Doximity, Inc.
Doximity, Inc. Fundamental Analysis
Doximity, Inc. (DOCS) shows strong financial fundamentals with a PE ratio of 20.07, profit margin of 37.54%, and ROE of 22.89%. The company generates $0.6B in annual revenue with strong year-over-year growth of 19.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DOCS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDOCS demonstrates superior asset utilization.
Valuation Score
ExcellentDOCS trades at attractive valuation levels.
Growth Score
ExcellentDOCS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDOCS maintains a strong and stable balance sheet.
Profitability Score
ExcellentDOCS achieves industry-leading margins.
Key Financial Metrics
Is DOCS Expensive or Cheap?
P/E Ratio
DOCS trades at 20.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DOCS's PEG of -3.84 indicates potential undervaluation.
Price to Book
The market values Doximity, Inc. at 4.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.87 times EBITDA. This signals the market has high growth expectations.
How Well Does DOCS Make Money?
Net Profit Margin
For every $100 in sales, Doximity, Inc. keeps $37.54 as profit after all expenses.
Operating Margin
Core operations generate 37.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.89 in profit for every $100 of shareholder equity.
ROA
Doximity, Inc. generates $20.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Doximity, Inc. generates strong operating cash flow of $316.06M, reflecting robust business health.
Free Cash Flow
Doximity, Inc. generates strong free cash flow of $312.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.66 in free cash annually.
FCF Yield
DOCS converts 6.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How DOCS Stacks Against Its Sector Peers
| Metric | DOCS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.07 | 29.43 | Better (Cheaper) |
| ROE | 22.89% | 800.00% | Weak |
| Net Margin | 37.54% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 6.63 | 4.64 | Strong Liquidity |
| ROA | 20.69% | -17936.00% (disorted) | Strong |
DOCS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Doximity, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
376.61%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
629.89%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
914.35%
Industry Style: Defensive, Growth, Innovation
High Growth