NasdaqCM:EXAS

Stock Analysis Report

Executive Summary

Exact Sciences Corporation provides cancer screening and diagnostic test products in the United States and internationally.


Snowflake Analysis

High growth potential with mediocre 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: EXAS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

EXAS

4.7%

US Biotechs

7.2%

US Market


1 Year Return

-36.4%

EXAS

1.8%

US Biotechs

-10.4%

US Market

Return vs Industry: EXAS underperformed the US Biotechs industry which returned -0.7% over the past year.

Return vs Market: EXAS underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

EXASIndustryMarket
7 Day6.6%4.7%7.2%
30 Day-27.8%-3.5%-12.6%
90 Day-36.8%-5.4%-19.4%
1 Year-36.4%-36.4%2.6%1.8%-8.5%-10.4%
3 Year157.5%157.5%14.0%11.1%15.8%8.3%
5 Year166.8%166.8%-3.6%-7.9%35.8%21.0%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXAS ($57.77) is trading below our estimate of fair value ($177.4)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EXAS is overvalued based on its PB Ratio (3.7x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Exact Sciences forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXAS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: EXAS's revenue (23.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EXAS's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXAS's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Exact Sciences performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXAS is currently unprofitable.

Growing Profit Margin: EXAS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EXAS is unprofitable, and losses have increased over the past 5 years at a rate of -4.5% per year.

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

Earnings vs Industry: EXAS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (22%).


Return on Equity

High ROE: EXAS has a negative Return on Equity (-3.67%), as it is currently unprofitable.


Next Steps

Financial Health

How is Exact Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: EXAS's short term assets ($557.0M) exceed its short term liabilities ($236.5M).

Long Term Liabilities: EXAS's short term assets ($557.0M) do not cover its long term liabilities ($981.2M).


Debt to Equity History and Analysis

Debt Level: EXAS's debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: EXAS's debt to equity ratio has increased from 0.5% to 36.5% over the past 5 years.


Balance Sheet

Inventory Level: EXAS has a low level of unsold assets or inventory.

Debt Coverage by Assets: EXAS's debt is not covered by short term assets (assets are 0.7x 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: EXAS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EXAS 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

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

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

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

3.3yrs

Average management tenure


CEO

Kevin Conroy (53yo)

10.83s

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 ($USD6.99M) is about average for companies of similar size in the US market ($USD7.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Conroy
Chairman of the Board10.83yrsUS$6.99m0.73% $63.4m
Jeffrey Elliott
Chief Financial Officer3.25yrsUS$1.98m0.040% $3.5m
D. Coward
Chief Administrative Officer1.67yrsUS$2.09m0.072% $6.3m
Mark Stenhouse
President of Cologuard1.83yrsUS$3.86m0.011% $985.6k
Ana Hooker
Senior Vice President of Operations5.17yrsno data0.052% $4.5m
Gary Frings
Chief Information Officer5.17yrsno datano data
Scott Johnson
Chief Science Officer and Senior VP of Research & Development1.17yrsno data0.0084% $730.6k
Megan Jones
Associate Manager of Investor Relationsno datano datano data
Tim Caprez
Chief Compliance Counsel & VP5.17yrsno datano data
Vic Parker
Head of Sales1.25yrsno datano data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: EXAS's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Conroy
Chairman of the Board10.83yrsUS$6.99m0.73% $63.4m
Andrew Slavitt
Director0.67yrno data0.0046% $402.0k
Daniel Levangie
Independent Director9.67yrsUS$272.47k0.0084% $728.0k
Michael Wyzga
Independent Director5yrsUS$274.97k0.0060% $520.5k
Katherine Zanotti
Independent Director10.83yrsUS$269.97k0.052% $4.5m
Eli Casdin
Independent Director2.25yrsUS$474.41k0.0045% $392.5k
Kathleen Sebelius
Independent Director1yrno data0.0055% $479.0k
Thomas Carey
Independent Director6.83yrsUS$256.47k0.023% $2.0m
James Doyle
Independent Director5.67yrsUS$266.47k0.022% $1.9m
Pierre Jacquet
Director0.67yrno data0.0040% $349.3k

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: EXAS'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: 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 7.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Exact Sciences Corporation
  • Ticker: EXAS
  • Exchange: NasdaqCM
  • Founded: 1995
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$8.646b
  • Shares outstanding: 147.97m
  • 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
EXKBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 2001

Biography

Exact Sciences Corporation provides cancer screening and diagnostic test products in the United States and internationally. The company offers Cologuard, a non-invasive stool-based DNA screening test to detect colorectal cancer and pre-cancer. It also provides Oncotype DX, a gene expression tests for breast, prostate, and colon cancers; and Oncotype DX AR-V7 Nucleus Detect Test, a liquid-based test for advanced stage prostate cancer. The company’s pipeline products focuses on the research and development of enhancing Cologuard's performance characteristics, and blood or other fluid-based tests. It has license agreements with MAYO Foundation for Medical Education and Research; Biocartis N.V.; 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 Analysis2020/03/31 00:28
End of Day Share Price2020/03/30 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.