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Exact Sciences Corp. (EXAS)
NASDAQ:EXAS

Exact Sciences (EXAS) AI Stock Analysis

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Exact Sciences

(NASDAQ:EXAS)

Rating:54Neutral
Price Target:
$55.00
▲(2.12%Upside)
Exact Sciences presents a mixed outlook. Strong revenue growth and product launches are key positives, reflected in the earnings call. However, significant profitability challenges, as shown in the financial performance and valuation metrics, weigh down the score. Technical indicators suggest some short-term caution. Overall, while there is growth potential, profitability and valuation concerns need addressing for a more favorable outlook.
Positive Factors
Commercial strategy
The requirement of coverage benefits ASP, putting EXAS in a better position to negotiate on reimbursement.
Guidance and growth
EXAS management feels very strong about near-term growth and there could be upside to 2025 guidance.
Supreme Court decision
EXAS's stock rose 3.6% in response to a positive US Supreme Court decision, which lifted a major overhang on its future commercial strategy.
Negative Factors
Blood assays performance
The guideline highlights the assays modest performance, particularly with advanced precancerous lesions, leading them to recommend the assay only for patients not willing to undergo screening with another modality.
NCCN guidelines
Analysts believe NCCN guidelines alone are not enough to drive coverage expansion beyond Medicare.

Exact Sciences (EXAS) vs. SPDR S&P 500 ETF (SPY)

Exact Sciences Business Overview & Revenue Model

Company DescriptionExact Sciences Corporation is a molecular diagnostics company that focuses on the early detection and prevention of various types of cancer. Headquartered in Madison, Wisconsin, the company is renowned for its non-invasive screening tests, particularly Cologuard, which is a stool-based DNA test for colorectal cancer. Exact Sciences operates in the healthcare sector, providing innovative diagnostic solutions that aim to enhance patient outcomes by enabling earlier and more accurate detection of cancer.
How the Company Makes MoneyExact Sciences generates revenue primarily through the sale of its diagnostic tests, with Cologuard being the flagship product. The company earns money by marketing these tests to healthcare providers, who in turn offer them to patients as a part of routine health screenings. Revenue is generated both from direct sales and reimbursement from insurance companies and government programs like Medicare and Medicaid. In addition to Cologuard, Exact Sciences is expanding its product offerings to include tests for other types of cancer, thereby diversifying its revenue streams. Strategic partnerships and collaborations with research institutions and healthcare providers also play a critical role in its business model by enhancing the development and distribution of its diagnostic products.

Exact Sciences Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 14.21%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, improved profitability, and successful product launches, indicating a strong start to 2025. However, challenges with commercial payer coverage for new products and the impact of a severe flu season were noted.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Core revenue grew by 11%, with first-quarter revenue $19 million above the midpoint of guidance. Screening revenue increased by 14% to $540 million.
Improved Profitability
Adjusted EBITDA increased by 61% to $63 million, with an adjusted EBITDA margin expansion of 280 basis points.
Successful Product Launches
Launched Cologuard Plus with Medicare coverage and Oncodetect, a molecular residual disease test, positioned for growth in precision oncology.
Customer Satisfaction and Engagement
Customer satisfaction reached an all-time high in Q1, and customer engagement by the field force increased by more than 30% year-over-year.
Cash Flow Improvements
Free cash flow reached break-even, a year-over-year improvement of $120 million.
Negative Updates
Challenges in Commercial Payer Coverage for Cologuard Plus
Base assumption for coverage is limited to Medicare Part B patients, with broader commercial payer coverage still under discussion.
Impact of Influenza Season
The company faced challenges navigating through one of the worst flu seasons in years.
Incremental Margin Expectations
While the revenue guidance increased by $40 million, the EBITDA guidance increased by $50 million, indicating a high-thirties incremental margin, which may need to improve over time.
Company Guidance
During the recent earnings call, Exact Sciences provided guidance for 2025, highlighting several key metrics and growth drivers. The company expects total revenue for the year to be between $3.07 billion and $3.12 billion, an increase of $40 million at the midpoint, with second-quarter revenue projected to range from $765 million to $780 million. Screening revenue is anticipated to be between $2.39 billion and $2.425 billion for the year, while precision oncology revenue is forecasted to be between $680 million and $695 million. Additionally, Exact Sciences raised its adjusted EBITDA guidance to between $425 million and $455 million, reflecting an adjusted EBITDA margin of 14.2% at the midpoint. The company reported strong first-quarter results, with core revenue growth of 11%, adjusted EBITDA growth of 61%, and a 280 basis point expansion in adjusted EBITDA margin. Key growth drivers include the successful launch of Cologuard Plus, the expansion of the Rescreen program, and improvements in commercial execution, evidenced by a 30% increase in customer engagement and the addition of 190,000 new ordering providers.

Exact Sciences Financial Statement Overview

Summary
Exact Sciences presents a mixed financial picture. The company showcases robust revenue growth and a solid gross profit margin, but faces challenges in achieving profitability with negative net and EBIT margins. The balance sheet is relatively stable with moderate leverage and a solid equity base, yet profitability improvements are needed. Cash flow metrics display positive momentum, though converting earnings into free cash flow remains an area for improvement. Focus on enhancing profitability and cash conversion will be critical for strengthening financial health.
Income Statement
45
Neutral
Exact Sciences shows a consistent revenue growth trend, with a TTM (Trailing-Twelve-Months) revenue increase of 2.5% compared to the previous year. However, the company is currently experiencing significant profitability challenges, with a negative net profit margin of -36.1% and a negative EBIT margin of -36.5%. The gross profit margin is relatively strong at 68.2%, indicating good management of direct costs. Overall, the income statement reflects growth potential but significant profitability issues.
Balance Sheet
55
Neutral
The balance sheet of Exact Sciences indicates moderate financial health. The debt-to-equity ratio is 1.05, suggesting a balanced approach to leverage. The equity ratio is 41.9%, showing a stable foundation of equity financing. However, the return on equity is negative due to persistent net losses, highlighting the need for improved profitability to enhance shareholder value.
Cash Flow
50
Neutral
Exact Sciences has shown improvement in cash flow metrics, with a TTM free cash flow growth rate of 160.3%. The operating cash flow to net income ratio is 0.32, reflecting some ability to convert earnings into cash. However, the free cash flow to net income ratio is negative, indicating challenges in generating free cash flow from operations. While there is positive cash flow momentum, profitability issues remain a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.83B2.76B2.50B2.08B1.77B1.49B
Gross Profit1.93B1.92B1.85B1.51B1.31B1.14B
EBITDA-848.74M-788.73M41.88M-386.74M-617.73M-632.86M
Net Income-1.02B-1.03B-204.15M-623.51M-595.63M-848.53M
Balance Sheet
Total Assets5.71B5.93B6.47B6.23B6.68B4.93B
Cash, Cash Equivalents and Short-Term Investments786.17M1.04B777.64M632.06M1.03B1.84B
Total Debt2.52B2.75B2.55B2.45B2.36B1.46B
Total Liabilities3.31B3.53B3.33B3.18B3.30B2.10B
Stockholders Equity2.40B2.40B3.15B3.04B3.39B2.82B
Cash Flow
Free Cash Flow194.14M74.55M31.93M-438.02M-238.00M72.13M
Operating Cash Flow323.66M210.54M156.12M-223.56M-102.24M136.48M
Investing Cash Flow-305.15M-442.15M49.68M74.07M-1.08B-702.04M
Financing Cash Flow-21.30M231.87M159.77M76.48M8.47M1.88B

Exact Sciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.86
Price Trends
50DMA
53.01
Positive
100DMA
49.68
Positive
200DMA
55.50
Negative
Market Momentum
MACD
-0.10
Positive
RSI
51.90
Neutral
STOCH
51.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXAS, the sentiment is Positive. The current price of 53.86 is above the 20-day moving average (MA) of 53.62, above the 50-day MA of 53.01, and below the 200-day MA of 55.50, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 51.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXAS.

Exact Sciences Risk Analysis

Exact Sciences disclosed 52 risk factors in its most recent earnings report. Exact Sciences reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Exact Sciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$22.06B-18.66%51.50%53.23%
72
Outperform
$10.53B116.532.67%2.71%3.31%-72.63%
GHGH
57
Neutral
$6.28B-4584.47%28.20%13.87%
54
Neutral
$10.30B-36.89%11.57%-315.25%
54
Neutral
$15.88B-23.82%-3.47%25.55%
NENEO
51
Neutral
$953.63M-8.57%10.10%8.79%
49
Neutral
AU$2.47B4.40-64.25%2.83%36.51%13.14%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EXAS
Exact Sciences
53.86
9.29
20.84%
ILMN
Illumina
100.34
-8.18
-7.54%
QGEN
Qiagen
48.64
7.76
18.98%
NEO
NeoGenomics
7.40
-6.18
-45.51%
NTRA
Natera
161.57
48.83
43.31%
GH
Guardant Health
50.18
21.43
74.54%

Exact Sciences Corporate Events

Executive/Board ChangesShareholder Meetings
Exact Sciences Shareholders Approve 2025 Incentive Plan
Neutral
Jun 16, 2025

On June 12, 2025, Exact Sciences Corporation held its annual meeting where shareholders approved the 2025 Omnibus Long-Term Incentive Plan and an amendment to the 2010 Employee Stock Purchase Plan. Additionally, the shareholders elected seven directors, ratified the appointment of PricewaterhouseCoopers as the company’s independent auditor for 2025, and approved executive compensation. However, a proposal for a director election resignation governance policy was not approved.

The most recent analyst rating on (EXAS) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Exact Sciences stock, see the EXAS Stock Forecast page.

Executive/Board Changes
Exact Sciences Appoints Leslie Trigg to Board
Neutral
Apr 29, 2025

On April 29, 2025, Exact Sciences Corporation appointed Leslie Trigg as a Class II member of its Board of Directors, following the resignation of Kathleen Sebelius. Ms. Trigg, with over 25 years of experience in the healthcare and medical device industries, is expected to bring valuable leadership and investor relations skills to the company, potentially strengthening its market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 28, 2025