Myriad Genetics (MYGN) AI Stock Analysis

• Market Cap: $423.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 7.38%
• EPS Growth: 60.45%
• Country: US
• Employees: 2,700
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.03
• Shares Outstanding: 92,177,380
• 10 Day Avg. Volume: 1,296,473
• 30 Day Avg. Volume: 1,378,728
• PEG Ratio: -0.22
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.04
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.90
• Enterprise Value/Ebitda: -2.02
• 1Y Price Target: $7.90
• Price Target Upside: 72.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 43 Neutral
• Price Target: $4.50 ▼(-1.96%Downside)

Myriad Genetics' overall score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. Technical analysis supports a bearish outlook, further pressuring the stock. Valuation remains a concern with a negative P/E ratio. Despite some positive aspects from the earnings call, the revised guidance and operational challenges weigh heavily on the stock's prospects.

Positive Factors

Core Business Strength

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.

Leadership and Strategy

CEO Raha is acting with urgency, and focused on righting the ship.

Partnerships and Innovation

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

Financial Performance

The guidance cut for the year is significant and affects both GeneSight and Hereditary Cancer, making it difficult for investors to feel confident about the company's growth.

Market Competition

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

Revenue Challenges

Revenue for GeneSight declined significantly due to the loss of coverage from a major insurer, affecting the company's financial performance.

Myriad Genetics Business Overview & Revenue Model

Company Description

Myriad Genetics, Inc. (MYGN) is a leading molecular diagnostic company that develops and markets genetic tests designed to assess an individual's risk of developing diseases, guide treatment decisions, and improve patient outcomes. Operating primarily in the healthcare sector, Myriad Genetics focuses on personalized medicine, particularly in oncology, women's health, and mental health. The company's core products include a range of genetic, genomic, and hereditary cancer tests, which are utilized by healthcare professionals to tailor medical treatment to individual patients.

How the Company Makes Money

Myriad Genetics generates revenue through the sale of its diagnostic products and services. The primary revenue streams include testing services, where healthcare providers order tests for patients, and the company charges a fee for analyzing the genetic information and providing insights. Additionally, Myriad partners with pharmaceutical companies for companion diagnostics, which helps in identifying patients who are most likely to benefit from specific therapies. The company also earns through licensing its technology and intellectual property to other entities. Reimbursement from insurance companies and government health programs is a significant factor affecting its earnings, as these determine the extent of coverage for the company's tests.

Myriad Genetics Financial Statement Overview

Summary

The company faces declining revenues and persistent losses impacting profitability. While the balance sheet appears stable with a solid equity position, significant operational challenges remain.

Income Statement

The income statement shows a decline in revenue from $837.6M to $831.3M in TTM, indicating a negative revenue growth. The gross profit margin remains relatively stable with slight fluctuations, while net income remains negative, impacting net profit margins significantly. The company is experiencing negative EBIT and EBITDA margins, suggesting ongoing operational challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, with total debt increasing slightly but still manageable. The equity ratio is strong, indicating a solid asset base supported by equity. However, the return on equity is negative due to consistent net losses, signaling inefficiencies in generating shareholder value.

Cash Flow

Cash flow analysis reveals a negative operating cash flow, which has improved slightly in TTM. Free cash flow remains negative, indicating challenges in funding operations without external financing. The operating cash flow to net income ratio is negative, highlighting issues in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	837.60M	753.20M	678.40M	690.60M	557.00M
Gross Profit	585.40M	517.00M	476.40M	493.00M	378.80M
EBITDA	-59.50M	-186.10M	-67.80M	14.10M	-123.40M
Net Income	-127.30M	-263.30M	-112.00M	-27.20M	-223.70M
Balance Sheet
Total Assets	1.03B	1.15B	1.20B	1.32B	1.42B
Cash, Cash Equivalents and Short-Term Investments	102.40M	140.90M	114.90M	339.80M	150.70M
Total Debt	140.30M	152.10M	145.00M	92.30M	0.00
Total Liabilities	326.50M	363.30M	312.90M	352.90M	537.80M
Stockholders Equity	701.10M	783.20M	885.80M	967.80M	881.00M
Cash Flow
Free Cash Flow	-38.40M	-184.20M	-151.60M	600.00K	-40.10M
Operating Cash Flow	-8.70M	-110.90M	-106.30M	18.60M	-26.90M
Investing Cash Flow	-11.90M	31.90M	-77.50M	274.40M	61.60M
Financing Cash Flow	-7.40M	152.90M	-8.00M	-150.60M	-1.00M

Myriad Genetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 4.59 is below the 20-day moving average (MA) of 5.18, below the 50-day MA of 4.84, and below the 200-day MA of 11.48, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 13.56 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
CDNA	67 Neutral	$730.53M	11.39	21.57%	―	25.92%	―
CSTL	64 Neutral	$471.20M	30.59	-1.20%	―	38.43%	86.19%
GRAL	58 Neutral	$1.34B	―	-62.22%	―	30.47%	-26.63%
Sector *	52 Neutral	$7.61B	0.04	-62.94%	2.44%	16.14%	0.33%
FLGT	52 Neutral	$567.16M	―	-3.61%	―	1.71%	76.00%
NEO	51 Neutral	$826.22M	―	-8.57%	―	10.10%	8.79%
MYGN	43 Neutral	$423.09M	―	-13.84%	―	7.38%	60.45%

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.