Exact Sciences (EXAS) AI Stock Analysis

• Market Cap: $9.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 11.57%
• EPS Growth: -315.25%
• Country: US
• Employees: 6,900
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.54
• Shares Outstanding: 188,637,680
• 10 Day Avg. Volume: 2,288,990
• 30 Day Avg. Volume: 2,557,951
• PEG Ratio: -9.05
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.69
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: -7.83
• 1Y Price Target: $69.38
• Price Target Upside: 42.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 54 Neutral
• Price Target: $53.00 ▲(8.67%Upside)

Exact Sciences' overall stock score reflects a mix of strong growth potential and significant profitability challenges. Financial performance is hampered by negative margins, while technical analysis indicates weak momentum. The earnings call provides optimism with improved profitability and successful product launches. However, valuation concerns persist due to a negative P/E ratio and absence of dividends.

Positive Factors

Growth Drivers

Investments into the channel being made and further indication expansion/reimbursement wins are expected, which should drive meaningful growth.

Market Potential

Medicare coverage of EXAS's Oncodetect MRD assay offers potential revenue growth as the company expands beyond its core franchises.

Technological Advantage

Exact Sciences is developing a PCR-based blood-based screening method for colorectal cancer, which may have advantages over sequencing-based tests such as cost and scalability.

Negative Factors

Competitive Pressure

Competition in the solid tumor MRD market is expected to increase, making it challenging for EXAS to capture market share.

Market Challenges

Patients already using NTRA Signatera are unlikely to switch to other assays, posing a commercial challenge for EXAS.

Market Competition

Exact Sciences has a steep hill to climb to compete against industry leaders Natera and Guardant Health.

Exact Sciences Business Overview & Revenue Model

Company Description

Exact 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 Money

Exact 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 Financial Statement Overview

Summary

Exact Sciences presents a mixed financial picture with robust revenue growth and a solid gross profit margin. However, the company faces significant profitability challenges with negative net and EBIT margins. The balance sheet shows moderate leverage and a solid equity base, but profitability improvements are needed. Cash flow metrics display positive momentum, yet converting earnings into free cash flow remains an area for improvement.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.76B	2.50B	2.08B	1.77B	1.49B
Gross Profit	1.92B	1.85B	1.51B	1.31B	1.14B
EBITDA	-788.73M	41.88M	-386.74M	-617.73M	-632.86M
Net Income	-1.03B	-204.15M	-623.51M	-595.63M	-848.53M
Balance Sheet
Total Assets	5.93B	6.47B	6.23B	6.68B	4.93B
Cash, Cash Equivalents and Short-Term Investments	1.04B	777.64M	632.06M	1.03B	1.84B
Total Debt	2.75B	2.55B	2.45B	2.36B	1.46B
Total Liabilities	3.53B	3.33B	3.18B	3.30B	2.10B
Stockholders Equity	2.40B	3.15B	3.04B	3.39B	2.82B
Cash Flow
Free Cash Flow	74.55M	31.93M	-438.02M	-238.00M	72.13M
Operating Cash Flow	210.54M	156.12M	-223.56M	-102.24M	136.48M
Investing Cash Flow	-442.15M	49.68M	74.07M	-1.08B	-702.04M
Financing Cash Flow	231.87M	159.77M	76.48M	8.47M	1.88B

Exact Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXAS, the sentiment is Negative. The current price of 48.77 is below the 20-day moving average (MA) of 52.30, below the 50-day MA of 53.94, and below the 200-day MA of 54.29, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXAS.

Exact Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QGEN	72 Outperform	$10.91B	120.75	2.67%	2.61%	3.31%	-72.63%
NTRA	64 Neutral	$18.82B	―	-18.66%	―	51.50%	53.23%
Sector *	60 Neutral	HK$17.07B	6.10	-7.44%	2.88%	11.55%	-28.15%
GH	57 Neutral	$5.63B	―	-4584.47%	―	28.20%	13.87%
ILMN	55 Neutral	$17.04B	―	-23.82%	―	-3.47%	25.55%
EXAS	54 Neutral	$9.13B	―	-36.89%	―	11.57%	-315.25%
NEO	51 Neutral	$850.67M	―	-8.57%	―	10.10%	8.79%

Exact Sciences Corporate Events

Exact Sciences Shareholders Approve 2025 Incentive Plan

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.

Exact Sciences Appoints Leslie Trigg to Board

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.