Guardant Health (GH) AI Stock Analysis

• Market Cap: $8.29B
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 28.74%
• EPS Growth: 18.25%
• Country: US
• Employees: 1,999
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.80
• Shares Outstanding: 124,705,860
• 10 Day Avg. Volume: 2,076,122
• 30 Day Avg. Volume: 2,853,638
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 8.64
• Enterprise Value/Gross Profit: 13.75
• Enterprise Value/Ebitda: -19.45
• 1Y Price Target: $62.45
• Price Target Upside: 1.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 57 Neutral
• Price Target: $62.00 ▲(1.04% Upside)

Guardant Health's overall stock score is driven by strong technical indicators and a positive earnings call, which highlight significant revenue growth and improved margins. However, financial performance and valuation concerns due to ongoing losses and negative equity weigh down the score.

Positive Factors

Earnings

GH delivered a strong beat across all its clinical products with particular strength in Screening (Shield) and raised its full-year guide again, expecting more than double in screening revenue.

Product Launch

GH is benefiting from the launch of multiple products including its Shield CRC screening blood-based assay, Reveal MRD and G360 Tissue—driving 31% growth in the quarter.

Regulatory Approval

Shield MCED received a Breakthrough Device designation from the FDA, highlighting its potential impact in the diagnostics market.

Negative Factors

Data Release Delay

The perceived delay and no formal timeline for V2 data unveiling is likely to impact investor positioning, especially in the near term.

Market Expectations

The Shield V2 algorithm update showed only a modest improvement in sensitivity, rising to 84% from 83%, which was less than the bullish expectations.

Sensitivity Concerns

The weakness in the stock today is primarily around the company's sensitivity to advanced adenomas (AAs), which came in at 13%, representing no change from its FDA-cleared V1 test.

Guardant Health Business Overview & Revenue Model

Company Description

Guardant 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 Money

Guardant Health generates revenue primarily through the sale of its genomic testing services, which are offered to oncologists and healthcare institutions. The company charges for each test performed, with pricing models that may vary based on the specific test and the complexity of the analysis. Additionally, Guardant Health has established partnerships with various pharmaceutical companies for clinical trials, which can provide additional revenue streams through collaborations and service agreements. The growth of precision medicine and the increasing demand for non-invasive cancer testing further bolster the company’s earnings potential, as more healthcare providers adopt these advanced diagnostics in their treatment protocols.

Guardant Health Financial Statement Overview

Summary

Guardant Health shows strong revenue growth but faces significant financial risks due to persistent operational losses and negative equity. The company needs to improve profitability and stabilize its financial structure.

Income Statement

Guardant Health shows consistent revenue growth, with a significant 48.4% increase in TTM (Trailing-Twelve-Months) revenue compared to the previous year. However, the company struggles with profitability, as evidenced by negative net and EBIT margins over the years. The TTM gross profit margin is strong at 62.8%, but the net profit margin is -49.9%, indicating high operational costs and ongoing losses.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity of -$305 million, indicating that liabilities exceed assets significantly. The debt-to-equity ratio cannot be calculated due to negative equity, signaling high financial risk. The equity ratio is also negative, reinforcing the financial instability despite a decrease in total debt.

Cash Flow

Operating cash flow remains negative, showing inefficiencies in generating cash from operations. The free cash flow has improved slightly but remains negative. The free cash flow to net income ratio is close to 1, suggesting that cash losses are translating directly to net losses. The company needs to enhance its cash generation capabilities to improve financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	828.85M	739.02M	563.95M	449.54M	373.65M	286.73M
Gross Profit	520.84M	449.22M	336.90M	293.21M	250.74M	194.19M
EBITDA	-368.35M	-390.12M	-433.31M	-614.91M	-359.62M	-225.07M
Net Income	-413.82M	-436.37M	-479.45M	-654.59M	-405.67M	-253.78M
Balance Sheet
Total Assets	1.33B	1.49B	1.79B	1.61B	2.20B	2.27B
Cash, Cash Equivalents and Short-Term Investments	629.14M	839.98M	1.17B	1.01B	932.75M	1.79B
Total Debt	1.33B	1.34B	1.35B	1.37B	1.37B	854.49M
Total Liabilities	1.64B	1.63B	1.63B	1.55B	1.56B	916.19M
Stockholders Equity	-305.48M	-139.65M	158.68M	60.18M	645.00M	1.30B
Cash Flow
Free Cash Flow	-271.73M	-274.94M	-345.46M	-386.92M	-284.05M	-157.99M
Operating Cash Flow	-238.55M	-239.86M	-324.98M	-309.46M	-209.02M	-103.93M
Investing Cash Flow	7.92M	-261.31M	840.25M	149.82M	-63.16M	-617.09M
Financing Cash Flow	-71.05M	-996.00K	477.38M	-189.09M	-66.82M	1.41B

Guardant Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GH, the sentiment is Positive. The current price of 61.36 is above the 20-day moving average (MA) of 60.26, above the 50-day MA of 52.58, and above the 200-day MA of 44.25, indicating a bullish trend. The MACD of 4.00 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GH.

Guardant Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	80 Outperform	$13.30B	35.79	89.38%	―	9.94%	25.30%
NTRA	70 Neutral	$23.24B	―	-24.32%	―	44.38%	22.87%
SHC	65 Neutral	$4.59B	190.92	5.14%	―	2.40%	-40.03%
TEM	65 Neutral	$13.61B	―	-97.95%	―	59.84%	76.46%
GH	57 Neutral	$8.29B	―	-4584.47%	―	28.74%	18.25%
EXAS	53 Neutral	$8.98B	―	-35.51%	―	12.56%	-464.28%
Sector *	51 Neutral	$7.91B	-0.36	-41.70%	2.23%	23.45%	-1.86%

Guardant Health Corporate Events

Guardant Health Elects Board and Approves Auditor

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.