Guardant Health, Inc. (GH) Bundle
Understanding Guardant Health, Inc. (GH) Revenue Streams
Revenue Analysis
Guardant Health, Inc. reported total revenue of $461.7 million for the fiscal year 2023, representing a 17% year-over-year growth.
| Revenue Stream | 2023 Amount | Percentage of Total Revenue |
|---|---|---|
| Precision Oncology Segment | $352.4 million | 76.3% |
| Pharma Services Segment | $109.3 million | 23.7% |
Key revenue insights include:
- Precision Oncology commercial volume increased to 95,000 tests in 2023
- Pharmaceutical services revenue grew 36% year-over-year
- Guardant360 CDx test volume reached 80,000 tests in 2023
Geographic revenue breakdown shows 98% of revenue generated in the United States market.
| Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2021 | $322.6 million | 23% |
| 2022 | $394.8 million | 22% |
| 2023 | $461.7 million | 17% |
A Deep Dive into Guardant Health, Inc. (GH) Profitability
Profitability Metrics Analysis
Guardant Health's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 67.3% | 68.5% |
| Operating Margin | -73.4% | -65.2% |
| Net Profit Margin | -74.6% | -66.8% |
Key Profitability Trends
- Revenue for 2023: $461.9 million
- Research and Development Expenses: $315.7 million
- Operational Cost Efficiency: Showing gradual improvement
Comparative Industry Analysis
| Metric | Company | Industry Average |
|---|---|---|
| Gross Margin | 68.5% | 55.2% |
| Operating Margin | -65.2% | -52.7% |
Debt vs. Equity: How Guardant Health, Inc. (GH) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Guardant Health, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $456.2 million | 62.3% |
| Short-Term Debt | $87.3 million | 11.9% |
| Total Debt | $543.5 million | 74.2% |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 1.85
- Industry Average Debt-to-Equity Ratio: 1.42
- Credit Rating: B+ from Standard & Poor's
Financing Composition
| Funding Source | Amount | Percentage |
|---|---|---|
| Equity Financing | $189.7 million | 25.8% |
| Debt Financing | $543.5 million | 74.2% |
Recent Debt Activities
- Recent Convertible Note Issuance: $300 million
- Interest Rate on Convertible Notes: 2.25%
- Maturity of Convertible Notes: 2028
Assessing Guardant Health, Inc. (GH) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.85 | 1.72 |
| Quick Ratio | 1.63 | 1.49 |
| Working Capital | $324.6 million | $287.3 million |
Cash flow analysis demonstrates the following key trends:
- Operating Cash Flow: $87.2 million
- Investing Cash Flow: -$62.5 million
- Financing Cash Flow: -$18.3 million
Liquidity strengths include:
- Cash and Cash Equivalents: $456.7 million
- Short-term Investments: $212.4 million
- Marketable Securities: $145.6 million
| Solvency Indicator | Value |
|---|---|
| Debt-to-Equity Ratio | 0.45 |
| Interest Coverage Ratio | 6.2 |
Is Guardant Health, Inc. (GH) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics reveal key insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.42 |
| Price-to-Book (P/B) Ratio | 4.89 |
| Enterprise Value/EBITDA | -22.35 |
| Current Stock Price | $11.37 |
Stock price performance highlights:
- 52-week low: $7.81
- 52-week high: $16.95
- Year-to-date price change: -33.47%
Analyst consensus breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 64% |
| Hold | 27% |
| Sell | 9% |
Additional valuation insights:
- Market Capitalization: $1.42 billion
- Forward Price/Earnings Ratio: -14.63
- Price/Sales Ratio: 6.87
Key Risks Facing Guardant Health, Inc. (GH)
Risk Factors: Comprehensive Analysis
Financial risk assessment reveals critical challenges for the company based on the latest SEC filings and financial reports.
Key Operational Risks
- Revenue concentration risk: 72% of total revenue derived from limited customer base
- Research and development expenses: $275.4 million spent in 2023
- Potential intellectual property challenges in oncology diagnostic market
Financial Risk Metrics
| Risk Category | Metric | Value |
|---|---|---|
| Cash Burn Rate | Quarterly | $89.6 million |
| Debt-to-Equity Ratio | Current | 0.45 |
| Net Loss | Fiscal Year 2023 | $384.2 million |
Market and Competitive Risks
- Intense competition in precision oncology diagnostics market
- Potential regulatory changes impacting diagnostic testing reimbursement
- Technology obsolescence risk in molecular diagnostic technologies
External Risk Factors
Healthcare policy uncertainties and potential Medicare/insurance reimbursement modifications present significant external challenges.
| External Risk | Potential Impact | Probability |
|---|---|---|
| Regulatory Changes | Reimbursement Reduction | Medium |
| Market Competition | Market Share Erosion | High |
Future Growth Prospects for Guardant Health, Inc. (GH)
Growth Opportunities
Guardant Health's growth opportunities are driven by several key strategic initiatives and market dynamics in the precision oncology diagnostics sector.
Market Expansion Potential
| Market Segment | Projected Growth | Potential Revenue Impact |
|---|---|---|
| Liquid Biopsy Market | 14.2% CAGR by 2027 | $6.85 billion by 2027 |
| Oncology Diagnostics | 12.5% Annual Growth | $4.3 billion potential market |
Strategic Growth Drivers
- Expansion of Guardant360 CDx testing platform
- Increasing adoption in clinical trial screening
- International market penetration strategies
Key Revenue Growth Projections
Revenue projections indicate potential growth trajectory:
- 2024 Estimated Revenue: $530 million
- 2025 Projected Revenue: $650 million
- Expected Annual Revenue Growth: 22-25%
Competitive Positioning
| Competitive Advantage | Market Impact |
|---|---|
| Advanced Molecular Testing Technology | Proprietary blood-based cancer screening |
| FDA-Approved Diagnostic Platforms | Increased clinical adoption potential |
Research and Development Investments
R&D spending allocation:
- 2024 R&D Budget: $220 million
- Focus Areas:
- Early cancer detection technologies
- Minimal residual disease monitoring
- Precision oncology diagnostics
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