GoodRx Holdings, Inc.
GoodRx Holdings, Inc. Fundamental Analysis
GoodRx Holdings, Inc. (GDRX) shows weak financial fundamentals with a PE ratio of 26.45, profit margin of 3.97%, and ROE of 4.84%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 5.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GDRX's fundamental strength across five key dimensions:
Efficiency Score
WeakGDRX struggles to generate sufficient returns from assets.
Valuation Score
ModerateGDRX shows balanced valuation metrics.
Growth Score
ModerateGDRX shows steady but slowing expansion.
Financial Health Score
ExcellentGDRX maintains a strong and stable balance sheet.
Profitability Score
WeakGDRX struggles to sustain strong margins.
Key Financial Metrics
Is GDRX Expensive or Cheap?
P/E Ratio
GDRX trades at 26.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GDRX's PEG of -1.03 indicates potential undervaluation.
Price to Book
The market values GoodRx Holdings, Inc. at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.11 times EBITDA. This is generally considered low.
How Well Does GDRX Make Money?
Net Profit Margin
For every $100 in sales, GoodRx Holdings, Inc. keeps $3.97 as profit after all expenses.
Operating Margin
Core operations generate 10.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.84 in profit for every $100 of shareholder equity.
ROA
GoodRx Holdings, Inc. generates $2.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GoodRx Holdings, Inc. produces operating cash flow of $175.38M, showing steady but balanced cash generation.
Free Cash Flow
GoodRx Holdings, Inc. generates strong free cash flow of $102.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
GDRX converts 12.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How GDRX Stacks Against Its Sector Peers
| Metric | GDRX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.45 | 29.43 | Better (Cheaper) |
| ROE | 4.84% | 800.00% | Weak |
| Net Margin | 3.97% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.91 | 0.30 | Weak (High Leverage) |
| Current Ratio | 3.11 | 4.64 | Strong Liquidity |
| ROA | 2.40% | -17936.00% (disorted) | Weak |
GDRX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GoodRx Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.90%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-75.21%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
120.59%
Industry Style: Defensive, Growth, Innovation
High Growth