(CSTL) Castle Biosciences - Overview
Sector: Healthcare | Industry: Diagnostics & Research | Exchange: NASDAQ (USA) | Market Cap: 608m USD | Total Return: 24.6% in 12m
Avg Turnover: 9.84M
Qual. Beats: 0
Rev. Trend: 90.0%
Qual. Beats: 0
Warnings
High Debt/EBITDA (41.4) with thin interest coverage (-106.1)
Interest Coverage Ratio -106.1 is critical
Altman Z'' -1.25 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Castle Biosciences, Inc. (CSTL) is a molecular diagnostics provider specializing in gene expression profile (GEP) testing and spatialomics. The company develops and commercializes diagnostic and prognostic solutions for dermatologic cancers, uveal melanoma, Barrett’s esophagus, and atopic dermatitis. Its primary product suite, including DecisionDx-Melanoma and TissueCypher, focuses on risk stratification to guide clinical decision-making and systemic treatment selection.
The company operates within the precision medicine sector, where business models rely heavily on Medicare reimbursement approvals and inclusion in clinical practice guidelines to drive physician adoption. Castle Biosciences targets high-growth markets in dermatology and gastroenterology, utilizing non-invasive genomic testing to reduce unnecessary surgical procedures and improve patient outcomes. For a deeper look into the companys valuation metrics, you may want to consult ValueRay.
- Medicare reimbursement coverage decisions for DecisionDx-SCC impact core revenue stability
- TissueCypher adoption rates in gastroenterology markets drive long-term top-line growth
- Expansion into atopic dermatitis testing diversifies the diagnostic product portfolio
- Operating margin improvement depends on scaling laboratory efficiencies and sales force productivity
- Clinical evidence updates for gene expression profile tests influence physician adoption rates
| Net Income: -12.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -7.50 > 1.0 |
| NWC/Revenue: 82.41% < 20% (prev 89.92%; Δ -7.51% < -1%) |
| CFO/TA 0.09 > 3% & CFO 48.3m > Net Income -12.8m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 6.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (29.9m) vs 12m ago 4.47% < -2% |
| Gross Margin: 77.07% > 18% (prev 0.82%; Δ 7.62k% > 0.5%) |
| Asset Turnover: 64.78% > 50% (prev 69.18%; Δ -4.40% > 0%) |
| Interest Coverage Ratio: -106.1 > 6 (EBITDA TTM -4.79m / Interest Expense TTM 203k) |
| A: 0.51 (Total Current Assets 328.9m - Total Current Liabilities 48.8m) / Total Assets 547.8m |
| B: -0.44 (Retained Earnings -238.8m / Total Assets 547.8m) |
| C: -0.04 (EBIT TTM -21.5m / Avg Total Assets 524.8m) |
| D: -2.76 (Book Value of Equity -238.8m / Total Liabilities 86.4m) |
| Altman-Z'' = -1.25 = CCC |
| DSRI: 0.77 (Receivables 42.3m/56.4m, Revenue 339.9m/347.1m) |
| GMI: 1.06 (GM 77.07% / 81.94%) |
| AQI: 1.11 (AQ_t 0.19 / AQ_t-1 0.17) |
| SGI: 0.98 (Revenue 339.9m / 347.1m) |
| TATA: -0.11 (NI -12.8m - CFO 48.3m) / TA 547.8m) |
| Beneish M = -3.23 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 19.69 with a total of 377,785 shares traded.
Over the past week, the price has changed by +1.92%,
over one month by -21.18%,
over three months by -38.24% and
over the past year by +24.62%.
Castle Biosciences has received a consensus analysts rating of 4.89. Therefore, it is recommended to buy CSTL.
- StrongBuy: 8
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 45.9 | 133% |
P/S = 1.7872
P/B = 1.3166
Revenue TTM = 339.9m USD
EBIT TTM = -21.5m USD
EBITDA TTM = -4.79m USD
Long Term Debt = 8.40m USD (from longTermDebt, last quarter)
Short Term Debt = 2.92m USD (from shortTermDebt, last quarter)
Debt = 63.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 26.7m
Net Debt = -198.3m USD (calculated: Debt 63.4m - CCE 261.7m)
Enterprise Value = 409.2m USD (607.5m + Debt 63.4m - CCE 261.7m)
Interest Coverage Ratio = -106.1 (Ebit TTM -21.5m / Interest Expense TTM 203k)
EV/FCF = 90.57x (Enterprise Value 409.2m / FCF TTM 4.52m)
FCF Yield = 1.10% (FCF TTM 4.52m / Enterprise Value 409.2m)
FCF Margin = 1.33% (FCF TTM 4.52m / Revenue TTM 339.9m)
Net Margin = -3.78% (Net Income TTM -12.8m / Revenue TTM 339.9m)
Gross Margin = 77.07% ((Revenue TTM 339.9m - Cost of Revenue TTM 77.9m) / Revenue TTM)
Gross Margin QoQ = 72.15% (prev 78.95%)
Tobins Q-Ratio = 0.75 (Enterprise Value 409.2m / Total Assets 547.8m)
Interest Expense / Debt = 0.32% (Interest Expense 203k / Debt 63.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -17.0m (EBIT -21.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 6.75 (Total Current Assets 328.9m / Total Current Liabilities 48.8m)
Debt / Equity = 0.14 (Debt 63.4m / totalStockholderEquity, last quarter 461.4m)
Debt / EBITDA = 41.41 (negative EBITDA) (Net Debt -198.3m / EBITDA -4.79m)
Debt / FCF = -43.89 (Net Debt -198.3m / FCF TTM 4.52m)
Total Stockholder Equity = 463.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -2.45% (Net Income -12.8m / Total Assets 547.8m)
RoE = -1.83% (Net Income TTM -12.8m / Total Stockholder Equity 702.5m)
RoCE = -3.03% (EBIT -21.5m / Capital Employed (Equity 702.5m + L.T.Debt 8.40m))
RoIC = -3.39% (negative operating profit) (NOPAT -17.0m / Invested Capital 502.0m)
WACC = 5.54% (E(607.5m)/V(670.9m) * Re(6.09%) + D(63.4m)/V(670.9m) * Rd(0.32%) * (1-Tc(0.21)))
Discount Rate = 6.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 51.11 | Cagr: 4.38%
[DCF] Terminal Value 73.10% ; FCFF base≈19.4m ; Y1≈17.0m ; Y5≈13.8m
[DCF] Fair Price = 13.82 (EV 220.8m - Net Debt -198.3m = Equity 419.1m / Shares 30.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.04 | # QB: 0
Revenue Correlation: 90.01 | Revenue CAGR: 29.36% | SUE: 0.74 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.40 | Chg30d=-29.38% | Revisions=-33% | Analysts=8
EPS next Quarter (2026-09-30): EPS=-0.28 | Chg30d=-46.37% | Revisions=-33% | Analysts=8
EPS current Year (2026-12-31): EPS=-1.36 | Chg30d=-15.64% | Revisions=-17% | GrowthEPS=-63.7% | GrowthRev=+1.3%
EPS next Year (2027-12-31): EPS=-0.90 | Chg30d=-65.74% | Revisions=-33% | GrowthEPS=+33.7% | GrowthRev=+12.0%
[Analyst] Revisions Ratio: -33%