Is the business good?
How good a business is VCYT?
Veracyte, Inc. earns 5.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.7%
Return on invested capital · cost of capital 9.0% · 3.3 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Diagnostics & Research median 7.1% · 12 months to Q1 2026
- Cash conversion
- 1.76×
Cash conversion · 2.37× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −30% |
| FY2021 | −37% |
| FY2022 | −14% |
| FY2023 | −24% |
| FY2024 | 3.6% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q1 2026
- 71%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 16%
- Free cash flow margin
- 29%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $542M
- Free cash flow, trailing twelve months
- $155M
- Net income, trailing twelve months
- $88M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Diagnostics & Research
Ranks #19 of 29 by Smart Score