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

0.9%

US Biotechs

2.0%

US Market


1 Year Return

-22.3%

GHDX

11.3%

US Biotechs

23.6%

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%0.9%2.0%
30 Day-6.6%0.7%3.9%
90 Day-13.6%20.6%12.0%
1 Year-22.3%-22.3%12.3%11.3%26.2%23.6%
3 Year91.2%91.2%28.9%24.6%53.2%43.3%
5 Year101.7%101.7%4.3%-0.6%75.7%56.3%

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.


Return on Assets


Return on Capital Employed


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

Inventory Level: GHDX has a high level of physical assets or inventory.

Debt Coverage by Assets: GHDX's debt is not covered by short term assets (assets are -4.8559500032169E+16x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Genomic Health's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Kim Popovits (60yo)

10.8yrs

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.


Management Age and Tenure

4.9yrs

Average Tenure

60yo

Average Age

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


Board Age and Tenure

7.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: GHDX's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$291,70919 Aug 19
Jason Radford
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares3,508
Max PriceUS$83.73
SellUS$1,447,61611 May 19
Steven Shak
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Scientific Officer
Shares25,000
Max PriceUS$59.59
SellUS$33,035,29412 Apr 19
Baker Bros. Advisors LP
EntityCompany
Shares500,950
Max PriceUS$67.42
SellUS$166,50710 Apr 19
Kimberly Popovits
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,464
Max PriceUS$68.31
SellUS$12,428,39910 Apr 19
Baker Bros. Advisors LP
EntityCompany
Shares181,399
Max PriceUS$69.12
SellUS$17,436,45405 Apr 19
Baker Bros. Advisors LP
EntityCompany
Shares255,970
Max PriceUS$68.90
SellUS$4,232,16425 Mar 19
Baker Bros. Advisors LP
EntityCompany
Shares56,651
Max PriceUS$74.71
SellUS$23,827,29919 Mar 19
Baker Bros. Advisors LP
EntityCompany
Shares320,106
Max PriceUS$76.57
SellUS$16,681,95814 Mar 19
Baker Bros. Advisors LP
EntityCompany
Shares219,527
Max PriceUS$76.50
SellUS$5,494,44811 Mar 19
Baker Bros. Advisors LP
EntityCompany
Shares73,735
Max PriceUS$75.08
SellUS$9,041,14005 Mar 19
Baker Bros. Advisors LP
EntityCompany
Shares117,387
Max PriceUS$77.64
SellUS$2,441,70728 Feb 19
Baker Bros. Advisors LP
EntityCompany
Shares31,859
Max PriceUS$76.66
SellUS$45,71928 Feb 19
Baker Bros. Advisors LP
EntityCompany
Shares600
Max PriceUS$76.20
SellUS$3,302,98030 Jan 19
Baker Bros. Advisors LP
EntityCompany
Shares46,477
Max PriceUS$71.35
SellUS$15,006,32825 Jan 19
Baker Bros. Advisors LP
EntityCompany
Shares208,831
Max PriceUS$73.46
SellUS$30,331,14222 Jan 19
Baker Bros. Advisors LP
EntityCompany
Shares423,295
Max PriceUS$72.79

Ownership Breakdown

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


Management Team

  • Kim Popovits (60yo)

    Chairman

    • Tenure: 10.8yrs
    • Compensation: US$4.76m
  • Laura Kammeyer (56yo)

    Chief Communications Officer

    • Tenure: 4.9yrs
  • Jim Vaughn (56yo)

    Chief U.S. Commercial Officer

    • Tenure: 8.3yrs
    • Compensation: US$1.56m
  • Steve Shak (68yo)

    Co-Founder & Chief Scientific Officer

    • Tenure: 19.8yrs
    • Compensation: US$1.65m
  • Brad Cole (63yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.93m
  • Frederic Pla (60yo)

    Chief Operating Officer

    • Tenure: 1.7yrs
    • Compensation: US$2.21m
  • Jason Radford (37yo)

    Chief Legal Officer & Secretary

    • Tenure: 4.5yrs
  • Emily Faucette

    Vice President of Corporate Communications & Investor Relations

    • Rolando Brawer

      Vice President of Corporate Development

      • Tenure: 3yrs
    • David Green

      VP & Chief Information Officer

      • Tenure: 1.8yrs

    Board Members

    • Ginger Graham (63yo)

      Independent Director

      • Tenure: 10.9yrs
      • Compensation: US$272.95k
    • Kim Popovits (60yo)

      Chairman

      • Tenure: 10.8yrs
      • Compensation: US$4.76m
    • Hank Fuchs (61yo)

      Independent Director

      • Tenure: 6.2yrs
      • Compensation: US$285.95k
    • Fred Cohen (63yo)

      Independent Director

      • Tenure: 17.6yrs
      • Compensation: US$280.95k
    • Jim Baker (52yo)

      Lead Independent Director

      • Tenure: 18.8yrs
      • Compensation: US$268.95k
    • Felix Baker (50yo)

      Independent Director

      • Tenure: 7.3yrs
      • Compensation: US$283.95k
    • Geoff Parker (54yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$283.95k
    • Barry Flannelly (61yo)

      Independent Director

      • Tenure: 0.6yrs

    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.