GRAIL, Inc. (NASDAQ: GRAL)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001699031
P/B 1.54
P/E -8.51
P/S 24.38
Market Cap 3.46 Bn
ROIC (Qtr) -18.43
Div Yield % 0.00
Rev 1y % (Qtr) 26.32
Total Debt (Qtr) 58.59 Mn
Debt/Equity (Qtr) 0.03

About

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 133.87M provide 9.55x coverage of short-term debt 14.02M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 715.89M provides 12.22x coverage of total debt 58.59M, indicating robust asset backing and low credit risk.
  • Short-term investments of 413.24M provide solid 6.89x coverage of other current liabilities 60M, indicating strong liquidity.
  • Cash reserves of 133.87M provide robust 1.73x coverage of current liabilities 77.43M, indicating strong short-term solvency.
  • Tangible assets of 715.89M provide robust 11.93x coverage of other current liabilities 60M, indicating strong asset backing.

Cons

  • Operating cash flow of (328.71M) barely covers its investment activities of (394.45M), with a coverage ratio of 0.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (394.45M) provide weak support for R&D spending of 197.23M, which is -2x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 413.24M significantly exceed cash reserves of 133.87M, which is 3.09x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (328.71M) shows concerning coverage of stock compensation expenses of 58.10M, with a -5.66 ratio indicating potential earnings quality issues.
  • Free cash flow of (329.83M) provides weak coverage of capital expenditures of 1.12M, with a -295.02 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 1.30 2.69
EV to Cash from Ops. -10.31 18.14
EV to Debt 57.85 52.51
EV to EBIT -6.22 19.22
EV to EBITDA -8.11 4.35
EV to Free Cash Flow [EV/FCF] -10.28 2.84
EV to Market Cap 0.98 1.52
EV to Revenue 23.90 4.79
Price to Book Value [P/B] 1.54 1.34
Price to Earnings [P/E] -8.51 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 0.00 -126.58

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 87.30 -31.50
Cash and Equivalents Growth (1y) % -84.39 21.37
Dividend Growth (1y) % 0.00 0.24
EBIAT Growth (1y) % 80.81 -55.24
EBITDA Growth (1y) % 79.99 -447.96
EBIT Growth (1y) % 75.54 -40.50
EBT Growth (1y) % 75.54 -70.94
EPS Growth (1y) % 84.33 -70.02
FCF Growth (1y) % 46.92 56.33
Gross Profit Growth (1y) % 16.48 185.11

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.05 0.56
Cash Payout Ratio 0.00 0.01
Cash Ratio 1.73 1.21
Current Ratio 7.61 2.64
Debt to Equity Ratio 0.03 -0.80
Interest Cover Ratio 0.00 -126.58
Times Interest Earned 0.00 -126.58

Profitability

Metric Value Industry Percentile
EBITDA Margin % -273.60 -129.91
EBIT Margin % -384.26 -156.71
EBT Margin % -384.26 -162.23
Gross Margin % -47.50 47.70
Net Profit Margin % -286.40 -189.30