Don't overlook NYSE:DOCS—a stock with solid growth prospects and a reasonable valuation.

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.

Assessing Growth 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 8 for growth:

• DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.14%, which is quite impressive.
• The Earnings Per Share has been growing by 81.49% on average over the past years. This is a very strong growth
• DOCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.44%.
• The Revenue has been growing by 40.87% on average over the past years. This is a very strong growth!
• DOCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.92% yearly.
• Based on estimates for the next years, DOCS will show a quite strong growth in Revenue. The Revenue will grow by 10.90% on average per year.

Understanding NYSE:DOCS's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:DOCS has earned a 5 for valuation:

• DOCS's Price/Earnings ratio is rather cheap when compared to the industry. DOCS is cheaper than 86.84% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCS indicates a rather cheap valuation: DOCS is cheaper than 81.58% of the companies listed in the same industry.
• 81.58% 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 a bit cheaper than 73.68% of the companies in the same industry.
• The excellent profitability rating of DOCS may justify a higher PE ratio.

Evaluating Health: NYSE:DOCS

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:DOCS, the assigned 9 reflects its health status:

• An Altman-Z score of 19.17 indicates that DOCS is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 19.17, DOCS belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
• 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 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• The Current ratio of DOCS (6.20) is better than 89.47% of its industry peers.
• A Quick Ratio of 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 6.20, DOCS belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.

Profitability Analysis for NYSE:DOCS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DOCS, the assigned 9 is a significant indicator of profitability:

• DOCS has a better Return On Assets (13.67%) than 97.37% of its industry peers.
• DOCS has a Return On Equity of 16.37%. This is amongst the best in the industry. DOCS outperforms 97.37% of its industry peers.
• With an excellent Return On Invested Capital value of 15.15%, DOCS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for DOCS is significantly above the industry average of 5.59%.
• The 3 year average ROIC (12.02%) for DOCS is below the current ROIC(15.15%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 31.04%, DOCS belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
• In the last couple of years the Profit Margin of DOCS has grown nicely.
• DOCS's Operating Margin of 36.14% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
• In the last couple of years the Operating Margin of DOCS has grown nicely.
• DOCS's Gross Margin of 89.35% is amongst the best of the industry. DOCS outperforms 94.74% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of DOCS contains the most current fundamental analsysis.

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.