DocGo Inc. (NASDAQ: DCGO)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001822359
Market Cap 93.07 Mn
P/B 0.34
P/E -1.80
P/S 0.25
ROIC (Qtr) -14.91
Div Yield % 0.00
Rev 1y % (Qtr) -48.94
Total Debt (Qtr) 29.46 Mn
Debt/Equity (Qtr) 0.11

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 57.81M provides robust 1.96x coverage of total debt 29.46M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 77.61M provide 7.82x coverage of short-term debt 9.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 57.81M provides exceptional 35.44x coverage of interest expenses 1.63M, showing strong debt service capability.
  • Strong tangible asset base of 294.75M provides 10x coverage of total debt 29.46M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 54.16M exceeds capital expenditure of 3.65M by 14.85x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 57.81M barely covers its investment activities of (31.58M), with a coverage ratio of -1.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (31.58M) provide weak support for R&D spending of 13.48M, which is -2.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 77.61M provide limited coverage of acquisition spending of (3.65M), which is -21.28x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 57.81M shows concerning coverage of stock compensation expenses of 18.18M, with a 3.18 ratio indicating potential earnings quality issues.
  • Operating cash flow of 57.81M provides minimal -2.78x coverage of tax expenses of (20.79M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Medical Care Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HCA HCA Healthcare, Inc. 114.88 Bn 18.11 1.54 46.35 Bn
2 THC Tenet Healthcare Corp 18.07 Bn 13.34 0.87 13.19 Bn
3 UHS Universal Health Services Inc 14.64 Bn 10.65 0.86 5.11 Bn
4 FMS Fresenius Medical Care AG 14.10 Bn 16.69 0.61 14.98 Bn
5 EHC Encompass Health Corp 12.55 Bn 19.95 2.17 2.66 Bn
6 ENSG Ensign Group, Inc 10.08 Bn 30.72 2.09 2.16 Bn
7 DVA Davita Inc. 8.90 Bn 11.53 0.67 12.78 Bn
8 CHE Chemed Corp 6.38 Bn 22.87 2.52 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.12 1.26
EV to Cash from Ops. EV/CFO 0.71 12.78
EV to Debt EV to Debt 1.39 12.10
EV to EBIT EV/EBIT -0.58 10.74
EV to EBITDA EV/EBITDA -0.71 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 0.76 18.02
EV to Market Cap EV to Market Cap 0.46 432.64
EV to Revenue EV/Rev 0.11 2.77
Price to Book Value [P/B] P/B 0.33 -1.92
Price to Earnings [P/E] P/E -1.73 5.13
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.10
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -13.44
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 5.42
Interest Coverage Int. cover (Qtr) -43.37 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 33.22 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -28.52 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -259.05 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -189.01 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) -242.28 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) -249.72 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) -270.00 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) 17.69 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -52.08 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.04 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 1.05 0.39
Current Ratio Curr Ratio (Qtr) 2.59 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 -13.19
Interest Cover Ratio Int Coverage (Qtr) -43.37 -97.94
Times Interest Earned Times Interest Earned (Qtr) -43.37 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15.10 -95.81
EBIT Margin % EBIT Margin % (Qtr) -19.22 -94.97
EBT Margin % EBT Margin % (Qtr) -19.66 -105.60
Gross Margin % Gross Margin % (Qtr) 31.20 23.31
Net Profit Margin % Net Margin % (Qtr) -14.00 -106.14