While growth is established for NASDAQ:PGNY, the stock's valuation remains reasonable.

Last update: Aug 8, 2024

Here's PROGYNY INC (NASDAQ:PGNY) for you, a growth stock our stock screener believes is undervalued. NASDAQ:PGNY 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.

Understanding NASDAQ:PGNY's Growth Score

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. NASDAQ:PGNY has achieved a 9 out of 10:

The Earnings Per Share has grown by an impressive 81.63% over the past year.
Measured over the past years, PGNY shows a very strong growth in Earnings Per Share. The EPS has been growing by 97.89% on average per year.
PGNY shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.34%.
PGNY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 59.52% yearly.
The Earnings Per Share is expected to grow by 40.77% on average over the next years. This is a very strong growth
Based on estimates for the next years, PGNY will show a quite strong growth in Revenue. The Revenue will grow by 16.90% on average per year.

Valuation Assessment of NASDAQ:PGNY

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PGNY, the assigned 5 reflects its valuation:

Based on the Price/Earnings ratio, PGNY is valued a bit cheaper than the industry average as 68.70% of the companies are valued more expensively.
63.48% of the companies in the same industry are more expensive than PGNY, based on the Price/Forward Earnings ratio.
Based on the Price/Free Cash Flow ratio, PGNY is valued cheaper than 91.30% of the companies in the same industry.
PGNY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PGNY's earnings are expected to grow with 22.08% in the coming years.

Unpacking NASDAQ:PGNY's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PGNY was assigned a score of 9 for health:

PGNY has an Altman-Z score of 7.92. This indicates that PGNY is financially healthy and has little risk of bankruptcy at the moment.
PGNY has a better Altman-Z score (7.92) than 94.78% of its industry peers.
There is no outstanding debt for PGNY. 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 3.31 indicates that PGNY has no problem at all paying its short term obligations.
The Current ratio of PGNY (3.31) is better than 90.43% of its industry peers.
PGNY has a Quick Ratio of 3.31. This indicates that PGNY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PGNY (3.31) is better than 91.30% of its industry peers.

Evaluating Profitability: NASDAQ:PGNY

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 NASDAQ:PGNY, the assigned 7 is noteworthy for profitability:

PGNY has a better Return On Assets (7.71%) than 92.17% of its industry peers.
PGNY has a Return On Equity of 10.72%. This is in the better half of the industry: PGNY outperforms 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.80%, PGNY belongs to the best of the industry, outperforming 88.70% of the companies in the same industry.
The 3 year average ROIC (8.61%) for PGNY is below the current ROIC(9.80%), indicating increased profibility in the last year.
PGNY has a Profit Margin of 5.53%. This is amongst the best in the industry. PGNY outperforms 84.35% of its industry peers.
PGNY has a better Operating Margin (5.93%) than 67.83% of its industry peers.
In the last couple of years the Operating Margin of PGNY has grown nicely.
PGNY's Gross Margin has improved in the last couple of years.

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 PGNY

Keep in mind

This article should in no way be interpreted as advice. 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.