Shares of Myriad Genetics (MYGN, Financial) plunged by 13.68%, reaching a price of $11.90, as the market reacted negatively to the company's latest quarterly results. Despite reporting a 7% year-over-year increase in revenue for the fourth quarter of 2024, the overall performance did not meet market expectations.
Myriad Genetics (MYGN, Financial) reported significant growth in specific segments, with Pharmacogenomics up by 14% and Prenatal testing increasing by 12%. However, these gains were not enough to offset the overall revenue shortfall, which failed to meet the expected forecasts.
In terms of valuation, the company's current market cap stands at approximately $1.08 billion. The GF Value indicates a possible value trap, suggesting investors should think twice before considering an investment in Myriad Genetics. The company's price-to-book ratio is close to its 2-year low, signaling potential undervaluation from a conservative perspective.
One significant concern is Myriad Genetics' financial health, reflected by its Altman Z-Score of 1.8, placing it in the distress zone, implying a potential bankruptcy risk within the next two years. Additionally, the gross margin has been declining over the years, with a current gross margin of 69.15%, which is lower than its historical average.
On a positive note, the Beneish M-Score suggests that Myriad Genetics (MYGN, Financial) is unlikely to be involved in financial manipulation. Despite the stock's decline, the company's PB Ratio shows it is near its 2-year low, which could attract value-focused investors.
For a more detailed evaluation, refer to the GF Value GF Value Page.
