DOXIMITY INC-CLASS A (NYSE:DOCS) is not too expensive for the growth it is showing.

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.

How We Gauge Growth for NYSE:DOCS

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:

• DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.22%, which is quite impressive.
• Measured over the past years, DOCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.48% on average per year.
• The Revenue has grown by 17.46% in the past year. This is quite good.
• The Revenue has been growing by 40.87% 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 13.57% yearly.
• The Revenue is expected to grow by 11.03% on average over the next years. This is quite good.

Unpacking NYSE:DOCS's Valuation Rating

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 4 reflects its valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of DOCS indicates a somewhat cheap valuation: DOCS is cheaper than 78.38% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCS indicates a somewhat cheap valuation: DOCS is cheaper than 72.97% of the companies listed in the same industry.
• 64.86% 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 somewhat cheap valuation: DOCS is cheaper than 64.86% of the companies listed in the same industry.
• DOCS has an outstanding profitability rating, which may justify a higher PE ratio.
• DOCS's earnings are expected to grow with 19.97% in the coming years. This may justify a more expensive valuation.

Assessing 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 51.46 indicates that DOCS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of DOCS (51.46) is better than 100.00% 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.
• A Current Ratio of 8.74 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a better Current ratio (8.74) than 100.00% of its industry peers.
• A Quick Ratio of 8.74 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a Quick ratio of 8.74. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.

Profitability Analysis for NYSE:DOCS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:DOCS has achieved a 9:

• DOCS's Return On Assets of 17.18% is amongst the best of the industry. DOCS outperforms 97.30% of its industry peers.
• With an excellent Return On Equity value of 19.53%, DOCS belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
• DOCS's Return On Invested Capital of 17.38% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for DOCS is above the industry average of 7.28%.
• The 3 year average ROIC (12.02%) for DOCS is below the current ROIC(17.38%), indicating increased profibility in the last year.
• The Profit Margin of DOCS (36.60%) is better than 97.30% 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 40.58%, DOCS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• DOCS's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 90.19%, DOCS belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.

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

For an up to date full fundamental analysis you can check the fundamental report of DOCS

Keep in mind

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.