We assign a fundamental rating of 7 out of 10 to DOCS. DOCS was compared to 35 industry peers in the Health Care Technology industry. DOCS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DOCS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make DOCS a good candidate for growth and quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DOCS was profitable.
DOCS had a positive operating cash flow in the past year.
Each year in the past 5 years DOCS has been profitable.
Each year in the past 5 years DOCS had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 20.13%, DOCS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DOCS's Return On Equity of 23.10% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
The Return On Invested Capital of DOCS (18.16%) is better than 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 6.63%.
The 3 year average ROIC (14.17%) for DOCS is below the current ROIC(18.16%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	20.13%
ROE	23.1%
ROIC	18.16%

ROA(3y)13.75%

ROA(5y)12.65%

ROE(3y)16.22%

ROE(5y)15.68%

ROIC(3y)14.17%

ROIC(5y)16.48%

1.3 Margins

With an excellent Profit Margin value of 40.72%, DOCS belongs to the best of the industry, outperforming 100.00% 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 39.72% is amongst the best of the industry. DOCS outperforms 100.00% of its industry peers.
DOCS's Operating Margin has improved in the last couple of years.
DOCS's Gross Margin of 90.20% is amongst the best of the industry. DOCS outperforms 97.14% of its industry peers.
DOCS's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	39.72%
PM (TTM)	40.72%
GM	90.2%

OM growth 3Y6.88%

OM growth 5Y16.16%

PM growth 3Y0.28%

PM growth 5Y33.35%

GM growth 3Y0.66%

GM growth 5Y0.68%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DOCS is creating value.
The number of shares outstanding for DOCS has been increased compared to 1 year ago.
DOCS has more shares outstanding than it did 5 years ago.
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.

2.2 Solvency

An Altman-Z score of 30.75 indicates that DOCS is not in any danger for bankruptcy at the moment.
DOCS has a Altman-Z score of 30.75. This is amongst the best in the industry. DOCS outperforms 100.00% 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.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	30.75

ROIC/WACC1.88

WACC9.68%

2.3 Liquidity

A Current Ratio of 7.79 indicates that DOCS has no problem at all paying its short term obligations.
The Current ratio of DOCS (7.79) is better than 91.43% of its industry peers.
DOCS has a Quick Ratio of 7.79. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
DOCS has a better Quick ratio (7.79) than 91.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	7.79
Quick Ratio	7.79

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.43%, which is quite impressive.
DOCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 79.21% yearly.
The Revenue has grown by 20.21% in the past year. This is a very strong growth!
Measured over the past years, DOCS shows a very strong growth in Revenue. The Revenue has been growing by 37.42% on average per year.

EPS 1Y (TTM)46.43%

EPS 3Y20.79%

EPS 5Y79.21%

EPS Q2Q%50%

Revenue 1Y (TTM)20.21%

Revenue growth 3Y18.42%

Revenue growth 5Y37.42%

Sales Q2Q%23.16%

3.2 Future

Based on estimates for the next years, DOCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.75% on average per year.
Based on estimates for the next years, DOCS will show a quite strong growth in Revenue. The Revenue will grow by 11.49% on average per year.

EPS Next Y14.22%

EPS Next 2Y11.46%

EPS Next 3Y11.79%

EPS Next 5Y14.75%

Revenue Next Year14.06%

Revenue Next 2Y12.59%

Revenue Next 3Y12.01%

Revenue Next 5Y11.49%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 24.77, the valuation of DOCS can be described as rather expensive.
Based on the Price/Earnings ratio, DOCS is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DOCS to the average of the S&P500 Index (27.21), we can say DOCS is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.19, DOCS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DOCS is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DOCS is valued at the same level.

		Industry Rank	Sector Rank
PE	24.77
Fwd PE	23.19

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DOCS is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
71.43% of the companies in the same industry are more expensive than DOCS, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	24.51
EV/EBITDA	23.57

4.3 Compensation for Growth

DOCS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DOCS has an outstanding profitability rating, which may justify a higher PE ratio.