Veracyte (VCYT) AI Stock Analysis

• Market Cap: $2.84B
• Dividend Yield: N/A
• Average Volume (3M): 783.87K
• Price to Earnings (P/E): 121.3
• Beta (1Y): 1.57
• Revenue Growth: 16.41%
• EPS Growth: N/A
• Country: US
• Employees: 824
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.51
• Shares Outstanding: 78,671,585
• 10 Day Avg. Volume: 707,400
• 30 Day Avg. Volume: 783,865
• PEG Ratio: -0.96
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 6.79
• P/FCF Ratio: 47.47
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 4.87
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 51.15
• 1Y Price Target: $42.17
• Price Target Upside: 16.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $50.00 ▲(38.43% Upside)

Veracyte's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and profitability. However, technical indicators suggest overbought conditions, and the high P/E ratio indicates potential overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profitability Improvement

Improved profitability through higher EBITDA margins enhances financial resilience and supports reinvestment in growth initiatives.

Low Leverage

Low leverage reduces financial risk and increases flexibility for strategic investments and operational stability.

Negative Factors

Cash Flow Management

Decreasing free cash flow may limit the company's ability to fund new projects and manage operational expenses effectively.

Biopharmaceutical Revenue Decline

Declining biopharmaceutical revenue could impact overall revenue diversification and growth potential in this segment.

Competitive Pressures

Emerging technologies pose competitive threats, requiring continuous innovation and evidence generation to maintain market leadership.

Veracyte Business Overview & Revenue Model

Company Description

Veracyte, Inc. is a genomic diagnostics company that focuses on improving patient outcomes through the development and commercialization of diagnostic tests for patients with cancer and other diseases. The company operates primarily in the healthcare sector, offering innovative solutions that enhance the accuracy of diagnoses and help physicians make informed treatment decisions. Veracyte's core products include its proprietary genomic tests, such as the Afirma Genomic Sequencing Classifier for thyroid cancer and the Percepta Genomic Sequencing Classifier for lung cancer, which are designed to reduce unnecessary surgeries and improve patient management.

How the Company Makes Money

Veracyte generates revenue primarily through the sale of its genomic diagnostic tests to hospitals, laboratories, and healthcare providers. The company charges fees for each test processed, which can vary depending on the specific test and the clinical context. Key revenue streams include test volume growth, reimbursement from insurance companies for the tests performed, and direct sales to healthcare organizations. Additionally, Veracyte has established partnerships with various healthcare institutions and payers to facilitate access to its tests and ensure reimbursement, which significantly contributes to its earnings. The company may also engage in research collaborations and licensing agreements that can provide additional revenue opportunities.

Veracyte Financial Statement Overview

Summary

Veracyte demonstrates solid financial health with consistent revenue growth and strong cash flow generation. The company maintains a conservative balance sheet with low leverage, although profitability metrics suggest there is room for improvement. Overall, Veracyte is well-positioned in the biotechnology industry with a stable financial foundation.

Income Statement

Veracyte has shown consistent revenue growth, with a TTM revenue growth rate of 3.34%. The gross profit margin is strong at 67.61%, indicating efficient cost management. However, the net profit margin is relatively low at 6.12%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03, indicating conservative leverage. Return on equity is modest at 2.21%, showing limited profitability relative to shareholder equity. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Veracyte's cash flow position is robust, with a significant free cash flow growth rate of 26.78% in the TTM period. The operating cash flow to net income ratio is strong at 1.50, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.65, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	495.14M	445.76M	361.05M	296.54M	219.51M	117.48M
Gross Profit	337.39M	298.14M	248.15M	194.95M	145.11M	76.03M
EBITDA	47.12M	49.20M	-49.41M	-6.98M	-60.18M	-26.74M
Net Income	30.32M	24.14M	-74.40M	-36.56M	-75.56M	-34.91M
Balance Sheet
Total Assets	1.37B	1.30B	1.11B	1.16B	1.19B	457.16M
Cash, Cash Equivalents and Short-Term Investments	366.43M	289.44M	216.45M	178.85M	177.16M	349.36M
Total Debt	40.45M	50.74M	12.63M	14.72M	18.85M	12.32M
Total Liabilities	110.12M	124.07M	70.80M	81.22M	91.31M	35.93M
Stockholders Equity	1.26B	1.18B	1.04B	1.08B	1.10B	421.23M
Cash Flow
Free Cash Flow	98.21M	63.81M	34.26M	-1.01M	-37.00M	-12.55M
Operating Cash Flow	108.25M	75.10M	44.22M	7.54M	-31.62M	-9.71M
Investing Cash Flow	-57.92M	-56.27M	15.11M	-29.39M	-739.21M	-3.84M
Financing Cash Flow	-8.58M	4.90M	2.84M	3.49M	596.32M	203.59M

Veracyte Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.12
• 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 VCYT, the sentiment is Positive. The current price of 36.12 is below the 20-day moving average (MA) of 38.34, above the 50-day MA of 35.62, and above the 200-day MA of 31.65, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 47.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VCYT.

Veracyte Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCYT	68 Neutral	$2.84B	121.32	2.49%	―	16.41%	―
ARQT	59 Neutral	$3.06B	―	-28.17%	―	129.21%	80.35%
TVTX	54 Neutral	$3.09B	―	-410.78%	―	114.22%	77.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMVT	45 Neutral	$4.16B	―	-95.93%	―	―	-27.70%
CELC	44 Neutral	$4.29B	―	-122.04%	―	―	-40.75%
IRON	43 Neutral	$3.40B	―	-34.78%	―	―	-34.96%

Veracyte Corporate Events

Veracyte Inc. Reports Robust Q3 Earnings Performance

Veracyte Inc. recently held its earnings call, revealing a strong quarter marked by record revenue growth and profitability. The company showcased robust performance from its core testing business, particularly Decipher and Afirma, achieving a significant milestone by reaching its adjusted EBITDA margin target ahead of schedule. Despite these achievements, challenges remain, including declining biopharmaceutical revenue, competitive pressures from new technologies, and a slight decrease in testing ASP.

Veracyte Reports Strong Q3 2025 Financial Performance

Veracyte, Inc., a prominent player in the cancer diagnostics industry, specializes in providing high-value genomic tests that aid clinicians in diagnosing and treating cancer effectively. In its latest earnings report for the third quarter of 2025, Veracyte announced a significant increase in both total and testing revenues, with the latter reaching $127.8 million, marking a 17% rise year-over-year. The company also reported a net income of $19.1 million, reflecting a 26% improvement from the previous year, and an adjusted EBITDA of $39.7 million, showcasing a 45% growth.

Veracyte Inc’s Earnings Call Highlights Robust Growth and Strategic Milestones

Veracyte’s latest earnings call exuded a positive sentiment, marked by robust revenue and volume growth, alongside significant strategic milestones. The company showcased promising future product launches, despite facing some financial challenges such as a decline in product revenue and increased operating expenses. However, these challenges were overshadowed by the positive highlights, setting a hopeful tone for the company’s future.

Veracyte Reports Strong Q2 2025 Revenue Growth

Veracyte, Inc., a prominent player in the cancer diagnostics sector, is dedicated to enhancing cancer care through its innovative genomic tests and bioinformatic capabilities. In its latest earnings report for the second quarter of 2025, Veracyte reported a 14% increase in total revenue, reaching $130.2 million, driven by strong performance in its Decipher and Afirma tests. The company also recorded a significant increase in testing volume, with Decipher achieving a 28% growth. Despite a GAAP net loss of $1.0 million due to a $20.5 million impairment charge, Veracyte’s adjusted EBITDA improved by 49% year-over-year to $35.8 million. The company’s strategic focus on expanding its Decipher test for metastatic cancer patients and the successful restructuring of its French subsidiary are key highlights. Looking ahead, Veracyte has raised its full-year revenue guidance, reflecting confidence in sustained growth, supported by its robust platform and expanding clinical evidence base.