Despite its growth, NYSE:DOCS remains within the realm of affordability.

Uncover the potential of DOXIMITY INC-CLASS A (NYSE:DOCS), a growth stock that our stock screener found to be reasonably priced. NYSE:DOCS is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:DOCS was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 30.14% over the past year.
• The Earnings Per Share has been growing by 81.71% 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 13.44% in the last year.
• DOCS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.87% yearly.
• Based on estimates for the next years, DOCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.43% on average per year.
• Based on estimates for the next years, DOCS will show a quite strong growth in Revenue. The Revenue will grow by 11.63% on average per year.

Assessing Valuation Metrics for NYSE:DOCS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:DOCS has received a 5 out of 10:

• 87.18% of the companies in the same industry are more expensive than DOCS, based on the Price/Earnings ratio.
• 84.62% of the companies in the same industry are more expensive than DOCS, based on the Price/Forward Earnings ratio.
• 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.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCS indicates a somewhat cheap valuation: DOCS is cheaper than 76.92% of the companies listed in the same industry.
• DOCS has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Health for NYSE:DOCS?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 19.97. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 19.97, DOCS belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
• 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.
• A Current Ratio of 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a Current ratio of 6.20. This is amongst the best in the industry. DOCS outperforms 89.74% of its industry peers.
• A Quick Ratio of 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a better Quick ratio (6.20) than 89.74% of its industry peers.

Evaluating Profitability: NYSE:DOCS

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:DOCS, the assigned 9 is noteworthy for profitability:

• DOCS has a Return On Assets of 13.67%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
• The Return On Equity of DOCS (16.37%) is better than 100.00% of its industry peers.
• DOCS's Return On Invested Capital of 15.15% is amongst the best of 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 5.56%.
• The last Return On Invested Capital (15.15%) for DOCS is above the 3 year average (12.02%), which is a sign of increasing profitability.
• DOCS has a better Profit Margin (31.04%) than 100.00% 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 36.14%, 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 Gross Margin of 89.35%. This is amongst the best in the industry. DOCS outperforms 94.87% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of DOCS for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. 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.