NYSE:DOCS is showing decent growth, but is still valued reasonably.

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.

How do we evaluate the Growth for NYSE:DOCS?

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:

• The Earnings Per Share has grown by an impressive 21.62% over the past year.
• The Earnings Per Share has been growing by 106.72% on average over the past years. This is a very strong growth
• Looking at the last year, DOCS shows a quite strong growth in Revenue. The Revenue has grown by 16.57% in the last year.
• The Revenue has been growing by 53.27% on average over the past years. This is a very strong growth!
• DOCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.36% yearly.
• DOCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.59% yearly.

A Closer Look at Valuation for NYSE:DOCS

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:DOCS, the assigned 5 reflects its valuation:

• 92.31% of the companies in the same industry are more expensive than DOCS, based on the Price/Earnings ratio.
• Based on the Price/Forward Earnings ratio, DOCS is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
• DOCS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DOCS is cheaper than 82.05% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, DOCS is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
• The excellent profitability rating of DOCS may justify a higher PE ratio.
• DOCS's earnings are expected to grow with 14.05% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:DOCS

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

• DOCS has an Altman-Z score of 22.21. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• DOCS's Altman-Z score of 22.21 is amongst the best of the industry. DOCS outperforms 94.87% 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 8.03. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• DOCS's Current ratio of 8.03 is amongst the best of the industry. DOCS outperforms 92.31% of its industry peers.
• DOCS has a Quick Ratio of 8.03. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• DOCS's Quick ratio of 8.03 is amongst the best of the industry. DOCS outperforms 92.31% of its industry peers.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DOCS, the assigned 9 is a significant indicator of profitability:

• DOCS has a better Return On Assets (13.76%) than 97.44% of its industry peers.
• DOCS has a Return On Equity of 15.92%. This is amongst the best in the industry. DOCS outperforms 97.44% of its industry peers.
• DOCS's Return On Invested Capital of 15.40% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
• DOCS had an Average Return On Invested Capital over the past 3 years of 17.25%. This is significantly above the industry average of 4.93%.
• DOCS's Profit Margin of 29.39% is amongst the best of the industry. DOCS outperforms 97.44% of its industry peers.
• In the last couple of years the Profit Margin of DOCS has grown nicely.
• DOCS has a better Operating Margin (34.75%) than 100.00% of its industry peers.
• DOCS's Operating Margin has improved in the last couple of years.
• DOCS's Gross Margin of 88.94% is amongst the best of the industry. DOCS outperforms 97.44% 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.

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.