GeneDx Holdings (WGS) AI Stock Analysis

• Market Cap: $3.45B
• Dividend Yield: N/A
• Average Volume (3M): 493.64K
• Price to Earnings (P/E): 6457.8
• Beta (1Y): 1.09
• Revenue Growth: 48.70%
• EPS Growth: N/A
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.50
• Shares Outstanding: 28,726,248
• 10 Day Avg. Volume: 543,594
• 30 Day Avg. Volume: 493,638
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 7.53
• Enterprise Value/Gross Profit: 11.21
• Enterprise Value/Ebitda: 119.43
• 1Y Price Target: $123.20
• Price Target Upside: 2.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $138.00 ▲(14.28% Upside)

GeneDx Holdings' overall score is driven by strong financial performance and positive earnings call sentiment, indicating operational improvements and growth potential. However, the high P/E ratio suggests overvaluation, and technical indicators point to overbought conditions, which could limit upside potential.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, reinforcing GeneDx's position in the genomics sector.

Gross Margin Expansion

A strong gross margin reflects efficient cost management and pricing power, enhancing long-term profitability and competitive advantage.

NICU Market Opportunity

The NICU market potential offers a substantial growth avenue, positioning GeneDx to expand its service reach and revenue base in a critical healthcare segment.

Negative Factors

Limited Profitability

Low net profitability suggests challenges in converting revenue into profit, which may affect long-term financial health and shareholder returns.

General Pediatrics Market Challenges

Slow progress in the general pediatrics market could limit immediate growth potential, requiring strategic efforts to capture this segment.

Payer Coverage Limitations

Limited payer coverage restricts access to services, potentially hindering revenue growth and market penetration in key regions.

GeneDx Holdings Business Overview & Revenue Model

Company Description

GeneDx Holdings Corp. is a patient centered health intelligence company. It engages in transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health and defining optimal, individualized health trajectories. The firm, through its Centrellis health intelligence platform, generates a more complete understanding of disease and wellness and provides science-driven solutions to the most pressing medical needs. The company was founded by Eric Schadt in October 2015 and is headquartered in Stamford, CT.

How the Company Makes Money

GeneDx generates revenue primarily through the sale of its genetic testing services to healthcare providers, including hospitals, clinics, and genetic counselors. The company's revenue model is based on a fee-for-service structure, where clients pay for each genetic test conducted. Key revenue streams include whole genome sequencing tests, targeted gene panels, and consultation services that accompany the testing. Additionally, GeneDx may benefit from collaborations and partnerships with pharmaceutical companies and research institutions, which can provide funding for research initiatives and expand their testing capabilities. The company also engages in billing insurance providers, which can lead to reimbursement for services rendered, further contributing to its earnings.

GeneDx Holdings Financial Statement Overview

Summary

GeneDx Holdings shows positive revenue growth and operational improvements, with a strong gross profit margin and positive free cash flow. However, limited profitability and historical cash flow challenges remain concerns.

Income Statement

GeneDx Holdings shows positive revenue growth with a significant increase in total revenue from previous years. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is strong at 67.2%, reflecting efficient management of production costs. However, the Net Profit Margin is modest at 0.39%, indicating limited profitability. The company turned its EBIT and EBITDA positive, signaling potential operational improvements.

Balance Sheet

The company maintains a reasonable Debt-to-Equity Ratio of 0.23, showcasing a conservative leverage approach. A robust Equity Ratio of 59.74% suggests strong capital structure stability. The Return on Equity (ROE) is low at 0.51%, reflecting limited returns on shareholders' equity.

Cash Flow

GeneDx Holdings achieved positive Free Cash Flow in the TTM, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is strong at 17.17, highlighting efficient cash operations compared to net income. However, historical challenges in maintaining positive cash flows remain a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.32M	305.45M	202.57M	234.69M	212.19M	179.32M
Gross Profit	243.41M	194.40M	60.62M	-26.75M	-16.60M	4.03M
EBITDA	22.84M	-27.64M	-136.46M	-398.20M	-219.19M	-224.73M
Net Income	1.41M	-52.29M	-175.77M	-548.98M	-245.39M	-241.34M
Balance Sheet
Total Assets	463.86M	419.38M	473.67M	490.94M	554.09M	251.64M
Cash, Cash Equivalents and Short-Term Investments	134.56M	141.19M	130.15M	123.93M	400.57M	108.13M
Total Debt	62.70M	116.17M	119.77M	77.13M	11.00M	45.02M
Total Liabilities	186.73M	174.13M	245.66M	237.24M	165.99M	581.69M
Stockholders Equity	277.13M	245.25M	228.02M	253.71M	388.10M	-330.05M
Cash Flow
Free Cash Flow	5.81M	-33.99M	-185.86M	-333.48M	-211.22M	-125.10M
Operating Cash Flow	24.13M	-28.50M	-180.15M	-319.15M	-190.43M	-93.13M
Investing Cash Flow	-54.03M	-30.13M	-43.73M	-141.33M	-20.79M	-31.97M
Financing Cash Flow	59.05M	44.16M	186.24M	197.31M	493.73M	129.06M

GeneDx Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGS, the sentiment is Positive. The current price of 120.76 is above the 20-day moving average (MA) of 120.60, above the 50-day MA of 119.35, and above the 200-day MA of 91.65, indicating a bullish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 73.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WGS.

GeneDx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTSG	76 Outperform	$5.11B	97.67	1.60%	―	20.60%	―
WGS	69 Neutral	$3.45B	6,457.75	0.60%	―	48.70%	―
CERT	69 Neutral	$2.16B	272.27	0.76%	―	11.61%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	51 Neutral	$969.45M	―	-13.38%	―	-6.71%	-71.40%
SOPH	51 Neutral	$273.70M	―	-74.09%	―	7.31%	-7.49%
TXG	51 Neutral	$1.57B	―	-11.30%	―	2.02%	65.33%

GeneDx Holdings Corporate Events

GeneDx Holdings Approves Key Proposals at Annual Meeting

On June 18, 2025, GeneDx Holdings Corp. held its Annual Meeting of Stockholders, where key proposals were voted on and approved. The stockholders elected two Class I directors, Eli D. Casdin and Joshua Ruch, to serve three-year terms, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.