Guardant Health Inc (GH) Stock Analysis
Verdict: AVOID
Shield reimbursement expansion drives breakout momentum, but annual FCF burn of -$233M and negative equity cap upside.
Investment score: 35/100
Analysis as of
Is Guardant Health Inc stock worth reviewing? AI model thesis
Guardant Health displays impressive top-line growth (+42.7% TTM) and key commercial wins for its Shield CRC test. However, trading at $180.34 (52-week high) at 20.52x P/S with -$233.1M in annual FCF burn and -$99.3M in total net equity, the AI model identifies an unfavorable risk-reward profile for new capital allocation.
7-factor investment score
- Valuation: 20/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 85/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Guardant Health Inc opportunities and risks
What speaks for GH
- Reimbursement expansion via EviCore coverage starting January 1, 2027
What speaks against GH
- Balance sheet fragility driven by negative equity (-$99.3M) and a 19.5-month cash runway
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| GH | n/a | 20.5x | n/a | 65.0% | -38.3% | -1.0% |
| CVS | 23.9x | 0.3x | 13.6x | 14.2% | 1.2% | 10.1% |
| CI | 11.5x | 0.3x | 8.4x | 11.7% | 2.3% | 12.4% |
| DGX | 26.0x | 2.4x | 16.5x | 33.1% | 9.2% | 4.5% |
| LH | 26.7x | 1.9x | 15.5x | 27.8% | 7.0% | 4.3% |
| LH | 26.7x | 1.9x | 15.5x | 27.8% | 7.0% | 4.3% |
| Peer median | 26.0x | 1.9x | 15.5x | 27.8% | 7.0% | 4.5% |
Frequently asked questions about Guardant Health Inc (GH)
Is GH stock a good investment?
The cached TradeMates AI model rates Guardant Health Inc as AVOID with an investment score of 35/100. Guardant Health displays impressive top-line growth (+42.7% TTM) and key commercial wins for its Shield CRC test. However, trading at $180.34 (52-week high) at 20.52x P/S with -$233.1M in annual FCF burn and -$99.3M in total net equity, the AI model identifies an unfavorable risk-reward profile for new capital allocation. This is algorithmic model output, not personal investment advice.
Is GH stock a buy?
The TradeMates model verdict for GH is AVOID with an investment score of 35/100. Treat this as a model signal to review, not a personal buy recommendation.