In the world of growth stocks, NYSE:DOCS shines as a value proposition.

Take a closer look at DOXIMITY INC-CLASS A (NYSE:DOCS), an affordable growth stock uncovered by our stock screener. NYSE:DOCS boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Growth Metrics for NYSE:DOCS

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:DOCS was assigned a score of 7 for growth:

• The Earnings Per Share has been growing by 106.72% on average over the past years. This is a very strong growth
• Looking at the last year, DOCS shows a quite strong growth in Revenue. The Revenue has grown by 16.65% in the last year.
• 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.
• DOCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.19% yearly.
• The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.

Understanding NYSE:DOCS's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:DOCS has received a 5 out of 10:

• Based on the Price/Earnings ratio, DOCS is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, DOCS is valued cheaper than 90.24% of the companies in the same industry.
• 85.37% of the companies in the same industry are more expensive than DOCS, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCS indicates a rather cheap valuation: DOCS is cheaper than 82.93% of the companies listed in the same industry.
• DOCS has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Health: NYSE:DOCS

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DOCS has earned a 9 out of 10:

• An Altman-Z score of 21.75 indicates that DOCS is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 21.75, DOCS belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
• DOCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 7.00 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a Current ratio of 7.00. This is amongst the best in the industry. DOCS outperforms 87.80% of its industry peers.
• A Quick Ratio of 7.00 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a Quick ratio of 7.00. This is amongst the best in the industry. DOCS outperforms 87.80% of its industry peers.

Profitability Assessment of NYSE:DOCS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:DOCS has achieved a 9:

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.