Guardian Pharmacy Services, Inc.
Guardian Pharmacy Services, Inc. Fundamental Analysis
Guardian Pharmacy Services, Inc. (GRDN) shows moderate financial fundamentals with a PE ratio of 41.93, profit margin of 3.40%, and ROE of 27.07%. The company generates $1.4B in annual revenue with strong year-over-year growth of 17.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GRDN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGRDN demonstrates superior asset utilization.
Valuation Score
WeakGRDN trades at a premium to fair value.
Growth Score
ModerateGRDN shows steady but slowing expansion.
Financial Health Score
ExcellentGRDN maintains a strong and stable balance sheet.
Profitability Score
ModerateGRDN maintains healthy but balanced margins.
Key Financial Metrics
Is GRDN Expensive or Cheap?
P/E Ratio
GRDN trades at 41.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GRDN's PEG of 2.13 indicates potential overvaluation.
Price to Book
The market values Guardian Pharmacy Services, Inc. at 9.47 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.74 times EBITDA. This signals the market has high growth expectations.
How Well Does GRDN Make Money?
Net Profit Margin
For every $100 in sales, Guardian Pharmacy Services, Inc. keeps $3.40 as profit after all expenses.
Operating Margin
Core operations generate 5.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.07 in profit for every $100 of shareholder equity.
ROA
Guardian Pharmacy Services, Inc. generates $11.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Guardian Pharmacy Services, Inc. produces operating cash flow of $148.44M, showing steady but balanced cash generation.
Free Cash Flow
Guardian Pharmacy Services, Inc. produces free cash flow of $119.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.88 in free cash annually.
FCF Yield
GRDN converts 5.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How GRDN Stacks Against Its Sector Peers
| Metric | GRDN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.93 | 28.53 | Worse (Expensive) |
| ROE | 27.07% | 751.00% | Weak |
| Net Margin | 3.40% | -19261.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 1.38 | 4.53 | Neutral |
| ROA | 11.93% | -15886.00% (disorted) | Strong |
GRDN outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Guardian Pharmacy Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.62%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-493.89%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
1.27%
Industry Style: Defensive, Growth, Innovation
Growing