Recent News
On July 18, 2025 CareDx published a proposed draft Local Coverage Determination (LCD) that would continue coverage for surveillance molecular testing for kidney, heart, and lung transplant patients without requiring a protocol biopsy, with the draft open for comment through August 31, 2025.
On July 31, 2025 CareDx highlighted landmark data presented at the 2025 World Transplant Congress and announced the launch of AlloSure® Plus integrated into EPIC Aura.
On August 6, 2025 CareDx named Nathan Smith as Chief Financial Officer, citing his experience in molecular diagnostics and financial leadership roles.
Technical Analysis
ADX at 27.77 signals a strong underlying trend; trend strength supports a measurable short-term directional bias but does not specify direction.
DI+ shows a peak-and-reversal pattern, a bearish directional signal, while DI- is decreasing, which reads as bullish; the juxtaposition suggests short-term directional conflict that often precedes a resolution move tied to momentum indicators.
MACD at 0.38 sits above its 0.18 signal line and the MACD trend increases, constituting a bullish momentum read and reinforcing short-term upside pressure on price.
MRO reads -0.35, a negative value that implies the price sits below target and therefore contains potential upside if momentum sustains.
RSI at 51.2 with an increasing trend indicates neutral-to-constructive momentum without overbought conditions; room exists for further gains before RSI reaches extended levels.
Price trades at $14.87, above the 12-day EMA ($14.51) and the 20-day average ($14.25) but remains below the 200-day average ($18.20); short-term moving averages and EMAs trending higher support near-term strength while the 200-day average marks longer-term resistance.
Bollinger bands place one-standard-deviation upper at $15.08 and lower at $13.42; the close near the upper band suggests above-average short-term volatility and proximity to resistance. The super trend lower support sits at $13.84, providing an operational short-term support reference.
Fundamental Analysis
Revenue for the period totaled $86,679,000, with testing services volume around 49,500 and adjusted revenue of $90.5 million as announced in the company’s second-quarter 2025 release.
Operating results remain loss-making on a GAAP basis: EBIT stood at $-10,771,000 and EBITDA at $-5,718,000, producing an operating (EBIT) margin of -12.43%. QoQ operating margin improved by +31.31% and YoY by +184.54%, signaling material sequential margin recovery despite negative absolute margins.
EPS came in at $0.10 versus an estimate of $0.12, an EPS surprise of -$0.02 or -16.67%, reflecting the GAAP loss environment for the quarter.
Cash and short-term investments total $186,255,000 and the cash ratio equals 1.999, underpinning liquidity while total debt remains modest at $29,122,000 (debt-to-assets ~6.56%). Free cash flow registered $8,888,000 with a free cash flow yield of 1.13%, above the industry peer mean free cash flow yield of 0.736%, indicating comparatively stronger cash conversion on a peer-adjusted basis.
Gross margin sits at 66.94%, above the industry peer mean of 56.97%, reflecting high protocol and service-level profitability in the company’s diagnostic business. Price multiples show a P/B of 2.40x (below the industry peer mean P/B of 4.25x) while the trailing P/E near 166x sits above the industry peer mean of about 84.83x; forward PE approximates 127.65x. Those mixed multiples reflect positive revenue traction and cash metrics but also reflect low trailing earnings and high expectations embedded in forward estimates.
Operational leverage appears to improve: asset turnover at 0.186 compares slightly above the industry peer mean of 0.159, and receivables and inventory dynamics show longer cash conversion cycle days at ~126 days versus an industry peer mean near 139 days, indicating a reasonable working-capital position relative to peers. Return on assets and equity remain negative (ROA ≈ -1.84%, ROE ≈ -2.62%) as GAAP losses persist.
WMDST values the stock as under-valued based on the supplied valuation determination; the combination of positive testing-volume growth, above-peer gross margins, ample liquidity, and improving operating margin trajectory supports that valuation stance while GAAP profitability remains the principal constraint on re-rating.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-10-28 |
| CASH FLOW | Begin Period Cash Flow | $ 89.3 M |
| Operating Cash Flow | $ 9.9 M | |
| Capital Expenditures | $ -1.01 M | |
| Change In Working Capital | $ 3.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -20.53 M | |
| End Period Cash Flow | $ 68.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 86.7 M | |
| Forward Revenue | $ -19.52 M | |
| COSTS | ||
| Cost Of Revenue | $ 28.7 M | |
| Depreciation | $ 5.1 M | |
| Depreciation and Amortization | $ 5.1 M | |
| Research and Development | $ 16.8 M | |
| Total Operating Expenses | $ 97.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 58.0 M | |
| EBITDA | $ -5.72 M | |
| EBIT | $ -10.77 M | |
| Operating Income | $ -10.77 M | |
| Interest Income | $ 2.4 M | |
| Interest Expense | — | |
| Net Interest Income | $ 2.4 M | |
| Income Before Tax | $ -8.69 M | |
| Tax Provision | $ -117.00 K | |
| Tax Rate | 1.347 % | |
| Net Income | $ -8.57 M | |
| Net Income From Continuing Operations | $ -8.57 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.12 | |
| EPS Actual | $ 0.10 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -16.667 % | |
| Forward EPS | $ 0.14 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 444.3 M | |
| Intangible Assets | $ 76.4 M | |
| Net Tangible Assets | $ 251.0 M | |
| Total Current Assets | $ 307.3 M | |
| Cash and Short-Term Investments | $ 186.3 M | |
| Cash | $ 68.2 M | |
| Net Receivables | $ 67.4 M | |
| Inventory | $ 27.9 M | |
| Long-Term Investments | $ 3.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 9.9 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 93.2 M | |
| Net Debt | — | |
| Total Debt | $ 29.1 M | |
| Total Liabilities | $ 116.9 M | |
| EQUITY | ||
| Total Equity | $ 327.4 M | |
| Retained Earnings | $ -695.16 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.15 | |
| Shares Outstanding | 53.220 M | |
| Revenue Per-Share | $ 1.63 | |
| VALUATION | Market Capitalization | $ 787.1 M |
| Enterprise Value | $ 630.0 M | |
| Enterprise Multiple | -110.178 | |
| Enterprise Multiple QoQ | -61.908 % | |
| Enterprise Multiple YoY | -117.989 % | |
| Enterprise Multiple IPRWA | high: 234.897 median: 76.655 mean: 69.27 CDNA: -110.178 low: -228.246 |
|
| EV/R | 7.268 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.357 | |
| Asset To Liability | 3.801 | |
| Debt To Capital | 0.082 | |
| Debt To Assets | 0.066 | |
| Debt To Assets QoQ | 5.999 % | |
| Debt To Assets YoY | 404.619 % | |
| Debt To Assets IPRWA | high: 1.297 mean: 0.242 median: 0.167 CDNA: 0.066 low: 0.002 |
|
| Debt To Equity | 0.089 | |
| Debt To Equity QoQ | 11.465 % | |
| Debt To Equity YoY | 288.472 % | |
| Debt To Equity IPRWA | high: 2.971 mean: 0.402 median: 0.266 CDNA: 0.089 low: -1.733 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.404 | |
| Price To Book QoQ | -16.302 % | |
| Price To Book YoY | -19.504 % | |
| Price To Book IPRWA | high: 19.098 median: 4.499 mean: 4.255 CDNA: 2.404 low: -7.981 |
|
| Price To Earnings (P/E) | 166.085 | |
| Price To Earnings QoQ | -23.925 % | |
| Price To Earnings YoY | 176.353 % | |
| Price To Earnings IPRWA | high: 246.592 CDNA: 166.085 median: 104.657 mean: 84.83 low: -204.468 |
|
| PE/G Ratio | — | |
| Price To Sales (P/S) | 9.081 | |
| Price To Sales QoQ | -29.432 % | |
| Price To Sales YoY | 5.993 % | |
| Price To Sales IPRWA | high: 154.906 mean: 20.834 median: 20.417 CDNA: 9.081 low: 0.297 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 127.649 | |
| Forward PE/G | — | |
| Forward P/S | -40.33 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 14.611 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.186 | |
| Asset Turnover Ratio QoQ | 7.481 % | |
| Asset Turnover Ratio YoY | -7.541 % | |
| Asset Turnover Ratio IPRWA | high: 0.482 CDNA: 0.186 mean: 0.159 median: 0.135 low: 0.0 |
|
| Receivables Turnover | 1.249 | |
| Receivables Turnover Ratio QoQ | 0.322 % | |
| Receivables Turnover Ratio YoY | -14.546 % | |
| Receivables Turnover Ratio IPRWA | high: 3.864 mean: 1.493 median: 1.457 CDNA: 1.249 low: 0.477 |
|
| Inventory Turnover | 1.127 | |
| Inventory Turnover Ratio QoQ | -15.831 % | |
| Inventory Turnover Ratio YoY | -20.607 % | |
| Inventory Turnover Ratio IPRWA | high: 2.773 CDNA: 1.127 mean: 0.738 median: 0.714 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 73.085 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 125.925 | |
| Cash Conversion Cycle Days QoQ | 8.081 % | |
| Cash Conversion Cycle Days YoY | 21.29 % | |
| Cash Conversion Cycle Days IPRWA | high: 401.407 mean: 139.427 CDNA: 125.925 median: 114.45 low: -252.738 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.405 | |
| CapEx To Revenue | -0.012 | |
| CapEx To Depreciation | -0.199 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 327.4 M | |
| Net Invested Capital | $ 327.4 M | |
| Invested Capital | $ 327.4 M | |
| Net Tangible Assets | $ 251.0 M | |
| Net Working Capital | $ 214.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.999 | |
| Current Ratio | 3.298 | |
| Current Ratio QoQ | -19.696 % | |
| Current Ratio YoY | -19.426 % | |
| Current Ratio IPRWA | high: 16.236 CDNA: 3.298 mean: 2.262 median: 1.849 low: 0.353 |
|
| Quick Ratio | 2.998 | |
| Quick Ratio QoQ | -21.876 % | |
| Quick Ratio YoY | -22.071 % | |
| Quick Ratio IPRWA | high: 9.867 CDNA: 2.998 mean: 1.641 median: 1.303 low: 0.411 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -5.093 | |
| Cost Of Debt | 9.537 % | |
| Interest Coverage Ratio | -3.752 | |
| Interest Coverage Ratio QoQ | 34.402 % | |
| Interest Coverage Ratio YoY | 167.271 % | |
| Interest Coverage Ratio IPRWA | high: 274.877 mean: 25.479 median: 15.82 CDNA: -3.752 low: -384.45 |
|
| Operating Cash Flow Ratio | -0.028 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 28.798 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -9.268 % | |
| Revenue Growth | 2.355 % | |
| Revenue Growth QoQ | -207.633 % | |
| Revenue Growth YoY | -91.611 % | |
| Revenue Growth IPRWA | high: 40.459 % median: 7.569 % mean: 7.495 % CDNA: 2.355 % low: -31.512 % |
|
| Earnings Growth | 0.0 % | |
| Earnings Growth QoQ | -100.0 % | |
| Earnings Growth YoY | -100.0 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 15.596 % mean: 14.638 % CDNA: 0.0 % low: -227.273 % |
|
| MARGINS | ||
| Gross Margin | 66.938 % | |
| Gross Margin QoQ | 0.74 % | |
| Gross Margin YoY | -3.982 % | |
| Gross Margin IPRWA | high: 94.498 % CDNA: 66.938 % mean: 56.97 % median: 56.435 % low: 6.0 % |
|
| EBIT Margin | -12.426 % | |
| EBIT Margin QoQ | 31.311 % | |
| EBIT Margin YoY | 184.543 % | |
| EBIT Margin IPRWA | high: 33.87 % median: 20.382 % mean: 14.577 % CDNA: -12.426 % low: -1000.426 % |
|
| Return On Sales (ROS) | -12.426 % | |
| Return On Sales QoQ | 31.311 % | |
| Return On Sales YoY | 184.543 % | |
| Return On Sales IPRWA | high: 35.533 % median: 18.417 % mean: 12.936 % CDNA: -12.426 % low: -1349.836 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 8.9 M | |
| Free Cash Flow Yield | 1.129 % | |
| Free Cash Flow Yield QoQ | -143.608 % | |
| Free Cash Flow Yield YoY | -47.972 % | |
| Free Cash Flow Yield IPRWA | high: 11.539 % CDNA: 1.129 % mean: 0.736 % median: 0.679 % low: -40.868 % |
|
| Free Cash Growth | -131.502 % | |
| Free Cash Growth QoQ | -44.869 % | |
| Free Cash Growth YoY | -34.946 % | |
| Free Cash Growth IPRWA | high: 337.277 % mean: 9.216 % median: -1.288 % CDNA: -131.502 % low: -261.538 % |
|
| Free Cash To Net Income | -1.037 | |
| Cash Flow Margin | -2.985 % | |
| Cash Flow To Earnings | 0.302 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -1.835 % | |
| Return On Assets QoQ | -13.074 % | |
| Return On Assets YoY | 505.611 % | |
| Return On Assets IPRWA | high: 19.773 % median: 2.151 % mean: 1.816 % CDNA: -1.835 % low: -72.965 % |
|
| Return On Capital Employed (ROCE) | -3.068 % | |
| Return On Equity (ROE) | -0.026 | |
| Return On Equity QoQ | -4.104 % | |
| Return On Equity YoY | 396.584 % | |
| Return On Equity IPRWA | high: 0.769 median: 0.035 mean: 0.002 CDNA: -0.026 low: -1.731 |
|
| DuPont ROE | -2.425 % | |
| Return On Invested Capital (ROIC) | -3.246 % | |
| Return On Invested Capital QoQ | 155.994 % | |
| Return On Invested Capital YoY | -327.152 % | |
| Return On Invested Capital IPRWA | high: 20.851 % mean: 2.939 % median: 2.936 % CDNA: -3.246 % low: -30.099 % |
|