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DEFINITIVE HEALTHCARE CORP (DH) Stock Fundamental Analysis

NASDAQ:DH - Nasdaq - US24477E1038 - Common Stock - Currency: USD

5.15  +0.4 (+8.42%)

After market: 5.15 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to DH. DH was compared to 39 industry peers in the Health Care Technology industry. The financial health of DH is average, but there are quite some concerns on its profitability. DH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

DH had positive earnings in the past year.
In the past year DH had a positive cash flow from operations.
DH had negative earnings in each of the past 5 years.
Each year in the past 5 years DH had a positive operating cash flow.
DH Yearly Net Income VS EBIT VS OCF VS FCFDH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 -50M -100M -150M -200M

1.2 Ratios

DH has a Return On Assets (-30.83%) which is comparable to the rest of the industry.
DH has a Return On Equity of -71.92%. This is comparable to the rest of the industry: DH outperforms 45.95% of its industry peers.
Industry RankSector Rank
ROA -30.83%
ROE -71.92%
ROIC N/A
ROA(3y)-4.09%
ROA(5y)-3.46%
ROE(3y)-8.77%
ROE(5y)-6.71%
ROIC(3y)N/A
ROIC(5y)N/A
DH Yearly ROA, ROE, ROICDH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -5 -10 -15 -20

1.3 Margins

The Gross Margin of DH (79.46%) is better than 86.49% of its industry peers.
In the last couple of years the Gross Margin of DH has grown nicely.
DH does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 79.46%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.01%
GM growth 5YN/A
DH Yearly Profit, Operating, Gross MarginsDH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 50 -50

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5

2. Health

2.1 Basic Checks

DH does not have a ROIC to compare to the WACC, probably because it is not profitable.
DH has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for DH is higher compared to a year ago.
DH Yearly Shares OutstandingDH Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M
DH Yearly Total Debt VS Total AssetsDH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

DH has an Altman-Z score of 0.35. This is a bad value and indicates that DH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DH (0.35) is comparable to the rest of the industry.
DH has a debt to FCF ratio of 4.67. This is a neutral value as DH would need 4.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.67, DH is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that DH is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, DH is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 4.67
Altman-Z 0.35
ROIC/WACCN/A
WACC9.16%
DH Yearly LT Debt VS Equity VS FCFDH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 2.49 indicates that DH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.49, DH is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
A Quick Ratio of 2.49 indicates that DH has no problem at all paying its short term obligations.
DH has a better Quick ratio (2.49) than 67.57% of its industry peers.
Industry RankSector Rank
Current Ratio 2.49
Quick Ratio 2.49
DH Yearly Current Assets VS Current LiabilitesDH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.33% over the past year.
The Revenue has been growing slightly by 3.96% in the past year.
The Revenue has been growing by 28.57% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y28.57%
Revenue growth 5YN/A
Sales Q2Q%-4.02%

3.2 Future

The Earnings Per Share is expected to grow by 3.85% on average over the next years.
Based on estimates for the next years, DH will show a decrease in Revenue. The Revenue will decrease by -0.19% on average per year.
EPS Next Y18.16%
EPS Next 2Y0.57%
EPS Next 3Y3.85%
EPS Next 5YN/A
Revenue Next Year-0.43%
Revenue Next 2Y-2.1%
Revenue Next 3Y-0.19%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DH Yearly Revenue VS EstimatesDH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
DH Yearly EPS VS EstimatesDH Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3

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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.15 indicates a correct valuation of DH.
Compared to the rest of the industry, the Price/Earnings ratio of DH indicates a rather cheap valuation: DH is cheaper than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, DH is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.97, which indicates a correct valuation of DH.
Based on the Price/Forward Earnings ratio, DH is valued cheaper than 91.89% of the companies in the same industry.
DH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
Industry RankSector Rank
PE 15.15
Fwd PE 16.97
DH Price Earnings VS Forward Price EarningsDH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

86.49% of the companies in the same industry are more expensive than DH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DH is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.14
EV/EBITDA 15.34
DH Per share dataDH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 3

4.3 Compensation for Growth

DH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y0.57%
EPS Next 3Y3.85%

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0

5. Dividend

5.1 Amount

No dividends for DH!.
Industry RankSector Rank
Dividend Yield N/A

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DEFINITIVE HEALTHCARE CORP

NASDAQ:DH (2/4/2025, 8:00:01 PM)

After market: 5.15 0 (0%)

5.15

+0.4 (+8.42%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners44.82%
Inst Owner Change0.02%
Ins Owners3.2%
Ins Owner Change1.72%
Market Cap798.15M
Analysts75.45
Price Target5.36 (4.08%)
Short Float %4.5%
Short Ratio3.6
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.29%
Min EPS beat(2)0.72%
Max EPS beat(2)21.86%
EPS beat(4)2
Avg EPS beat(4)1.68%
Min EPS beat(4)-11.07%
Max EPS beat(4)21.86%
EPS beat(8)6
Avg EPS beat(8)23.21%
EPS beat(12)9
Avg EPS beat(12)21.26%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)-1.38%
Revenue beat(8)1
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.53%
PT rev (3m)-6.44%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-27.78%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)6.16%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-9.21%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 15.15
Fwd PE 16.97
P/S 3.12
P/FCF 15.14
P/OCF 14.57
P/B 1.58
P/tB N/A
EV/EBITDA 15.34
EPS(TTM)0.34
EY6.6%
EPS(NY)0.3
Fwd EY5.89%
FCF(TTM)0.34
FCFY6.61%
OCF(TTM)0.35
OCFY6.86%
SpS1.65
BVpS3.27
TBVpS-1.8
PEG (NY)0.83
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -30.83%
ROE -71.92%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 79.46%
FCFM 20.61%
ROA(3y)-4.09%
ROA(5y)-3.46%
ROE(3y)-8.77%
ROE(5y)-6.71%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.01%
GM growth 5YN/A
F-Score3
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 4.67
Debt/EBITDA 7.01
Cap/Depr 3.96%
Cap/Sales 0.8%
Interest Coverage N/A
Cash Conversion 164.95%
Profit Quality N/A
Current Ratio 2.49
Quick Ratio 2.49
Altman-Z 0.35
F-Score3
WACC9.16%
ROIC/WACCN/A
Cap/Depr(3y)10.54%
Cap/Depr(5y)7.93%
Cap/Sales(3y)2.99%
Cap/Sales(5y)2.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y18.16%
EPS Next 2Y0.57%
EPS Next 3Y3.85%
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y28.57%
Revenue growth 5YN/A
Sales Q2Q%-4.02%
Revenue Next Year-0.43%
Revenue Next 2Y-2.1%
Revenue Next 3Y-0.19%
Revenue Next 5YN/A
EBIT growth 1Y45.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year13.84%
EBIT Next 3Y1.82%
EBIT Next 5YN/A
FCF growth 1Y33.53%
FCF growth 3Y20.54%
FCF growth 5YN/A
OCF growth 1Y24.42%
OCF growth 3Y21.05%
OCF growth 5YN/A