EXASEXAS
US • —
$0.00
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+17.7% YoY
Gross Margin
69.7%
Health Score
4/10
D/E Ratio
0.97
Confidence
LOW
Business Snapshot
Exact Sciences is a molecular diagnostics company focused on cancer screening and precision oncology, with its flagship product being the Cologuard stool-based DNA test for colorectal cancer. The company operates in the multi-billion dollar cancer diagnostics market, competing with traditional colonoscopy-based screening and emerging liquid biopsy players. With a market cap that cannot be calculated from available data, the company is likely in the small-to-mid-cap tier. The company is unprofitable on a net income basis and generates negative margins, characteristic of a high-growth diagnostics business still investing heavily in commercialization and R&D. A key defining characteristic is its first-mover advantage in non-invasive colorectal cancer screening with FDA-approved Cologuard, though it faces increasing competition from blood-based alternatives.
Financial Health
Exact Sciences reports a gross margin of 69.7%, indicating strong pricing power and a scalable product cost structure, but this is offset by a net margin of -6.4%, meaning the company loses money on every dollar of revenue after operating expenses. The balance sheet shows a debt/equity ratio of 0.97x, reflecting significant leverage but not at a distressed level, while the current ratio of 2.43x provides adequate short-term liquidity to cover near-term obligations...
Risk Assessment
- VALUATION — Price/Sales of 6.17x and EV/EBITDA of 75.98x are extremely high multiples for a company with negative net margins and no earnings, leaving no valuation safety margin.
- EARNINGS QUALITY — Only 1 of the last 4 quarters beat analyst estimates, indicating that management guidance has poor credibility and results frequently disappoint.
- DEBT / LIQUIDITY — Debt/equity of 0.97x is high for a company with negative return on equity and no operating profitability, increasing financial risk.
- FCF / CASH BURN — Free cash flow data is unavailable, preventing a direct assessment of cash burn, but negative net income of -6.4% suggests the company is likely consuming cash on operations.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- PROFITABILITY — Net margin of -6.4% and negative return on equity of -8.5% confirm the company is destroying value at the operating level, with no clear path to profitability in the near term....
Exact Sciences reports a gross margin of 69.7%, indicating strong pricing power and a scalable product cost structure, but this is offset by a net margin of -6.4%, meaning the company loses money on every dollar of revenue after operating expenses. The balance sheet shows a debt/equity ratio of 0.97x, reflecting significant leverage but not at a distressed level, while the current ratio of 2.43x provides adequate short-term liquidity to cover near-term obligations. Free cash flow data is unavailable, preventing an assessment of whether the company is self-funding or burning cash through operations. Return on equity is negative at -8.5%, confirming that the company is currently eroding shareholder equity rather than generating returns on it. Overall, the company has a reasonable balance sheet for an unprofitable growth-stage business but lacks the profitability or cash generation profile to support dividends or aggressive reinvestment without potential future dilution.
- VALUATION — Price/Sales of 6.17x and EV/EBITDA of 75.98x are extremely high multiples for a company with negative net margins and no earnings, leaving no valuation safety margin. - EARNINGS QUALITY — Only 1 of the last 4 quarters beat analyst estimates, indicating that management guidance has poor credibility and results frequently disappoint. - DEBT / LIQUIDITY — Debt/equity of 0.97x is high for a company with negative return on equity and no operating profitability, increasing financial risk. - FCF / CASH BURN — Free cash flow data is unavailable, preventing a direct assessment of cash burn, but negative net income of -6.4% suggests the company is likely consuming cash on operations. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - PROFITABILITY — Net margin of -6.4% and negative return on equity of -8.5% confirm the company is destroying value at the operating level, with no clear path to profitability in the near term.
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