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Genomic Health

Nasdaq:GHDX
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GHDX
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Genomic Health, Inc., a healthcare company, provides clinically actionable genomic information to personalize cancer treatment decisions in the United States and internationally. The last earnings update was 11 days ago. More info.


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  • Genomic Health has significant price volatility in the past 3 months.
GHDX Share Price and Events
7 Day Returns
1.6%
NasdaqGS:GHDX
-0.2%
US Biotechs
-1%
US Market
1 Year Returns
36.2%
NasdaqGS:GHDX
-8.1%
US Biotechs
-0.4%
US Market
GHDX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Genomic Health (GHDX) 1.6% 32.8% 37.8% 36.2% 181.9% 161%
US Biotechs -0.2% -0.2% 2.4% -8.1% 5.9% 2.8%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • GHDX outperformed the Biotechs industry which returned -8.1% over the past year.
  • GHDX outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
GHDX
Industry
5yr Volatility vs Market

Value

 Is Genomic Health undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Genomic Health to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Genomic Health.

NasdaqGS:GHDX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:GHDX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.328 (1 + (1- 21%) (2.06%))
1.234
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.234 * 5.96%)
10.09%

Discounted Cash Flow Calculation for NasdaqGS:GHDX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Genomic Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:GHDX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.09%)
2020 88.74 Analyst x3 80.61
2021 118.31 Analyst x1 97.62
2022 140.35 Est @ 18.63% 105.19
2023 159.80 Est @ 13.86% 108.80
2024 176.61 Est @ 10.52% 109.23
2025 191.07 Est @ 8.18% 107.34
2026 203.58 Est @ 6.55% 103.89
2027 214.57 Est @ 5.4% 99.47
2028 224.45 Est @ 4.6% 94.51
2029 233.51 Est @ 4.04% 89.32
Present value of next 10 years cash flows $995.98
NasdaqGS:GHDX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $233.51 × (1 + 2.73%) ÷ (10.09% – 2.73%)
$3,260.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,260.62 ÷ (1 + 10.09%)10
$1,247.20
NasdaqGS:GHDX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $995.98 + $1,247.20
$2,243.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,243.18 / 37.29
$60.16
NasdaqGS:GHDX Discount to Share Price
Calculation Result
Value per share (USD) From above. $60.16
Current discount Discount to share price of $74.64
= -1 x ($74.64 - $60.16) / $60.16
-24.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Genomic Health is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Genomic Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Genomic Health's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:GHDX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $1.37
NasdaqGS:GHDX Share Price ** NasdaqGS (2019-08-16) in USD $74.64
United States of America Biotechs Industry PE Ratio Median Figure of 38 Publicly-Listed Biotechs Companies 19.43x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Genomic Health.

NasdaqGS:GHDX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GHDX Share Price ÷ EPS (both in USD)

= 74.64 ÷ 1.37

54.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genomic Health is overvalued based on earnings compared to the US Biotechs industry average.
  • Genomic Health is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Genomic Health's expected growth come at a high price?
Raw Data
NasdaqGS:GHDX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 54.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
17.4%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 30 Publicly-Listed Biotechs Companies 0.76x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:GHDX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 54.36x ÷ 17.4%

3.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genomic Health is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Genomic Health's assets?
Raw Data
NasdaqGS:GHDX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $8.51
NasdaqGS:GHDX Share Price * NasdaqGS (2019-08-16) in USD $74.64
United States of America Biotechs Industry PB Ratio Median Figure of 424 Publicly-Listed Biotechs Companies 2.85x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:GHDX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GHDX Share Price ÷ Book Value per Share (both in USD)

= 74.64 ÷ 8.51

8.77x

* Primary Listing of Genomic Health.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Genomic Health is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Genomic Health's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Genomic Health has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Genomic Health expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Genomic Health expected to grow at an attractive rate?
  • Genomic Health's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Genomic Health's earnings growth is expected to exceed the United States of America market average.
  • Genomic Health's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:GHDX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:GHDX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 17.4%
NasdaqGS:GHDX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 8.4%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 23.1%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 17.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:GHDX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:GHDX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 630 114 1
2022-12-31 585 96 1
2021-12-31 536 132 85 4
2020-12-31 494 104 68 9
2019-12-31 451 72 59 7
NasdaqGS:GHDX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 429 89 50
2019-03-31 410 67 42
2018-12-31 394 77 26
2018-09-30 377 61 19
2018-06-30 360 41 4
2018-03-31 349 36 -7
2017-12-31 341 31 -4
2017-09-30 336 24 -4
2017-06-30 334 24 -5
2017-03-31 331 20 -8
2016-12-31 328 13 -14
2016-09-30 320 8 -18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Genomic Health's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).
  • Genomic Health's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:GHDX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Genomic Health Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GHDX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.64 2.64 2.64 1.00
2022-12-31 2.27 2.27 2.27 1.00
2021-12-31 2.03 2.09 1.94 3.00
2020-12-31 1.72 1.91 1.62 6.00
2019-12-31 1.51 1.53 1.47 4.00
NasdaqGS:GHDX Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 1.37
2019-03-31 1.18
2018-12-31 0.72
2018-09-30 0.53
2018-06-30 0.12
2018-03-31 -0.20
2017-12-31 -0.11
2017-09-30 -0.13
2017-06-30 -0.15
2017-03-31 -0.25
2016-12-31 -0.42
2016-09-30 -0.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Genomic Health is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Genomic Health's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Genomic Health has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Genomic Health performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Genomic Health's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Genomic Health has delivered over 20% year on year earnings growth in the past 5 years.
  • Genomic Health's 1-year earnings growth exceeds its 5-year average (1084.9% vs 63.4%)
  • Genomic Health's earnings growth has exceeded the US Biotechs industry average in the past year (1084.9% vs 78.4%).
Earnings and Revenue History
Genomic Health's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Genomic Health Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GHDX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 428.78 50.12 250.62
2019-03-31 410.26 42.45 244.79
2018-12-31 394.11 25.68 239.19
2018-09-30 376.97 18.65 234.42 -29.40
2018-06-30 359.53 4.23 231.67 -29.15
2018-03-31 349.40 -6.83 230.90 -14.05
2017-12-31 340.75 -3.86 229.60
2017-09-30 336.03 -4.38 225.86 56.91
2017-06-30 334.47 -5.01 224.56 57.29
2017-03-31 330.95 -8.37 222.03 55.97
2016-12-31 327.87 -13.92 221.71
2016-09-30 320.26 -18.01 219.68 55.07
2016-06-30 311.56 -27.03 216.97 54.41
2016-03-31 300.20 -30.17 214.27 53.76
2015-12-31 287.46 -33.31 207.27 44.86
2015-09-30 281.45 -36.84 206.62 44.83
2015-06-30 277.00 -31.26 203.89 44.59
2015-03-31 276.86 -26.64 200.32 43.63
2014-12-31 275.71 -24.59 197.52 49.60
2014-09-30 275.40 -27.69 189.81 51.93
2014-06-30 272.29 -20.94 180.76 52.83
2014-03-31 265.50 -19.32 172.56 53.82
2013-12-31 261.60 -12.76 167.15 53.03
2013-09-30 253.20 -1.43 158.08 52.90
2013-06-30 245.86 1.80 151.69 52.93
2013-03-31 239.80 6.59 144.85 50.05
2012-12-31 235.17 8.25 140.62 47.20
2012-09-30 228.14 8.85 138.21 46.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Genomic Health has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Genomic Health used its assets less efficiently than the US Biotechs industry average last year based on Return on Assets.
  • Genomic Health has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Genomic Health's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Genomic Health has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Genomic Health's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Genomic Health's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Genomic Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Genomic Health's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Genomic Health's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are -4.3941903039231E+16x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Genomic Health Company Filings, last reported 1 month ago.

NasdaqGS:GHDX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 317.22 0.00 243.55
2019-03-31 287.88 0.00 205.96
2018-12-31 270.16 0.00 209.79
2018-09-30 246.02 0.00 183.26
2018-06-30 225.20 0.00 152.95
2018-03-31 200.39 0.00 130.39
2017-12-31 188.29 0.00 129.58
2017-09-30 174.70 0.00 118.96
2017-06-30 169.95 0.00 109.80
2017-03-31 161.17 0.00 94.42
2016-12-31 156.11 0.00 96.99
2016-09-30 144.40 0.00 98.60
2016-06-30 138.56 0.00 93.55
2016-03-31 137.41 0.00 86.38
2015-12-31 139.54 0.00 94.94
2015-09-30 132.53 0.00 98.01
2015-06-30 150.37 0.00 119.66
2015-03-31 156.73 0.00 127.98
2014-12-31 145.51 0.00 103.66
2014-09-30 143.63 0.00 104.69
2014-06-30 143.45 0.00 105.70
2014-03-31 139.78 0.00 100.86
2013-12-31 144.98 0.00 105.35
2013-09-30 145.63 0.00 114.05
2013-06-30 138.98 0.00 107.25
2013-03-31 130.58 0.00 96.08
2012-12-31 126.33 0.00 99.07
2012-09-30 146.84 0.00 126.21
  • Genomic Health's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Genomic Health's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Genomic Health has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Genomic Health's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Genomic Health has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Genomic Health dividends.
If you bought $2,000 of Genomic Health shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Genomic Health's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Genomic Health's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:GHDX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:GHDX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Genomic Health has not reported any payouts.
  • Unable to verify if Genomic Health's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Genomic Health's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Genomic Health has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Genomic Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Genomic Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Genomic Health has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kim Popovits
COMPENSATION $4,755,472
AGE 60
TENURE AS CEO 10.6 years
CEO Bio

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 Director at Kiniksa Pharmaceuticals Ltd. since February 2018. Ms. Popovits served as the Chief Operating Officer at Genomic Health, Inc. from February 2002 to January 2009. She has over twenty years of Pharmaceutical and Biopharmaceutical experience. She served in various roles at Genentech, Inc., as Senior Vice President of Marketing and Sales from February 2001 to February 2002 and as Vice President of Sales from October 1994 to February 2001. From November 1987 to February 2002, she led the successful commercialization of 14 new therapies, including Herceptin®, the revolutionary targeted treatment that changed the way doctors treat a particularly aggressive form of breast cancer. While at Genentech, Ms. Popovits led the launch of its oncology business and was vital to the development of its cardiovascular, endocrine and respiratory markets. She has extensive experience in building new markets and has consistently achieved market leadership through the development of innovative strategies focused on patient needs. She joined Genentech in 1987. Prior to enentech, She served as Division Manager of American Critical Care, a division of American Hospital Supply. She has extensive operational experience in the areas of managed care, reimbursement and organization development. She has been the Chairman of the Board at Genomic Health, Inc. since March 1, 2012. She served as Vice Chairman of Nuvelo Inc. since April 2008. Ms. Popovits has been a Director at Genomic Health, Inc. since March 2002. She has been Independent Director at MyoKardia, Inc since March 17, 2017. She served as an Independent Director at ZS Pharma, Inc. from May 1, 2015 to December 16, 2015. She served as a Director of Bay Area Bioscience Association. She served as Lead Independent Director of Nuvelo Inc. since April 2008 and served as its Director since July 2005. Ms. Popovits served as a Director of ARCA biopharma, Inc. She serves as a Director of Northern California's Life Science Association and American Clinical Laboratory Association, California Life Sciences Association, Personalized Medicine Coalition and ZS Pharma. She serves as the President of The Coalition for 21st Century Medicine. She serves as an advisor to the Healthcare Businesswomen's Association. Her contributions to science and the biotechnology industry have been acknowledged by multiple organizations including, being named as the Woman of the Year in 2008 by the Women Health Care Executives and as one of the Most Influential Women in the Bay Area by The San Francisco Business Times from 2006 to 2011. Ms. Popovits received Bachelor of Arts degree in Business from Michigan State University.

CEO Compensation
  • Kim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Genomic Health management team in years:

4.7
Average Tenure
60
Average Age
  • The tenure for the Genomic Health management team is about average.
Management Team

Kim Popovits

TITLE
Chairman
COMPENSATION
$5M
AGE
60
TENURE
10.6 yrs

Steve Shak

TITLE
Co-Founder & Chief Scientific Officer
COMPENSATION
$2M
AGE
68
TENURE
19.6 yrs

Brad Cole

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
63
TENURE
5.2 yrs

Frederic Pla

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
60
TENURE
1.4 yrs

Jim Vaughn

TITLE
Chief U.S. Commercial Officer
COMPENSATION
$2M
AGE
56
TENURE
8 yrs

David Green

TITLE
VP & Chief Information Officer
TENURE
1.6 yrs

Emily Faucette

TITLE
Vice President of Corporate Communications & Investor Relations

Jason Radford

TITLE
Chief Legal Officer & Secretary
AGE
37
TENURE
4.3 yrs

Laura Kammeyer

TITLE
Chief Communications Officer
AGE
56
TENURE
4.7 yrs

Rolando Brawer

TITLE
Vice President of Corporate Development
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Genomic Health board of directors in years:

7.3
Average Tenure
60.5
Average Age
  • The tenure for the Genomic Health board of directors is about average.
Board of Directors

Kim Popovits

TITLE
Chairman
COMPENSATION
$5M
AGE
60
TENURE
7.4 yrs

Jim Baker

TITLE
Lead Independent Director
COMPENSATION
$269K
AGE
52
TENURE
18.6 yrs

Felix Baker

TITLE
Independent Director
COMPENSATION
$284K
AGE
50
TENURE
7.1 yrs

Hank Fuchs

TITLE
Independent Director
COMPENSATION
$286K
AGE
61
TENURE
5.9 yrs

Geoff Parker

TITLE
Director
COMPENSATION
$284K
AGE
54
TENURE
3.2 yrs

Fred Cohen

TITLE
Independent Director
COMPENSATION
$281K
AGE
63
TENURE
17.3 yrs

Ginger Graham

TITLE
Independent Director
COMPENSATION
$273K
AGE
63
TENURE
10.7 yrs

Barry Flannelly

TITLE
Director
AGE
61
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. May 19 Sell Steven Shak Individual 08. May 19 08. May 19 -25,000 $59.59 $-1,447,616
12. Apr 19 Sell Baker Bros. Advisors LP Company 11. Apr 19 12. Apr 19 -500,950 $67.42 $-33,035,294
10. Apr 19 Sell Baker Bros. Advisors LP Company 08. Apr 19 10. Apr 19 -181,399 $69.12 $-12,428,399
10. Apr 19 Sell Kimberly Popovits Individual 08. Apr 19 08. Apr 19 -2,464 $68.31 $-166,507
05. Apr 19 Sell Baker Bros. Advisors LP Company 03. Apr 19 05. Apr 19 -255,970 $68.90 $-17,436,454
25. Mar 19 Sell Baker Bros. Advisors LP Company 21. Mar 19 21. Mar 19 -56,651 $74.71 $-4,232,164
19. Mar 19 Sell Baker Bros. Advisors LP Company 15. Mar 19 19. Mar 19 -320,106 $76.57 $-23,827,299
14. Mar 19 Sell Baker Bros. Advisors LP Company 12. Mar 19 14. Mar 19 -219,527 $76.50 $-16,681,958
11. Mar 19 Sell Baker Bros. Advisors LP Company 07. Mar 19 11. Mar 19 -73,735 $75.08 $-5,494,448
05. Mar 19 Sell Baker Bros. Advisors LP Company 01. Mar 19 05. Mar 19 -117,387 $77.64 $-9,041,140
28. Feb 19 Sell Baker Bros. Advisors LP Company 27. Feb 19 28. Feb 19 -31,859 $76.66 $-2,441,707
28. Feb 19 Sell Baker Bros. Advisors LP Company 28. Feb 19 28. Feb 19 -600 $76.20 $-45,719
30. Jan 19 Sell Baker Bros. Advisors LP Company 28. Jan 19 28. Jan 19 -46,477 $71.35 $-3,302,980
25. Jan 19 Sell Baker Bros. Advisors LP Company 23. Jan 19 25. Jan 19 -208,831 $73.46 $-15,006,328
22. Jan 19 Sell Baker Bros. Advisors LP Company 17. Jan 19 22. Jan 19 -423,295 $72.79 $-30,331,142
14. Jan 19 Sell Baker Bros. Advisors LP Company 10. Jan 19 14. Jan 19 -39,259 $70.28 $-2,757,356
12. Dec 18 Sell Baker Bros. Advisors LP Company 10. Dec 18 12. Dec 18 -85,420 $74.88 $-6,306,394
07. Dec 18 Sell Baker Bros. Advisors LP Company 04. Dec 18 07. Dec 18 -227,910 $77.75 $-17,274,427
03. Dec 18 Sell Baker Bros. Advisors LP Company 29. Nov 18 03. Dec 18 -458,169 $80.09 $-36,080,046
28. Nov 18 Sell Baker Bros. Advisors LP Company 26. Nov 18 28. Nov 18 -428,677 $76.81 $-32,148,486
20. Nov 18 Sell Baker Bros. Advisors LP Company 16. Nov 18 16. Nov 18 -87,395 $77.66 $-6,699,000
13. Nov 18 Sell Baker Bros. Advisors LP Company 08. Nov 18 13. Nov 18 -759,673 $89.34 $-62,331,606
X
Management checks
We assess Genomic Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Genomic Health has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Genomic Health, Inc. (NASDAQ:GHDX) Overpaying Its CEO?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Genomic Health How Does Kim Popovits's Compensation Compare With Similar Sized Companies? … Boasting a total shareholder return of 110% over three years, Genomic Health, Inc.

Simply Wall St -

Will Genomic Health, Inc.'s (NASDAQ:GHDX) Earnings Grow Over The Next Year?

After Genomic Health, Inc.'s (NASDAQ:GHDX) earnings announcement in March 2019, the consensus outlook from analysts appear fairly confident, as a 35% increase in profits is expected in the upcoming year, though this is evidently lower than the past 5-year average earnings growth of 54%. … Check out our latest analysis for Genomic Health How is Genomic Health going to perform in the near future? … NasdaqGS:GHDX Past and Future Earnings, July 1st 2019 By 2022, GHDX's earnings should reach US$50m, from current levels of US$26m, resulting in an annual growth rate of 19%.

Simply Wall St -

Announcing: Genomic Health (NASDAQ:GHDX) Stock Increased An Energizing 106% In The Last Three Years

There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Genomic Health moved from a loss to profitability. … NasdaqGS:GHDX Past and Future Earnings, June 13th 2019 It is of course excellent to see how Genomic Health has grown profits over the years, but the future is more important for shareholders.

Simply Wall St -

Is Genomic Health, Inc.'s (NASDAQ:GHDX) Stock Available For A Good Price After Accounting For Growth?

Genomic Health is poised for extremely high earnings growth in the near future. … As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Genomic Health is available at price-to-earnings ratio of 46.3x, showing us it is overvalued compared to the US market average ratio of 17.3x , and overvalued based on current earnings compared to the Biotechs industry average of 18.12x. … A PE ratio of 46.3x and expected year-on-year earnings growth of 19% give Genomic Health a quite high PEG ratio of 2.46x.

Simply Wall St -

Does Genomic Health, Inc. (NASDAQ:GHDX) Have A Particularly Volatile Share Price?

(NASDAQ:GHDX), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). … What this means for you: One potential advantage of owning low beta stocks like Genomic Health is that your overall portfolio won't be too sensitive to overall market movements.

Simply Wall St -

Do Institutions Own Genomic Health, Inc. (NASDAQ:GHDX) Shares?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … With a market capitalization of US$2.5b, Genomic Health is a decent size, so it is probably on the radar of institutional investors.

Simply Wall St -

Should You Be Concerned About Genomic Health, Inc.'s (NASDAQ:GHDX) ROE?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Genomic Health, Inc. … Genomic Health has a ROE of 9.5%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Genomic Health's (NASDAQ:GHDX) 206% Share Price Increase Well Justified?

Given that Genomic Health only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. … As a general rule, if the market is looking past earnings to focus on revenue, there is a hope for, or expectation of, strong growth. … In the last 3 years Genomic Health saw its revenue grow at 8.7% per year.

Simply Wall St -

Here's What We Think About Genomic Health, Inc.'s (NASDAQ:GHDX) CEO Pay

In 2009 Kim Popovits was appointed CEO of Genomic Health, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Kim Popovits's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Kind Of Shareholder Owns Most Genomic Health, Inc. (NASDAQ:GHDX) Stock?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Genomic Health isn't enormous, but it's not particularly small either. … institutions own shares in the company.

Simply Wall St -

Company Info

Description

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.

Details
Name: Genomic Health, Inc.
GHDX
Exchange: NasdaqGS
Founded: 2000
$2,783,246,183
37,288,936
Website: http://www.genomichealth.com
Address: Genomic Health, Inc.
301 Penobscot Drive,
Redwood City,
California, 94063,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS GHDX Common Stock Nasdaq Global Select US USD 29. Sep 2005
DB G7H Common Stock Deutsche Boerse AG DE EUR 29. Sep 2005
Number of employees
Current staff
Staff numbers
829
Genomic Health employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:54
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/12
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.