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Myriad Genetics (MYGN)
NASDAQ:MYGN
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Myriad Genetics (MYGN) AI Stock Analysis

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MYGN

Myriad Genetics

(NASDAQ:MYGN)

Rating:43Neutral
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 (MYGN) vs. SPDR S&P 500 ETF (SPY)

Myriad Genetics Business Overview & Revenue Model

Company DescriptionMyriad 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 MoneyMyriad 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 Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -36.86%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Negative
The earnings call highlighted challenges with revenue decline and specific issues with GeneSight and hereditary cancer testing. However, some positive aspects included growth in prenatal testing and progress in the product pipeline. The company's guidance was revised downwards, indicating significant challenges ahead.
Q1-2025 Updates
Positive Updates
Prenatal Testing Growth
Prenatal testing was a highlight in the quarter with revenue growth of 11% year-over-year, and 15% excluding SneakPeak, driven by strong demand for ForeSight and Prequel tests.
Oncology Test Volume Growth
Continued strong demand for the myRisk test for cancer patients, with test volume growth of 11% year-over-year.
Product Pipeline Progress
The company is on track to launch its first gene combined carrier screening and NIPS assay within the next couple of months, and the first AI-enabled Prolaris test by the end of the year.
Gross Margin Improvement
Despite the revenue decline, gross margins expanded by 50 basis points, delivering a 69% gross margin due to lab efficiencies.
Negative Updates
Revenue Decline
Total revenue declined 3% year-over-year, with significant underperformance in GeneSight and myRisk testing for unaffected patients in the women's health channel.
GeneSight Revenue Impact
GeneSight revenue was down 20% year-over-year due to the UnitedHealthcare coverage policy change and reduced commercial resources.
Updated Financial Guidance
2025 annual revenue guidance was lowered by $35 million from the prior midpoint, and OpEx was reduced by $25 million from the prior midpoint.
Hereditary Cancer Testing Challenges
Hereditary cancer revenue was down 2% for the quarter, impacted by slower-than-expected EMR integrations and lower-than-expected ramp in testing volume.
Company Guidance
During the Myriad Genetics First Quarter 2025 earnings call, the company updated its 2025 financial guidance due to various challenges, including a decline in GeneSight test volumes and a softer than expected ramp in unaffected hereditary cancer testing. Myriad now projects annual revenue between $807 million and $823 million, down $35 million from the prior midpoint, and adjusted operating expenses between $555 million and $565 million, reduced by $25 million from the prior midpoint. Despite these challenges, Myriad reported strong performance in its prenatal testing, with a revenue growth of 11% year-over-year, and the company plans to launch new products such as the combined carrier screening and NIPS assay, PRECISE MRD, and AI-enabled Prolaris to drive future growth.

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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue837.60M753.20M678.40M690.60M557.00M
Gross Profit585.40M517.00M476.40M493.00M378.80M
EBITDA-59.50M-186.10M-67.80M14.10M-123.40M
Net Income-127.30M-263.30M-112.00M-27.20M-223.70M
Balance Sheet
Total Assets1.03B1.15B1.20B1.32B1.42B
Cash, Cash Equivalents and Short-Term Investments102.40M140.90M114.90M339.80M150.70M
Total Debt140.30M152.10M145.00M92.30M0.00
Total Liabilities326.50M363.30M312.90M352.90M537.80M
Stockholders Equity701.10M783.20M885.80M967.80M881.00M
Cash Flow
Free Cash Flow-38.40M-184.20M-151.60M600.00K-40.10M
Operating Cash Flow-8.70M-110.90M-106.30M18.60M-26.90M
Investing Cash Flow-11.90M31.90M-77.50M274.40M61.60M
Financing Cash Flow-7.40M152.90M-8.00M-150.60M-1.00M

Myriad Genetics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.59
Price Trends
50DMA
4.84
Negative
100DMA
6.67
Negative
200DMA
11.48
Negative
Market Momentum
MACD
-0.15
Positive
RSI
42.59
Neutral
STOCH
13.56
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 Risk Analysis

Myriad Genetics disclosed 50 risk factors in its most recent earnings report. Myriad Genetics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Myriad Genetics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$730.53M11.3921.57%25.92%
64
Neutral
$471.20M30.59-1.20%38.43%86.19%
58
Neutral
$1.34B-62.22%30.47%-26.63%
52
Neutral
$7.61B0.04-62.94%2.44%16.14%0.33%
52
Neutral
$567.16M-3.61%1.71%76.00%
51
Neutral
$826.22M-8.57%10.10%8.79%
43
Neutral
$423.09M-13.84%7.38%60.45%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MYGN
Myriad Genetics
4.74
-23.11
-82.98%
NEO
NeoGenomics
6.61
-8.47
-56.17%
CDNA
CareDx
13.12
-5.75
-30.47%
FLGT
Fulgent Genetics
18.88
-4.11
-17.88%
CSTL
Castle Biosciences
16.80
-2.51
-13.00%
GRAL
GRAIL Inc
40.88
25.04
158.08%

Myriad Genetics Corporate Events

Legal ProceedingsBusiness Operations and Strategy
Myriad Genetics Settles Shareholder Lawsuits with Reforms
Neutral
Nov 26, 2024

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025