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GeneDx Holdings (WGS)
NASDAQ:WGS
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GeneDx Holdings
(NASDAQ:WGS)
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Rating:69Neutral
Price Target:
$138.00
▲(17.74% Upside)
GeneDx Holdings' overall score is driven by strong financial performance and positive earnings call sentiment, indicating operational improvements and growth potential. However, the high P/E ratio suggests overvaluation, and technical indicators point to overbought conditions, which could limit upside potential.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, reinforcing GeneDx's position in the genomics sector.
Gross Margin Expansion
A strong gross margin reflects efficient cost management and pricing power, enhancing long-term profitability and competitive advantage.
NICU Market Opportunity
The NICU market potential offers a substantial growth avenue, positioning GeneDx to expand its service reach and revenue base in a critical healthcare segment.
Negative Factors
Limited Profitability
Low net profitability suggests challenges in converting revenue into profit, which may affect long-term financial health and shareholder returns.
General Pediatrics Market Challenges
Slow progress in the general pediatrics market could limit immediate growth potential, requiring strategic efforts to capture this segment.
Payer Coverage Limitations
Limited payer coverage restricts access to services, potentially hindering revenue growth and market penetration in key regions.
GeneDx Holdings (WGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.37B
Dividend YieldN/A
Average Volume (3M)572.34K
Price to Earnings (P/E)6267.9
Beta (1Y)1.10
Revenue Growth48.70%
EPS GrowthN/A
CountryUS
Employees1,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding28,726,248
10 Day Avg. Volume453,573
30 Day Avg. Volume572,342
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue7.53
Enterprise Value/Gross Profit11.21
Enterprise Value/Ebitda119.43
Forecast
1Y Price Target
$121.83Price Target Upside3.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
GeneDx Holdings Business Overview & Revenue Model
Company DescriptionGeneDx Holdings (WGS) is a pioneering company in the field of genomics, focused on providing advanced genetic testing and analysis. Operating primarily within the biotechnology and healthcare sectors, GeneDx offers comprehensive genomic services that include whole genome sequencing, exome sequencing, and specialized genetic testing solutions. The company's services are aimed at healthcare providers, researchers, and patients seeking to understand genetic conditions, with the goal of enabling personalized medicine and better clinical outcomes.
How the Company Makes MoneyGeneDx Holdings generates revenue through a diversified model primarily centered around its genetic testing services. The company charges fees for its sequencing services, which are utilized by hospitals, clinics, and research institutions. Its revenue streams include payments from healthcare providers who order genetic tests for their patients, as well as research collaborations with pharmaceutical companies and academic institutions. Additionally, GeneDx may receive funding from partnerships aimed at developing new genomic technologies and solutions. The company benefits from the growing demand for precision medicine, which drives the need for accurate and comprehensive genetic testing, further contributing to its financial performance.
GeneDx Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant revenue growth, record high margins, and successful integration into new markets like NICU. However, challenges remain in expanding into the general pediatrics market and gaining broader payer coverage.Q2-2025 Updates
Positive Updates
Record Revenue Achievement
GeneDx achieved over $100 million in revenue for the first time in a single quarter, with second quarter revenues of $102.7 million, a 49% increase year-over-year.
Exome and Genome Revenue Surge
Revenue from exome and genome testing reached a record high of $85.9 million, up 69% from the same quarter last year.
Strong Gross Margin
The company expanded its adjusted gross margin to a record high of 71%, driven by a favorable mix shift, improved reimbursement, and lower costs.
Pediatric Neurologist Market Success
Pediatric neurologists made up a majority of new ordering providers, capturing nearly 1/3 of the target clinicians in this segment.
NICU Market Opportunity
The NICU represents a $1 billion market opportunity, with 42 out of 50 top NICUs having ordered testing from GeneDx this year.
Guidance Increase
Raised full-year revenue guidance to between $400 million and $415 million, with an expectation of at least 30% year-over-year volume growth.
Negative Updates
General Pediatrics Market Challenges
While the general pediatrics market represents a significant future opportunity, contribution to this year is expected to be minimal as the company focuses on building awareness and adoption.
Dependency on Pediatric Neurologists
A significant portion of Q2 volume growth was still reliant on existing pediatric neurologists, indicating a need to expand into new indications and markets.
Payer Coverage Limitations
While progress has been made, challenges remain in expanding Medicaid coverage, with only 35 states covering exome and genome testing on an outpatient basis.
Company Guidance
During GeneDx's second quarter 2025 earnings call, the company provided updated guidance, highlighting a strong performance with record revenues of $102.7 million, marking a 49% increase year-over-year. The exome and genome segment contributed $85.9 million, up 69% from the previous year. The average reimbursement rate for these tests was over $3,700, an increase from $3,400 last quarter. GeneDx raised its full-year 2025 revenue guidance to between $400 million and $415 million, with expectations for exome and genome revenue growth of 48% to 52%. They also reaffirmed a full-year adjusted gross margin guidance of 68% to 71% and a commitment to remain profitable each quarter. The company emphasized its expanding market share, particularly in pediatric neurology, and the promising potential in the NICU and general pediatrics markets, bolstered by new American Academy of Pediatrics guidelines.GeneDx Holdings Financial Statement Overview
Summary
GeneDx Holdings shows positive revenue growth and operational improvements, with a strong gross profit margin and positive free cash flow. However, limited profitability and historical cash flow challenges remain concerns.Income Statement
GeneDx Holdings shows positive revenue growth with a significant increase in total revenue from previous years. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is strong at 67.2%, reflecting efficient management of production costs. However, the Net Profit Margin is modest at 0.39%, indicating limited profitability. The company turned its EBIT and EBITDA positive, signaling potential operational improvements.72
Positive
Balance Sheet
The company maintains a reasonable Debt-to-Equity Ratio of 0.23, showcasing a conservative leverage approach. A robust Equity Ratio of 59.74% suggests strong capital structure stability. The Return on Equity (ROE) is low at 0.51%, reflecting limited returns on shareholders' equity.65
Positive
Cash Flow
GeneDx Holdings achieved positive Free Cash Flow in the TTM, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is strong at 17.17, highlighting efficient cash operations compared to net income. However, historical challenges in maintaining positive cash flows remain a concern.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 362.32M | 305.45M | 202.57M | 234.69M | 212.19M | 179.32M |
| Gross Profit | 243.41M | 194.40M | 60.62M | -26.75M | -16.60M | 4.03M |
| EBITDA | 22.84M | -27.64M | -136.46M | -398.20M | -219.19M | -224.73M |
| Net Income | 1.41M | -52.29M | -175.77M | -548.98M | -245.39M | -241.34M |
Balance Sheet | ||||||
| Total Assets | 463.86M | 419.38M | 473.67M | 490.94M | 554.09M | 251.64M |
| Cash, Cash Equivalents and Short-Term Investments | 134.56M | 141.19M | 130.15M | 123.93M | 400.57M | 108.13M |
| Total Debt | 62.70M | 116.17M | 119.77M | 77.13M | 11.00M | 45.02M |
| Total Liabilities | 186.73M | 174.13M | 245.66M | 237.24M | 165.99M | 581.69M |
| Stockholders Equity | 277.13M | 245.25M | 228.02M | 253.71M | 388.10M | -330.05M |
Cash Flow | ||||||
| Free Cash Flow | 5.81M | -33.99M | -185.86M | -333.48M | -211.22M | -125.10M |
| Operating Cash Flow | 24.13M | -28.50M | -180.15M | -319.15M | -190.43M | -93.13M |
| Investing Cash Flow | -54.03M | -30.13M | -43.73M | -141.33M | -20.79M | -31.97M |
| Financing Cash Flow | 59.05M | 44.16M | 186.24M | 197.31M | 493.73M | 129.06M |
GeneDx Holdings Technical Analysis
Positive
117.21
Price Trends
114.44
Positive
94.28
Positive
90.22
Positive
Market Momentum
0.40
Positive
45.21
Neutral
16.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGS, the sentiment is Positive. The current price of 117.21 is below the 20-day moving average (MA) of 125.17, above the 50-day MA of 114.44, and above the 200-day MA of 90.22, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 16.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WGS.
GeneDx Holdings Risk Analysis
GeneDx Holdings disclosed 75 risk factors in its most recent earnings report. GeneDx Holdings 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
GeneDx Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.85B | 36.43 | 10.31% | ― | 9.62% | -6.61% | |
69 Neutral | $3.37B | 6,267.91 | 0.60% | ― | 48.70% | ― | |
66 Neutral | $1.40B | 43.53 | 6.67% | ― | 3.20% | ― | |
52 Neutral | $567.08M | -1.50 | -74.11% | ― | -5.24% | 23.59% | |
51 Neutral | $279.10M | -3.76 | -95.70% | ― | 7.31% | -7.49% | |
50 Neutral | $1.42B | -7.78 | -52.89% | ― | 18.59% | 10.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WGS
GeneDx Holdings
117.21
74.77
176.18%
EVH
Evolent Health
8.95
-19.33
-68.35%
TXG
10x Genomics
11.72
-10.86
-48.10%
CERT
Certara
11.80
0.09
0.77%
SOPH
SOPHiA GENETICS
4.13
0.48
13.15%
BTSG
BrightSpring Health Services, Inc.
27.39
12.71
86.58%
GeneDx Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
GeneDx Holdings Approves Key Proposals at Annual Meeting
Neutral
Jun 18, 2025
On June 18, 2025, GeneDx Holdings Corp. held its Annual Meeting of Stockholders, where key proposals were voted on and approved. The stockholders elected two Class I directors, Eli D. Casdin and Joshua Ruch, to serve three-year terms, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
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.