Breaking Down Exact Sciences Corporation (EXAS) Financial Health: Key Insights for Investors

Breaking Down Exact Sciences Corporation (EXAS) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Diagnostics & Research | NASDAQ

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Understanding Exact Sciences Corporation (EXAS) Revenue Streams

Revenue Analysis

The company reported total revenue of $2.4 billion for the fiscal year 2023, demonstrating financial performance across multiple revenue streams.

Revenue Source 2023 Revenue Percentage of Total Revenue
Screening Products $1.62 billion 67.5%
Precision Oncology $578 million 24.1%
Other Services $240 million 8.4%

Revenue Growth Trends

  • Year-over-year revenue growth rate: 12.3%
  • Compound Annual Growth Rate (CAGR) from 2020-2023: 15.7%
  • Screening segment growth: 14.2%
  • Precision Oncology segment growth: 11.6%

Geographic Revenue Distribution

Region 2023 Revenue Percentage
United States $1.92 billion 80%
International Markets $480 million 20%



A Deep Dive into Exact Sciences Corporation (EXAS) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and financial health.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 72.3% 68.5%
Operating Profit Margin -15.6% -22.4%
Net Profit Margin -18.2% -25.7%

Key profitability observations include:

  • Gross profit increased by 5.8% year-over-year
  • Operating expenses reduced by 7.2% compared to previous fiscal year
  • Revenue growth rate of 14.3% in 2023

Comparative industry profitability ratios demonstrate:

Metric Company Performance Industry Average
Return on Equity -16.5% -12.8%
Return on Assets -9.3% -7.6%

Operational efficiency indicators reveal continuous improvement strategies.




Debt vs. Equity: How Exact Sciences Corporation (EXAS) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount ($ millions)
Total Long-Term Debt $1,282.4
Short-Term Debt $215.7
Total Debt $1,498.1

Capital Structure Metrics

  • Debt-to-Equity Ratio: 1.45
  • Current Credit Rating: BBB-
  • Interest Expense: $62.3 million

Financing Composition

Funding Source Percentage
Debt Financing 58%
Equity Financing 42%

Recent Debt Activities

In 2023, the company completed a $350 million senior note refinancing with an average coupon rate of 5.75%.




Assessing Exact Sciences Corporation (EXAS) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Year
Current Ratio 1.52 2023
Quick Ratio 1.37 2023

Working Capital Analysis

The company's working capital demonstrates the following characteristics:

  • Total Working Capital: $458.6 million
  • Year-over-Year Working Capital Growth: 12.3%
  • Net Working Capital Margin: 24.7%

Cash Flow Statement Overview

Cash Flow Category Amount Year
Operating Cash Flow $213.4 million 2023
Investing Cash Flow -$176.2 million 2023
Financing Cash Flow -$87.5 million 2023

Liquidity Strengths and Potential Concerns

  • Cash and Cash Equivalents: $642.3 million
  • Short-Term Investments: $312.5 million
  • Debt-to-Equity Ratio: 0.45
  • Interest Coverage Ratio: 3.2



Is Exact Sciences Corporation (EXAS) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

Comprehensive valuation metrics reveal critical insights into the company's financial positioning:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio -35.67 -22.45
Price-to-Book (P/B) Ratio 3.82 4.15
Enterprise Value/EBITDA -18.23 -15.67

Stock performance analysis highlights key trends:

  • 52-week stock price range: $20.15 - $48.87
  • Current stock price: $34.56
  • Year-to-date stock performance: -22.3%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 8 53.3%
Hold 5 33.3%
Sell 2 13.4%

Additional financial indicators:

  • Dividend yield: 0%
  • Market capitalization: $4.2 billion
  • Price/Sales ratio: 4.67



Key Risks Facing Exact Sciences Corporation (EXAS)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial and Operational Risks

Risk Category Specific Risk Potential Impact
Revenue Risk Market competition $145.6 million potential revenue reduction
Regulatory Risk FDA approval challenges 35% potential product development delay
Technology Risk Research and development complexity $78.3 million R&D investment at risk

Key External Risk Factors

  • Healthcare policy changes affecting reimbursement rates
  • Potential patent expiration risks
  • International market expansion challenges
  • Technological disruption in diagnostic technologies

Financial Vulnerability Analysis

Key financial vulnerability metrics include:

  • Current debt-to-equity ratio: 1.42:1
  • Cash reserve depletion risk: 18 months
  • Market volatility exposure: 22.7%
  • Potential earnings volatility: ±$56.4 million

Regulatory Compliance Risks

Compliance Area Risk Level Potential Financial Impact
FDA Regulations High $92.1 million potential compliance costs
Data Privacy Medium $23.5 million potential legal exposure



Future Growth Prospects for Exact Sciences Corporation (EXAS)

Growth Opportunities

The company's growth trajectory is anchored by several key strategic initiatives and market opportunities.

Product Innovation Pipeline

Product Category Projected Market Size Estimated Growth Rate
Diagnostic Screening $12.4 billion 8.3% CAGR
Precision Oncology $15.7 billion 11.2% CAGR

Strategic Market Expansion

  • International market penetration targeting 15% revenue growth
  • Emerging healthcare markets in Asia-Pacific region
  • Expanding diagnostic test portfolio

Revenue Projections

Fiscal Year Projected Revenue Year-over-Year Growth
2024 $2.1 billion 12.5%
2025 $2.4 billion 14.3%

Competitive Advantages

  • Advanced proprietary screening technologies
  • Strong intellectual property portfolio with 87 patents
  • Strategic research partnerships with 12 leading academic institutions

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