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Guardant Health (GH)
NASDAQ:GH
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Guardant Health
(NASDAQ:GH)
52Neutral
Positive Factors
Product Performance
Shield continues to exceed expectations with significant volume growth and achieving positive gross margin.
Revenue Guidance
The company increased its 2025 revenue guidance due to broad-based outperformance, signaling strong growth expectations.
Negative Factors
Market Competition
Guardant Health's performance was driven by broad-based growth in revenue and volume, and the company increased its annual revenue guidance for the Shield test.
Regulatory Engagement
Guardant Health is actively engaging with the FDA to ensure a smooth proposal process for Shield's regulatory approval.
Guardant Health (GH) vs. S&P 500 (SPY)
Market Cap
$4.99B
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth28.20%
EPS Growth13.87%
CountryUS
Employees1,999
SectorHealthcare
Sector Strength43
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.77
Shares Outstanding123,888,050
10 Day Avg. Volume2,394,120
30 Day Avg. Volume2,474,790
Financial Highlights & Ratios
PEG Ratio-2.60
Price to Book (P/B)-20.61
Price to Sales (P/S)0.00
P/FCF Ratio-16.95
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit12.17
Enterprise Value/Ebitda-3.40
Forecast
1Y Price Target
$60.00Price Target Upside50.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
Guardant Health Business Overview & Revenue Model
Company DescriptionGuardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally. The company offers Guardant360, Guardant360 LDT, Guardant360 CDx, and GuardantOMNI liquid biopsy-based tests for advanced stage cancer; and GuardantINFORM, an in-silico research platform that comprise a clinical-genomic liquid biopsy dataset of advanced cancer patients. It is also developing LUNAR-2 test for the early detection of colorectal cancer in asymptomatic individuals eligible; and GuardantConnect, an integrated software-based solution for clinical and biopharmaceutical customers seeking to connect patients tested with the Guardant360 assay with actionable alterations with potentially relevant clinical trials. In addition, the company offers Guardant Reveal Test for neoadjuvant and adjuvant treatment selection in early-stage cancer patients; Guardant360 tissue genotyping product; and Guardant-19 for use in the detection of the novel coronavirus. Further, it offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, and kits fulfillment related services to biopharmaceutical companies and medical institutions. The company was incorporated in 2011 and is headquartered in Redwood City, California.
How the Company Makes MoneyGuardant Health generates revenue through the sale of its proprietary liquid biopsy tests, which are used by healthcare providers for cancer diagnosis, treatment selection, and ongoing patient monitoring. The company's revenue model is primarily based on the volume of tests conducted and reimbursed by healthcare payers, including insurance companies and government programs. Additionally, Guardant Health collaborates with pharmaceutical companies to support clinical trials and drug development, providing another stream of revenue. Strategic partnerships and licensing agreements further enhance its earnings potential by expanding its market reach and technological capabilities.
Guardant Health Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue from different business areas, highlighting which segments drive growth and profitability, and indicating strategic focus and market opportunities.
Breaks down revenue from different business areas, highlighting which segments drive growth and profitability, and indicating strategic focus and market opportunities.
Data provided by:
Main Street Data
Main Street DataGuardant Health Financial Statement Overview
Summary
Guardant Health exhibits strong revenue growth but is hindered by profitability issues and a precarious financial position. The company is highly leveraged with negative stockholders’ equity, and it faces significant cash flow challenges despite slight improvements. Addressing these financial stability concerns is essential for sustainable growth.Income Statement
Guardant Health's revenue has seen consistent growth over the years, with a notable increase from $286.7 million in 2020 to $774 million in TTM 2025. However, the company continues to operate at a net loss, with negative EBIT and EBITDA margins, indicating ongoing profitability challenges. The gross profit margin is relatively stable, but the net profit margin remains negative, impacting the overall financial performance.45
Neutral
Balance Sheet
The balance sheet reveals a highly leveraged position with a significant negative stockholders' equity as of TTM 2025, indicating potential solvency issues. The debt-to-equity ratio is unfavorable due to the negative equity, and the equity ratio shows a lack of equity backing the total assets. This financial structure poses risks to the company's financial health and stability.30
Negative
Cash Flow
Guardant Health has struggled with negative operating and free cash flows, although there is a slight improvement in free cash flow growth recently. The operating cash flow to net income ratio is negative, reflecting cash flow challenges relative to its net losses. The company needs to improve cash generation to support its operations sustainably.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 774.00M | 739.02M | 563.95M | 449.54M | 373.65M | 286.73M | Gross Profit |
| 474.77M | 449.22M | 336.90M | 293.21M | 250.74M | 194.19M | EBIT |
| -454.95M | -443.59M | -564.73M | -544.38M | -411.00M | -254.95M | EBITDA |
| -397.86M | -390.12M | -433.31M | -614.91M | -359.62M | -225.07M | Net Income Common Stockholders |
| -416.55M | -436.37M | -479.45M | -654.59M | -384.77M | -246.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.13B | 839.98M | 1.17B | 1.01B | 932.75M | 1.79B | Total Assets |
| 1.70B | 1.49B | 1.79B | 1.61B | 2.20B | 2.27B | Total Debt |
| 1.35B | 1.34B | 1.35B | 1.37B | 1.36B | 847.86M | Net Debt |
| 218.22M | 810.51M | 220.23M | 1.23B | 868.67M | 14.88M | Total Liabilities |
| 1.64B | 1.63B | 1.63B | 1.55B | 1.56B | 916.19M | Stockholders Equity |
| 68.28M | -139.65M | 158.68M | 60.18M | 645.00M | 1.30B |
| Cash Flow | Free Cash Flow | ||||
| -304.87M | -274.94M | -345.46M | -386.92M | -284.05M | -157.99M | Operating Cash Flow |
| -272.26M | -239.86M | -324.98M | -309.46M | -209.02M | -103.93M | Investing Cash Flow |
| 13.49M | -261.31M | 840.25M | 149.82M | -63.16M | -617.09M | Financing Cash Flow |
| -66.77M | -996.00K | 477.38M | -189.09M | -66.82M | 1.41B |
Guardant Health Technical Analysis
Negative
39.97
Price Trends
43.69
Negative
42.65
Negative
35.01
Positive
Market Momentum
-1.17
Positive
39.77
Neutral
27.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GH, the sentiment is Negative. The current price of 39.97 is below the 20-day moving average (MA) of 43.80, below the 50-day MA of 43.69, and above the 200-day MA of 35.01, indicating a neutral trend. The MACD of -1.17 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 27.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GH.
Guardant Health Risk Analysis
Guardant Health disclosed 68 risk factors in its most recent earnings report. Guardant Health 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
Guardant Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.79B | 23.40 | 65.82% | ― | 9.87% | 32.81% | |
68 Neutral | $3.62B | 147.11 | 5.88% | ― | 2.78% | -54.72% | |
66 Neutral | $20.93B | ― | -18.66% | ― | 51.50% | 53.23% | |
61 Neutral | $10.74B | ― | -36.89% | ― | 11.57% | -315.25% | |
54 Neutral | $11.03B | ― | -1252.79% | ― | 42.93% | -160.27% | |
52 Neutral | $5.19B | 3.04 | -44.20% | 2.82% | 16.59% | -0.39% | |
52 Neutral | $4.99B | ― | -4584.47% | ― | 28.20% | 13.87% |
* Healthcare Sector Average
Performance Comparison
GH
Guardant Health
39.97
17.46
77.57%
EXAS
Exact Sciences
57.81
4.32
8.08%
NTRA
Natera
154.53
46.02
42.41%
MEDP
Medpace Holdings
306.62
-83.20
-21.34%
SHC
Sotera Health
12.82
1.57
13.96%
TEM
Tempus AI, Inc. Class A
62.43
25.95
71.13%
Guardant Health Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -15.37%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with strong revenue growth across multiple segments, gross margin improvements, and raised full-year guidance. However, challenges such as high cash burn and limited commercial payer reimbursement for Shield were noted.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Guardant Health reported a 21% year-over-year increase in Q1 revenue, totaling $203.5 million.
Oncology Business Performance
Oncology revenue grew 20% year-over-year to $150.6 million with oncology volume increasing 25% to approximately 59,000 tests.
Gross Margin Improvement
Both Reveal and Shield became gross margin positive in Q1 2025, driven by cost reductions and improved ASPs.
Expansion in Screening with Shield
Shield testing revenue reached $5.7 million in Q1, with approximately 9,000 tests conducted. Shield received ADLT status, increasing Medicare price from $920 to $1,495.
Biopharma & Data Growth
Biopharma & Data revenue grew 21% year-over-year, with strategic collaborations including a new agreement with Pfizer.
Raising Full-Year Revenue Guidance
Guardant Health increased its full-year 2025 revenue guidance to $880 million to $890 million, up from $850 million to $860 million.
Negative Updates
Screening Revenue Still Small
Despite strong growth, screening revenue remains a minor component at $5.7 million, requiring further market penetration.
High Free Cash Flow Burn
Q1 2025 free cash flow burn was $67 million, reflecting challenges in reducing cash burn despite growth.
Limited Commercial Payer Reimbursement for Shield
Currently, Shield has limited commercial payer reimbursement, which impacts ASP and revenue growth potential.
Company Guidance
During the Guardant Health Q1 2025 earnings call, the company provided guidance for the fiscal year, highlighting several key metrics and strategic initiatives. Guardant Health raised its full-year revenue guidance to a range of $880 million to $890 million, representing approximately 19% to 20% growth compared to 2024. Oncology revenue is expected to grow by about 18% year-over-year, driven by increased volumes and improved ASPs for Guardant360 and Reveal. The Biopharma & Data business is projected to achieve low double-digit growth, while Shield revenue guidance was increased to $40 million to $45 million, up from $25 million to $30 million, due to higher ASPs following ADLT status and increased test volumes. The company anticipates full-year non-GAAP gross margins between 62% and 63%, with a focus on reducing cash burn and achieving cash flow breakeven by 2028.Guardant Health Corporate Events
Business Operations and StrategyFinancial Disclosures
Guardant Health Reports Revenue Growth Amid Cash Flow Losses
Neutral
Jan 13, 2025
Guardant Health announced its preliminary, unaudited results for the fourth quarter and full year 2024, reporting a 31% increase in annual revenue driven by strong clinical and biopharma sales. Despite this growth, the company reported a negative free cash flow of $275 million for the full year and cited its strategic focus on expanding its commercial infrastructure following the successful launch of the Shield test, positioning itself for continued growth in the oncology sector.
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.