Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


DOXIMITY INC-CLASS A

New York Stock Exchange, Inc. / Health Care / Health Care Technology

Fundamental Rating

8

Overall DOCS gets a fundamental rating of 8 out of 10. We evaluated DOCS against 40 industry peers in the Health Care Technology industry. DOCS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DOCS is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes DOCS very considerable for growth and quality investing!



9

1. Profitability

1.1 Basic Checks

In the past year DOCS was profitable.
In the past year DOCS had a positive cash flow from operations.
In the past 5 years DOCS has always been profitable.
DOCS had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of DOCS (13.76%) is better than 97.44% of its industry peers.
DOCS's Return On Equity of 15.92% is amongst the best of the industry. DOCS outperforms 97.44% of its industry peers.
The Return On Invested Capital of DOCS (15.40%) is better 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 4.93%.
Industry RankSector Rank
ROA 13.76%
ROE 15.92%
ROIC 15.4%
ROA(3y)10.65%
ROA(5y)8.08%
ROE(3y)13.81%
ROE(5y)11.15%
ROIC(3y)17.25%
ROIC(5y)17.27%

1.3 Margins

Looking at the Profit Margin, with a value of 29.39%, DOCS belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
DOCS's Profit Margin has improved in the last couple of years.
DOCS's Operating Margin of 34.75% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of DOCS has grown nicely.
Looking at the Gross Margin, with a value of 88.94%, DOCS belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
In the last couple of years the Gross Margin of DOCS has remained more or less at the same level.
Industry RankSector Rank
OM 34.75%
PM (TTM) 29.39%
GM 88.94%
OM growth 3Y16.1%
OM growth 5YN/A
PM growth 3Y42.62%
PM growth 5YN/A
GM growth 3Y0.01%
GM growth 5YN/A

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOCS is creating some value.
Compared to 1 year ago, DOCS has more shares outstanding
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.

2.2 Solvency

DOCS has an Altman-Z score of 21.62. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
DOCS has a Altman-Z score of 21.62. This is amongst the best in 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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 21.62
ROIC/WACC1.52
WACC10.11%

2.3 Liquidity

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 has a Current ratio of 8.03. This is amongst the best in the industry. DOCS outperforms 92.31% of its industry peers.
A Quick Ratio of 8.03 indicates that DOCS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 8.03, DOCS belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 8.03
Quick Ratio 8.03

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3. Growth

3.1 Past

DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.62%, which is quite impressive.
The Earnings Per Share has been growing by 106.72% on average over the past years. This is a very strong growth
The Revenue has grown by 16.57% in the past year. This is quite good.
Measured over the past years, DOCS shows a very strong growth in Revenue. The Revenue has been growing by 53.27% on average per year.
EPS 1Y (TTM)21.62%
EPS 3Y106.72%
EPS 5YN/A
EPS growth Q2Q31.82%
Revenue 1Y (TTM)16.57%
Revenue growth 3Y53.27%
Revenue growth 5YN/A
Revenue growth Q2Q17.33%

3.2 Future

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.
The Revenue is expected to grow by 11.59% on average over the next years. This is quite good.
EPS Next Y25.99%
EPS Next 2Y15.03%
EPS Next 3Y14.05%
EPS Next 5Y14.36%
Revenue Next Year13.32%
Revenue Next 2Y11.62%
Revenue Next 3Y11.35%
Revenue Next 5Y11.59%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.40, the valuation of DOCS can be described as expensive.
Based on the Price/Earnings ratio, DOCS is valued cheaper than 94.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.31, DOCS is valued at the same level.
The Price/Forward Earnings ratio is 24.60, which indicates a rather expensive current valuation of DOCS.
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 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.48, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.4
Fwd PE 24.6

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DOCS is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DOCS is valued cheaper than 82.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.43
EV/EBITDA 18.23

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y15.03%
EPS Next 3Y14.05%

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0

5. Dividend

5.1 Amount

DOCS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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