Is Exact Sciences (EXAS) Overpriced?

Exact Sciences may be overvalued with mixed growth prospects, but the 17 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $55.0 to $95.0 per share, for an average of $76.24. At today's price of $64.57, Exact Sciences is trading -15.31% away from its average target price, suggesting there is an analyst consensus of some upside potential.

Exact Sciences Corporation provides cancer screening and diagnostic test products in the United States and internationally. Based in Madison, WI, the mid-cap Health Care company has 6,300 full time employees. Exact Sciences has not offered a dividend during the last year.

Exact Sciences does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -1.87. The average P/E ratio for the Health Care sector is 24.45. On the other hand, the market is undervaluing Exact Sciences in terms of its net assets because its P/B ratio is 3.8. In comparison, the sector average is 4.16.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $876 $1,491 $1,767 $2,084
Revenue Growth n/a 70.19% 18.49% 17.95%
Gross Margins 75.3% 76.2% 74.0% 72.4%
Gross Margins Growth n/a 1.2% -2.89% -2.16%
Operating Margins -26.7% -37.4% -47.3% -27.7%
Operating Margins Growth n/a -40.07% -26.47% 41.44%
Net Margins -9.59% -56.9% -33.71% -29.91%
Net Margins Growth n/a -493.33% 40.76% 11.27%
Earnings Per Share -$0.64 -$5.61 -$3.48 -$3.48
EPS Growth n/a -776.56% 37.97% 0.0%
Diluted Shares (MM) 131 151 171 179
Free Cash Flow (MM) -$287 $72 -$238 -$438
FCF Growth n/a 125.15% -429.96% -84.04%
Capital Expenditures (MM) -$172 -$64 -$136 -$214
LT Debt to Equity 0.36 0.48 0.64 0.73
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.