GeneDx Holdings Corp. (WGS) Stock Analysis and Metrics

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001818331

P/B 9.82

P/E 1,377.36

P/S 7.13

Market Cap 2.87 Bn

ROIC (Qtr) 2.58

Div Yield % 0.00

Rev 1y % (Qtr) 51.86

Total Debt (Qtr) 113.16 Mn

Debt/Equity (Qtr) 0.39

About

GeneDx Holdings Corp., known by its stock symbol WGS, operates in the diagnostics and data science industry, combining decades of genomic expertise with the ability to interpret clinical data at scale. The company was established in 2000 by scientists from the National Institutes of Health with a mission to make genetic testing accessible for patients with rare diseases. Today, GeneDx is recognized as a leader in genomics, with a proven track record of expertise in genetic testing. GeneDx's primary business activities revolve around genetic testing,...

GeneDx Holdings Corp., known by its stock symbol WGS, operates in the diagnostics and data science industry, combining decades of genomic expertise with the ability to interpret clinical data at scale. The company was established in 2000 by scientists from the National Institutes of Health with a mission to make genetic testing accessible for patients with rare diseases. Today, GeneDx is recognized as a leader in genomics, with a proven track record of expertise in genetic testing.

GeneDx's primary business activities revolve around genetic testing, with a focus on diagnosing and treating various genetic disorders. The company operates in several segments, each with its unique characteristics and competitive advantages. The Exome and Whole Genome Sequencing segment is the company's largest and most profitable, accounting for the majority of its revenue. This segment includes the company's exome and whole genome sequencing tests, which are used to identify genetic variants associated with rare and inherited diseases.

The Exome and Whole Genome Sequencing segment is highly competitive, with several other companies offering similar tests. However, GeneDx believes that its expertise in genetic testing and its proprietary bioinformatics and variant interpretation pipelines give it a competitive advantage in this segment. The Whole Genome Sequencing segment is also competitive, with several other companies offering whole genome sequencing tests. Yet, GeneDx believes that its expertise and proprietary pipelines give it an edge in this segment. The GeneDx segment is less competitive, with fewer companies offering similar tests, but GeneDx's expertise and proprietary pipelines still provide a competitive advantage.

GeneDx generates revenue primarily through the sale of its exome and whole genome sequencing tests to healthcare providers, research institutions, and pharmaceutical companies. These customers are located in the United States and internationally, and GeneDx generates revenue from the sale of its tests to these entities.

In terms of its position within the industry, GeneDx is a leader in genomics, with a proven track record of expertise in genetic testing. The company's expertise in genetic testing and its proprietary bioinformatics and variant interpretation pipelines give it a competitive advantage in the industry.

The company's competitive advantages include its expertise in genetic testing, its proprietary bioinformatics and variant interpretation pipelines, and its ability to provide rapid and accurate results. These advantages enable GeneDx to provide a comprehensive view of a patient's genetic profile, including the identification of genetic variants associated with rare and inherited diseases.

GeneDx's brand names and/or trade names of its products and services include its exome and whole genome sequencing tests, which are used to diagnose and treat various genetic disorders. These tests are a crucial part of the company's offerings, enabling it to fulfill its mission of making genetic testing accessible for patients with rare diseases.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 95.97M provide 21.67x coverage of short-term debt 4.43M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 308.52M provides 2.73x coverage of total debt 113.16M, indicating robust asset backing and low credit risk.
Operating cash flow of 33.19M provides exceptional 12.21x coverage of interest expenses 2.72M, showing strong debt service capability.
Short-term investments of 59.11M provide solid 1.80x coverage of other current liabilities 32.86M, indicating strong liquidity.
Tangible assets of 308.52M provide robust 9.39x coverage of other current liabilities 32.86M, indicating strong asset backing.

Cons

Operating cash flow of 33.19M barely covers its investment activities of (50.96M), with a coverage ratio of -0.65, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (50.96M) provide weak support for R&D spending of 59.07M, which is -0.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 95.97M provide limited coverage of acquisition spending of (33.20M), which is -2.89x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
High receivables of 60.94M relative to inventory of 10.57M (5.77 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
The company's operating cash flow of 33.19M shows concerning coverage of stock compensation expenses of 25.23M, with a 1.32 ratio indicating potential earnings quality issues.

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
EV to Assets	5.89	2.69
EV to Cash from Ops.	87.67	18.14
EV to Debt	25.71	52.51
EV to EBIT	556.91	19.22
EV to EBITDA	85.91	4.35
EV to Free Cash Flow [EV/FCF]	188.11	2.84
EV to Market Cap	1.01	1.52
EV to Revenue	7.23	4.79
Price to Book Value [P/B]	9.82	1.34
Price to Earnings [P/E]	1,377.36	22.02

Dividend Metrics

Metric	Value	Industry
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	1.92	-126.58

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-267.86	-31.50
Cash and Equivalents Growth (1y) %	65.77	21.37
Dividend Growth (1y) %	0.00	0.24
EBIAT Growth (1y) %	105.41	-55.24
EBITDA Growth (1y) %	196.28	-447.96
EBIT Growth (1y) %	106.46	-40.50
EBT Growth (1y) %	102.98	-70.94
EPS Growth (1y) %	103.54	-70.02
FCF Growth (1y) %	125.78	56.33
Gross Profit Growth (1y) %	76.23	185.11

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.81	0.56
Cash Payout Ratio	0.00	0.01
Cash Ratio	1.10	1.21
Current Ratio	2.71	2.64
Debt to Equity Ratio	0.39	-0.80
Interest Cover Ratio	1.92	-126.58
Times Interest Earned	1.92	-126.58

Profitability

Metric	Value	Industry
EBITDA Margin %	7.20	-129.91
EBIT Margin %	1.30	-156.71
EBT Margin %	0.62	-162.23
Gross Margin %	69.60	47.70
Net Profit Margin %	0.50	-189.30

GeneDx Holdings Corp. (NASDAQ: WGS)