FL

Fulgent Genetics Inc

FLGT

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Fulgent Genetics Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-22

Snapshot

  • Trading at 0.88x book value with 1.1B equity and only 7.5M debt - fortress balance sheet priced for distress despite 117.6M cash.[Price to Book Ratio]
  • R&D of 51.8M TTM equals industry median exactly, but revenue declining 7.3% 3Y CAGR - spending not translating to growth.[Research and Development TTM]
  • Operating margin -22.5% TTM vs industry median +2.0% - burning 71M annually with no clear path to profitability.[Operating Margin TTM]

Watch Triggers

  • Total Revenue TTM: Stabilizes or returns to positive growthRevenue inflection signals post-COVID demand normalization complete
  • Operating Margin TTM: Improves toward breakeven (-10% or better)OpEx cuts without revenue growth is only path to profitability
  • Cash and Equivalents: Falls below 80MWould signal accelerating burn and potential capital raise dilution

Bull Case

Trading below tangible book (965.5M vs 850M market cap) with net cash position - downside protected by liquidation value.

Tangible Book ValuePrice to Book RatioTotal Debt

Gross margin 41.2% remains healthy vs industry median 43.7% - core business viable if OpEx rationalized.

Gross Margin TTMOperating Expense TTM

Bear Case

Revenue declining -7.3% 3Y CAGR while industry median grows +5.4% - losing market share in competitive diagnostics space.

Total Revenue 3Y GrowthTotal Revenue TTM

Negative ROIC -3.8% TTM vs industry median +0.3% - destroying value with no margin improvement catalyst visible.

ROIC TTMOperating Margin TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

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Forward Thesis

Cash runway of 5+ years at current burn provides optionality for turnaround or strategic sale.

1-3ymed
  • 117.6M cash + 434.9M working capital
  • Minimal debt (7.5M) eliminates refinancing risk
  • Tangible book 965.5M exceeds market cap 850M
FCF burn -19.8M TTM manageable vs liquidityDebt/equity 0.007 near zeroP/B 0.88x implies asset discount

Valuation Context

Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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