Quality Investor

GeneDx Holdings Corp.

Rank #48Hypergrowth

WGS · Nasdaq · Healthcare

GeneDx Holdings Corp. (WGS) — Rank #48 by gross profitability (GP/assets 0.62) · ROE -8.6% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001818331 · all metrics point-in-time as of the filing date.

About

GeneDx Holdings Corp., a genomics company, provides genetic testing services.

Show more

The company primarily offers pediatric and rare disease diagnostics with a focus on whole exome and genome sequencing, as well as data and information services. It also develops an AI-based platform for next generation sequencing analysis, interpretation, and clinical reporting for rare disease, hereditary risk, and cancer testing. GeneDx Holdings Corp.

was founded in 2000 and is headquartered in Stamford, Connecticut.

Industry
Diagnostics & Research
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
genedx.com

Price History

WGS-74.2% · -23.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$2.87B

P/E (annual)

P/S (annual)

6.7

P/B

11.8

P/OCF (annual)

86.3

Shareholder Yield

-6.5%

Employees

1,300

Industry

Diagnostics & Research

Exchange

Nasdaq

Signal Flags

2 yellow
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.62
Return on equity
-8.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.97
Current ratio
3.30×
Net cash
$35.71M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
7.5%

Growth

1/2 pass
Revenue growth
40.0%
Piotroski F-Score
6 / 9
Share dilution
6.5%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

39.5%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 6.5% — per-share value needs a total required return of 46.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 18.3%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

33.5%

r = 10% (base)

39.5%

r = 12%

44.7%

Net debt / market cap: -1.3%

Note: current FCF margin is 1.5σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $14.3M3Y mean FCF: -$68.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

5.8xFair
0.0xmed 5.8x44.5x

P / B

Price / book value per share

8.1xCheap
0.8xmed 11.1x24.4x

P / GP

Price / gross profit per share

8.4xExpensive
0.0xmed 2.1x14.1x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.62

Primary signal (Novy-Marx).

2nd of 8 SIC 80 peers

Return on equity

-8.6%

Gross margin

69.7%

2nd of 8 SIC 80 peers

Revenue growth (YoY)

40.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

22.1%

Revenue CAGR (5Y)

19.0%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.97

4th of 7 SIC 80 peers (best = lowest)

Current ratio

3.30×

3rd of 8 SIC 80 peers

Quick ratio

2.90×

Net cash

$35.71M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$14.26M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.68

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

7.5%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Startup
Decline
Hypergrowth