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FLGT

Fulgent Genetics NasdaqGM:FLGT Stock Report

Last Price

US$59.86

Market Cap

US$1.8b

7D

0.2%

1Y

-43.4%

Updated

06 Aug, 2022

Data

Company Financials +
FLGT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

FLGT Stock Overview

Fulgent Genetics, Inc., together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally.

Fulgent Genetics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fulgent Genetics
Historical stock prices
Current Share PriceUS$59.86
52 Week HighUS$112.00
52 Week LowUS$47.34
Beta1.47
1 Month Change2.08%
3 Month Change10.98%
1 Year Change-43.40%
3 Year Change429.05%
5 Year Change939.24%
Change since IPO552.07%

Recent News & Updates

Jul 26

Fulgent Genetics: Poised To Survive Its Post-Covid Hangover

Today, we take a deeper look at Fulgent Genetics, which has benefitted greatly from an explosion of Covid-19 testing revenue. The stock has sold off as fears around the coronavirus have ebbed. However, the company has a huge cash hoard to build up the other parts of its product portfolio. An investment analysis follows in the paragraphs below. "I used to advertise my loyalty and I don't believe there is a single person I loved that I didn't eventually betray." - Albert Camus, The Fall Today, we are putting Fulgent Genetics (FLGT) in the spotlight. The company has been a huge beneficiary of the pandemic. Covid-19 testing revenues powered a thirteen-fold increase in overall sales in the company's 4Q2020 earnings report as a good example of the magnitude of the benefit. Subsequently, the stock rocketed up from $10 a share in March 2020 to $160 in January 2021. Seeking Alpha However, as pandemic fears have ebbed considerably lately, the stock has sold off some 45% since late last year and is down nearly two-thirds from its all-time highs. Time to accumulate some shares in this diagnostic testing concern? An analysis follows below. Company Overview: Fulgent Genetics provides numerous tests and testing services and is based just outside of Los Angeles. Its product portfolio includes Covid-19, molecular diagnostic, and genetic testing. As noted above, the majority of revenues are coming from Covid-19 testing, its specialized oncology and other tests are what the company calls its 'core' revenue-generating part of the company. May Company Presentation The stock sells for around $58.00 a share and sports an approximate market capitalization of $1.75 billion. May Company Presentation First Quarter Results: On May 3rd, Fulgent posted first quarter numbers. The company had non-GAAP earnings of $5.12 a share on revenues of $320 million. Both top and bottom line results easily beat expectations. GAAP profits per share were $4.83. Revenue was down from nearly $360 million in the same period a year ago, solely as a result of a decrease from Covid testing. 'Core' revenue was up 59% to $25.1 million. Management raised its full-year guidance to $660 million worth of sales but took down full year non-GAAP income a buck to $6.00 a share. May Company Presentation Shortly after the quarter closed, Fulgent acquired Inform Diagnostics, a national independent pathology laboratory based in Irving, Texas, for $170 million. May Company Presentation Fulgent Genetics also purchased CSI Laboratories in 2021. May Company Presentation This triggered leadership to move up their estimate of 'core' revenue for FY2022 to approximately $175 million from $120 million previously. At its earnings call in early May, the leadership moved up its estimate for core revenue further to $180 million. May Company Presentation Analyst Commentary & Balance Sheet: Despite a decent-sized market cap, Fulgent Genetics gets short shrift from Wall Street. On January 25th, maintained its Buy rating on FLGT but lowered its price target from $141 to $125 a share. In late May, Piper Sandler reissued its Buy rating after meeting with management. Piper's analyst stated that he was: Impressed with the company's core growth, potential in its COVID business, and "optionality" with its $1.1B in cash. The analyst believes Fulgent is setting itself up to add growth via acquisitions, particularly as other labs struggle with cash management."

Jul 21
Fulgent Genetics, Inc.'s (NASDAQ:FLGT) Low P/E No Reason For Excitement

Fulgent Genetics, Inc.'s (NASDAQ:FLGT) Low P/E No Reason For Excitement

With a price-to-earnings (or "P/E") ratio of 4x Fulgent Genetics, Inc. ( NASDAQ:FLGT ) may be sending very bullish...

Shareholder Returns

FLGTUS HealthcareUS Market
7D0.2%0.6%1.0%
1Y-43.4%12.6%-12.9%

Return vs Industry: FLGT underperformed the US Healthcare industry which returned 12.6% over the past year.

Return vs Market: FLGT underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is FLGT's price volatile compared to industry and market?
FLGT volatility
FLGT Average Weekly Movement7.0%
Healthcare Industry Average Movement9.6%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: FLGT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FLGT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011645Ming Hsiehhttps://www.fulgentgenetics.com

Fulgent Genetics, Inc., together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally. The company offers genetic tests comprising Focus and Comprehensive oncology panels tests; Beacon carrier screening panels test for inherited conditions; solid tumor molecular profiling for somatic cancer testing; rapid whole genome testing for children in NICU and PICU; newborn genetic analysis panel; single front-line test to detect ataxia-related variants and repeat expansions through sequencing; picture genetics, a patient-initiated genetic testing; whole exome and clinical exome panel tests; whole genome, mutation, and repeat expansion testing services, as well as research service tests. It also provides next generation sequencing and reverse transcription polymerase chain reaction-based tests, as well as antigen-based diagnostic tests for the detection of SARS-CoV-2.

Fulgent Genetics Fundamentals Summary

How do Fulgent Genetics's earnings and revenue compare to its market cap?
FLGT fundamental statistics
Market CapUS$1.82b
Earnings (TTM)US$392.38m
Revenue (TTM)US$925.15m

4.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLGT income statement (TTM)
RevenueUS$925.15m
Cost of RevenueUS$243.39m
Gross ProfitUS$681.76m
Other ExpensesUS$289.38m
EarningsUS$392.38m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)12.94
Gross Margin73.69%
Net Profit Margin42.41%
Debt/Equity Ratio1.6%

How did FLGT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FLGT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FLGT?

Other financial metrics that can be useful for relative valuation.

FLGT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA1.6x
PEG Ratio-0.04x

Price to Earnings Ratio vs Peers

How does FLGT's PE Ratio compare to its peers?

FLGT PE Ratio vs Peers
The above table shows the PE ratio for FLGT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.8x
CCRN Cross Country Healthcare
4.3x-35.4%US$924.4m
AMEH Apollo Medical Holdings
33xn/aUS$2.4b
ADUS Addus HomeCare
33.5x17.2%US$1.5b
AGTI Agiliti
76.3x39.9%US$2.6b
FLGT Fulgent Genetics
4.6x-104.6%US$1.8b

Price-To-Earnings vs Peers: FLGT is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (36.8x).


Price to Earnings Ratio vs Industry

How does FLGT's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Earnings vs Industry: FLGT is good value based on its Price-To-Earnings Ratio (4.6x) compared to the US Healthcare industry average (19.8x)


Price to Earnings Ratio vs Fair Ratio

What is FLGT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FLGT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.6x
Fair PE Ratio1.9x

Price-To-Earnings vs Fair Ratio: FLGT is expensive based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (1.9x).


Share Price vs Fair Value

What is the Fair Price of FLGT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FLGT ($59.86) is trading below our estimate of fair value ($333.39)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Fulgent Genetics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-104.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLGT's earnings are forecast to decline over the next 3 years (-104.6% per year).

Earnings vs Market: FLGT's earnings are forecast to decline over the next 3 years (-104.6% per year).

High Growth Earnings: FLGT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FLGT's revenue is expected to decline over the next 3 years (-39.7% per year).

High Growth Revenue: FLGT's revenue is forecast to decline over the next 3 years (-39.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FLGT's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Fulgent Genetics performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


77.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLGT has high quality earnings.

Growing Profit Margin: FLGT's current net profit margins (42.4%) are lower than last year (54.2%).


Past Earnings Growth Analysis

Earnings Trend: FLGT has become profitable over the past 5 years, growing earnings by 77.6% per year.

Accelerating Growth: FLGT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLGT had negative earnings growth (-20.5%) over the past year, making it difficult to compare to the Healthcare industry average (7.7%).


Return on Equity

High ROE: FLGT's Return on Equity (29.8%) is considered high.


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Financial Health

How is Fulgent Genetics's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FLGT's short term assets ($675.2M) exceed its short term liabilities ($127.5M).

Long Term Liabilities: FLGT's short term assets ($675.2M) exceed its long term liabilities ($23.4M).


Debt to Equity History and Analysis

Debt Level: FLGT has more cash than its total debt.

Reducing Debt: Insufficient data to determine if FLGT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FLGT's debt is well covered by operating cash flow (2062.4%).

Interest Coverage: FLGT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Fulgent Genetics's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FLGT has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Ming Hsieh (66 yo)

6.25yrs

Tenure

US$5,664,303

Compensation

Mr. Ming Hsieh has been an Independent Director of Fortinet, Inc. since April 2013. He is the Founder of Fulgent Genetics, Inc. and had been its President until May 2022 & serves as its Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Ming's total compensation ($USD5.66M) is about average for companies of similar size in the US market ($USD5.42M).

Compensation vs Earnings: Ming's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: FLGT's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: FLGT's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FLGT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Fulgent Genetics, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Fulgent Genetics, Inc.
  • Ticker: FLGT
  • Exchange: NasdaqGM
  • Founded: 2011
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$1.815b
  • Shares outstanding: 30.33m
  • Website: https://www.fulgentgenetics.com

Number of Employees


Location

  • Fulgent Genetics, Inc.
  • 4978 Santa Anita Avenue
  • Temple City
  • California
  • 91780
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.