DOXIMITY INC-CLASS A (NYSE:DOCS) - A Strong Contender in Affordable Growth Stocks

DOXIMITY INC-CLASS A (NYSE:DOCS) was recently flagged by our Affordable Growth stock screener. The company, which operates a digital platform for medical professionals, demonstrates solid growth potential while maintaining reasonable valuation metrics. Its strong profitability and financial health further bolster its appeal.

Growth Prospects

• Earnings Growth: DOCS reported a 48.42% year-over-year increase in earnings per share (EPS), with a three-year average EPS growth of 20.79%.
• Revenue Outlook: Analysts project annual revenue growth of 14.51% over the coming years, reinforcing its growth trajectory.
• Industry Position: The company’s growth metrics outperform many peers in the Health Care Technology sector.

Valuation Assessment

• P/E Ratio: At 41.45, DOCS trades at a premium compared to the S&P 500 average (25.05), but remains cheaper than 78% of its industry peers.
• Forward P/E: The forward P/E of 40.44 suggests a slightly more favorable valuation relative to industry averages.
• Enterprise Value to EBITDA: DOCS is more attractively priced than 70% of competitors based on this metric.

Profitability & Financial Health

• High Margins: The company boasts a gross margin of 90.19% and an operating margin of 40.58%, both ranking near the top of its industry.
• Strong Returns: DOCS delivers a return on invested capital (ROIC) of 17.38%, well above its cost of capital.
• Zero Debt: With no outstanding debt, the company maintains excellent liquidity, reflected in a current ratio of 8.74.

For a deeper dive into DOCS’s fundamentals, review the full analysis report.

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

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.