NasdaqGM:CDNA

Stock Analysis Report

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Executive Summary

CareDx, Inc., a precision medicine company, discovers, develops, and commercializes healthcare solutions for transplant patients and caregivers worldwide.


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.1%

CDNA

0.4%

US Biotechs

2.3%

US Market


1 Year Return

-11.5%

CDNA

28.5%

US Biotechs

6.7%

US Market

Return vs Industry: CDNA underperformed the US Biotechs industry which returned 28.5% over the past year.

Return vs Market: CDNA underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

CDNAIndustryMarket
7 Day-2.1%0.4%2.3%
30 Day7.7%10.3%6.0%
90 Day60.8%23.2%18.9%
1 Year-11.5%-11.5%29.8%28.5%9.0%6.7%
3 Year2490.1%2490.1%31.8%27.5%36.6%27.7%
5 Year376.5%376.5%-5.1%-10.5%64.2%46.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CDNA ($33.93) is trading above our estimate of fair value ($33.01)

Significantly Below Fair Value: CDNA is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: CDNA 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 CDNA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CDNA is overvalued based on its PB Ratio (14.4x) compared to the US Biotechs industry average (3.4x).


Next Steps

Future Growth

How is CareDx forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

92.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CDNA's revenue (23.8% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: CDNA's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CDNA's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has CareDx performed over the past 5 years?

-18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDNA is currently unprofitable.

Growing Profit Margin: CDNA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CDNA is unprofitable, and losses have increased over the past 5 years at a rate of -18.9% per year.

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

Earnings vs Industry: CDNA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).


Return on Equity

High ROE: CDNA has a negative Return on Equity (-19.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is CareDx's financial position?


Financial Position Analysis

Short Term Liabilities: CDNA's short term assets ($66.1M) exceed its short term liabilities ($28.3M).

Long Term Liabilities: CDNA's short term assets ($66.1M) exceed its long term liabilities ($27.1M).


Debt to Equity History and Analysis

Debt Level: CDNA is debt free.

Reducing Debt: CDNA has no debt compared to 5 years ago when its debt to equity ratio was 39.8%.


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: CDNA has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

What is CareDx current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CDNA'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 CDNA'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?

2.5yrs

Average management tenure


CEO

Peter Maag (53yo)

7.75yrs

Tenure

US$9,424,083

Compensation

Dr. Peter Maag, PhD has been the Chief Executive Officer of CareDx, Inc. since October 2012 and Chairman of the Board since January 1, 2020. He was its President since October 2012 until November 26, 2018. ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD9.42M) is above average for companies of similar size in the US market ($USD4.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Maag
Chairman & CEO7.75yrsUS$9.42m0.39% $6.4m
Reginald Seeto
President & Chief Business Officer1.67yrsUS$1.96m0.041% $670.5k
Michael Bell
Chief Financial Officer3.25yrsUS$2.69m0.023% $369.5k
Sasha King
Chief Marketing Officer1.08yrsUS$1.51m0.12% $2.0m

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: CDNA's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Maag
Chairman & CEO7.75yrsUS$9.42m0.39% $6.4m
Fred Cohen
Independent Director17.5yrsUS$239.22k0.15% $2.4m
Michael Goldberg
Lead Independent Director0.50yrUS$323.22k0.17% $2.8m
Ralph Snyderman
Independent Director15.17yrsUS$242.22k0.17% $2.7m
William Hagstrom
Independent Director5.33yrsUS$238.22k0.032% $522.0k
Jeffrey Bluestone
Member of Advisory Boardno datano datano data
Mary Crow
Member of Advisory Boardno datano datano data
Robert Tibshirani
Member of Advisory Boardno datano datano data
George Bickerstaff
Independent Director6.25yrsUS$242.22k0.18% $2.9m
Grace Colón
Independent Director1yrUS$294.28k0.0099% $162.2k

5.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CDNA's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CDNA 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 14.5%.


Top Shareholders

Company Information

CareDx, Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CareDx, Inc
  • Ticker: CDNA
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.636b
  • Shares outstanding: 48.22m
  • Website: https://www.caredx.com

Number of Employees


Location

  • CareDx, Inc
  • 1 Tower Place
  • South San Francisco
  • California
  • 94080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDNANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2014
1K9DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014

Biography

CareDx, Inc., a precision medicine company, discovers, develops, and commercializes healthcare solutions for transplant patients and caregivers worldwide. It offers AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; and AlloMap Heart, a gene expression solution for heart transplant patients. The company also develops, manufactures, markets, and sells products that increase the chance of successful transplants by facilitating a match between a donor and a recipient of stem cells and solid organs. In addition, it offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; Olerup SBT, a product range for sequence-based typing of HLA alleles; QTYPE that enables precision in HLA typing at a low to intermediate resolution for samples that uses real-time polymerase chain reaction methodology; and TruSight HLA, a solution for use in transplantation diagnostic testing. Further, the company provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Ottr, a transplant patient tracking software; and XynQAPI and Waitlist Management solutions. It offers its products directly to customers, as well as through third-party distributors. The company has a license agreement with Illumina, Inc. for the development, commercialization, and distribution of next generation sequencing product line for use in transplantation diagnostic testing; and Cibiltech SAS to commercialize KidneyCare iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. CareDx, Inc. was incorporated in 1998 and is headquartered in South San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 23:59
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.