Guardant Health, Inc. (NASDAQ: GH)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001576280
P/B -35.77
P/E -31.80
P/S 14.05
Market Cap 12.68 Bn
ROIC (Qtr) -45.49
Div Yield % 0.00
Rev 1y % (Qtr) 38.50
Total Debt (Qtr) 1.30 Bn
Debt/Equity (Qtr) -3.67

About

Guardant Health, Inc., often referred to as Guardant Health, is a company that operates in the precision oncology industry. Its primary focus is on the development and commercialization of innovative liquid biopsy tests that are designed to improve cancer diagnosis, treatment, and management. The company's stock symbol is GH. Guardant Health's main business activities involve the provision of liquid biopsy tests that enable the detection of cancer biomarkers in blood or other bodily fluids. The company operates in the precision oncology industry,...

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Stock Price Chart

Analysis

Pros

  • Tangible assets of 1.27B provide exceptional 27.06x coverage of deferred revenue 46.86M, showing strong service capability backing.
  • Tangible assets of 1.27B provide robust 5.85x coverage of other current liabilities 216.78M, indicating strong asset backing.
  • Strong cash position of 689.51M provides 3.18x coverage of other current liabilities 216.78M, indicating excellent liquidity.
  • Cash reserves of 689.51M provide robust 2.91x coverage of current liabilities 236.92M, indicating strong short-term solvency.
  • R&D investment of 359.47M represents healthy 7.67x of deferred revenue 46.86M, indicating strong future innovation pipeline.

Cons

  • Operating cash flow of (222.90M) barely covers its investment activities of 288.39M, with a coverage ratio of -0.77, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 288.39M provide weak support for R&D spending of 359.47M, which is 0.80x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (222.90M) provides insufficient coverage of deferred revenue obligations of 46.86M, which is -4.76x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (222.90M) shows concerning coverage of stock compensation expenses of 159.39M, with a -1.40 ratio indicating potential earnings quality issues.
  • Free cash flow of (262.23M) provides weak coverage of capital expenditures of 39.33M, with a -6.67 ratio suggesting additional external financing needs for growth initiatives.

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. 216.83 Bn 33.00 4.96 35.68 Bn
2 DHR Danaher Corp /De/ 162.47 Bn 46.38 6.69 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 56.88 Bn 55.36 13.65 1.09 Bn
4 A Agilent Technologies, Inc. 39.82 Bn 32.64 5.87 3.41 Bn
5 IQV Iqvia Holdings Inc. 38.85 Bn 30.28 2.44 15.19 Bn
6 NTRA Natera, Inc. 31.32 Bn -101.29 14.80 0.18 Bn
7 MTD Mettler Toledo International Inc/ 28.99 Bn 34.68 7.35 2.21 Bn
8 WAT Waters Corp /De/ 22.92 Bn 35.32 7.38 1.49 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 10.38 2.69
EV to Cash from Ops. -59.46 18.14
EV to Debt 10.19 52.51
EV to EBIT -33.62 19.22
EV to EBITDA -32.95 4.35
EV to Free Cash Flow [EV/FCF] -50.54 2.84
EV to Market Cap 1.05 1.52
EV to Revenue 14.68 4.79
Price to Book Value [P/B] -35.77 1.34
Price to Earnings [P/E] -31.80 22.02

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -1.96
Dividend Payout Ratio % 0.00 2.83
Dividend per Basic Share 0.00 0.19
FCF Dividend Payout Ratio % 0.00 1.92
Interest Coverage -117.27 -126.58

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -93.88 -31.50
Cash and Equivalents Growth (1y) % 0.17 21.37
Dividend Growth (1y) % 0.00 0.24
EBIAT Growth (1y) % 22.44 -55.24
EBITDA Growth (1y) % 14.83 -447.96
EBIT Growth (1y) % 22.67 -40.50
EBT Growth (1y) % 22.40 -70.94
EPS Growth (1y) % 25.00 -70.02
FCF Growth (1y) % 4.42 56.33
Gross Profit Growth (1y) % 37.82 185.11

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.71 0.56
Cash Payout Ratio 0.00 0.01
Cash Ratio 2.91 1.21
Current Ratio 3.50 2.64
Debt to Equity Ratio -3.67 -0.80
Interest Cover Ratio -117.27 -126.58
Times Interest Earned -117.27 -126.58

Profitability

Metric Value Industry Percentile
EBITDA Margin % -39.20 -129.91
EBIT Margin % -43.68 -156.71
EBT Margin % -44.05 -162.23
Gross Margin % 63.80 47.70
Net Profit Margin % -44.20 -189.30