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ME

23andMe Holding NasdaqGS:ME Stock Report

Last Price

US$3.64

Market Cap

US$1.6b

7D

30.9%

1Y

-58.2%

Updated

06 Aug, 2022

Data

Company Financials +
ME fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ME Stock Overview

23andMe Holding Co. operates as a consumer genetics testing company.

23andMe Holding Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 23andMe Holding
Historical stock prices
Current Share PriceUS$3.64
52 Week HighUS$13.68
52 Week LowUS$2.12
Beta0
1 Month Change18.95%
3 Month Change30.94%
1 Year Change-58.16%
3 Year Changen/a
5 Year Changen/a
Change since IPO-62.86%

Recent News & Updates

Jun 15

23andMe: Holiday Miracles Not Enough, Growth Path Too Expensive

23andMe is a consumer-facing genetics testing company, one of the largest in terms of genetic databases. However, there are some glaring financial risks to consider if you want to invest in the company: slow test kit growth and profitability. New attempts to move towards drug development and primary care telehealth may drive revenues, it will continue to be unprofitable. For these reasons, I would recommend avoiding the company.

Shareholder Returns

MEUS HealthcareUS Market
7D30.9%0.6%1.0%
1Y-58.2%12.6%-12.9%

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

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

Price Volatility

Is ME's price volatile compared to industry and market?
ME volatility
ME Average Weekly Movement11.7%
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: ME is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: ME's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aAnne Wojcickihttps://www.23andme.com

23andMe Holding Co. operates as a consumer genetics testing company. It operates through two segments, Consumer & Research Services and Therapeutics. The Consumer & Research Services segment provides a suite of genetic reports, including information on customers’ genetic ancestral origins, personal genetic health risks, and chances of passing on certain rare carrier conditions to their children, as well as reports on how genetics can impact responses to medications based on genetic testing of a saliva sample through its spit kit.

23andMe Holding Fundamentals Summary

How do 23andMe Holding's earnings and revenue compare to its market cap?
ME fundamental statistics
Market CapUS$1.64b
Earnings (TTM)-US$217.49m
Revenue (TTM)US$271.89m

6.0x

P/S Ratio

-7.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ME income statement (TTM)
RevenueUS$271.89m
Cost of RevenueUS$138.95m
Gross ProfitUS$132.95m
Other ExpensesUS$350.44m
Earnings-US$217.49m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 08, 2022

Earnings per share (EPS)-0.48
Gross Margin48.90%
Net Profit Margin-79.99%
Debt/Equity Ratio0%

How did ME perform over the long term?

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

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 ME?

Other financial metrics that can be useful for relative valuation.

ME 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/Revenue4.3x
Enterprise Value/EBITDA-5.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ME's PS Ratio compare to its peers?

ME PS Ratio vs Peers
The above table shows the PS ratio for ME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.6x
MD Pediatrix Medical Group
0.8x5.7%US$1.6b
HIMS Hims & Hers Health
4.2x19.5%US$1.3b
PIII P3 Health Partners
0.4x36.3%US$1.3b
ADUS Addus HomeCare
1.6x7.3%US$1.5b
ME 23andMe Holding
6x-0.008%US$1.6b

Price-To-Sales vs Peers: ME is expensive based on its Price-To-Sales Ratio (6x) compared to the peer average (1.6x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: ME is expensive based on its Price-To-Sales Ratio (6x) compared to the US Healthcare industry average (1.5x)


Price to Sales Ratio vs Fair Ratio

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

ME PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: ME is expensive based on its Price-To-Sales Ratio (6x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate ME's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ME's fair value for valuation analysis.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is 23andMe Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

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


-31.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ME's revenue is expected to decline over the next 3 years (-0.01% per year).

High Growth Revenue: ME's revenue is forecast to decline over the next 3 years (-0.01% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ME is forecast to be unprofitable in 3 years.


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Past Performance

How has 23andMe Holding performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-18.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: ME is currently unprofitable.

Growing Profit Margin: ME is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ME's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ME is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (7.7%).


Return on Equity

High ROE: ME has a negative Return on Equity (-23.75%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is 23andMe Holding's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ME's short term assets ($601.8M) exceed its short term liabilities ($153.2M).

Long Term Liabilities: ME's short term assets ($601.8M) exceed its long term liabilities ($83.2M).


Debt to Equity History and Analysis

Debt Level: ME is debt free.

Reducing Debt: ME has not had any debt for 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: ME has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ME has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 2.9% each year.


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Dividend

What is 23andMe Holding 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 ME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if ME'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 ME has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.2yrs

Average management tenure


CEO

Anne Wojcicki

16.58yrs

Tenure

US$32,546,430

Compensation

Ms. Anne Wojcicki had been a Director of Ajax I since October 30, 2020. Ms. Wojcicki serves as a General Partner of Covalence Life Sciences Partners. She serves as Independent Non-Executive Director of Caz...


CEO Compensation Analysis

Compensation vs Market: Anne's total compensation ($USD32.55M) is above average for companies of similar size in the US market ($USD5.42M).

Compensation vs Earnings: Anne's compensation has increased whilst the company is unprofitable.


Leadership Team

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


Board Members

Experienced Board: ME's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 11%.


Top Shareholders

Company Information

23andMe Holding Co.'s employee growth, exchange listings and data sources


Key Information

  • Name: 23andMe Holding Co.
  • Ticker: ME
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$1.643b
  • Shares outstanding: 451.33m
  • Website: https://www.23andme.com

Location

  • 23andMe Holding Co.
  • 349 Oyster Point Boulevard
  • South San Francisco
  • California
  • 94080
  • 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
Earnings2022/03/31
Annual Earnings2022/03/31


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.