Caris Life Sciences, Inc. (CAI) Fundamental Analysis: Bull vs. Bear Case

CAI

Caris Life Sciences, Inc.

Fundamental data last updated:September 30, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Caris Life Sciences, Inc., an artificial intelligence TechBio company, provides molecular profiling services in the United States and internationally. It develops and commercializes solutions to transform healthcare using molecular information, and machine learning algorithms. The company's molecular profiling services portfolio includes MI Profile, a tissue-based molecular profiling solution; and Caris Assure, a blood-based molecular profiling solution for cancer treatment. It also offers pharma research and development services comprising laboratory delivery, strategic data, and research services to biopharmaceutical customers. The company was founded in 2008 and is headquartered in Irving, Texas.

VALUATION

P/E

138.61 Market Cap ($M USD)

$4.71B

Forward P/E

14.21 PEG

0.02 PRICE TO SALES

5.19 PRICE TO BOOK

7.94 EV / EBITDA

37.24 5-Year Average P/E

Free Cash Flow Yield

2.62%

DCF Value

$-13.22

Graham Number

$2.38

Price to FCF

38.17 EV to FCF

31.52 Earnings Yield

0.72%

FCF Yield

2.62%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.12

Next Year EPS Growth Estimate

$1.17

Next Year Revenue Growth Estimate

$1.84B

Return on Equity (ROE)

6.47%

FREE CASH FLOW

Operating Margin

15.91%

Debt-to-Equity

0.66 Piotroski F-Score

8 Altman Z-Score

3.47 Return on Invested Capital (ROIC)

14.17%

Current Ratio

7.05 Quick Ratio

7.05 Net Debt to EBITDA

-7.86

Interest Coverage

2.54 Gross Profit margin

68.72%

FCF PER SHARE

$0.44

REVENUE PER SHARE

$3.21

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing CAI Caris Life Sciences, Inc. significantly. With a DCF value deeply negative and a Graham Number far below the snapshot price, the stock appears overvalued. However, the Forward P/E of 13.73 suggests optimism for future earnings growth, supported by a robust Altman Z-score of 3.66, indicating financial stability. The earnings yield is a paltry 0.74%, raising questions about immediate returns, yet the company’s growth prospects and safety metrics paint a complex picture.

AI Exposure / Tech Reliance

Operating in the biotechnology sector, CAI Caris Life Sciences is well-positioned to leverage AI advancements. The industry’s inherent focus on innovation and data-driven solutions aligns with modern tech shifts. This positioning could enhance their competitive edge and operational efficiency.

The Bull Case

For the discerning GARP investor, CAI offers compelling strengths. A high ROIC of 14.17% and a Piotroski F-Score of 7 highlight efficient capital allocation and strong financial health. The operating margin of 15.91% and a reasonable FCF yield suggest robust pricing power and cash generation capabilities. These metrics collectively underscore a company that can potentially deliver sustainable growth and value.

The Bear Case

Despite its strengths, CAI faces significant valuation challenges. The Price/Book ratio of 7.69 and Price/Sales of 5.03 indicate a premium valuation, potentially deterring value investors. The EV to EBITDA multiple of 37.65 further underscores this overvaluation. Additionally, the stock is technically overextended, trading far above its 52-week high, which could signal a correction risk.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$28.60

Institutional Ownership %

1-Year Beta

1.09 Insider Buying % (6 Mo)

Distance to 52-Week High

154.95%

Distance to 52-Week Low

14.88%

EARNINGS SURPRISE %

92.53%

50-DAY SMA

$18.17

200-DAY SMA

$25.37

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.