Myriad Genetics (MYGN) AI Stock Analysis

• Market Cap: $509.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 7.38%
• EPS Growth: 60.45%
• Country: US
• Employees: 2,700
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.03
• Shares Outstanding: 92,177,380
• 10 Day Avg. Volume: 1,611,868
• 30 Day Avg. Volume: 1,931,690
• PEG Ratio: -0.22
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.00
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: -2.04
• 1Y Price Target: $8.64
• Price Target Upside: 53.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 45 Neutral
• Price Target: $5.00 ▼(-11.19%Downside)

The most significant factor impacting Myriad Genetics' stock score is its weak financial performance, with declining revenues and persistent losses. Technical analysis indicates a bearish trend, which further pressures the stock. The valuation is notably poor, with a negative P/E ratio and no dividend yield. The earnings call outlined some growth areas but revised guidance downwards, highlighting ongoing challenges.

Positive Factors

Leadership

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

Market Position

MYGN still has a leading position and high margins in markets that are consolidating around a profitability paradigm.

Product Development

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 competition in MYGN's end markets and continued price compression on the GeneSight franchise led to a downgrade from BUY to NEUTRAL.

Market Uncertainty

The strategic review by new management suggests significant uncertainty as it is expected to take several months, and the updated guidance might not be fully de-risked.

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., a genetic testing and precision medicine company, develops and commercializes genetic tests in the United States and internationally. The company offers molecular diagnostic tests for use in oncology, and women's and mental health applications. It provides MyRisk Hereditary Cancer Test, a DNA sequencing test for assessing the risks for hereditary cancers; BRACAnalysis CDx Germline Companion Diagnostic Test, a DNA sequencing test to help determine the therapy for patients with metastatic breast, ovarian, metastatic pancreatic, or metastatic prostate cancer with deleterious or suspected deleterious germline BRCA variants; and MyChoice CDx Companion Diagnostic Test, a tumor test that determines homologous recombination deficiency status in patients with ovarian cancer. The company also offers Prolaris Prostate Cancer Prognostic Test, a RNA expression tumor analysis for assessing the aggressiveness of prostate cancer; EndoPredict Breast Cancer Prognostic Test, a RNA expression test for assessing the aggressiveness of breast cancer; Precise Tumor, a solution for precision oncology; and Prequel Prenatal Screen, a non-invasive prenatal screening test conducted using maternal blood to screen for severe chromosomal disorders in a fetus. In addition, it provides Foresight Carrier Screen, a prenatal test for future parents to assess their risk of passing on a recessive genetic condition to their offspring; and GeneSight Psychotropic Mental Health Medication Test, a DNA genotyping test to aid psychotropic drug selection for patients suffering from depression, anxiety, ADHD, and other mental health conditions. Myriad Genetics, Inc. has a strategic collaboration with Illumina, Inc. and Intermountain Precision Genomics for an offering of germline and somatic tumor testing services. The company was founded in 1991 and is headquartered in Salt Lake City, Utah.

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

Myriad Genetics faces significant challenges with declining revenues and persistent losses impacting profitability and cash flow. The income statement shows a decline in revenue, negative EBIT and EBITDA margins, and a negative net income. The balance sheet reflects a moderate debt-to-equity ratio and a strong equity position, but negative return on equity. Cash flow analysis reveals negative operating and free cash flow, indicating challenges in funding operations without external financing.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	831.30M	837.60M	753.20M	678.40M	690.60M	557.00M
Gross Profit	582.00M	585.40M	517.00M	476.40M	493.00M	378.80M
EBITDA	-61.20M	-59.50M	-186.10M	-67.80M	14.10M	-123.40M
Net Income	-101.40M	-127.30M	-263.30M	-112.00M	-27.20M	-223.70M
Balance Sheet
Total Assets	1.01B	1.03B	1.15B	1.20B	1.32B	1.42B
Cash, Cash Equivalents and Short-Term Investments	91.80M	102.40M	140.90M	114.90M	339.80M	150.70M
Total Debt	157.60M	140.30M	152.10M	145.00M	92.30M	0.00
Total Liabilities	301.20M	326.50M	363.30M	312.90M	352.90M	537.80M
Stockholders Equity	704.90M	701.10M	783.20M	885.80M	967.80M	881.00M
Cash Flow
Free Cash Flow	-35.80M	-38.40M	-184.20M	-151.60M	600.00K	-40.10M
Operating Cash Flow	-6.40M	-8.70M	-110.90M	-106.30M	18.60M	-26.90M
Investing Cash Flow	-13.10M	-11.90M	31.90M	-77.50M	274.40M	61.60M
Financing Cash Flow	15.00M	-7.40M	152.90M	-8.00M	-150.60M	-1.00M

Myriad Genetics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.63
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYGN, the sentiment is Neutral. The current price of 5.63 is above the 20-day moving average (MA) of 5.15, above the 50-day MA of 5.28, and below the 200-day MA of 13.04, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MYGN.

Myriad Genetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDNA	74 Outperform	$1.05B	16.36	21.57%	―	25.92%	―
CSTL	73 Outperform	$587.26M	30.59	-1.20%	―	38.43%	86.19%
GRAL	70 Neutral	$1.77B	―	-62.22%	―	30.47%	-26.63%
Sector *	54 Neutral	€4.84B	18.34	-49.50%	1.94%	13.92%	-4.82%
FLGT	52 Neutral	$606.13M	―	-3.61%	―	1.71%	76.00%
NEO	51 Neutral	$953.63M	―	-8.57%	―	10.10%	8.79%
MYGN	45 Neutral	$509.74M	―	-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.