Our stock screener has spotted DOXIMITY INC-CLASS A (NYSE:DOCS) as a growth stock which is not overvalued. NYSE:DOCS is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.
How do we evaluate the Growth for NYSE:DOCS?
To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:DOCS has achieved a 8 out of 10:
- DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.62%, which is quite impressive.
- DOCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 106.72% yearly.
- DOCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.57%.
- 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 11.62% on average over the next years. This is quite good.
What does the Valuation looks like for NYSE:DOCS
ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:DOCS was assigned a score of 5 for valuation:
- DOCS's Price/Earnings ratio is rather cheap when compared to the industry. DOCS is cheaper than 92.50% of the companies in the same industry.
- DOCS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOCS is cheaper than 90.00% of the companies in the same industry.
- Based on the Enterprise Value to EBITDA ratio, DOCS is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DOCS is valued cheaper than 82.50% of the companies in the same industry.
- The excellent profitability rating of DOCS may justify a higher PE ratio.
Evaluating Health: NYSE:DOCS
ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:DOCS has earned a 9 out of 10:
- An Altman-Z score of 24.88 indicates that DOCS is not in any danger for bankruptcy at the moment.
- DOCS has a Altman-Z score of 24.88. This is amongst the best in the industry. DOCS outperforms 92.50% 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 8.03 indicates that DOCS has no problem at all paying its short term obligations.
- DOCS has a Current ratio of 8.03. This is amongst the best in the industry. DOCS outperforms 90.00% of its industry peers.
- A Quick Ratio of 8.03 indicates that DOCS has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 8.03, DOCS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Evaluating Profitability: NYSE:DOCS
ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DOCS scores a 9 out of 10:
- With an excellent Return On Assets value of 13.76%, DOCS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of DOCS (15.92%) is better than 97.50% of its industry peers.
- DOCS has a Return On Invested Capital of 15.40%. 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 4.45%.
- DOCS has a Profit Margin of 29.39%. This is amongst the best in 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 34.75%, 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 Operating Margin of DOCS has grown nicely.
- DOCS has a better Gross Margin (88.94%) than 97.50% of its industry peers.
More Affordable Growth stocks can be found in our Affordable Growth screener.
Our latest full fundamental report of DOCS contains the most current fundamental analsysis.
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.