Doximity, Inc. (NYSE: DOCS)

Sector: Healthcare Industry: Health Information Services CIK: 0001516513
Market Cap 7.81 Bn
P/B 7.13
P/E 30.87
P/S 12.57
ROIC (Qtr) 19.59
Div Yield % 0.00
Rev 1y % (Qtr) 23.16
Total Debt (Qtr) 11.27 Mn
Debt/Equity (Qtr) 0.01

About

Doximity, Inc. (DOCS) operates as a leading digital platform for medical professionals in the United States, boasting over two million registered members as of March 31, 2024. The company's mission is to enhance physician productivity and improve patient care through its physician cloud, which provides medical professionals with digital tools tailored for their specific needs. Doximity's primary business activities revolve around its Marketing, Hiring, and Productivity Solutions, which serve pharmaceutical manufacturers, health systems, and medical...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 319.72M provides robust 28.37x coverage of total debt 11.27M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 169.25M provide 79.72x coverage of short-term debt 2.12M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.13B provides 100.54x coverage of total debt 11.27M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 319.72M provides 1.53x coverage of SG&A expenses 209.44M, showing efficient operational cost management.
  • Tangible assets of 1.13B provide exceptional 11.30x coverage of deferred revenue 100.30M, showing strong service capability backing.

Bear case

  • Operating cash flow of 319.72M barely covers its investment activities of (112.43M), with a coverage ratio of -2.84, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (112.43M) provide weak support for R&D spending of 104.22M, which is -1.08x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 169.25M provide limited coverage of acquisition spending of (26.53M), which is -6.38x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 709.12M significantly exceed cash reserves of 169.25M, which is 4.19x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 319.72M shows concerning coverage of stock compensation expenses of 88.77M, with a 3.60 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.11 2.77
EV to Cash from Ops. EV/CFO 24.04 -10.86
EV to Debt EV to Debt 681.93 161.93
EV to EBIT EV/EBIT 26.93 -106.48
EV to EBITDA EV/EBITDA 29.52 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 24.62 7.46
EV to Market Cap EV to Market Cap 0.98 -14.93
EV to Revenue EV/Rev 12.37 1.76
Price to Book Value [P/B] P/B 7.13 10.57
Price to Earnings [P/E] P/E 30.87 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Interest Coverage 0.00 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -22.69 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.14 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 45.33 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 22.93 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.07 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 26.07 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 42.55 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 43.58 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.56 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.49 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.21 1.87
Current Ratio Curr Ratio (Qtr) 7.79 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -0.43
Interest Cover Ratio Interest Cover Ratio 0.00 -584.72
Times Interest Earned Times Interest Earned 0.00 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 48.10 -435.80
EBIT Margin % EBIT Margin % (Qtr) 45.92 -464.70
EBT Margin % EBT Margin % (Qtr) 45.92 -461.74
Gross Margin % Gross Margin % (Qtr) 90.20 44.03
Net Profit Margin % Net Margin % (Qtr) 40.70 -468.01