Veracyte (VCYT) AI Stock Analysis

• Market Cap: $2.89B
• Dividend Yield: N/A
• Average Volume (3M): 869.79K
• Price to Earnings (P/E): 110.4
• Beta (1Y): 1.58
• Revenue Growth: 19.91%
• EPS Growth: N/A
• Country: US
• Employees: 824
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.44
• Shares Outstanding: 78,671,585
• 10 Day Avg. Volume: 757,621
• 30 Day Avg. Volume: 869,789
• 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: 0.64
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 31.47
• 1Y Price Target: $38.79
• Price Target Upside: 5.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $40.00 ▲(8.90% Upside)

Veracyte's overall stock score is driven by strong technical indicators and a positive earnings call, highlighting robust revenue growth and strategic product expansions. However, the high P/E ratio suggests overvaluation, and cash flow management issues need addressing.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Veracyte's diagnostic tests and effective market penetration, supporting long-term business expansion.

Market Position

Sustained volume growth in Decipher tests highlights Veracyte's strong market position and competitive advantage in genomic diagnostics.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability, providing Veracyte with flexibility for strategic investments and growth.

Negative Factors

Cash Flow Management

Decreasing free cash flow may indicate challenges in cash management, potentially impacting Veracyte's ability to fund operations and growth initiatives.

Product Revenue Decline

A decline in product revenue suggests potential issues in product demand or pricing strategy, which could affect future profitability and market competitiveness.

Impact of Veracyte SAS Sale

The sale of Veracyte SAS may lead to reduced margins, affecting profitability and possibly limiting reinvestment in R&D and product development.

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's financial health is improving with strong revenue growth and a return to profitability. The balance sheet is robust with low leverage, supporting financial stability. However, cash flow management needs attention due to declining free cash flow.

Income Statement

Veracyte has shown consistent revenue growth with a TTM growth rate of 3.4%, following a strong annual growth of 23.5% in 2024. The company has improved its profitability, achieving a positive net profit margin of 5.5% in TTM, up from a negative margin in previous years. Gross profit margin remains robust at 67.3% TTM. However, EBIT and EBITDA margins, while positive, are relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.041 TTM, indicating minimal leverage and financial risk. The return on equity has improved to 2.2% TTM, reflecting better profitability. The equity ratio is stable, suggesting a solid capital structure. Overall, the company maintains a healthy financial position with low debt levels.

Cash Flow

Cash flow performance shows some challenges, with a decline in free cash flow growth by 29.7% TTM. The operating cash flow to net income ratio is strong at 0.85, indicating good cash generation relative to net income. However, the decrease in free cash flow suggests potential issues in cash management or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	479.13M	445.76M	361.05M	296.54M	219.51M	117.48M
Gross Profit	322.51M	289.55M	248.15M	194.95M	145.11M	76.03M
EBITDA	58.75M	49.20M	-49.41M	-6.98M	-60.18M	-25.77M
Net Income	26.34M	24.14M	-74.40M	-36.56M	-75.56M	-35.85M
Balance Sheet
Total Assets	1.34B	1.30B	1.11B	1.16B	1.19B	457.16M
Cash, Cash Equivalents and Short-Term Investments	320.72M	289.44M	216.45M	178.85M	173.20M	349.36M
Total Debt	50.65M	50.74M	12.63M	14.72M	18.85M	12.32M
Total Liabilities	123.05M	124.07M	70.80M	81.22M	91.31M	35.93M
Stockholders Equity	1.22B	1.18B	1.04B	1.08B	1.10B	421.23M
Cash Flow
Free Cash Flow	55.19M	63.81M	34.26M	-1.01M	-37.00M	-12.55M
Operating Cash Flow	65.21M	75.10M	44.22M	7.54M	-31.62M	-9.71M
Investing Cash Flow	-108.42M	-56.27M	15.11M	-29.39M	-739.21M	-3.84M
Financing Cash Flow	-7.19M	4.90M	2.84M	3.49M	596.32M	203.59M

Veracyte Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 36.73 is above the 20-day moving average (MA) of 35.28, above the 50-day MA of 32.92, and above the 200-day MA of 31.94, indicating a bullish trend. The MACD of 0.90 indicates Positive momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 64.77 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	―	$2.89B	110.40	2.24%	―	19.91%	―
TVTX	―	$2.50B	―	-705.73%	―	87.94%	57.84%
ARQT	―	$2.41B	―	-57.33%	―	99.50%	65.91%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMVT	―	$3.30B	―	-77.58%	―	―	-48.38%
CELC	―	$3.01B	―	-134.54%	―	―	-25.61%
IRON	―	$3.20B	―	-26.36%	―	―	-22.19%

Veracyte Corporate Events

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.