Phreesia, Inc. (NYSE: PHR)

Sector: Healthcare Industry: Health Information Services CIK: 0001412408
Market Cap 891.84 Mn
P/B 2.78
P/E -165.80
P/S 1.93
ROIC (Qtr) -2.25
Div Yield % 0.00
Rev 1y % (Qtr) 12.67
Total Debt (Qtr) 10.43 Mn
Debt/Equity (Qtr) 0.03

About

Phreesia, Inc. (PHRS), a prominent player in the healthcare industry, offers a suite of software solutions designed to enhance the operational and financial performance of healthcare organizations. The company's offerings include patient intake, registration, revenue cycle, and network solutions, serving patients, healthcare services clients, and life sciences and payer companies. Phreesia's primary products and services consist of Access to Care, Registration, Revenue Cycle, and Network Solutions. The Access to Care solutions enable patients to...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 61.41M provides robust 5.89x coverage of total debt 10.43M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 106.37M provide 15.32x coverage of short-term debt 6.95M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 61.41M provides exceptional 266.99x coverage of interest expenses 230000, showing strong debt service capability.
  • Strong tangible asset base of 268M provides 25.70x coverage of total debt 10.43M, indicating robust asset backing and low credit risk.
  • Tangible assets of 268M provide exceptional 8.97x coverage of deferred revenue 29.86M, showing strong service capability backing.

Bear case

  • Operating cash flow of 61.41M barely covers its investment activities of (26.32M), with a coverage ratio of -2.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (26.32M) provide weak support for R&D spending of 120.18M, which is -0.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 61.41M shows concerning coverage of stock compensation expenses of 66.58M, with a 0.92 ratio indicating potential earnings quality issues.
  • Operating earnings of (3.76M) show weak coverage of depreciation charges of 29.42M, with a -0.13 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 35.09M represents just -2.46x of debt issuance (14.24M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

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 1.90 2.77
EV to Cash from Ops. EV/CFO 13.13 -10.86
EV to Debt EV to Debt 77.31 161.93
EV to EBIT EV/EBIT -214.29 -106.48
EV to EBITDA EV/EBITDA 38.85 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 22.98 7.46
EV to Market Cap EV to Market Cap 0.90 -14.93
EV to Revenue EV/Rev 1.74 1.76
Price to Book Value [P/B] P/B 2.78 10.57
Price to Earnings [P/E] P/E -165.80 147.14
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 Int. cover (Qtr) -16.36 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.72 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.13 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 93.89 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 141.55 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 95.36 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 95.06 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 93.15 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 396.17 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.14 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.09 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.08 1.87
Current Ratio Curr Ratio (Qtr) 2.44 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 -0.43
Interest Cover Ratio Int Coverage (Qtr) -16.36 -584.72
Times Interest Earned Times Interest Earned (Qtr) -16.36 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.50 -435.80
EBIT Margin % EBIT Margin % (Qtr) -0.81 -464.70
EBT Margin % EBT Margin % (Qtr) -0.86 -461.74
Gross Margin % Gross Margin % (Qtr) 68.20 44.03
Net Profit Margin % Net Margin % (Qtr) -1.20 -468.01