NasdaqGS:GHDX

Stock Analysis Report

Executive Summary

Genomic Health, Inc., a healthcare company, provides clinically actionable genomic information to personalize cancer treatment decisions in the United States and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GHDX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.7%

GHDX

4.0%

US Biotechs

9.4%

US Market


1 Year Return

-22.3%

GHDX

6.1%

US Biotechs

-6.8%

US Market

Return vs Industry: GHDX underperformed the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: GHDX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

GHDXIndustryMarket
7 Day-6.7%4.0%9.4%
30 Day-6.6%2.2%-3.9%
90 Day-13.6%-1.5%-16.5%
1 Year-22.3%-22.3%6.9%6.1%-4.8%-6.8%
3 Year91.2%91.2%19.2%16.2%23.4%15.2%
5 Year101.7%101.7%-5.8%-10.1%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GHDX ($63.44) is trading above our estimate of fair value ($28.82)

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


Price To Earnings Ratio

PE vs Industry: GHDX is poor value based on its PE Ratio (41.3x) compared to the Biotechs industry average (20.1x).

PE vs Market: GHDX is poor value based on its PE Ratio (41.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GHDX is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: GHDX is overvalued based on its PB Ratio (6.8x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Genomic Health forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GHDX's forecast earnings growth (19.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GHDX's earnings (19.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: GHDX's earnings are forecast to grow, but not significantly.

Revenue vs Market: GHDX's revenue (8.5% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: GHDX's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Genomic Health performed over the past 5 years?

70.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHDX has high quality earnings.

Growing Profit Margin: GHDX's current net profit margins (12.8%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: GHDX has become profitable over the past 5 years, growing earnings by 70.1% per year.

Accelerating Growth: GHDX's earnings growth over the past year (203.5%) exceeds its 5-year average (70.1% per year).

Earnings vs Industry: GHDX earnings growth over the past year (203.5%) exceeded the Biotechs industry 103.3%.


Return on Equity

High ROE: GHDX's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is Genomic Health's financial position?


Financial Position Analysis

Short Term Liabilities: GHDX's short term assets ($345.0M) exceed its short term liabilities ($57.9M).

Long Term Liabilities: GHDX's short term assets ($345.0M) exceed its long term liabilities ($53.1M).


Debt to Equity History and Analysis

Debt Level: GHDX is debt free.

Reducing Debt: GHDX has not had any debt for past 5 years.

Debt Coverage: GHDX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GHDX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Genomic Health's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

4.9yrs

Average management tenure


CEO

Kim Popovits (60yo)

10.83s

Tenure

US$4,755,472

Compensation

Ms. Kimberly J. Popovits, also known as Kim, has served as the Chief Executive Officer and President at Genomic Health, Inc. since January 2009 and February 2002 respectively. Ms. Popovits serves as Direct ...


CEO Compensation Analysis

Compensation vs Market: Kim's total compensation ($USD4.76M) is about average for companies of similar size in the US market ($USD3.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kimberly Popovits
Chairman10.83yrsUS$4.76m0.21% $5.1m
Steven Shak
Co-Founder & Chief Scientific Officer19.83yrsUS$1.65m0.13% $3.1m
G. Cole
Chief Financial Officer5.42yrsUS$1.93m0.072% $1.7m
Frederic Pla
Chief Operating Officer1.67yrsUS$2.21m0.049% $1.2m
James Vaughn
Chief U.S. Commercial Officer8.25yrsUS$1.56m0.014% $325.7k
David Green
VP & Chief Information Officer1.83yrsno datano data
Emily Faucette
Vice President of Corporate Communications & Investor Relationsno datano datano data
Jason Radford
Chief Legal Officer & Secretary4.5yrsno data0.022% $531.0k
Laura Kammeyer
Chief Communications Officer4.92yrsno data0.012% $276.1k
Rolando Brawer
Vice President of Corporate Development3yrsno datano data

4.9yrs

Average Tenure

60yo

Average Age

Experienced Management: GHDX's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kimberly Popovits
Chairman10.83yrsUS$4.76m0.21% $5.1m
Ginger Graham
Independent Director10.92yrsUS$272.95k0.14% $3.3m
Henry Fuchs
Independent Director6.17yrsUS$285.95k0.018% $424.7k
Fred Cohen
Independent Director17.58yrsUS$280.95k0.20% $4.7m
Julian Baker
Lead Independent Director18.83yrsUS$268.95k0.11% $2.6m
Felix Baker
Independent Director7.33yrsUS$283.95k0.024% $562.3k
Geoffrey Parker
Independent Director3.42yrsUS$283.95kno data
Barry Flannelly
Independent Director0.58yrno data0.00056% $13.4k

7.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: GHDX's board of directors are considered experienced (7.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

Genomic Health, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genomic Health, Inc.
  • Ticker: GHDX
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.385b
  • Shares outstanding: 37.59m
  • Website: https://www.genomichealth.com

Number of Employees


Location

  • Genomic Health, Inc.
  • 301 Penobscot Drive
  • Redwood City
  • California
  • 94063
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHDXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2005
G7HDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2005

Biography

Genomic Health, Inc., a healthcare company, provides clinically actionable genomic information to personalize cancer treatment decisions in the United States and internationally. The company develops and commercializes genomic-based clinical laboratory services that analyze the underlying biology of cancer, which allows physicians and patients to make individualized treatment decisions. It offers the Oncotype DX invasive breast cancer test that is used for early stage invasive breast cancer patients to predict the breast cancer recurrence and chemotherapy benefit. The company also provides the Oncotype DX colon cancer test, which is used to predict the likelihood of colon cancer recurrence in patients with stage II disease, as well as for use in patients with stage III disease treated with oxaliplatin-containing adjuvant therapy; Oncotype DX prostate cancer test, which provides a genomic prostate score to predict disease aggressiveness in men with low risk prostate cancer, as well as to enhance treatment decisions for prostate cancer patients in conjunction with the Gleason score; and Oncotype DX AR-V7 nucleus detect tests for men with metastatic castration-resistant prostate cancer. In addition, it develops Oncoytpe DXi IVD breast recurrence score test; and Oncotype DX GPS test. The company offers its products through a network of distributors. Genomic Health, Inc. has license and development agreement with Biocartis N.V. to develop and commercialize an in vitro diagnostic of the Oncotype DX breast cancer test; collaboration agreement with Epic Sciences, Inc. to commercializeAR-V7 Nucleus Detect test; and license and development agreement with Cleveland Diagnostics, Inc. to develop and commercialize new prostate cancer tests. The company was founded in 2000 and is based in Redwood City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/09 23:52
End of Day Share Price2019/11/07 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.