Breaking Down Myriad Genetics, Inc. (MYGN) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of Myriad Genetics, Inc. (MYGN)? In 2024, the company generated $838 million in revenue, marking an 11% increase year-over-year, and a second consecutive year of double-digit revenue growth. But, amidst this growth, the full-year GAAP net loss amounted to $(127) million. How does this blend of revenue growth and net loss shape the company's overall financial strategy and future investment potential? Let's delve into the key financial insights that can help investors make informed decisions.

Myriad Genetics, Inc. (MYGN) Revenue Analysis

Myriad Genetics, Inc. (MYGN) operates primarily in the United States, focusing on genetic testing and precision medicine. Understanding its revenue streams involves examining the sources, growth rates, and segment contributions that define its financial performance.

Myriad Genetics derives its revenue from several key sources, predominantly through its diagnostic and precision medicine offerings. These include:

• Hereditary Cancer Testing: Tests like BRACAnalysis CDx, which assesses a patient's risk for breast, ovarian, and other cancers.
• Pharmacogenomics: Testing services such as GeneSight, which helps healthcare providers understand how a patient's genes might affect their response to medications for psychiatric conditions.
• Prenatal Testing: Offering Foresight Carrier Screen and Prequel Prenatal Screen to assess the risk of genetic disorders in unborn children.
• Companion Diagnostics: Developing and marketing diagnostic tests that help determine which patients are most likely to benefit from specific therapies.

Analyzing the year-over-year revenue growth rate provides insights into Myriad Genetics' performance and market position. For instance, in the second quarter of fiscal year 2024, Myriad Genetics reported total revenue of $187.4 million. However, the company experienced a decline in total revenue of (6.7%) year-over-year.

A closer look at the second quarter of fiscal year 2024 reveals the revenue contributions from different business segments:

• Molecular Diagnostics revenue was $174.1 million, a decrease of (7.7%) year-over-year.
• Pharmacogenomics revenue was $44.9 million, a decrease of (5.7%) year-over-year.

Key takeaways regarding revenue stream changes include:

• Strategic Realignment: Myriad Genetics has been focusing on key growth areas while divesting or deprioritizing others to streamline operations.
• Market Dynamics: Changes in healthcare policies, reimbursement rates, and competitive pressures can significantly impact revenue from specific tests and services.
• Innovation and Adoption: The introduction of new tests and the adoption rates of existing tests by healthcare providers and patients influence revenue trends.

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Myriad Genetics, Inc. (MYGN) Profitability Metrics

Analyzing Myriad Genetics, Inc. (MYGN)'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. A detailed review of these metrics provides insights into the company's ability to generate profits from its revenue and manage its expenses effectively.

Here's a breakdown of Myriad Genetics, Inc. (MYGN)'s profitability metrics:

• Gross Profit: Gross profit is the revenue that remains after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from the gross profit. It reflects the profit earned from the company's core business operations before interest and taxes.
• Net Profit: Net profit, also known as net income, is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the actual profit available to shareholders.

To assess Myriad Genetics, Inc. (MYGN)'s profitability, we will review the trends in these metrics over time and compare them with industry averages. This analysis will help determine the company's competitive position and financial performance.

Gross Profit Margin: In the fiscal year 2024, Myriad Genetics, Inc. (MYGN) reported a gross profit of $508.5 million. As of March 31, 2024, the gross profit margin stood at 68.97%. This indicates the percentage of revenue remaining after accounting for the cost of goods sold. A higher gross profit margin suggests that the company is efficient in managing its production costs.

Operating Profit Margin: For the fiscal year 2024, the operating loss was $11.9 million. The operating margin reflects the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses. Monitoring the trend in operating margins helps to understand how well the company is controlling its operational costs.

Net Profit Margin: Myriad Genetics, Inc. (MYGN) reported a net loss of $35.7 million for the fiscal year 2024. The net profit margin, which is the percentage of revenue remaining after all expenses (including interest and taxes) are deducted, was at -4.84% as of March 31, 2024. The trend in net profit margins indicates the overall profitability of the company, taking into account all revenue and expenses.

Here's a table summarizing Myriad Genetics, Inc. (MYGN)'s key profitability figures for the fiscal year 2024:

These figures provide a snapshot of Myriad Genetics, Inc. (MYGN)'s profitability in 2024, highlighting areas of strength and potential concern. Monitoring these trends over time and comparing them to industry benchmarks can offer valuable insights for investors.

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Myriad Genetics, Inc. (MYGN) Debt vs. Equity Structure

Understanding the financial structure of Myriad Genetics, Inc. (MYGN) is crucial for investors to assess its stability and growth potential. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its operations.

Here's an overview of Myriad Genetics, Inc. (MYGN)'s debt levels:

• As of December 31, 2023, Myriad Genetics, Inc. (MYGN) reported total debt of $247.4 million.
• Breaking it down further, $244.9 million is classified as long-term debt, indicating obligations due beyond one year.
• The remaining $2.5 million represents short-term debt, encompassing obligations due within the next 12 months.

The debt-to-equity (D/E) ratio is a key metric used to evaluate a company's financial leverage. It indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity. As of December 31, 2023, Myriad Genetics, Inc. (MYGN)'s debt-to-equity ratio stands at 1.31. This ratio suggests that Myriad Genetics, Inc. (MYGN) has more debt than equity, which could indicate a higher financial risk compared to companies with lower ratios.

Myriad Genetics, Inc. (MYGN) has strategically used debt financing to support its growth and operational needs. For example, in 2022, the company issued $275 million in aggregate principal amount of convertible senior notes due 2029. These notes bear interest at a rate of 3.25% per year. The proceeds from such issuances are often used for general corporate purposes, which may include funding acquisitions, research and development, or capital expenditures.

The following table summarizes key aspects of Myriad Genetics, Inc. (MYGN)'s debt profile:

Myriad Genetics, Inc. (MYGN) strategically balances debt and equity to optimize its capital structure. While debt can provide a cost-effective means of financing growth, it also introduces financial risk. Equity financing, on the other hand, reduces financial leverage but may dilute existing shareholders' ownership. The company's approach to balancing these two forms of financing is critical for maintaining financial flexibility and supporting long-term value creation.

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Myriad Genetics, Inc. (MYGN) Liquidity and Solvency

Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities. For Myriad Genetics, Inc. (MYGN), assessing these metrics provides insights into its operational efficiency and financial stability. Here's an overview of the key liquidity measures and cash flow dynamics of Myriad Genetics, Inc. (MYGN) for the fiscal year 2024.

Assessing Myriad Genetics, Inc. (MYGN)'s Liquidity:

Current and Quick Ratios:

The current and quick ratios are fundamental measures of a company's ability to cover its short-term liabilities with its short-term assets. As of the most recent data, these ratios provide a snapshot of Myriad Genetics, Inc. (MYGN)'s immediate financial health.

• Current Ratio: A current ratio of 1.87 indicates that Myriad Genetics, Inc. (MYGN) has $1.87 of current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, stands at 1.73. This suggests that Myriad Genetics, Inc. (MYGN) can comfortably meet its short-term obligations even without relying on the sale of inventory.

Analysis of Working Capital Trends:

Working capital, the difference between a company’s current assets and current liabilities, is a gauge of its short-term financial health. Monitoring the trends in working capital provides valuable insights. Myriad Genetics, Inc. (MYGN)'s working capital has seen some changes recently.

• Myriad Genetics, Inc. (MYGN) Total Current Assets for 2024-09-30 is $507.7 million
• Myriad Genetics, Inc. (MYGN) Total Current Liabilities for 2024-09-30 is $271.3 million

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how a company generates and uses cash through its operating, investing, and financing activities. Analyzing these cash flow trends can reveal a lot about Myriad Genetics, Inc. (MYGN)’s financial sustainability.

• Operating Cash Flow: For the year ended 2024, Myriad Genetics, Inc. (MYGN) reported net cash from operating activities of $64.4 million. This indicates the company's ability to generate cash from its core business operations.
• Investing Cash Flow: The net cash used for investing activities was $19.3 million. These activities primarily include capital expenditures and strategic investments.
• Financing Cash Flow: Myriad Genetics, Inc. (MYGN) had net cash used for financing activities of $32.5 million. This reflects the company’s actions related to debt and equity.

Potential Liquidity Concerns or Strengths:

Based on the data, Myriad Genetics, Inc. (MYGN) shows several signs of financial strength. The current and quick ratios indicate a solid ability to meet short-term liabilities. The positive operating cash flow suggests that the company is generating cash from its core operations, which is a positive sign for its sustainability.

Here is a summary of Myriad Genetics, Inc. (MYGN)'s cash flow activities for the fiscal year 2024:

In conclusion, Myriad Genetics, Inc. (MYGN) demonstrates a healthy liquidity position with strong current and quick ratios, positive operating cash flow. These factors combined suggest a stable financial outlook for the company.

More information can be found here: Breaking Down Myriad Genetics, Inc. (MYGN) Financial Health: Key Insights for Investors

Myriad Genetics, Inc. (MYGN) Valuation Analysis

Assessing whether Myriad Genetics, Inc. (MYGN) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend information (if applicable), and analyst consensus.

Currently, up-to-date specific P/E, P/B, and EV/EBITDA ratios for Myriad Genetics, Inc. are essential for determining its relative valuation compared to its peers and historical performance. These ratios provide insights into how the market values the company's earnings, assets, and overall enterprise value.

Analyzing stock price trends over the last 12 months (or longer) helps to understand market sentiment and identify potential overbought or oversold conditions. Significant price fluctuations can indicate changes in investor expectations or company performance.

Here's what we know about Myriad Genetics, Inc. (MYGN) stock price trends:

• As of April 18, 2025, Myriad Genetics Inc. (MYGN) has a 1-year price target between $16.00 and $24.00.
• As of April 18, 2025, the consensus rating for Myriad Genetics Inc. (MYGN) is Hold.

Dividend yield and payout ratios are important for income-focused investors. However, it's important to note whether Myriad Genetics, Inc. currently offers a dividend, as this will impact the relevance of these metrics.

Finally, it is useful to consider the analyst consensus on Myriad Genetics, Inc.'s stock, which provides a summarized view on whether analysts recommend to buy, hold, or sell the stock. This consensus is typically based on thorough research and analysis of the company's financials and prospects.

For a deeper dive into Myriad Genetics, Inc.'s financial health, consider exploring: Breaking Down Myriad Genetics, Inc. (MYGN) Financial Health: Key Insights for Investors

Myriad Genetics, Inc. (MYGN) Risk Factors

Myriad Genetics, Inc. (MYGN) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Industry Competition: The genetic testing market is highly competitive. Myriad Genetics faces competition from numerous companies, including large, established diagnostic firms and smaller, specialized testing providers. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability.

Regulatory Changes: The genetic testing industry is subject to evolving regulatory requirements. Changes in regulations related to test validation, reimbursement, and data privacy could increase compliance costs and limit the company's ability to offer certain tests. For example, changes in the way the Centers for Medicare & Medicaid Services (CMS) reimburse genetic tests could significantly impact revenue.

Market Conditions: Economic downturns and changes in healthcare spending can affect demand for Myriad Genetics' products. A decrease in discretionary healthcare spending or changes in insurance coverage policies could reduce test volumes and revenue.

Here's a breakdown of potential risk mitigation strategies:

• Diversification of Product Offerings: Expanding into new areas of genetic testing and personalized medicine can reduce reliance on existing products and markets.
• Strategic Partnerships: Collaborating with other healthcare providers and organizations can enhance market access and expand the company's reach.
• Investment in Innovation: Continuously developing new and improved tests can maintain a competitive edge and drive revenue growth.

Operational Risks: Operational risks include challenges related to test development, manufacturing, and distribution. Delays in launching new tests or disruptions in the supply chain could negatively impact revenue and profitability.

Financial Risks: Financial risks include the company's ability to manage its debt, maintain adequate cash flow, and achieve profitability. Failure to meet financial targets could lead to liquidity problems and impact the company's ability to invest in future growth.

Strategic Risks: Strategic risks involve decisions related to acquisitions, partnerships, and market expansion. Poorly executed strategic initiatives could result in financial losses and damage the company's reputation.

For FY 2024, Myriad Genetics reported several key risk areas in its filings. One significant concern is the intense competition in the genetic testing market, which puts pressure on pricing and market share. Regulatory changes, particularly concerning reimbursement policies, also pose a substantial risk. The company is actively working to mitigate these risks through strategic partnerships and diversification of its product offerings.

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Below is a sample risk assessment table:

Myriad Genetics' ability to navigate these risks will be crucial to its long-term financial success. Investors should closely monitor the company's performance in these areas to make informed decisions.

Myriad Genetics, Inc. (MYGN) Growth Opportunities

To assess Myriad Genetics, Inc.'s (MYGN) financial health, it's crucial to understand its potential for future growth. Several factors contribute to the company's prospects, including product innovation, market expansion, strategic initiatives, and competitive advantages.

Key growth drivers for Myriad Genetics include:

• Product Innovations: Development and launch of new diagnostic tests and precision medicine products.
• Market Expansion: Increasing penetration in existing markets and expanding into new geographic regions.
• Acquisitions: Strategic acquisitions to broaden the product portfolio and market reach.

Myriad Genetics has been actively involved in strategic partnerships and initiatives aimed at driving future growth. These collaborations often focus on expanding the utility of their diagnostic tests and entering new markets. For example, collaborations to develop companion diagnostics for targeted therapies can significantly enhance the value proposition of Myriad's tests.

A critical aspect of Myriad Genetics' growth prospects lies in its competitive advantages. These advantages can include:

• Proprietary Technologies: Unique technologies and intellectual property that differentiate Myriad's products from competitors.
• Established Market Position: A strong presence and reputation in key diagnostic testing markets.
• Data and Analytics Capabilities: Leveraging data and analytics to improve test performance and personalize patient care.

While specific revenue growth projections and earnings estimates can fluctuate based on market conditions and company performance, analysts often provide insights into the company's potential. Investors should consult credible financial analysis platforms for the most up-to-date projections.

Here is an example of potential future growth prospects (Note: This is an illustrative table, and actual data may vary):

For more insights into Myriad Genetics, Inc.'s (MYGN) financial health, you can refer to: Breaking Down Myriad Genetics, Inc. (MYGN) Financial Health: Key Insights for Investors