev 6.71 5.06
Price to Book Value [P/B] P/B 7.53 1.35
Price to Earnings [P/E] P/E -19.09 18.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.00
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) -24.39 -128.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3.81 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 34.00 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -403.26 9.72
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -22,921.15 -444.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -415.79 8.29
EBT Growth (1y) % EBT 1y % (Qtr) -372.42 -6.03
EPS Growth (1y) % EPS 1y % (Qtr) -357.26 15.59
FCF Growth (1y) % FCF 1y % (Qtr) 151.03 56.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.21 185.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.35 1.23
Current Ratio Curr Ratio (Qtr) 2.72 2.70
Debt to Equity Ratio Debt/Equity (Qtr) 1.01 -0.84
Interest Cover Ratio Int Coverage (Qtr) -24.39 -128.90
Times Interest Earned Times Interest Earned (Qtr) -24.39 -128.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -23.10 -97.22
EBIT Margin % EBIT Margin % (Qtr) -31.01 -115.64
EBT Margin % EBT Margin % (Qtr) -32.28 -114.24
Gross Margin % Gross Margin % (Qtr) 67.40 44.76
Net Profit Margin % Net Margin % (Qtr) -32.00 -113.12