Guardant Health (GH) AI Stock Analysis

• Market Cap: $7.19B
• Dividend Yield: N/A
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 28.74%
• EPS Growth: 18.25%
• Country: US
• Employees: 1,999
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.80
• Shares Outstanding: 124,705,860
• 10 Day Avg. Volume: 2,483,983
• 30 Day Avg. Volume: 2,480,987
• 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: 1.00
• Enterprise Value/Revenue: 8.64
• Enterprise Value/Gross Profit: 13.75
• Enterprise Value/Ebitda: -19.45
• 1Y Price Target: $68.45
• Price Target Upside: 13.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 57 Neutral
• Price Target: $62.00 ▲(3.02% 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

Revenue Growth

Strong revenue growth indicates expanding market presence and product adoption, supporting long-term business sustainability.

Product Adoption

Continued growth in Guardant360 Liquid adoption suggests increasing acceptance and demand for non-invasive cancer diagnostics.

Improved Margins

Improved gross margins reflect operational efficiencies and pricing power, enhancing long-term profitability potential.

Negative Factors

Negative Equity

Negative equity indicates financial instability, as liabilities exceed assets, posing a risk to long-term financial health.

Cash Flow Challenges

Negative cash flow suggests inefficiencies in generating cash, which can hinder investment in growth and operational stability.

Profitability Issues

Persistent profitability challenges due to high costs could impact long-term viability if not addressed through cost management.

Guardant Health Business Overview & Revenue Model

Company Description

Guardant Health (GH) is a precision oncology company focused on transforming cancer care through innovative blood testing technology. Operating primarily in the healthcare sector, Guardant Health specializes in non-invasive genomic sequencing and analysis of circulating tumor DNA (ctDNA) to aid in cancer diagnosis, treatment selection, and monitoring. Its core products include the Guardant360 and GuardantOMNI tests, which offer comprehensive genomic insights to oncologists and help guide personalized treatment plans for cancer patients.

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: 60.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 60.18 is above the 20-day moving average (MA) of 59.55, above the 50-day MA of 55.19, and above the 200-day MA of 46.22, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 63.51 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	13.96B	36.94	242.70%	―	9.94%	25.30%
NTRA	70 Neutral	22.37B	-85.72	-20.32%	―	44.38%	22.87%
SHC	66 Neutral	4.49B	188.89	4.70%	―	2.40%	-40.03%
TEM	59 Neutral	13.63B	-66.27	-64.52%	―	59.84%	76.46%
GH	57 Neutral	$7.19B	―	-4584.47%	―	28.74%	18.25%
EXAS	53 Neutral	10.14B	-9.88	-40.71%	―	12.56%	-464.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.