FLGT (FULGENT GENETICS, INC.)
Score: 85.16 out of 100.00

 

Key points:

  • FLGT stock price looks quite attractive compared to its valuation a couple months ago
  • The company has relatively strong fundamentals
  • There are however mixed signals whether it’s a buy or not
  • The biggest concern is that it is considered a “COVID” company; while it’s last year’s profit came largely from COVID-19 testing, the company offers much more than that, including oncology-related genetic testing, with quite considerable investments in that area

 

Profile

Company’s website

Fulgent Genetics, Inc. is a technology company, which engages in the provision of gene testing and sequencing solutions. It offers genes and panels, known mutation, hereditary cancer, carrier screening, and tumor profiling solutions. The company was founded on May 13, 2016 and is headquartered in Temple City, CA.

Sector: Health Services
Industry: Medical/Nursing Services. No. of companies in the same industry: 45

Price per share: 91.22
Avg Volume : 757.14K
Volume: 213.115K
Mkt Cap: 2.693B
Employees: 429

 

Financial strength & scoring

Valuation

P/E (5.53) is better than in 93.33% stocks in industry
P/B (MRQ) (2.98) is better than in 67.44% stocks in industry
EV/EBITDA (3.3) is better than in 88.89% stocks in industry
Also worth attention:
Fwd P/E : 24.82
PEG : –
P/S : 3.11

Profitability

ROA (85.79) is better than in 97.56% stocks in industry
ROE (98.32) is better than in 97.44% stocks in industry
Net Margin (54.02) is better than in 97.37% stocks in industry
Also worth attention:
ROI : 36.50%
Gross M : 79.30%

Growth

EPS (TTM) (18.43) is better than in 95.0% stocks in industry
EPS Forecast (1.5) is better than in 90.7% stocks in industry
Also worth attention:
EPS this Y : 35.40%
EPS next Y : -69.40%
EPS past 5Y : 88.50%
EPS next 5Y : –

Health

Quick Ratio (4.66) is better than in 64.44% stocks in industry
Current Ratio (4.66) is better than in 65.22% stocks in industry
DEBT/EQUITY (0.03) is better than in 71.74% stocks in industry
Also worth attention:
LTDebt/Eq : 0.01

Other indicators

  • Piotroski F-Score: 6 out of 9
  • Altman Z-Score: 16.78 (safe area)
  • Div Yield 0.00
  • Payout Ratio 0.00%
  • 1-Y Beta 0.61
  • Volatility 3.98

 

How others valuate FLGT

Yahoo Finance: Buy, target price: $115

MarketBeat: Hold, target price: $94.25 (up 3%)

TheStreet: Buy

Weiss Ratings: Hold

Zacks: Strong Sell

InvestorsObserver (score): 51

 

What others write about FLGT

Aug-24-21 Have $500? 3 Absurdly Cheap Healthcare Stocks Long-Term Investors Should Consider Buying Right Now Motley Fool

In 2020, Fulgent Genetics was a key provider of COVID-19 testing and saw its revenue increase by almost 1,300% over the prior year. Few companies benefited more during the pandemic and few have a bigger cloud of uncertainty hanging over them as investors try to figure out what the future holds.

Fulgent has a growing genetic testing business for pediatric diseases, which management expects to generate revenue of $110 million in 2021, representing a 201% year-over-year increase. That’s a growth story investors should be following.

Fulgent bought CSI Laboratories for its oncology testing and molecular diagnostics, made a $20 million investment in Helio Health for early cancer detection, and increased its $19 million majority stake in Chinese joint venture FF Gene Biotech for cancer testing in China.

The potential for multi-cancer screening is mind boggling — in both financial and human terms. Based on a single liquid biopsy (blood test), multi-cancer screening can detect dozens of early-stage cancers before they spread and become harder to treat. Pharma companies are advocating and paying for genetic cancer screening since it improves the outcomes and will drive demand for their therapies.

Fulgent has proven to be a very capable operator generating operating margin above 60% and ending Q2 with $777 million in cash on its balance sheet. The operational and financial proof points from the last year should give investors confidence Fulgent can grow profitably and use its cash to pursue strategic growth opportunities. 

The good news is Fulgent isn’t just a COVID-19 story. For patient long-term buy-and-hold investors with a tolerance for some uncertainty, Fulgent Genetics may actually be the best value healthcare stock out there and a great way to build your portfolio.

Aug-17-21 New Strong Sell Stocks for August 17th Zacks

FLGT is a technology company that provides genetic testing services to physicians with clinically actionable diagnostic information. The Zacks Consensus Estimate for its current year earnings has been revised 2.3% downward over the last 30 days.

What Twitter says about FLGT

More from Twitter

 

Sources

  • Yahoo Finance
  • FinViz
  • TradingView
  • MarketBeat
  • Weiss Ratings
  • Zacks
  • InvestorsObserver
  • TheStreet
  • Twitter

 

Methodology

For each stock from NASDAQ and NYSE scores are calculated for each of the following areas:

  • Valuation
  • Profitability
  • Growth
  • Health

The scores are calculated using the indicators shown in colored boxes above. For instance, to assess stocks profitability, Return on Assets (ROA), Return on Equity (ROE) and Net Margin are taken into account. The algorithm looks up the value of ROA in every stock belonging to the same industry and compares it against the analyzed stock, providing a final rank: if there are 20 stocks and 5 of them have higher ROA, then the ROA-associated score is (20-5)/20 * 100 = 75, meaning that the ROA is better than in 75% of stocks. We want ROA to be higher than in the other companies; sometimes, however, we want to be lower than in peers, as is the case with Price to Book ratio (P/B). Then, the mean score across ROA, ROE and Net Margin is calculated. Similar with Valuation, Growth and Health scores. The algorithm starts with Valuation score, requiring it is at least 50/100. Then it proceeds with Profitability, Growts and Healts scores, each time requiring the score to be 50 or higher. Finally, for the remaining stocks the mean value across all four areas of interest are calculated. Only highest ranking stocks are the ones of interest and subjected to further manual inspection.

Disclaimers

  • What you see here is my personal opinion and should not be treated as investing advice
  • I’m not an expert stock analyst nor financial advisor
  • I’m not associated with any of the sources cited

Michał, the Investing Scientist.

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