CareDx, Inc Fundamental Analysis (NASDAQ: CDNA)
CareDx, Inc Fundamental Analysis (NASDAQ: CDNA)
CareDx, Inc (NASDAQ: CDNA) shows strong financial fundamentals with a PE ratio of 32.35, profit margin of 25.86%, and ROE of 34.08%. The company generates $0.5B in annual revenue with strong year-over-year growth of 13.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CDNA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCDNA demonstrates superior asset utilization.
Valuation Score
ModerateCDNA shows balanced valuation metrics.
Growth Score
ModerateCDNA shows steady but slowing expansion.
Financial Health Score
ExcellentCDNA maintains a strong and stable balance sheet.
Profitability Score
ExcellentCDNA achieves industry-leading margins.
Key Financial Metrics
Is CDNA Expensive or Cheap?
P/E Ratio
CDNA trades at 32.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CDNA's PEG of -0.03 indicates potential undervaluation.
Price to Book
The market values CareDx, Inc at 8.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 156.06 times EBITDA. This signals the market has high growth expectations.
How Well Does CDNA Make Money?
Net Profit Margin
For every $100 in sales, CareDx, Inc keeps $25.86 as profit after all expenses.
Operating Margin
Core operations generate 0.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.08 in profit for every $100 of shareholder equity.
ROA
CareDx, Inc generates $20.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CareDx, Inc produces operating cash flow of $69.58M, showing steady but balanced cash generation.
Free Cash Flow
CareDx, Inc generates strong free cash flow of $60.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.15 in free cash annually.
FCF Yield
CDNA converts 1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How CDNA Stacks Against Its Sector Peers
| Metric | CDNA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.35 | 31.66 | Neutral |
| ROE | 34.08% | 501.00% | Weak |
| Net Margin | 25.86% | -3647.00% (disorted) | Strong |
| Debt/Equity | 0.06 | -0.30 (disorted) | Distorted |
| Current Ratio | 2.31 | 5.78 | Strong Liquidity |
| ROA | 20.05% | -262.00% (disorted) | Strong |
CDNA outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CareDx, Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.38%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
0.47%
Industry Style: Defensive, Growth, Innovation
GrowingFCF CAGR
9.67%
Industry Style: Defensive, Growth, Innovation
Growing