Genetron Holdings (NasdaqGM:GTH) - Share price, News & Analysis

GTH fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

GTH Stock Overview

Genetron Holdings Limited, a precision oncology company, engages in the cancer molecular profiling, and harnessing technologies in molecular biology and data science for cancer treatment.

Rewards

Revenue is forecast to grow 24.78% per year

Risk Analysis

Earnings have declined by 10.2% per year over past 5 years

Has less than 1 year of cash runway

Genetron Holdings Competitors

TScan Therapeutics

NasdaqGM:TCRX

US$74.1m

Exagen

NasdaqGM:XGN

US$74.6m

Bolt Biotherapeutics

NasdaqGS:BOLT

US$76.8m

HCW Biologics

NasdaqGM:HCWB

US$81.0m

Price History & Performance

Summary of all time highs, changes and price drops for Genetron Holdings
Historical stock prices
Current Share Price	US$1.26
52 Week High	US$16.94
52 Week Low	US$0.89
Beta	0.13
1 Month Change	-1.56%
3 Month Change	-8.70%
1 Year Change	-89.09%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-92.13%

Shareholder Returns

	GTH	US Biotechs	US Market
7D	36.1%	-2.0%	1.4%
1Y	-89.1%	-22.2%	-8.4%

Return vs Industry: GTH underperformed the US Biotechs industry which returned -23% over the past year.

Return vs Market: GTH underperformed the US Market which returned -9% over the past year.

Price Volatility

Is GTH's price volatile compared to industry and market?
GTH volatility
GTH Average Weekly Movement	11.6%
Biotechs Industry Average Movement	12.4%
Market Average Movement	7.6%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.1%

Stable Share Price: GTH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: GTH's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2015	1,154	Sizhen Wang	https://www.genetronhealth.com

Genetron Holdings Limited, a precision oncology company, engages in the cancer molecular profiling, and harnessing technologies in molecular biology and data science for cancer treatment. The company offers diagnosis and monitoring services, and early screening services through laboratory developed tests services. It also provides in-vitro diagnostic products, including 8-gene lung cancer assay, an IVD assay product to detect lung cancer; Genetron 3D biochip reading instrument; Genetron S5, a semiconductor-based NGS system, which detects the nucleotide through detecting the change in pH; Genetron Chef System; Genetron S2000 platform, a production-scale sequencer; and Onco PanScan, a genomic profiling service for various solid tumors.

Genetron Holdings Fundamentals Summary

How do Genetron Holdings's earnings and revenue compare to its market cap?
GTH fundamental statistics
Market Cap	US$114.16m
Earnings (TTM)	-US$82.21m
Revenue (TTM)	US$81.08m

1.4x

P/S Ratio

-1.4x

P/E Ratio

Is GTH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GTH income statement (TTM)
Revenue	CN¥550.21m
Cost of Revenue	CN¥205.32m
Gross Profit	CN¥344.89m
Other Expenses	CN¥902.74m
Earnings	-CN¥557.86m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-6.16
Gross Margin	62.68%
Net Profit Margin	-101.39%
Debt/Equity Ratio	3.1%

How did GTH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is GTH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GTH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GTH. This is calculated by dividing GTH's market cap by their current preferred multiple.
What is GTH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥774.69m

GTH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	-0.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does GTH's PS Ratio compare to its peers?

GTH PS Ratio vs Peers

The above table shows the PS ratio for GTH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	13.1x
TCRX TScan Therapeutics	6x	-2.2%	US$74.1m
XGN Exagen	1.7x	25.2%	US$74.6m
BOLT Bolt Biotherapeutics	22.2x	69.6%	US$76.8m
HCWB HCW Biologics	22.7x	-71.6%	US$81.0m
GTH Genetron Holdings	1.4x	24.8%	US$114.2m

Price-To-Sales vs Peers: GTH is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

How does GTH's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Sales vs Industry: GTH is good value based on its Price-To-Sales Ratio (1.4x) compared to the US Biotechs industry average (15.8x)

Price to Sales Ratio vs Fair Ratio

What is GTH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GTH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	5.3x

Price-To-Sales vs Fair Ratio: GTH is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (5.3x).

Share Price vs Fair Value

What is the Fair Price of GTH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate GTH's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GTH's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Genetron Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.8%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GTH's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if GTH's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if GTH's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GTH's revenue (24.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: GTH's revenue (24.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Genetron Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GTH is currently unprofitable.

Growing Profit Margin: GTH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: GTH is unprofitable, and losses have increased over the past 5 years at a rate of 10.2% per year.

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

Earnings vs Industry: GTH is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (24.5%).

Return on Equity

High ROE: GTH has a negative Return on Equity (-54.08%), as it is currently unprofitable.

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Financial Health

How is Genetron Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GTH's short term assets (CN¥1.0B) exceed its short term liabilities (CN¥249.5M).

Long Term Liabilities: GTH's short term assets (CN¥1.0B) exceed its long term liabilities (CN¥39.0M).

Debt to Equity History and Analysis

Debt Level: GTH has more cash than its total debt.

Reducing Debt: Insufficient data to determine if GTH's debt to equity ratio has reduced over the past 5 years.

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: GTH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GTH has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 35.4% each year.

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Dividend

What is Genetron Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GTH's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GTH has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure

CEO

Sizhen Wang (45 yo)

7.25yrs

Tenure

Mr. Sizhen Wang has been Chairman at Genetron Holdings Limited since June 2021. He is the Co-Founder of Genetron Holdings Limited. He has been Director at Genetron Holdings Limited since April 2018 and has...

Leadership Team

Experienced Management: GTH's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: GTH's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31