QuidelOrtho (QDEL) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -3.43%
• EPS Growth: 38.98%
• Country: US
• Employees: 6,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.80
• Shares Outstanding: 67,931,540
• 10 Day Avg. Volume: 1,005,176
• 30 Day Avg. Volume: 1,176,631
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.06
• P/FCF Ratio: -26.38
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: -9.02
• 1Y Price Target: $27.75
• Price Target Upside: -2.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.08
• Revenue Forecast (FY): $2.71B

• Rating: 54 Neutral
• Price Target: $28.00 ▼(-2.06% Downside)

QuidelOrtho's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most critical factors. While technical indicators and corporate events show some positive signs, the negative valuation metrics and financial instability weigh heavily on the stock's attractiveness.

Positive Factors

Organic Sales Growth

The 5% organic sales growth indicates a robust demand for QuidelOrtho's core products, suggesting a strong market position and potential for sustained revenue expansion.

Cost Savings Achievements

Significant cost savings and improved EBITDA margins demonstrate effective operational management, enhancing long-term profitability and financial health.

FDA Clearance of New Assay

The FDA clearance of the new assay strengthens QuidelOrtho's product portfolio, potentially increasing market share in cardiac diagnostics and driving future growth.

Negative Factors

Decline in COVID and Donor Screening Revenue

Declining COVID and donor screening revenues highlight vulnerability to pandemic-related demand shifts, impacting overall revenue stability.

Negative Cash Flow

Negative cash flow due to system conversion indicates potential liquidity challenges, affecting the company's ability to invest in growth and innovation.

Goodwill Impairment Charge

The substantial goodwill impairment suggests previous overvaluation of acquisitions, impacting balance sheet strength and investor confidence.

QuidelOrtho Business Overview & Revenue Model

Company Description

QuidelOrtho Corporation focuses on the development and manufacture of diagnostic testing technologies across the continuum of healthcare testing needs. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; and analyzers and amplification systems. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was founded in 1979 and is headquartered in San Diego, California.

How the Company Makes Money

QuidelOrtho generates revenue through multiple key streams, primarily from the sale of its diagnostic products, including rapid tests and laboratory systems. The company's revenue model is built on a combination of direct product sales, recurring revenue from test kits and assays, and partnerships with healthcare providers and distributors. QuidelOrtho also benefits from long-term contracts with hospitals and clinics, which provide a stable income base. Collaborations with research institutions and healthcare organizations further enhance its earnings potential, enabling the development of novel diagnostic solutions and expanding its market reach. Additionally, government contracts, particularly during public health emergencies, can significantly boost revenue through increased demand for diagnostic testing.

QuidelOrtho Financial Statement Overview

Summary

QuidelOrtho is experiencing financial difficulties, with declining revenue, profitability, and cash flow. The company faces significant challenges in reversing these trends, as evidenced by negative margins and cash flow metrics. While the balance sheet shows moderate leverage, the negative return on equity and cash flow issues pose risks to financial stability.

Income Statement

QuidelOrtho's income statement shows significant challenges with declining revenue and profitability. The TTM data reveals a negative net profit margin of -43.43% and a gross profit margin of 57.07%. The company has faced a substantial revenue decline of 99.2% in the TTM period. Historical data shows a consistent decline in revenue growth and profitability margins, indicating financial instability.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.16 in the TTM period, indicating manageable leverage. However, the return on equity is negative, at -43.64%, suggesting inefficiencies in generating returns from equity. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures.

Cash Flow

Cash flow analysis indicates significant challenges, with a negative free cash flow growth rate of -134.71% in the TTM period. The operating cash flow to net income ratio is low at 0.048, and the free cash flow to net income ratio is negative, highlighting cash flow constraints and potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.72B	2.78B	3.00B	3.27B	1.70B	1.66B
Gross Profit	1.55B	1.29B	1.49B	1.94B	1.28B	1.35B
EBITDA	-518.20M	-1.49B	607.00M	1.09B	953.30M	1.10B
Net Income	-1.18B	-2.05B	-10.10M	548.70M	704.20M	810.29M
Balance Sheet
Total Assets	5.68B	6.42B	8.56B	8.86B	2.43B	1.87B
Cash, Cash Equivalents and Short-Term Investments	98.10M	98.30M	167.30M	345.00M	828.50M	489.94M
Total Debt	2.84B	2.68B	2.61B	2.85B	139.30M	108.50M
Total Liabilities	3.64B	3.44B	3.56B	3.92B	501.00M	538.46M
Stockholders Equity	2.04B	2.98B	5.01B	4.93B	1.93B	1.33B
Cash Flow
Free Cash Flow	-42.80M	-112.10M	70.90M	744.40M	513.14M	564.84M
Operating Cash Flow	37.00M	83.00M	280.20M	885.30M	805.87M	629.76M
Investing Cash Flow	-181.00M	-149.90M	-187.60M	-1.64B	-319.53M	-63.32M
Financing Cash Flow	98.00M	48.80M	-265.80M	252.00M	-173.18M	-130.28M

QuidelOrtho Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QDEL, the sentiment is Positive. The current price of 28.59 is above the 20-day moving average (MA) of 28.20, above the 50-day MA of 26.59, and above the 200-day MA of 28.53, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 53.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QDEL.

QuidelOrtho Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLX	76 Outperform	$16.71B	30.15	11.12%	―	1.74%	-25.29%
HAE	70 Outperform	$3.76B	23.44	19.47%	―	-2.45%	41.50%
QDEL	54 Neutral	$2.03B	-1.68	-44.21%	―	-3.43%	38.98%
MASI	54 Neutral	$7.36B	-12.62	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
STAA	46 Neutral	$1.20B	-12.23	-24.65%	―	-32.42%	-540.37%
BAX	45 Neutral	$9.76B	-36.31	-4.70%	2.75%	-21.20%	-325.40%

QuidelOrtho Corporate Events

QuidelOrtho Reports Strong Q3 2025 Financial Results

QuidelOrtho Corporation reported its third-quarter 2025 financial results, highlighting significant improvements in operational performance and cost savings of over $140 million since early 2024. The company achieved a 180 basis point increase in adjusted EBITDA margin to 25% and a 7% reduction in non-GAAP operating expenses year-over-year. Revenue for the quarter reached $700 million, with a 5% growth excluding COVID-19 and Donor Screening. The company also announced the FDA clearance of its VITROS High Sensitivity Troponin assay, enhancing its cardiac testing capabilities. Additionally, QuidelOrtho completed debt refinancing to improve financial flexibility and continued its site consolidation plan, expecting $20 million in annual savings. Despite macroeconomic pressures, the company remains on track to achieve its 2025 financial goals, with a strong outlook for profitability and growth.