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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 37.7GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-259.1%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SOPHiA GENETICS SA (SOPH) receives a "Hold" rating with a composite score of 43.3/100, ranked #792 out of 4446 stocks. Key factor scores: Quality 38/100, Value 20/100, Momentum 62/100. This is quantitative analysis only — not investment advice.
SOPHiA GENETICS SA (SOPH) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SOPHiA GENETICS SA Do?
SOPHiA GENETICS SA operates as a healthcare technology company. The company offers SOPHiA DDM platform, a cloud-based software-as-a-service platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, products, and services are used by hospital, laboratory, and biopharma worldwide. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Saint-Sulpice, Switzerland. SOPHiA GENETICS SA (SOPH) is classified as a small-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Jurgi Camblong and employs approximately 520 people. With a market capitalization of $365M, SOPH is one of the notable companies in the Healthcare sector.
SOPHiA GENETICS SA (SOPH) Stock Rating — Hold (April 2026)
As of April 2026, SOPHiA GENETICS SA receives a Hold rating with a composite score of 43.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SOPH ranks #792 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, SOPHiA GENETICS SA ranks #54 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SOPH Stock Price and 52-Week Range
SOPHiA GENETICS SA (SOPH) currently trades at $4.70. The stock lost $0.03 (0.6%) in the most recent trading session. The 52-week high for SOPH is $5.70, which means the stock is currently trading -17.5% from its annual peak. The 52-week low is $2.58, putting the stock 82.2% above its annual trough. Recent trading volume was 95K shares, suggesting relatively thin trading activity.
Is SOPH Overvalued or Undervalued? — Valuation Analysis
SOPHiA GENETICS SA (SOPH) carries a value factor score of 20/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 3.64x, versus the sector average of 2.75x. The price-to-sales ratio is 1.35x, compared to 1.66x for the average Healthcare stock.
At current multiples, SOPHiA GENETICS SA trades at a premium to most Healthcare peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
SOPHiA GENETICS SA Profitability — ROE, Margins, and Quality Score
SOPHiA GENETICS SA (SOPH) earns a quality factor score of 38/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -259.1%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -160.9% versus the sector average of -33.1%.
On a margin basis, SOPHiA GENETICS SA reports gross margins of 67.4%, compared to 71.5% for the sector. The operating margin is -102.1% (sector: -66.1%). Net profit margin stands at -95.9%, versus -58.7% for the average Healthcare stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
SOPH Debt, Balance Sheet, and Financial Health
SOPHiA GENETICS SA has a debt-to-equity ratio of 31.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $30M. Cash and equivalents stand at $80M.
SOPH has a beta of 1.22, meaning it is more volatile than the broader market — a $10,000 investment in SOPH would be expected to move 22.1% more than the S&P 500 on any given day. The stability factor score for SOPHiA GENETICS SA is 42/100, reflecting average volatility within the normal range for its sector.
SOPHiA GENETICS SA Revenue and Earnings History — Quarterly Trend
In TTM 2026, SOPHiA GENETICS SA reported revenue of $65M. Net income for the quarter was $-62M. Gross margin was 67.4%. Operating income came in at $-67M.
In FY 2024, SOPHiA GENETICS SA reported revenue of $65M. Net income for the quarter was $-62M. Gross margin was 67.4%. Revenue grew 4.5% year-over-year compared to FY 2023. Operating income came in at $-67M.
In FY 2023, SOPHiA GENETICS SA reported revenue of $62M. Net income for the quarter was $-79M. Gross margin was 68.8%. Revenue grew 31.1% year-over-year compared to FY 2022. Operating income came in at $-75M.
In FY 2022, SOPHiA GENETICS SA reported revenue of $48M and earnings per share (EPS) of $-1.36. Net income for the quarter was $-87M. Gross margin was 65.7%. Revenue grew 17.6% year-over-year compared to FY 2021. Operating income came in at $-88M.
Over the past 6 quarters, SOPHiA GENETICS SA has demonstrated a growth trajectory, with revenue expanding from $28M to $65M. Investors analyzing SOPH stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SOPH Dividend Yield and Income Analysis
SOPHiA GENETICS SA (SOPH) does not currently pay a dividend. This is common among smaller companies in the Pharmaceutical Products industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
SOPH Momentum and Technical Analysis Profile
SOPHiA GENETICS SA (SOPH) has a momentum factor score of 62/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 59/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 36/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SOPH vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing SOPH against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SOPH vs S&P 500 (SPY) comparison to assess how SOPHiA GENETICS SA stacks up against the broader market across all factor dimensions.
SOPH Next Earnings Date
No upcoming earnings date has been announced for SOPHiA GENETICS SA (SOPH) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SOPH? — Investment Thesis Summary
SOPHiA GENETICS SA presents a balanced picture with arguments on both sides. The quality score of 38/100 flags below-average profitability. The value score of 20/100 indicates premium valuation. Price momentum is positive at 62/100, suggesting the trend favors buyers.
In summary, SOPHiA GENETICS SA (SOPH) earns a Hold rating with a composite score of 43.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SOPH stock.
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Institutional Research Dossier
SOPHiA GENETICS SA (SOPH) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
SOPHiA GENETICS SA (SOPH) receives a Hold rating, justified by its innovative cloud-based platform for data analysis in the healthcare sector, offset by its significant losses and negative cash flow. While the company's technology holds promise and its revenue is growing, albeit from a small base, the path to profitability remains uncertain, making a neutral stance most appropriate at this time.
The company's SOPHiA DDM platform offers a compelling value proposition to hospitals, laboratories, and biopharma companies, but its high operating expenses and negative margins raise concerns about its long-term sustainability. Investors should closely monitor the company's ability to control costs and achieve profitability before considering a more bullish outlook.
Business Strategy & Overview
SOPHiA GENETICS operates as a healthcare technology company, primarily focused on providing a cloud-based software-as-a-service (SaaS) platform, SOPHiA DDM, for analyzing complex data sets and generating insights from various diagnostic modalities. The company's core business revolves around enabling data-driven decision-making in healthcare, targeting hospitals, laboratories, and biopharmaceutical companies. SOPHiA DDM aims to improve diagnostic accuracy, accelerate drug discovery, and enhance patient care through advanced data analytics and machine learning.
The company's strategic positioning centers on becoming a leading provider of data analytics solutions in the healthcare industry. They aim to achieve this by expanding the capabilities of the SOPHiA DDM platform, increasing its user base, and forging strategic partnerships with key players in the healthcare ecosystem. SOPHiA GENETICS is actively investing in research and development to enhance its platform's analytical capabilities and broaden its application across various therapeutic areas.
SOPHiA GENETICS generates revenue primarily through subscription fees for access to the SOPHiA DDM platform. The company also derives revenue from related solutions, products, and services, such as data analysis services and customized software solutions. The company's business model is predicated on recurring revenue streams from its subscription-based platform, which provides a degree of revenue visibility.
The healthcare technology industry is characterized by rapid innovation and increasing demand for data-driven solutions. SOPHiA GENETICS faces competition from other companies offering data analytics platforms and services, as well as from in-house solutions developed by larger healthcare organizations. The company's ability to differentiate itself through superior technology, a broader range of applications, and a strong customer base will be critical to its long-term success.
The company's product pipeline likely involves continuous enhancements to the SOPHiA DDM platform, including the integration of new data types, the development of advanced analytical algorithms, and the expansion of its application to new therapeutic areas. The company may also be exploring opportunities to develop new products and services that complement its existing platform.
Execution Benchmarks audit
Gross Margin
Core pricing power
67.4%
Sector: 71.5%
IN LINE
Economic Moat Analysis
SOPHiA GENETICS likely possesses a narrow economic moat, primarily derived from switching costs and intangible assets. The SOPHiA DDM platform, once integrated into a hospital or laboratory's workflow, creates switching costs due to the time, expense, and disruption associated with migrating to a new platform. The platform's proprietary algorithms and data analytics capabilities also represent intangible assets that provide a competitive advantage.
The switching costs are further reinforced by the training and expertise required to effectively use the SOPHiA DDM platform. Healthcare professionals who become proficient in using the platform are less likely to switch to a competitor's product, as it would require them to learn a new system and potentially disrupt their established workflows.
The company's intangible assets, including its proprietary algorithms and data analytics capabilities, are difficult for competitors to replicate. These assets are the result of significant investment in research and development and represent a key differentiator for SOPHiA GENETICS. The company's ability to continuously innovate and enhance its platform will be crucial to maintaining its competitive advantage.
However, the moat is narrow due to the presence of established competitors and the potential for new entrants to develop competing platforms. The healthcare technology industry is characterized by rapid innovation, and SOPHiA GENETICS must continuously invest in research and development to maintain its competitive edge. The company's ability to attract and retain talented data scientists and engineers will also be critical to its long-term success.
Furthermore, the network effect, while potentially present, is not yet strong enough to create a wide moat. As more users adopt the SOPHiA DDM platform, the value of the platform increases due to the availability of more data and insights. However, this network effect is limited by the fact that the data is often specific to individual institutions and may not be easily shared across the entire network.
Financial Health & Profitability
SOPHiA GENETICS' financial health presents a mixed picture. While revenue has been growing, the company is currently unprofitable and generating negative cash flow. The company's revenue increased from $28.40 million in FY2020 to $65.17 million in FY2024, demonstrating a positive growth trajectory. However, this growth has not translated into profitability, as the company's net income remained negative throughout this period, with a net loss of $62.49 million in FY2024.
The company's gross margin is relatively healthy, ranging from 62.3% to 68.8% over the past five years. However, its operating margin is significantly negative, indicating that the company's operating expenses are exceeding its gross profit. In FY2024, the company's operating margin was -102.1%, highlighting the need to control costs and improve operational efficiency.
SOPHiA GENETICS' free cash flow has also been negative, reflecting the company's high cash burn rate. The company's free cash flow was -$46.10 million in FY2024, indicating that it is spending more cash than it is generating from its operations. This negative cash flow raises concerns about the company's ability to fund its operations and growth initiatives without raising additional capital.
The company's balance sheet shows that it has $80.23 million in total cash and $30.03 million in total debt. This suggests that the company has sufficient liquidity to fund its operations in the near term. However, its current ratio is not available, making it difficult to assess its short-term liquidity position. The debt-to-equity ratio of 31.00 is comparable to the sector average of 30.00.
Compared to the healthcare sector, SOPHiA GENETICS' profitability metrics are significantly weaker. The company's negative ROE and net margin are substantially below the sector averages. This highlights the need for the company to improve its profitability and operational efficiency to align with its peers.
Valuation Assessment
SOPHiA GENETICS' valuation is challenging to assess due to its lack of profitability. The company's P/E and EV/EBITDA ratios are not applicable (N/A) because it is currently generating negative earnings and EBITDA. This makes it difficult to use traditional valuation metrics to determine whether the stock is cheap, fair, or expensive.
Given the company's negative earnings and cash flow, a more appropriate valuation approach would be to focus on its revenue growth potential and its ability to achieve profitability in the future. Investors may be willing to pay a premium for the company's stock if they believe that it can significantly increase its revenue and improve its profitability over time.
However, the company's high cash burn rate and negative free cash flow raise concerns about its ability to fund its growth initiatives without raising additional capital. If the company is forced to issue more shares, it could dilute existing shareholders and negatively impact the stock price.
Compared to the healthcare sector, SOPHiA GENETICS' valuation appears relatively high, considering its lack of profitability. The sector's average P/E ratio is 24.3x, while the company's P/E ratio is not applicable. Similarly, the sector's average EV/EBITDA ratio is 6.4x, while the company's EV/EBITDA ratio is also not applicable. This suggests that investors are currently assigning a premium to SOPHiA GENETICS' stock based on its growth potential, but this premium may not be justified given its current financial performance.
The Momentum score of 72/100 suggests that the stock has experienced positive price momentum and/or upward revisions to earnings estimates. However, this momentum may not be sustainable if the company fails to improve its profitability and cash flow generation.
Risk & Uncertainty
SOPHiA GENETICS faces several specific risks that could impact its business and financial performance. One of the primary risks is competition from other companies offering data analytics platforms and services in the healthcare industry. The company operates in a rapidly evolving market, and new competitors could emerge with innovative solutions that challenge its market position.
Another significant risk is the company's reliance on its SOPHiA DDM platform. Any disruption to the platform's functionality or security could negatively impact its ability to serve its customers and generate revenue. The company must continuously invest in maintaining and enhancing the platform to ensure its reliability and security.
Regulatory risks also pose a threat to SOPHiA GENETICS' business. The healthcare industry is subject to strict regulations regarding data privacy, security, and the use of medical information. Any failure to comply with these regulations could result in fines, penalties, and reputational damage.
The company's high cash burn rate and negative free cash flow also represent a significant risk. If the company is unable to improve its profitability and cash flow generation, it may be forced to raise additional capital, which could dilute existing shareholders. There is no guarantee that the company will be able to secure additional funding on favorable terms.
Finally, the company's reliance on a limited number of key customers could also pose a risk. If the company were to lose one or more of its major customers, it could negatively impact its revenue and profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSOPHiA GENETICS' innovative SOPHiA DDM platform is poised to capitalize on the growing demand for data-driven insights in healthcare, driving significant revenue growth.
BULL VIEWThe company's recurring revenue model and high gross margins provide a solid foundation for future profitability as it scales its operations and reduces operating expenses.
BULL VIEWStrategic partnerships with leading healthcare institutions and biopharmaceutical companies will accelerate adoption of the SOPHiA DDM platform and expand its market reach.
The Bear Case
BEAR VIEWSOPHiA GENETICS' persistent losses and negative cash flow raise serious concerns about its long-term financial sustainability, requiring continuous capital raises that dilute shareholders.
BEAR VIEWThe competitive landscape in healthcare data analytics is intensifying, potentially eroding SOPHiA GENETICS' market share and pricing power.
BEAR VIEWRegulatory hurdles and data privacy concerns could impede the adoption of the SOPHiA DDM platform and limit its growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SOPH and 4,400+ other equities.
SOPHiA GENETICS SA exhibits a 31% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
-160.9%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
67.4%
Sector: 71.5%
Operating Margin
Core business profitability
-102.1%
Sector: -66.1%
Net Margin
Bottom-line profitability
-95.9%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
