NasdaqGM:GNMK

Stock Analysis Report

Executive Summary

GenMark Diagnostics, Inc., a molecular diagnostics company, develops and commercializes molecular tests based on its proprietary eSensor electrochemical detection technology.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has GenMark Diagnostics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GNMK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.6%

GNMK

-1.6%

US Medical Equipment

-2.6%

US Market


1 Year Return

-40.1%

GNMK

-5.2%

US Medical Equipment

-13.3%

US Market

Return vs Industry: GNMK underperformed the US Medical Equipment industry which returned -7.7% over the past year.

Return vs Market: GNMK underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

GNMKIndustryMarket
7 Day8.6%-1.6%-2.6%
30 Day-7.2%-10.2%-15.2%
90 Day-14.7%-17.5%-22.2%
1 Year-40.1%-40.1%-4.4%-5.2%-11.5%-13.3%
3 Year-65.5%-65.5%45.4%41.5%13.2%5.7%
5 Year-63.7%-63.7%75.2%57.1%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GenMark Diagnostics undervalued compared to its fair value and its price relative to the market?

37.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNMK ($4.41) is trading below our estimate of fair value ($7.04)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GNMK is overvalued based on its PB Ratio (21.8x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is GenMark Diagnostics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

60.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNMK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GNMK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GNMK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GNMK's revenue (16.2% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: GNMK's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNMK's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has GenMark Diagnostics performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNMK is currently unprofitable.

Growing Profit Margin: GNMK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GNMK is unprofitable, and losses have increased over the past 5 years at a rate of -5.3% per year.

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

Earnings vs Industry: GNMK is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1%).


Return on Equity

High ROE: GNMK has a negative Return on Equity (-389.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is GenMark Diagnostics's financial position?


Financial Position Analysis

Short Term Liabilities: GNMK's short term assets ($83.4M) exceed its short term liabilities ($24.3M).

Long Term Liabilities: GNMK's short term assets ($83.4M) exceed its long term liabilities ($75.0M).


Debt to Equity History and Analysis

Debt Level: GNMK's debt to equity ratio (568.5%) is considered high.

Reducing Debt: GNMK's debt to equity ratio has increased from 0.1% to 568.5% over the past 5 years.


Balance Sheet


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: GNMK has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

What is GenMark Diagnostics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GNMK'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 GNMK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GNMK'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 GNMK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Scott Mendel (52yo)

0.17

Tenure

US$1,279,784

Compensation

Mr. Scott Mendel has been the Chief Operating Officer at GenMark Diagnostics, Inc. since February 18, 2019 and has its Interim President and Chief Executive Officer since February 10, 2020. Mr. Mendel serv ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD1.28M) is about average for companies of similar size in the US market ($USD1.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Mendel
COO, Interim President & CEO0.17yrUS$1.28m0.41% $1.1m
Michael Gleeson
Senior Vice President of Corporate & Strategic Accounts6.08yrsUS$967.56k0.67% $1.8m
Brian Mitchell
Senior VP of Operationsno dataUS$943.18k0.42% $1.1m
John Ek
Chief Financial Officer1.17yrsno data0.44% $1.2m
Eric Stier
Senior VP6.92yrsUS$829.12k0.20% $543.6k
Michael Harkins
Senior Vice President of Sales1yrno datano data

1.2yrs

Average Tenure

44yo

Average Age

Experienced Management: GNMK's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daryl Faulkner
Non-Executive Director10.08yrsUS$156.00k0.14% $384.3k
Michael Kagnoff
Non-Executive Director5.17yrsUS$145.00k0.17% $444.9k
James Fox
Non-Executive Director9.58yrsUS$237.98k0.36% $956.1k
Kevin O'Boyle
Chairman of the Board0.17yrUS$166.00k0.13% $351.6k
Lisa Giles
Non-Executive Director5.17yrsUS$150.00k0.076% $204.2k

5.2yrs

Average Tenure

63yo

Average Age

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


Ownership

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


Insider Trading Volume

Insider Buying: GNMK insiders have sold more shares than they have bought 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 3.5%.


Top Shareholders

Company Information

GenMark Diagnostics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GenMark Diagnostics, Inc.
  • Ticker: GNMK
  • Exchange: NasdaqGM
  • Founded:
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$268.022m
  • Shares outstanding: 60.78m
  • Website: https://www.genmarkdx.com

Number of Employees


Location

  • GenMark Diagnostics, Inc.
  • 5964 La Place Court
  • Carlsbad
  • California
  • 92008
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNMKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2010
GNFDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2010
0IUTLSE (London Stock Exchange)YesCommon StockGBUSDMay 2010

Biography

GenMark Diagnostics, Inc., a molecular diagnostics company, develops and commercializes molecular tests based on its proprietary eSensor electrochemical detection technology. It provides ePlex instrument and respiratory pathogen panel, which integrates automated nucleic acid extraction and amplification with its eSensor detection technology to enable operators using ePlex system to place patient sample directly into its test cartridge and obtain results. The company offers XT-8 instrument, and related diagnostic and research tests, as well as certain custom manufactured reagents that enable reference laboratories and hospitals to support a range of molecular tests with a workstation and disposable test cartridges. It also provides diagnostic tests for use with its XT-8 system that includes respiratory viral panel, cystic fibrosis genotyping test, thrombophilia risk test, a warfarin sensitivity test, and hepatitis C virus genotyping test and associated custom manufactured reagents, as well as 2C19 genotyping test. The company sells its products through direct sales and technically specialized service organization in the United States and Europe. GenMark Diagnostics, Inc. is headquartered in Carlsbad, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 04:56
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.