Caris Life Sciences, Inc. Fundamental Analysis (NASDAQ: CAI)
Caris Life Sciences, Inc. (NASDAQ: CAI) shows moderate financial fundamentals with a PE ratio of 70.91, profit margin of 10.62%, and ROE of 18.77%. The company generates $1.0B in annual revenue with strong year-over-year growth of 96.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CAI's fundamental strength across five key dimensions:
Efficiency Score
WeakCAI struggles to generate sufficient returns from assets.
Valuation Score
ModerateCAI shows balanced valuation metrics.
Growth Score
ExcellentCAI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCAI maintains a strong and stable balance sheet.
Profitability Score
ModerateCAI maintains healthy but balanced margins.
Key Financial Metrics
Is CAI Expensive or Cheap?
P/E Ratio
CAI trades at 70.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CAI's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Caris Life Sciences, Inc. at 12.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 44.55 times EBITDA. This signals the market has high growth expectations.
How Well Does CAI Make Money?
Net Profit Margin
For every $100 in sales, Caris Life Sciences, Inc. keeps $10.62 as profit after all expenses.
Operating Margin
Core operations generate 15.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.77 in profit for every $100 of shareholder equity.
ROA
Caris Life Sciences, Inc. generates $8.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Caris Life Sciences, Inc. produces operating cash flow of $201.29M, showing steady but balanced cash generation.
Free Cash Flow
Caris Life Sciences, Inc. generates strong free cash flow of $146.38M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
CAI converts 1.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How CAI Stacks Against Its Sector Peers
| Metric | CAI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.91 | 30.97 | Worse (Expensive) |
| ROE | 18.77% | 515.00% | Weak |
| Net Margin | 10.62% | 30203.00% | Weak |
| Debt/Equity | 0.76 | 0.53 | Weak (High Leverage) |
| Current Ratio | 5.53 | 5.71 | Strong Liquidity |
| ROA | 8.55% | -15.00% (disorted) | Weak |
CAI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Caris Life Sciences, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-97.04%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-120.82%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-99.68%
Industry Style: Defensive, Growth, Innovation
Declining