For those who appreciate growth without the sticker shock, NYSE:DOCS is worth considering.

Here's DOXIMITY INC-CLASS A (NYSE:DOCS) for you, a growth stock our stock screener believes is undervalued. NYSE:DOCS is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Deciphering NYSE:DOCS's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:DOCS has received a 7 out of 10:

• The Earnings Per Share has been growing by 106.72% on average over the past years. This is a very strong growth
• The Revenue has grown by 16.65% in the past year. This is quite good.
• Measured over the past years, DOCS shows a very strong growth in Revenue. The Revenue has been growing by 53.27% on average per year.
• The Earnings Per Share is expected to grow by 13.19% on average over the next years. This is quite good.
• DOCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.62% yearly.

Assessing Valuation for NYSE:DOCS

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:DOCS has achieved a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of DOCS indicates a rather cheap valuation: DOCS is cheaper than 90.24% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, DOCS is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
• 85.37% of the companies in the same industry are more expensive than DOCS, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, DOCS is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
• DOCS has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Health: NYSE:DOCS

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:DOCS scores a 9 out of 10:

• DOCS has an Altman-Z score of 23.26. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of DOCS (23.26) is better than 95.12% of its industry peers.
• There is no outstanding debt for DOCS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 7.00 indicates that DOCS has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 7.00, DOCS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
• DOCS has a Quick Ratio of 7.00. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 7.00, DOCS belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.

Profitability Examination for NYSE:DOCS

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:DOCS, the assigned 9 is noteworthy for profitability:

• DOCS's Return On Assets of 12.01% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
• The Return On Equity of DOCS (14.14%) is better than 97.56% of its industry peers.
• DOCS has a better Return On Invested Capital (13.40%) than 100.00% of its industry peers.
• DOCS had an Average Return On Invested Capital over the past 3 years of 17.25%. This is significantly above the industry average of 4.22%.
• Looking at the Profit Margin, with a value of 27.48%, DOCS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of DOCS has grown nicely.
• With an excellent Operating Margin value of 31.82%, DOCS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of DOCS has grown nicely.
• DOCS has a Gross Margin of 88.14%. This is amongst the best in the industry. DOCS outperforms 97.56% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of DOCS

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.