News Image

While growth is established for NYSE:DOCS, the stock's valuation remains reasonable.

By Mill Chart

Last update: Nov 9, 2023

DOXIMITY INC-CLASS A (NYSE:DOCS) was identified as an affordable growth stock by our stock screener. NYSE:DOCS is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Looking at the Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:DOCS has earned a 8 for growth:

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

A Closer Look at Valuation for NYSE:DOCS

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:DOCS has earned a 5 for valuation:

  • 86.05% of the companies in the same industry are more expensive than DOCS, based on the Price/Earnings ratio.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCS indicates a rather cheap valuation: DOCS is cheaper than 90.70% of the companies listed in the same industry.
  • 88.37% of the companies in the same industry are more expensive than DOCS, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCS indicates a rather cheap valuation: DOCS is cheaper than 95.35% of the companies listed in the same industry.
  • The excellent profitability rating of DOCS may justify a higher PE ratio.
  • DOCS's earnings are expected to grow with 15.24% in the coming years. This may justify a more expensive valuation.

Health Assessment of NYSE:DOCS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:DOCS has earned a 9 out of 10:

  • DOCS has an Altman-Z score of 17.20. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
  • DOCS has a Altman-Z score of 17.20. This is amongst the best in the industry. DOCS outperforms 93.02% of its industry peers.
  • There is no outstanding debt for DOCS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
  • The Current ratio of DOCS (7.46) is better than 90.70% 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 better Quick ratio (7.46) than 90.70% of its industry peers.

A Closer Look at Profitability for NYSE:DOCS

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DOCS scores a 9 out of 10:

  • DOCS has a Return On Assets of 10.30%. This is amongst the best in the industry. DOCS outperforms 97.67% of its industry peers.
  • Looking at the Return On Equity, with a value of 11.99%, DOCS belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
  • DOCS has a better Return On Invested Capital (11.05%) than 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 3.75%.
  • The 3 year average ROIC (17.24%) for DOCS is well above the current ROIC(11.05%). The reason for the recent decline needs to be investigated.
  • DOCS has a better Profit Margin (27.20%) than 97.67% of its industry peers.
  • DOCS's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 30.47%, DOCS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DOCS has grown nicely.
  • DOCS has a better Gross Margin (87.74%) than 95.35% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

Back

DOXIMITY INC-CLASS A

NYSE:DOCS (2/20/2024, 7:04:00 PM)

After market: 29.72 +0.32 (+1.09%)

29.4

-0.93 (-3.07%)

DOCS News

News Imagean hour ago - The Motley Fool1 Cash-Gushing Stock Down 70% to Buy and Hold Forever

This healthcare upstart, with a free-cash-flow margin of 27% even after removing stock-based compensation, deserves a long look from investors.

News Image2 days ago - ChartmillIs NYSE:DOCS on the Verge of a Major Breakout as a Strong Growth Stock?

DOXIMITY INC-CLASS A (NYSE:DOCS)—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

News Image12 days ago - Market News VideoNotable Friday Option Activity: DOCS, RAMP, HUMA
News Image13 days ago - DoximityDoximity Ranked #1 Best in KLAS Telehealth Video Conferencing Platform for Third Consecutive Year
News Image13 days ago - DoximityDoximity Announces Fiscal 2024 Third Quarter Financial Results
News Image14 days ago - ChartmillIn the world of growth stocks, NYSE:DOCS shines as a value proposition.

Investors seeking growth at a reasonable cost should explore DOXIMITY INC-CLASS A (NYSE:DOCS).

News Image22 days ago - Market News VideoNotable Two Hundred Day Moving Average Cross - DOCS
News Imagea month ago - DoximityDoximity to Release Fiscal 2024 Third Quarter Results on February 8, 2024
News Imagea month ago - InvestorPlace3 Stocks to Capitalize on the Telehealth Explosion

These three telehealth stocks are leading the way for improved telehealth offerings, highlighted after the pandemic.

News Image2 months ago - InvestorPlace7 Stocks that Multiple AI Bots Predict Will Soar in the Near Future

AI chatbots including ChatGPT and Bard believe these stocks are headed higher in the future, perhaps the near future.

News Image2 months ago - Market News VideoBullish Two Hundred Day Moving Average Cross - DOCS
News Image2 months ago - The Motley FoolThe Top Healthcare Stocks to Buy With $100

These stocks haven't been popular with investors lately.

DOCS Links
Follow us for more