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Guardant Health (GH)
NASDAQ:GH
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Guardant Health
(NASDAQ:GH)
Rating:57Neutral
Price Target:
$49.00
▲(7.81%Upside)
Positive Factors
Guideline Inclusion
Shield has been included in NCCN colorectal screening guidelines, which is expected to help drive community adoption and commercial payor reimbursement.
Regulatory Approvals
Shield MCED received a Breakthrough Device designation from the FDA, highlighting its potential impact in the diagnostics market.
Negative Factors
Competitor Activity
Upcoming blood-based colorectal cancer screening data from a competitor may cause a near-term overhang for Guardant Health shares.
Product Performance
Shield's AA sensitivity of 13% is lower than other recommended colorectal screening modalities.
Guardant Health (GH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.73B
Dividend YieldN/A
Average Volume (3M)1.88M
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth28.20%
EPS Growth13.87%
CountryUS
Employees1,999
SectorHealthcare
Sector Strength40
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.77
Shares Outstanding123,888,050
10 Day Avg. Volume1,780,513
30 Day Avg. Volume1,875,472
Financial Highlights & Ratios
PEG Ratio-2.88
Price to Book (P/B)-22.84
Price to Sales (P/S)0.00
P/FCF Ratio-18.79
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue2.22
Enterprise Value/Gross Profit13.35
Enterprise Value/Ebitda-3.73
Forecast
1Y Price Target
$61.38Price Target Upside35.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Guardant Health Business Overview & Revenue Model
Company DescriptionGuardant Health, Inc. is a leading precision oncology company that specializes in blood tests, data analytics, and advanced technology to improve cancer detection, treatment, and monitoring. The company operates primarily in the biotechnology and healthcare sectors, offering innovative liquid biopsy tests that enable comprehensive genomic profiling of cancer through a simple blood draw. Guardant Health's core products include Guardant360, GuardantOMNI, and Guardant Reveal, which are used for cancer detection, therapy selection, and recurrence monitoring, respectively.
How the Company Makes MoneyGuardant Health generates revenue primarily through the sale of its proprietary liquid biopsy tests to healthcare providers, pharmaceutical companies, and research institutions. The key revenue streams include diagnostic testing services, including Guardant360, GuardantOMNI, and Guardant Reveal, which are billed to insurance companies, healthcare providers, and directly to patients. Additionally, the company partners with biopharmaceutical companies to provide testing services for clinical trials, which offers another significant revenue source. These partnerships help in the development and commercialization of new cancer therapies and diagnostics. Guardant Health's revenue is further supported by its extensive database of genomic information, which it leverages to offer data analytics services and research collaborations.
Guardant Health Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units or product lines, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Analyzes income from different business units or product lines, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Data provided by:
Main Street Data
Main Street DataGuardant Health Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -3.77%|
Next Earnings Date:Jul 30, 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 Financial Statement Overview
Summary
Despite strong revenue growth, Guardant Health faces significant financial challenges with ongoing net losses, high leverage, negative equity, and cash flow issues. These factors weigh heavily on the financial stability and require strategic changes for improvement.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 739.02M | 563.95M | 449.54M | 373.65M | 286.73M |
| Gross Profit | 449.22M | 336.90M | 293.21M | 250.74M | 194.19M |
| EBITDA | -390.12M | -433.31M | -614.91M | -359.62M | -225.07M |
| Net Income | -436.37M | -479.45M | -654.59M | -405.67M | -253.78M |
Balance Sheet | |||||
| Total Assets | 1.49B | 1.79B | 1.61B | 2.20B | 2.27B |
| Cash, Cash Equivalents and Short-Term Investments | 839.98M | 1.17B | 1.01B | 932.75M | 1.79B |
| Total Debt | 1.34B | 1.35B | 1.37B | 1.36B | 847.86M |
| Total Liabilities | 1.63B | 1.63B | 1.55B | 1.56B | 916.19M |
| Stockholders Equity | -139.65M | 158.68M | 60.18M | 645.00M | 1.30B |
Cash Flow | |||||
| Free Cash Flow | -274.94M | -345.46M | -386.92M | -284.05M | -157.99M |
| Operating Cash Flow | -239.86M | -324.98M | -309.46M | -209.02M | -103.93M |
| Investing Cash Flow | -261.31M | 840.25M | 149.82M | -63.16M | -617.09M |
| Financing Cash Flow | -996.00K | 477.38M | -189.09M | -66.82M | 1.41B |
Guardant Health Technical Analysis
Neutral
45.45
Price Trends
46.28
Negative
44.96
Positive
39.47
Positive
Market Momentum
-0.42
Positive
37.42
Neutral
9.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GH, the sentiment is Neutral. The current price of 45.45 is below the 20-day moving average (MA) of 49.20, below the 50-day MA of 46.28, and above the 200-day MA of 39.47, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 9.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.73B | 35.53 | 89.38% | ― | 9.94% | 25.30% | |
66 Neutral | $3.36B | 136.84 | 5.88% | ― | 2.78% | -54.72% | |
65 Neutral | ¥351.06B | 11.13 | -2.99% | 2.50% | 11.77% | -10.16% | |
64 Neutral | $19.11B | ― | -18.66% | ― | 51.50% | 53.23% | |
57 Neutral | $5.73B | ― | -4584.47% | ― | 28.20% | 13.87% | |
54 Neutral | $9.40B | ― | -36.89% | ― | 11.57% | -315.25% | |
47 Neutral | $11.23B | ― | -1252.79% | ― | 42.93% | -160.27% |
* Healthcare Sector Average
Performance Comparison
GH
Guardant Health
45.45
13.52
42.34%
EXAS
Exact Sciences
48.41
0.05
0.10%
NTRA
Natera
137.82
35.67
34.92%
MEDP
Medpace Holdings
437.41
56.91
14.96%
SHC
Sotera Health
11.85
-1.75
-12.87%
TEM
Tempus AI, Inc. Class A
64.86
24.84
62.07%
Guardant Health Corporate Events
Executive/Board ChangesShareholder Meetings
Guardant Health Elects Board and Approves Auditor
Neutral
Jun 20, 2025
At the annual meeting of stockholders held on June 18, 2025, Guardant Health, Inc. elected all nominees for its board of directors, including Vijaya Gadde, Roberto Mignone, Myrtle Potter, and Musa Tariq. Additionally, the stockholders approved the selection of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 and endorsed the compensation of the company’s named executive officers.
The most recent analyst rating on (GH) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Guardant Health stock, see the GH Stock Forecast page.
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.