Myriad Genetics (MYGN) AI Stock Analysis

• Market Cap: $771.56M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 12.15%
• EPS Growth: 61.33%
• Country: US
• Employees: 2,700
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -1.40
• Shares Outstanding: 91,309,070
• 10 Day Avg. Volume: 977,057
• 30 Day Avg. Volume: 1,040,975
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.09
• Price to Cash Flow (P/CF): 34.60
• P/FCF Ratio: 326.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.96
• Price Target Upside: 100.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

Myriad Genetics exhibits financial challenges with negative profitability and cash flow issues, reflected in its low financial performance score. The technical analysis indicates bearish momentum, and valuation metrics are unattractive due to losses. Despite these challenges, the earnings call revealed strong revenue growth and strategic initiatives, providing some optimism. However, the overall outlook remains cautious given the hurdles in financial health and market conditions.

Positive Factors

Growth

Hereditary Cancer revenue grew by 6% year-over-year, with MyRisk revenue increasing by 8%.

Innovation

MYGN has a solid core franchise in esoteric testing - namely hereditary cancer and reproductive health - where innovation and branding can lead to growth above traditional labs.

Partnership

A partnership with PATHOMIQ has been launched to advance AI-powered testing solutions, which is expected to accelerate the timeline for gaining Level 1 evidence for Prolaris.

Negative Factors

Competition

Intensifying competitive pressures in NIPT and in hereditary cancer testing are limiting growth potential longer term.

Market Share

Prolaris is losing market share in Prostate Cancer risk stratification and will not continue to grow in the foreseeable future.

Revenue

Genesight ASPs will continue to be pressured and serve as a meaningful headwind to revenue growth in the nearer term.

Myriad Genetics Business Overview & Revenue Model

Company Description

Myriad Genetics, Inc. is a leading molecular diagnostic company that focuses on developing and marketing predictive, personalized, and prognostic medicine tests. The company operates primarily in the healthcare sector, offering products and services that help in assessing the risk of developing diseases, determining disease progression, and guiding treatment decisions across major medical specialties such as oncology, women's health, and urology. Its core products include genetic tests that are designed to provide insights into hereditary cancer, prenatal screening, and pharmacogenomics.

How the Company Makes Money

Myriad Genetics generates revenue through the sale of its proprietary genetic tests to healthcare providers, hospitals, and laboratories. The company's revenue model is primarily based on the fees charged for its diagnostic tests, which are often reimbursed by insurance companies, Medicare, and Medicaid. Key revenue streams include hereditary cancer tests, prenatal screening tests, and companion diagnostic tests that assist in optimizing drug therapies. Myriad also benefits from partnerships with pharmaceutical companies for developing companion diagnostics, which are integral in personalized medicine. Additionally, the company invests in research and development to expand its test offerings and improve the accuracy and utility of its diagnostics, further driving revenue growth.

Myriad Genetics Financial Statement Overview

Summary

Myriad Genetics faces significant financial challenges. The income statement shows revenue growth, but profitability is an issue with negative net income and margins. The balance sheet has moderate leverage and a strong equity base, yet negative return on equity. Cash flow is under pressure with negative operating and free cash flows, requiring attention.

Income Statement

Myriad Genetics shows a mixed income statement performance. The gross profit margin has remained relatively stable, but the company consistently reports negative net income, leading to negative net profit margins. Revenue has seen an upward trend, with a TTM growth rate of 9.33%. However, both EBIT and EBITDA margins are negative, indicating ongoing operational challenges.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.20, which is manageable. The equity ratio stands at 67.65%, suggesting a strong equity base relative to total assets. However, the return on equity remains negative due to sustained losses, which is a point of concern.

Cash Flow

Cash flows are under pressure, with negative operating and free cash flows. The free cash flow growth rate is negative, although improving slightly in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges exacerbating the profitability issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Jun 2020
Income Statement		Total Revenue
823.60M	753.20M	678.40M	690.60M	557.00M	851.10M
	Gross Profit
569.50M	517.00M	476.40M	493.00M	378.80M	650.10M
	EBIT
-115.80M	-257.40M	-123.70M	-48.70M	-194.80M	7.60M
	EBITDA
-49.40M	-186.10M	-67.80M	14.10M	-123.40M	86.10M
	Net Income Common Stockholders
-116.00M	-263.30M	-112.00M	-27.20M	-223.70M	4.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
398.65M	140.90M	114.90M	339.80M	150.70M	136.90M
	Total Assets
589.56M	1.15B	1.20B	1.32B	1.42B	1.56B
	Total Debt
0.00	152.10M	145.00M	92.30M	0.00	233.50M
	Net Debt
-102.15M	20.00M	88.10M	-166.10M	-117.00M	140.30M
	Total Liabilities
22.22M	363.30M	312.90M	352.90M	537.80M	473.80M
	Stockholders Equity
567.35M	783.20M	885.80M	967.80M	881.00M	1.09B
Cash Flow		Free Cash Flow
-107.30M	-184.20M	-151.60M	200.00K	-40.10M	75.10M
	Operating Cash Flow
-70.00M	-110.90M	-106.30M	18.20M	-26.90M	83.70M
	Investing Cash Flow
-18.00M	31.90M	-77.50M	274.40M	61.60M	-286.40M
	Financing Cash Flow
112.40M	152.90M	-8.00M	-150.60M	-1.00M	182.30M

Myriad Genetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYGN, the sentiment is Negative. The current price of 7.95 is below the 20-day moving average (MA) of 9.20, below the 50-day MA of 11.05, and below the 200-day MA of 19.08, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 11.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYGN.

Myriad Genetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTRA	67 Neutral	$20.54B	―	-19.42%	―	56.75%	59.77%
QGEN	66 Neutral	$8.95B	111.52	2.27%	―	0.66%	-75.89%
EXAS	52 Neutral	$8.45B	―	-37.09%	―	10.37%	-389.98%
MYGN	51 Neutral	$771.56M	―	-17.15%	―	12.15%	61.33%
ILMN	49 Neutral	$12.09B	―	-30.11%	―	-2.93%	-4.69%
GH	49 Neutral	$5.41B	―	-4584.47%	―	31.04%	16.91%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%

Myriad Genetics Corporate Events

Myriad Genetics Settles Shareholder Lawsuits with Reforms

Myriad Genetics has resolved a series of shareholder derivative lawsuits alleging fiduciary breaches by former and current directors. The settlement, approved by the Delaware Court, includes corporate governance reforms and a $950,000 attorney fee award, with no admission of wrongdoing by the parties involved. This agreement may reassure investors, highlighting efforts to strengthen oversight and governance within the company.