Myriad Genetics (MYGN): Losses Compound at 21.1% Annually, Undercutting Value Narrative

Myriad Genetics (MYGN) remains in the red, with losses having climbed at a 21.1% annualized rate over the past five years, and the company is expected to stay unprofitable for at least the next three years. While revenue is forecast to grow 4.5% per year, which is less than half the 10.5% broader US market expectation, shares currently trade at $6.58, below an estimated fair value of $9.83. Despite a low price-to-sales ratio of 0.7x, ongoing net losses and a slower revenue trajectory continue to weigh on investor sentiment.

See our full analysis for Myriad Genetics.

Next up, we’ll see how these numbers stack up against the broader narratives investors follow. Sometimes they line up, sometimes they do not.

See what the community is saying about Myriad Genetics

Margins Under Strain Despite Value Signal

• Myriad's net profit margin remains deeply negative at -47.4%, with no improvement reported and losses compounding at a steep 21.1% annualized rate over five years.
• The consensus narrative notes that even as Myriad’s price-to-sales ratio of 0.7x is dramatically cheaper than peers, sustained operating losses and the inability to lift net profit margins are sticking points.
  • Analysts’ consensus view suggests investments in operations, R&D, and improved test adoption are positioned to drive margin expansion and future profit growth. However, current fundamentals give no evidence of a turnaround yet.
  • At the same time, execution risk remains high. Cost discipline and margin improvement are only likely to support bullish arguments if new product launches actually move the needle on bottom-line results.
• To see if analysts believe Myriad Genetics can overcome these financial headwinds and lift margins, dive into our full consensus narrative breakdown. 📊 Read the full Myriad Genetics Consensus Narrative.

Debt Load Puts Earnings at Risk

• The company’s recent $200 million OrbiMed loan, at rates up to 11%, has significantly increased fixed financial costs that directly pressure already-negative net margins.
• Consensus narrative highlights that while strategic investments and partnerships could boost long-term growth, heavy debt costs and large impairment charges challenge Myriad’s ability to sustain earnings improvement.
  • For example, interest expense from this new debt, combined with a $317 million goodwill impairment, sends a stark signal about the caution among investors and increases the hurdle for a true recovery.
  • Bears argue these fixed costs and charges will make it much more difficult for new revenue streams to translate to bottom-line profits without a marked change in product mix or reimbursement wins.

Discounted Valuation Faces Stagnant Price Targets

• Shares trade at $6.58, which is below both the DCF fair value of $9.83 and the analyst consensus price target of $8.29. Yet the uplift implied by the consensus target is just 7.8%, signaling cautious optimism at best.
• According to the consensus narrative, analysts point to competitive pricing and growing adoption of genomic testing as potential catalysts that could close the value gap. However, acknowledgment of execution risk and only modest target upside suggests the market is waiting for tangible proof of progress before re-rating the stock.
  • The wide range among analyst targets ($3.50 to $18.00) further underscores how split the outlook is. Skeptics remain unconvinced current initiatives justify a higher valuation without concrete evidence of profitability and sustained revenue acceleration.
  • Consensus expects share count to increase by 2.21% per year, which could dilute any near-term EPS gains unless revenue projections are met or exceeded.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Myriad Genetics on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Myriad Genetics research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Myriad Genetics faces persistent net losses, debt pressure, and stagnating margins, with no clear recovery in sight and high execution risk.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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