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Investors seeking growth at a reasonable cost should explore NYSE:DOCS.

By Mill Chart

Last update: Oct 19, 2023

Here's DOXIMITY INC-CLASS A (NYSE:DOCS) for you, a growth stock our stock screener believes is undervalued. NYSE:DOCS is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NYSE:DOCS's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:DOCS, the assigned 8 reflects its growth potential:

  • The Earnings Per Share has been growing by 105.66% on average over the past years. This is a very strong growth
  • Measured over the past years, DOCS shows a very strong growth in Revenue. The Revenue has been growing by 53.27% on average per year.
  • DOCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.26% yearly.
  • DOCS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.10% yearly.

What does the Valuation looks like for NYSE:DOCS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:DOCS boasts a 5 out of 10:

  • DOCS's Price/Earnings ratio is rather cheap when compared to the industry. DOCS is cheaper than 81.40% of the companies in the same industry.
  • Based on the Price/Forward Earnings ratio, DOCS is valued cheaper than 88.37% of the companies in the same industry.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOCS indicates a rather cheap valuation: DOCS is cheaper than 83.72% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DOCS is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
  • DOCS has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as DOCS's earnings are expected to grow with 15.24% in the coming years.

How We Gauge Health for NYSE:DOCS

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DOCS has achieved a 9 out of 10:

  • An Altman-Z score of 17.74 indicates that DOCS is not in any danger for bankruptcy at the moment.
  • DOCS has a better Altman-Z score (17.74) than 95.35% of its industry peers.
  • DOCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
  • DOCS has a Current Ratio of 7.46. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
  • DOCS's Current ratio of 7.46 is amongst the best of the industry. DOCS outperforms 88.37% of its industry peers.
  • DOCS has a Quick Ratio of 7.46. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
  • DOCS has a Quick ratio of 7.46. This is amongst the best in the industry. DOCS outperforms 90.70% of its industry peers.

Exploring NYSE:DOCS's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:DOCS was assigned a score of 9 for profitability:

  • The Return On Assets of DOCS (10.30%) is better than 97.67% of its industry peers.
  • With an excellent Return On Equity value of 11.99%, DOCS belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
  • DOCS has a Return On Invested Capital of 11.05%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DOCS is significantly above the industry average of 3.74%.
  • The last Return On Invested Capital (11.05%) for DOCS is well below the 3 year average (17.24%), which needs to be investigated, but indicates that DOCS had better years and this may not be a problem.
  • DOCS has a Profit Margin of 27.20%. This is amongst the best in the industry. DOCS outperforms 95.35% of its industry peers.
  • In the last couple of years the Profit Margin of DOCS has grown nicely.
  • DOCS has a Operating Margin of 30.47%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
  • DOCS's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 87.74%, DOCS belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of DOCS contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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DOXIMITY INC-CLASS A

NYSE:DOCS (2/23/2024, 7:04:00 PM)

After market: 28 -0.29 (-1.03%)

28.29

-0.72 (-2.48%)

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