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Caris Life Sciences

CAI
61
Biotechnology · Healthcare
Price
$26.27
+1.69 (+6.88%)
Market Cap
$7.43B
Exchange
NASDAQ
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Exceptional
Stability
Good
Valuation
Good

Share count rising — dilution

+1515.1% over 5y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 17.9M (2020) → 289.9M (2025)

Winston Score History

The full picture

Caris Life Sciences is a biotechnology company that helps doctors figure out the best way to treat cancer patients. It does this by analyzing tumor samples using advanced molecular testing — looking at the DNA, RNA, and proteins in a patient's cancer cells to identify which treatments are most likely to work. Hospitals, oncologists, and cancer centers across the United States are its main customers.

Caris makes money by charging for these molecular profiling tests, which are ordered by physicians and typically reimbursed through insurance or Medicare. The company operates primarily in the United States and has built a large proprietary database of molecular and clinical data, which makes its insights harder for competitors to replicate. A key growth driver is the expanding use of precision oncology — as more cancer drugs are approved that target specific genetic mutations, demand for the kind of detailed tumor testing Caris provides is expected to grow. The main risk is reimbursement pressure, as insurers can limit or reduce payments for these tests.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+45.4% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+99.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$45M/ year

Declining (-60% vs prior year)

5.6% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

96.0%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$793M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Caris Life Sciences is growing revenue at 45% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
68.1%
Premium pricing power — 68.1% gross margin
Profit after running costs
Operating Margin
10.2%
Modest — 10.2% operating margin
Return on the money invested
ROCE
15.6%
Strong — 15.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+85.4%
Fast-growing sales (+85.4% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
192%
Turns 192% of profit into real cash
Spare cash per sale
FCF Margin
14.8%
Converts sales into free cash efficiently (14.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.66
Moderate — manageable debt (0.66)
Covers its interest
Interest Cover
3.27x
Tight — interest eats into profit (3.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
70.6x
Expensive — P/E 70.6

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+25.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (70.6 → 45.0)

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Dividends

Not applicable for this business.
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