DB:EXK

Stock Analysis Report

Executive Summary

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing products for the early detection and prevention of various cancers in the United States.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Exact Sciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-19.4%

EXK

-2.0%

DE Biotechs

0.7%

DE Market


1 Year Return

15.2%

EXK

5.6%

DE Biotechs

15.6%

DE Market

Return vs Industry: EXK exceeded the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: EXK matched the German Market which returned 14.8% over the past year.


Shareholder returns

EXKIndustryMarket
7 Day-19.4%-2.0%0.7%
30 Day-9.8%-2.7%1.7%
90 Day-2.7%9.4%6.3%
1 Year15.2%15.2%5.8%5.6%19.2%15.6%
3 Year378.2%378.2%59.0%57.2%18.3%7.9%
5 Year233.3%233.3%17.3%14.8%26.8%9.4%

Price Volatility Vs. Market

How volatile is Exact Sciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Exact Sciences undervalued compared to its fair value and its price relative to the market?

44.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXK (€82.4) is trading below our estimate of fair value (€146.13)

Significantly Below Fair Value: EXK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EXK is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: EXK is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EXK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXK is overvalued based on its PB Ratio (15.6x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Exact Sciences forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

57.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: EXK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EXK's is expected to become profitable in the next 3 years.

Revenue vs Market: EXK's revenue (25.6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: EXK's revenue (25.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXK's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Exact Sciences performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXK is currently unprofitable.

Growing Profit Margin: EXK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EXK is unprofitable, and losses have increased over the past 5 years at a rate of -9.5% per year.

Accelerating Growth: Unable to compare EXK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EXK is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: EXK has a negative Return on Equity (-28.85%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Exact Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: EXK's short term assets ($1.3B) exceed its short term liabilities ($480.7M).

Long Term Liabilities: EXK's short term assets ($1.3B) exceed its long term liabilities ($530.3M).


Debt to Equity History and Analysis

Debt Level: EXK's debt to equity ratio (109.2%) is considered high.

Reducing Debt: EXK had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: EXK has a high level of physical assets or inventory.

Debt Coverage by Assets: EXK's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EXK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EXK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Exact Sciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate EXK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EXK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EXK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EXK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EXK's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Exact Sciences's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Kevin Conroy (53yo)

10.8yrs

Tenure

US$6,991,997

Compensation

Mr. Kevin T. Conroy serves as Director of Adaptive Biotechnologies Corporation since April 2019. Mr. Conroy serves as Director at ARYA Sciences Acquisition Corp. Mr. Conroy has been the Chief Executive Off ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD6.99M) is above average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: EXK's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

64yo

Average Age

Experienced Board: EXK's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • D. Coward (54yo)

    Chief Administrative Officer

    • Tenure: 1.5yrs
    • Compensation: US$2.09m
  • Gary Frings

    Chief Information Officer

    • Tenure: 5yrs
  • Kevin Conroy (53yo)

    Chairman of the Board

    • Tenure: 10.8yrs
    • Compensation: US$6.99m
  • Jeff Elliott (41yo)

    Chief Financial Officer

    • Tenure: 3.2yrs
    • Compensation: US$1.98m
  • Scott Johnson

    Chief Science Officer and Senior VP of Research & Development

    • Tenure: 1yrs
  • Tim Caprez

    Chief Compliance Counsel & VP

    • Tenure: 5yrs
  • Ana Hooker (53yo)

    Senior Vice President of Operations

    • Tenure: 5yrs
  • Mark Stenhouse (52yo)

    President of Cologuard

    • Tenure: 1.8yrs
    • Compensation: US$3.86m
  • Megan Jones

    Associate Manager of Investor Relations

    • Vic Parker

      Head of Sales

      • Tenure: 1.1yrs

    Board Members

    • Andy Slavitt (52yo)

      Director

      • Tenure: 0.5yrs
    • Dan Levangie (68yo)

      Independent Director

      • Tenure: 9.5yrs
      • Compensation: US$272.47k
    • Mike Wyzga (64yo)

      Independent Director

      • Tenure: 4.9yrs
      • Compensation: US$274.97k
    • Kay Napier Zanotti (64yo)

      Independent Director

      • Tenure: 10.8yrs
      • Compensation: US$269.97k
    • Kevin Conroy (53yo)

      Chairman of the Board

      • Tenure: 10.8yrs
      • Compensation: US$6.99m
    • Eli Casdin

      Independent Director

      • Tenure: 2.2yrs
      • Compensation: US$474.41k
    • Kathleen Sebelius (71yo)

      Independent Director

      • Tenure: 0.8yrs
    • Tom Carey (57yo)

      Independent Director

      • Tenure: 6.8yrs
      • Compensation: US$256.47k
    • Jim Doyle (73yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$266.47k
    • Pierre Jacquet

      Director

      • Tenure: 0.5yrs

    Company Information

    Exact Sciences Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Exact Sciences Corporation
    • Ticker: EXK
    • Exchange: DB
    • Founded: 1995
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$12.965b
    • Listing Market Cap: US$11.699b
    • Shares outstanding: 147.23m
    • Website: https://www.exactsciences.com

    Number of Employees


    Location

    • Exact Sciences Corporation
    • 441 Charmany Drive
    • Madison
    • Wisconsin
    • 53719
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    EXASNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2001
    EXKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2001

    Biography

    Exact Sciences Corporation, a molecular diagnostics company, focuses on developing products for the early detection and prevention of various cancers in the United States. The company offers Cologuard, a non-invasive stool-based DNA screening test for the early detection of colorectal cancer and pre-cancer. It has license agreements with MAYO Foundation for Medical Education and Research; and Hologic, Inc. Exact Sciences Corporation was founded in 1995 and is headquartered in Madison, Wisconsin. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 21:37
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.