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GeneDx Holdings (WGS)
NASDAQ:WGS
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GeneDx Holdings
(NASDAQ:WGS)
60Neutral
Positive Factors
Financial Performance
GeneDx delivered on its goal of GAAP profitability, ahead of expectations, with an adjusted net income of $17M in the fourth quarter.
Market Growth Potential
With only about 5% of the total addressable market penetrated, earnings and free cash flow are inflecting, suggesting more growth potential.
Negative Factors
Reputation Challenges
A short report alleges wholesale reimbursement fraud at GeneDx, which led to a decrease in the company's shares.
GeneDx Holdings (WGS) vs. S&P 500 (SPY)
Market Cap
$2.45B
Dividend YieldN/A
Average Volume (3M)1.30M
Price to Earnings (P/E)38.8
Beta (1Y)1.55
Revenue Growth50.79%
EPS Growth73.57%
CountryUS
Employees1,000
SectorHealthcare
Sector Strength78
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)-1.99
Shares Outstanding28,068,274
10 Day Avg. Volume861,183
30 Day Avg. Volume1,295,170
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.01
Price to Cash Flow (P/CF)-192.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$113.00Price Target Upside22.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
GeneDx Holdings Business Overview & Revenue Model
Company DescriptionCM Life Sciences Inc is a blank check company.
How the Company Makes MoneyGeneDx Holdings primarily generates revenue through the provision of genomic testing services. The company charges healthcare providers, hospitals, and research institutions for conducting genetic tests. These tests include whole exome and genome sequencing, as well as targeted panels for specific genetic disorders. Additionally, GeneDx may partner with pharmaceutical companies for research and development projects, contributing another revenue stream. The company may also receive payments from healthcare insurance providers who cover the cost of genetic testing for their members. Furthermore, GeneDx's extensive database of genetic information can be monetized through collaborations with researchers and institutions seeking access to valuable genetic insights.
GeneDx Holdings Financial Statement Overview
Summary
GeneDx Holdings shows significant revenue growth and improved gross profit margins. However, persistent operating losses and negative cash flows highlight ongoing operational challenges. Balance sheet strength is moderate with a manageable debt profile.Income Statement
GeneDx Holdings has shown a significant improvement in revenue from $202.57M to $305.45M, a growth rate of approximately 50.85%. Despite revenue growth, the company continues to operate at a loss, with a net loss of $52.29M. Margins remain negative, indicating challenges in cost management. The gross profit margin improved to 63.64%, suggesting better resource utilization. However, both EBIT and EBITDA margins are negative, reflecting ongoing operational inefficiencies.55
Neutral
Balance Sheet
The company has a moderate debt-to-equity ratio of 0.26, showing manageable leverage. Stockholders' equity increased to $245.25M, which strengthens the equity position. The equity ratio stands at 58.47%, indicating a solid proportion of equity financing. However, total assets have decreased, suggesting a contraction in the asset base.60
Neutral
Cash Flow
Operating cash flow remains negative at -$28.50M, indicating cash outflows from core operations. Free cash flow is also negative at -$33.99M, though it shows improvement from the previous year's -$185.86M. The free cash flow to net income ratio is less favorable due to continuous net losses, posing challenges in liquidity management.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 305.45M | 202.57M | 234.69M | 212.19M | 179.32M | Gross Profit |
| 194.40M | 60.62M | -26.75M | -16.60M | 4.03M | EBIT |
| -23.21M | -163.66M | -667.65M | -446.15M | -241.99M | EBITDA |
| -23.21M | -136.46M | -398.20M | -219.19M | -224.73M | Net Income Common Stockholders |
| -52.29M | -175.77M | -548.98M | -245.39M | -246.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 141.19M | 130.15M | 123.93M | 400.57M | 108.13M | Total Assets |
| 419.38M | 473.67M | 490.94M | 554.09M | 251.64M | Total Debt |
| 64.25M | 119.77M | 72.38M | 32.85M | 45.02M | Net Debt |
| -20.96M | 20.09M | -51.55M | -367.72M | -63.11M | Total Liabilities |
| 174.13M | 245.66M | 237.24M | 165.99M | 581.69M | Stockholders Equity |
| 245.25M | 228.02M | 253.71M | 388.10M | -330.05M |
| Cash Flow | Free Cash Flow | |||
| -33.99M | -185.86M | -333.48M | -211.22M | -125.10M | Operating Cash Flow |
| -28.50M | -180.15M | -319.15M | -190.43M | -93.13M | Investing Cash Flow |
| -30.13M | -43.73M | -141.33M | -20.79M | -31.97M | Financing Cash Flow |
| 44.16M | 186.24M | 197.31M | 493.73M | 129.06M |
GeneDx Holdings Technical Analysis
Positive
92.08
Price Trends
84.02
Positive
78.75
Positive
56.44
Positive
Market Momentum
2.77
Positive
49.16
Neutral
15.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGS, the sentiment is Positive. The current price of 92.08 is below the 20-day moving average (MA) of 96.09, above the 50-day MA of 84.02, and above the 200-day MA of 56.44, indicating a neutral trend. The MACD of 2.77 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WGS.
GeneDx Holdings Risk Analysis
GeneDx Holdings disclosed 79 risk factors in its most recent earnings report. GeneDx Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GeneDx Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $8.54B | 106.06 | 2.27% | ― | 0.66% | ― | |
60 Neutral | $2.45B | 38.75 | -22.10% | ― | 50.79% | 73.57% | |
53 Neutral | $8.52B | ― | -37.09% | ― | 10.37% | -389.98% | |
53 Neutral | $5.26B | ― | -4584.47% | ― | 31.04% | 16.91% | |
51 Neutral | $935.92M | ― | -17.15% | ― | 12.15% | 61.33% | |
49 Neutral | $13.39B | ― | -30.11% | ― | -2.93% | -4.69% | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% |
* Healthcare Sector Average
Performance Comparison
WGS
GeneDx Holdings
89.32
78.45
721.71%
EXAS
Exact Sciences
43.04
-15.49
-26.47%
ILMN
Illumina
84.05
-40.44
-32.48%
MYGN
Myriad Genetics
9.70
-11.62
-54.50%
QGEN
Qiagen
38.90
-5.11
-11.61%
GH
Guardant Health
40.64
22.27
121.23%
GeneDx Holdings Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 20.60% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
GeneDx reported strong financial performance with significant revenue and margin growth driven by the success of their exome and genome testing. They are making strategic investments to fuel future growth, including expanding their sales force and launching new products. However, challenges remain with high denial rates on test reimbursements and the decision to exit the hereditary cancer segment.Highlights
Record Revenue and Growth
GeneDx's fourth quarter 2024 revenues from continuing operations reached $95.3 million. Exome and genome revenues grew 101% year-over-year and 31% sequentially, contributing $78.8 million this quarter.
Gross Margin Expansion
Adjusted gross profit from continuing operations in the fourth quarter was $66.9 million, translating to an adjusted gross margin of 70%, up from 56% a year ago and 64% last quarter.
Exome and Genome Testing Success
Exome and genome tests accounted for 38% of all tests in the fourth quarter, up from 27% a year ago. Over 20,000 of these tests were delivered, up 32% year-over-year.
Strong Cash Position
Cash, cash equivalents, marketable securities, and restricted cash totaled $142.2 million as of December 31, 2024.
Guidance for 2025
GeneDx expects total revenues between $350 million to $360 million for full year 2025 with at least 30% growth in exome and genome volume and revenue.
Lowlights
Exiting Hereditary Cancer Segment
GeneDx announced they are exiting the hereditary cancer segment in 2025 to focus on exome and genome growth, which might impact the short-term revenue stream from this segment.
High Denial Rates on Reimbursements
The average reimbursement rate is still affected by high denial rates, with nearly half of all tests being denied.
Company Guidance
During the GeneDx Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, projecting revenues in the range of $350 million to $360 million, with at least 30% growth in both exome and genome volume and revenue. The fourth quarter of 2024 saw revenues surpass $95 million, with adjusted gross margins expanding to 70%. GeneDx has positioned itself as a leader in exome and genome testing, and plans to invest further in growth, scale, innovation, and talent to accelerate market development. The company is focusing on leveraging its unique technology to achieve efficiencies in the U.S. healthcare system and aims to capitalize on opportunities in the NICU and outpatient settings. GeneDx also plans to exit the hereditary cancer business in 2025 to concentrate on its core areas. The company is committed to maintaining profitability each quarter throughout 2025.GeneDx Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
GeneDx Holdings Expects Strong 2024 Financial Performance
Positive
Jan 13, 2025
GeneDx Holdings Corp. announced its preliminary, unaudited financial results for the fourth quarter and full year of 2024, indicating expectations to exceed its revenue guidance with at least $299 million for the year and $92 million for the fourth quarter. The company also anticipates a full year adjusted gross margin of at least 64% and 68% in the fourth quarter, highlighting strong execution and profitability milestones, including positive operational cash flow and adjusted net income, positioning itself as a standard-bearer in the use of genetics in healthcare.
Executive/Board ChangesBusiness Operations and Strategy
GeneDx Holdings Appoints Bryan Dechairo as COO
Positive
Jan 2, 2025
GeneDx Holdings Corp. announced the appointment of Bryan Dechairo as Chief Operating Officer, a role in which he will oversee key areas including Product & Technology and Operations, as part of the company’s strategy to drive commercial growth and enhance health outcomes through genomic insights. Dr. Dechairo, with over 30 years of experience in diagnostics and pharmaceuticals, is expected to lead operational excellence and accelerate the adoption of genomic insights, positioning GeneDx for growth and scaling its market-leading position in pediatric genetics.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.