GeneDx Holdings (WGS) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: N/A
• Average Volume (3M): 863.70K
• Price to Earnings (P/E): 6583.4
• Beta (1Y): 1.30
• Revenue Growth: 48.70%
• EPS Growth: N/A
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.50
• Shares Outstanding: 28,726,248
• 10 Day Avg. Volume: 969,151
• 30 Day Avg. Volume: 863,702
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 7.53
• Enterprise Value/Gross Profit: 11.21
• Enterprise Value/Ebitda: 191.71
• 1Y Price Target: $114.14
• Price Target Upside: -7.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $112.00 ▼(-9.02% Downside)

GeneDx Holdings' overall score is driven by strong financial recovery and positive earnings call highlights. However, concerns about high valuation and an overbought technical status weigh on the score.

Positive Factors

Earnings

Test volume beat expectations, price was significantly ahead of forecasts, and EBIT margins exceeded predictions for WGS.

Guidelines and Recommendations

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

Market Opportunity

The '25 outlook now calls for substantial revenue growth in a market that is still largely untapped, making an attractive investment case.

Product Launch

The ultra-rapid genome was launched, offering a fast turnaround time and competitive pricing, which may help take volumes from smaller competitors.

Negative Factors

Stock Performance

While Q1 exome/genome revenue grew 62% Y/Y, the stock sold off by more than 50% due to perceived sequential slowdown.

Volume Forecast

Lowering volume estimates for Q2 and Q3 by 1% due to caution after a volume miss in Q1.

GeneDx Holdings Business Overview & Revenue Model

Company Description

GeneDx Holdings Corp. is a patient centered health intelligence company. It engages in transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health and defining optimal, individualized health trajectories. The firm, through its Centrellis health intelligence platform, generates a more complete understanding of disease and wellness and provides science-driven solutions to the most pressing medical needs. The company was founded by Eric Schadt in October 2015 and is headquartered in Stamford, CT.

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 is in a growth phase with increasing revenues but continues to face profitability challenges. The balance sheet strength is a positive aspect, with low leverage and a solid equity base. However, negative net income and cash flow figures point to financial vulnerabilities that need addressing. The company must focus on achieving operational efficiency and cash flow management to enhance financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	305.45M	202.57M	234.69M	212.19M	179.32M
Gross Profit	194.40M	60.62M	-26.75M	-16.60M	4.03M
EBITDA	-27.64M	-136.46M	-398.20M	-219.19M	-224.73M
Net Income	-52.29M	-175.77M	-548.98M	-245.39M	-246.44M
Balance Sheet
Total Assets	419.38M	473.67M	490.94M	554.09M	251.64M
Cash, Cash Equivalents and Short-Term Investments	141.19M	130.15M	123.93M	400.57M	108.13M
Total Debt	116.17M	119.77M	72.38M	32.85M	45.02M
Total Liabilities	174.13M	245.66M	237.24M	165.99M	581.69M
Stockholders Equity	245.25M	228.02M	253.71M	388.10M	-330.05M
Cash Flow
Free Cash Flow	-33.99M	-185.86M	-333.48M	-211.22M	-125.10M
Operating Cash Flow	-28.50M	-180.15M	-319.15M	-190.43M	-93.13M
Investing Cash Flow	-30.13M	-43.73M	-141.33M	-20.79M	-31.97M
Financing Cash Flow	44.16M	186.24M	197.31M	493.73M	129.06M

GeneDx Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 123.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 123.11 is above the 20-day moving average (MA) of 96.38, above the 50-day MA of 86.01, and above the 200-day MA of 82.44, indicating a bullish trend. The MACD of 8.85 indicates Negative momentum. The RSI at 79.41 is Negative, neither overbought nor oversold. The STOCH value of 97.85 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	76 Outperform	$1.87B	39.15	10.94%	―	9.62%	-6.61%
WGS	66 Neutral	$3.34B	6,583.42	0.60%	―	48.70%	―
GDRX	60 Neutral	$1.22B	38.36	5.27%	―	3.20%	―
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%
SDGR	50 Neutral	$1.38B	―	-44.40%	―	18.59%	10.96%
SOPH	50 Neutral	$209.85M	―	-74.09%	―	7.31%	-7.49%
DH	50 Neutral	$512.22M	―	-64.27%	―	-5.24%	23.59%

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.