Myriad Genetics Inc.

(MYGN)
April 28, 2014
Figures in Millions except per share values
Company Overview
Valuation
Current Price 38.82 $ Margin of Safety
NCAV 5.12 $
Total Net Reprod. Cost 8.26 $
Earnings Power Value (EPV) 38.44 $
Discounted Cash Flow (DCF) 52.83 $
EBIT Multiple Valuation 44.29 $
Katsenelson Absolute PE 46.47 $
Ben Graham Formula 49.30 $
Key Statistics Company Stats
Mkt Cap ($M) 2,833.08 $
Enterprise Value ($M) TTM 2,628.75 $ Earnings Date 6-May-14
52 Wk High 42.50 $ Shares Outstanding 73
52 Wk Low 20.02 $ Shares Float 73
% off 52Wk Low 93.9% Insider Ownership 0.20%
Insider Transactions -34.5% Fundamental Ratios 2012 2013 TTM
Cash Flows Institutional Ownership 96.4% P/E 19.89 16.34 16.72
Free Cash Flow Float Short 52.1% P/E (cash adjusted) 16.85 13.81 14.74
5 yr FCF Growth 14.0% Short Ratio 16.3 EV/EBITDA 9.98 8.58 8.79
10 yr FCF Growth 0.0% Piotroski (TTM) 8 EV/EBIT 10.24 8.71 8.93
Altman (MRQ) 22.3 P/S 4.50 3.92 4.05
Effectiveness Beneish (TTM) -3.0 P/BV 3.51 3.30 4.41
CROIC P/Tang BV 3.96 3.65 4.92
Avg 63.0% Margins & Profitability P/CF 18.40 15.36 15.01
FCF/S Gross P/FCF 16.95 14.80 13.20
Avg 28.8% Gross Margin 87.2% FCF/S 26.5% 26.5% 30.7%
ROA Operating FCF Yield 5.9% 6.8% 7.6%
Avg 17.3% Operating Margin 39.3% Magic Earnings Yield 9.8% 11.5% 11.2%
ROE Net Profit ROE 17.6% 20.2% 27.8%
Avg 18.6% Net Margin 25.5% ROA 16.2% 18.3% 24.8%
ROIC 17.6% 20.2% 27.8%
Efficiency Financial Strength (MRQ) CROIC 20.7% 22.3% 33.4%
Receivables Turnover (TTM) 8.0 Current Ratio(MRQ) 6.7 Current Ratio 9.40 7.50 6.74
Inventory Turnover (TTM) 0.0 Quick Ratio(MRQ) 6.7 Total Debt/Equity Ratio 0.00 0.00 0.00
Days Sales Outstanding (TTM) 43.4 LTD/Eq(MRQ) 0.0 Inventory Turnover 7.50 9.60 0.00
Tot D/Eq(MRQ) 0.0
Myriad Genetics, Inc., a molecular diagnostic company, focuses on the development
and marketing of predictive medicine, personalized medicine, and prognostic medicine
tests primarily in the United States. The companys molecular diagnostic tests are
designed to analyze genes, their mutations, expression levels, and proteins to assess
an individuals risk for developing disease later in life; determine a patients likelihood of
responding to a particular drug; and assess a patients risk of disease progression and
disease recurrence. It offers various molecular diagnostic tests that include
BRACAnalysis and BART, which are predictive medicine tests for hereditary breast
and ovarian cancer; COLARIS predictive medicine test for hereditary colorectal and
uterine cancer; COLARIS AP predictive medicine test for hereditary colorectal cancer;
MELARIS predictive medicine test for hereditary melanoma; PANEXIA, a predictive
medicine test for pancreatic cancer; PREZEON, a personalized and prognostic
medicine test for cancer; Prolaris, a prognostic medicine test for prostate cancer; and
TheraGuide 5-FU, a personalized medicine test for drug toxicity. The company,
Selected Financial Statements
Industry: Research Services
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Low Risk
High Growth
Under Valued
Well Managed
Good
Financials
Strong Moat
-100.0%
-100.0%
-1.0%
26.5%
12.4%
16.5%
21.3%
$0.00
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$60.00
May-03 May-05 May-07 May-09 May-11 May-13
Price vs DCF Intrinsic Value
Stock Price Intrinsic Value Buy Price
(In Millions, Except per Share Amounts) 2009 2010 2011 2012 2013 TTM/Latest
Revenue 327 $ 363 $ 402 $ 496 $ 613 $ 737 $
Gross Profit 283 $ 318 $ 355 $ 431 $ 534 $ 643 $
Margin % 86.75% 87.79% 88.38% 86.96% 87.02% 87.24%
R&D 18 $ 22 $ 28 $ 43 $ 54 $ 62 $
Margin % 5.49% 6.03% 6.90% 8.60% 8.76% 8.42%
Operating Income 117 $ 128 $ 151 $ 171 $ 219 $ 280 $
Margin % 35.84% 35.29% 37.44% 34.53% 35.73% 38.05%
Net Income 85 $ 152 $ 101 $ 112 $ 147 $ 188 $
Margin % 25.91% 42.00% 25.05% 22.61% 24.00% 25.48%
Earnings Per Share
Basic 0.91 $ 1.58 $ 1.12 $ 1.33 $ 1.82 $ 2.38 $
Diluted 0.86 $ 1.54 $ 1.10 $ 1.30 $ 1.77 $ 2.32 $
Weighted Average Diluted Shares
Outstanding 98.57 99.15 91.70 86.47 83.33 76.83
Dividends Per Share - $ - $ - $ - $ - $ - $
Dividend Yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Net Cash From Operating Activities 84 $ 155 $ 131 $ 142 $ 174 $ 238 $
(Dollars in Millions)
Net Property, Plants & Equipment 23 $ 23 $ 23 $ 24 $ 28 $ 31 $
Total Assets 466 $ 594 $ 611 $ 691 $ 804 $ 757 $
Long-term Debt - $ 9 $ 10 $ 10 $ 11 $ 13 $
Stockholders' Equity 434 $ 558 $ 567 $ 636 $ 729 $ 676 $