Despite its growth, NYSE:DOCS remains within the realm of affordability.

Discover DOXIMITY INC-CLASS A (NYSE:DOCS), an undervalued growth gem identified by our stock screener. NYSE:DOCS is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Analysis for NYSE:DOCS

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:DOCS boasts a 8 out of 10:

• DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
• DOCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.49% yearly.
• DOCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.44%.
• DOCS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 40.87% yearly.
• The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
• 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.

Deciphering NYSE:DOCS's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:DOCS scores a 5 out of 10:

• Based on the Price/Earnings ratio, DOCS is valued cheaper than 84.21% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, DOCS is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
• DOCS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DOCS is cheaper than 81.58% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCS indicates a somewhat cheap valuation: DOCS is cheaper than 73.68% of the companies listed in the same industry.
• DOCS has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Health

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:

• DOCS has an Altman-Z score of 17.96. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• DOCS has a Altman-Z score of 17.96. This is amongst the best in the industry. DOCS outperforms 97.37% 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 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS has a Current ratio of 6.20. This is amongst the best in the industry. DOCS outperforms 89.47% of its industry peers.
• DOCS has a Quick Ratio of 6.20. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• DOCS's Quick ratio of 6.20 is amongst the best of the industry. DOCS outperforms 89.47% of its industry peers.

Assessing Profitability for NYSE:DOCS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:DOCS was assigned a score of 9 for profitability:

• With an excellent Return On Assets value of 13.67%, DOCS belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
• DOCS has a better Return On Equity (16.37%) than 97.37% of its industry peers.
• DOCS has a Return On Invested Capital of 15.15%. 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 5.60%.
• The last Return On Invested Capital (15.15%) for DOCS is above the 3 year average (12.02%), which is a sign of increasing profitability.
• DOCS's Profit Margin of 31.04% is amongst the best of the industry. DOCS outperforms 97.37% of its industry peers.
• DOCS's Profit Margin has improved in the last couple of years.
• DOCS has a Operating Margin of 36.14%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
• DOCS's Operating Margin has improved in the last couple of years.
• DOCS has a Gross Margin of 89.35%. This is amongst the best in the industry. DOCS outperforms 94.74% of its industry peers.

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

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

Disclaimer

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.