Myriad Genetics Inc (MYGN, Financial) has experienced a notable uptick in its stock performance, with a 10.27% gain over the past week and an impressive 29.34% gain over the past three months. The company's market capitalization now stands at $1.77 billion, with a current stock price of $19.75. When compared to the GF Value of $24.99, Myriad Genetics is considered modestly undervalued, a positive shift from its previous assessment as a possible value trap. This suggests that investors may have a favorable opportunity at the current price point.
Introduction to Myriad Genetics Inc
Operating within the Medical Diagnostics & Research industry, Myriad Genetics Inc is a molecular diagnostics company that specializes in testing services to evaluate disease risk. The company's product portfolio includes MyRisk, a comprehensive 48-gene panel, BRACAnalysis CDx, GeneSight, Prequel, and the recently launched Precise Oncology Solutions. These offerings are critical in the early detection and treatment of various diseases, particularly cancer. The firm also collaborates with pharmaceutical and biotech companies to provide biomarker discovery and companion diagnostic services.
Assessing Profitability
Myriad Genetics' Profitability Rank is currently at 5/10. Despite a challenging Operating Margin of -37.04%, the company's performance is better than 35.4% of 226 companies in the industry. The ROE stands at -33.82%, ROA at -23.19%, and ROIC at -27.31%, each outperforming a significant portion of their industry peers. Over the past decade, Myriad Genetics has managed to maintain profitability for 7 years, which is better than 53.95% of 152 companies in the same space.
Growth Trajectory
The company's Growth Rank is at a low 2/10, with a 3-Year Revenue Growth Rate per Share of -9.10% and a 5-Year Revenue Growth Rate per Share of -5.20%. However, the future looks more promising, with an estimated Total Revenue Growth Rate of 7.71% over the next 3 to 5 years, indicating potential for improvement and better performance than over half of the companies in the industry.
Key Shareholders
Notable shareholders in Myriad Genetics include Larry Robbins (Trades, Portfolio), holding 3,783,982 shares (4.6%), Ken Fisher (Trades, Portfolio) with 142,656 shares (0.17%), and Paul Tudor Jones (Trades, Portfolio) owning 10,356 shares (0.01%). These investors' involvement could signal confidence in the company's direction and potential influence on its strategic decisions.
Competitive Landscape
Myriad Genetics operates in a competitive landscape, with close rivals such as NeoGenomics Inc (NEO, Financial) with a market cap of $2.02 billion, Twist Bioscience Corp (TWST, Financial) at $2.07 billion, and OPKO Health Inc (OPK, Financial) valued at $737.187 million. The company's market position and capitalization are indicative of its standing within the industry and its ability to compete with these other key players.
Conclusion
In summary, Myriad Genetics Inc's recent stock performance and modest undervaluation relative to the GF Value suggest a potentially attractive investment opportunity. While the company's profitability metrics present some challenges, its long-term profitability history and projected revenue growth offer a more optimistic outlook. The presence of significant shareholders could further bolster investor confidence. Compared to its competitors, Myriad Genetics holds a competitive market capitalization, reinforcing its position in the Medical Diagnostics & Research industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
