Exact Sciences (EXAS) AI Stock Analysis

• Market Cap: $19.32B
• Dividend Yield: N/A
• Average Volume (3M): 8.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 14.47%
• EPS Growth: -353.69%
• Country: US
• Employees: 6,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.10
• Shares Outstanding: 189,765,820
• 10 Day Avg. Volume: 5,175,416
• 30 Day Avg. Volume: 8,189,826
• PEG Ratio: -0.03
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 3.75
• P/FCF Ratio: 138.84
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: -15.61
• 1Y Price Target: $98.94
• Price Target Upside: -2.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 20
• EPS Forecast (FY): -0.7
• Revenue Forecast (FY): $3.23B

• Rating: 70 Outperform
• Price Target: $111.00 ▲(9.02% Upside)

Exact Sciences' stock is bolstered by strong technical momentum and a positive corporate event with the merger announcement. However, profitability challenges and valuation concerns temper the overall score. The earnings call provided a positive outlook, but financial performance remains a critical area for improvement.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful product adoption and market expansion, particularly through Cologuard and new product launches, supporting long-term business sustainability.

New Product Launch

The launch of Cancerguard expands Exact Sciences' product portfolio, addressing a broader market need for early cancer detection, which can drive future revenue growth and market leadership.

Merger with Abbott Laboratories

The merger with Abbott Laboratories is expected to enhance Exact Sciences' market presence and growth opportunities in cancer diagnostics, potentially leading to increased revenue and operational synergies.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, despite revenue growth, indicate difficulties in achieving operational efficiency, which may impact long-term financial health and investor confidence.

Gross Margin Decline

Declining gross margins suggest potential cost management issues, which could pressure future profitability and require strategic adjustments to maintain financial stability.

Challenges in Contracting

Uncertainty in completing payer contracts for Cologuard Plus could delay revenue realization and affect market penetration, impacting long-term growth prospects.

Exact Sciences Business Overview & Revenue Model

Company Description

Exact Sciences Corporation is a molecular diagnostics company based in Madison, Wisconsin, specializing in the early detection and prevention of cancer. The company operates primarily in the healthcare sector, focusing on developing and commercializing innovative testing solutions, particularly in colorectal cancer screening. Its flagship product, Cologuard, is a non-invasive stool-based DNA test that detects signs of colorectal cancer and precancerous polyps. Exact Sciences also offers additional tests aimed at various cancers, contributing to its mission of improving patient outcomes through early diagnosis.

How the Company Makes Money

Exact Sciences generates revenue primarily through the sale of its diagnostic tests, with Cologuard being the most significant contributor to its earnings. The company operates on a direct-to-consumer model as well as through partnerships with healthcare providers and laboratories. It bills insurance companies and Medicare for the tests performed, which is a key revenue stream. Additionally, Exact Sciences has established strategic partnerships with other healthcare organizations and life sciences companies to expand its reach and enhance its testing portfolio, further driving its revenue growth. The company also invests in research and development to innovate and introduce new products, which can lead to additional revenue opportunities.

Exact Sciences Financial Statement Overview

Summary

Exact Sciences shows moderate revenue growth and improving cash flow, which are positive indicators. However, challenges with profitability and return on equity persist, and the company needs to enhance operational efficiency and profitability to improve overall financial health.

Income Statement

Exact Sciences shows a moderate revenue growth rate of 4.83% TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin remains relatively strong at 68.19%, but the consistent net losses highlight ongoing challenges in achieving operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 1.02 TTM suggests a balanced approach to leveraging, but the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio is not provided, but the overall leverage appears manageable, albeit with room for improvement in profitability.

Cash Flow

Exact Sciences has shown a significant improvement in free cash flow growth at 45.67% TTM, which is a positive sign. The operating cash flow to net income ratio of 0.59 indicates some efficiency in converting income to cash, though the free cash flow to net income ratio of 0.56 suggests that cash generation relative to net income could be better.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.08B	2.76B	2.50B	2.08B	1.77B	1.49B
Gross Profit	2.08B	1.92B	1.76B	1.42B	1.31B	1.14B
EBITDA	-761.42M	-789.33M	29.28M	-421.11M	-649.28M	-653.88M
Net Income	-986.58M	-1.03B	-204.15M	-623.51M	-595.63M	-823.61M
Balance Sheet
Total Assets	5.90B	5.93B	6.47B	6.23B	6.68B	4.93B
Cash, Cash Equivalents and Short-Term Investments	1.00B	1.04B	777.64M	632.06M	1.03B	1.84B
Total Debt	2.54B	2.75B	2.55B	2.45B	2.38B	2.33B
Total Liabilities	3.40B	3.53B	3.33B	3.18B	3.30B	2.69B
Stockholders Equity	2.50B	2.40B	3.15B	3.04B	3.39B	2.24B
Cash Flow
Free Cash Flow	247.08M	74.55M	31.93M	-438.02M	-238.00M	72.13M
Operating Cash Flow	386.81M	210.54M	156.12M	-223.56M	-102.24M	136.48M
Investing Cash Flow	62.13M	-442.15M	49.68M	74.07M	-1.08B	-702.04M
Financing Cash Flow	-251.72M	231.87M	159.77M	76.48M	8.47M	1.88B

Exact Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 101.82 is above the 20-day moving average (MA) of 101.31, above the 50-day MA of 80.48, and above the 200-day MA of 57.71, indicating a bullish trend. The MACD of 6.10 indicates Positive momentum. The RSI at 87.42 is Negative, neither overbought nor oversold. The STOCH value of 51.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXAS.

Exact Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDNA	77 Outperform	$1.00B	16.31	24.11%	―	14.46%	―
QGEN	77 Outperform	$9.88B	24.59	11.29%	3.31%	5.32%	336.29%
EXAS	70 Outperform	$19.32B	-19.15	-34.54%	―	14.47%	-353.69%
GH	61 Neutral	$12.90B	-31.04	―	―	30.38%	24.17%
FLGT	57 Neutral	$853.49M	-19.70	-3.80%	―	13.60%	74.64%
NEO	55 Neutral	$1.53B	-13.33	-12.99%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Exact Sciences Corporate Events

Exact Sciences Announces Merger with Abbott Laboratories

On November 19, 2025, Exact Sciences Corporation announced a merger agreement with Abbott Laboratories, where Abbott will acquire Exact Sciences for $105 per share, valuing the deal at approximately $21 billion. This acquisition will allow Abbott to expand its presence in the fast-growing cancer diagnostics market, enhancing its capabilities in early cancer detection and treatment optimization. The merger is expected to be completed by the second quarter of 2026, pending shareholder and regulatory approvals, and will be accretive to Abbott’s revenue growth and gross margin.