GeneDx Holdings (WGS) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: N/A
• Average Volume (3M): 901.93K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 1.52
• Revenue Growth: 48.81%
• EPS Growth: 72.54%
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.28
• Shares Outstanding: 28,533,203
• 10 Day Avg. Volume: 1,208,703
• 30 Day Avg. Volume: 901,930
• PEG Ratio: <0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.27
• Enterprise Value/Market Cap: 0.01
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.18
• Enterprise Value/Ebitda: -0.20
• 1Y Price Target: $99.50
• Price Target Upside: 9.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $98.00 ▲(7.57%Upside)

GeneDx Holdings benefits from strong revenue growth and strategic advancements, as seen in the earnings call. However, ongoing profitability challenges and high P/E ratio concerns weigh on the score.

Positive Factors

Competitive Advantage

The company has a notable competitive advantage due to its extensive genotypic and phenotypic data, driving enhanced diagnostic yields.

Financial Performance

March rebounded strongly and exceeded management expectations, with April tracking in line with expectations and a seasonally stronger Q2 anticipated.

Market Opportunity

New guidelines from the AAP now recommend exome/genome as a first-line test for kids with development delay & intellectual disability, opening a big opportunity for WGS to access general pediatricians.

Negative Factors

Competitive Threats

Growing competitive threats are challenging GeneDx's market position, despite claims of a strong moat based on their database and diagnostic yields.

Insider Activity

Recent insider selling by the CEO and CFO has raised concerns about the optics of selling during a period of poor performance.

Internal Challenges

Investors are concerned about a lack of clarity on internal volume expectations and the timing or cause of the first quarter miss.

GeneDx Holdings Business Overview & Revenue Model

Company Description

GeneDx 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 Money

GeneDx 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 Financial Statement Overview

Summary

GeneDx Holdings shows revenue growth and solid balance sheet metrics, but profitability issues persist with negative cash flow and net income margins.

Income Statement

GeneDx Holdings has shown a positive revenue growth trend, with a TTM revenue increase to $330.1 million compared to $305.5 million in the previous year. Despite this growth, the company remains unprofitable, as evidenced by negative EBIT and net income margins. The gross profit margin improved to 63.9% TTM, signaling better cost management. However, persistent net losses and negative EBIT margins indicate ongoing operational challenges.

Balance Sheet

The balance sheet shows a stable equity position with stockholders' equity at $257.4 million. The debt-to-equity ratio improved to 0.24 TTM, reflecting a manageable leverage level. Moreover, the equity ratio of 57.7% indicates a strong capital structure. However, the company has struggled with profitability, as seen from the negative return on equity, which poses a risk to financial stability if losses continue.

Cash Flow

GeneDx Holdings reports negative free cash flow and operating cash flow, reflecting cash management challenges. Despite a significant improvement in free cash flow growth from the previous year, the company still faces hurdles in generating positive cash flow. The operating cash flow to net income ratio improved slightly TTM, yet remains negative, underscoring ongoing operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	330.14M	305.45M	202.57M	234.69M	212.19M	179.32M
Gross Profit	211.05M	194.40M	60.62M	-26.75M	-16.60M	4.03M
EBITDA	-20.55M	-23.21M	-136.46M	-398.20M	-219.19M	-224.73M
Net Income	-38.58M	-52.29M	-175.77M	-548.98M	-245.39M	-246.44M
Balance Sheet
Total Assets	446.43M	419.38M	473.67M	490.94M	554.09M	251.64M
Cash, Cash Equivalents and Short-Term Investments	159.16M	141.19M	130.15M	123.93M	400.57M	108.13M
Total Debt	114.84M	116.17M	119.77M	72.38M	32.85M	45.02M
Total Liabilities	189.03M	174.13M	245.66M	237.24M	165.99M	581.69M
Stockholders Equity	257.40M	245.25M	228.02M	253.71M	388.10M	-330.05M
Cash Flow
Free Cash Flow	-13.08M	-33.99M	-185.86M	-333.48M	-211.22M	-125.10M
Operating Cash Flow	-1.90M	-28.50M	-180.15M	-319.15M	-190.43M	-93.13M
Investing Cash Flow	-40.38M	-30.13M	-43.73M	-141.33M	-20.79M	-31.97M
Financing Cash Flow	58.32M	44.16M	186.24M	197.31M	493.73M	129.06M

GeneDx Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 91.1 is above the 20-day moving average (MA) of 74.93, above the 50-day MA of 75.57, and above the 200-day MA of 75.45, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 68.94 is Neutral, neither overbought nor oversold. The STOCH value of 85.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WGS.

GeneDx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	74 Outperform	$1.88B	38.83	10.11%	―	9.47%	-7.81%
GDRX	68 Neutral	$1.75B	67.03	4.43%	―	4.35%	―
WGS	65 Neutral	$2.60B	38.75	-16.61%	―	48.81%	72.54%
SDGR	59 Neutral	$1.51B	―	-43.33%	―	22.29%	-32.89%
DH	57 Neutral	$557.55M	―	-86.36%	―	-3.04%	-152.59%
SOPH	56 Neutral	$206.51M	―	-60.75%	―	4.66%	11.33%
Sector *	51 Neutral	$7.44B	0.40	-61.90%	2.33%	17.14%	1.55%

GeneDx Holdings Corporate Events

GeneDx Holdings Approves Key Proposals at Annual Meeting

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.

The most recent analyst rating on (WGS) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on GeneDx Holdings stock, see the WGS Stock Forecast page.

GeneDx Holdings Acquires Fabric Genomics for $33 Million

On April 15, 2025, GeneDx Holdings Corp. announced an agreement to acquire Fabric Genomics for approximately $33 million, with potential additional payments based on future performance milestones. This acquisition aims to enhance GeneDx’s capabilities in decentralized genomic testing and AI-powered interpretation, expanding its market reach and improving the speed and accuracy of genetic disorder diagnoses. The merger is expected to close in the second quarter of 2025, subject to closing conditions, and will allow GeneDx to leverage Fabric Genomics’ AI platform to provide more scalable and impactful genomic interpretation services globally.