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SOPHiA GENETICS (NasdaqGS:SOPH)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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SOPHiA GENETICS stock research in summary

sophiagenetics.com

ANALYSIS: With an Obermatt Combined Rank of 51 (better than 51% compared with investment alternatives), SOPHiA GENETICS (Health Care Technology, Switzerland) shares have above-average financial characteristics compared with similar stocks. Shares of SOPHiA GENETICS are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 57, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 51, is a buy recommendation based on SOPHiA GENETICS's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company SOPHiA GENETICS exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 57) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	45
Growth Rank	65
Safety Rank	57
Combined Rank	51

Country	Switzerland
Industry	Health Care Technology
Index	NASDAQ
Size class	X-Small

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: SOPHiA GENETICS

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	23	45	45
GROWTH
GROWTH	n/a	33	93	65
SAFETY
SAFETY	n/a	71	64	57
SENTIMENT
SENTIMENT	n/a	45	51	^new
360° VIEW
360° VIEW	n/a	25	90	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better SOPHiA GENETICS is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	23	45	45
GROWTH
GROWTH	n/a	33	93	65
SAFETY
SAFETY	n/a	71	64	57
COMBINED
COMBINED	n/a	31	92	51

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of SOPHiA GENETICS the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), SOPHiA GENETICS shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for SOPHiA GENETICS. Price-to-Profit (also referred to as price-earnings, P/E) is 77 which means that the stock price compared with what market professionals expect for future profits is lower than for 77% of comparable companies, indicating a good value concerning SOPHiA GENETICS's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 64, which means that the stock price is lower as regards to invested capital than for 64% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 59% of alternatives (only 41% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on SOPHiA GENETICS's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	n/a	5	25	41
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	n/a	21	77	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	n/a	67	77	64
DIVIDEND YIELD
DIVIDEND YIELD	n/a	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	n/a	23	45	45

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of SOPHiA GENETICS; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), SOPHiA GENETICS shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for SOPHiA GENETICS. Sales Growth has a value of 96 which means that currently professionals expect the company to grow more than 96% of its competitors. Profit Growth with a value of 56 and Capital Growth with a rank of 57 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 15, which means that stock returns have recently been below 85% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. SOPHiA GENETICS has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for SOPHiA GENETICS, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	n/a	82	100	96
PROFIT GROWTH
PROFIT GROWTH	n/a	49	56	56
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	77	57
STOCK RETURNS
STOCK RETURNS	n/a	37	81	15
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	n/a	33	93	65

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of SOPHiA GENETICS.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company SOPHiA GENETICS has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of SOPHiA GENETICS is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for SOPHiA GENETICS.Leverage is at 68, meaning the company has a below-average debt-to-equity ratio. It has less debt than 68% of its competitors.Refinancing is at a rank of 93, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 93% of its competitors. Liquidity is at 4, meaning that the company generates less profit to service its debt than 96% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), SOPHiA GENETICS has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for SOPHiA GENETICS more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	n/a	73	72	68
REFINANCING
REFINANCING	n/a	93	93	93
LIQUIDITY
LIQUIDITY	n/a	10	6	4
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	n/a	71	64	57

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of SOPHiA GENETICS and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	59	81	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	60	52	^new
MARKET PULSE
MARKET PULSE	n/a	32	25	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	45	51	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for SOPHiA GENETICS.
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