Veracyte Inc. Common Stock (VCYT)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the numbers. Veracyte's filings show revenue rising from $361.1 million in FY2023 to $445.8 million in FY2024 to $517.1 million in FY2025, while net income swung from a loss of $74.4 million in FY2023 to $24.1 million in FY2024 and $66.4 million in FY2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $150.3 million and net income $25.5 million, or $0.31 diluted EPS; that compares with revenue of $130.2 million and a net loss of $980,000, or -$0.01 EPS, in fiscal Q2 2025. The computed Lynch category is TURNAROUND - returned to profit after a loss within the last three years - and that fits. Financial health looks sound: D/E 0.03 and Altman Z-Score 21.49, with TTM free cash flow of $166.0 million and a 4.8% FCF yield. But quality metrics are mixed: ROE 8.77%, ROCE 4.09%, Piotroski F-Score 5/9, and FairStock Score 49/100. Valuation is the rub. At the 2026-10-13 close of $43.11, FairStock calculates P/E 30.79, P/B 2.49, EV/EBITDA 23.43, and a Graham Number of $23.33 - price is 84.78% above that value. PEG 0.03 looks absurdly low only because profit growth is off a tiny base. The company has a specialized cancer-diagnostics portfolio, but these figures do not prove a wide moat; high beta 1.93 adds risk. I would want more margin of safety and consistent cash returns before calling the price compelling.

In plain English: Veracyte sells laboratory tests that use genes to help diagnose several cancers, including thyroid, prostate, bladder, breast, and lung cancer. Sales and profits have grown, and the company carries very little debt, so the business looks healthier than it did a few years ago. At the recent price of $43.11, however, the stock looks expensive compared with the profits and assets shown in its financial reports.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer