GOODRX HOLDINGS INC-CLASS A (GDRX) Stock Fundamental Analysis
NASDAQ:GDRX - Nasdaq - US38246G1085 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to GDRX. GDRX was compared to 36 industry peers in the Health Care Technology industry. GDRX has only an average score on both its financial health and profitability. GDRX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make GDRX suitable for value investing!
1. Profitability
1.1 Basic Checks
GDRX had positive earnings in the past year.
GDRX had a positive operating cash flow in the past year.
GDRX had negative earnings in 4 of the past 5 years.
GDRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GDRX has a better Return On Assets (2.19%) than 88.89% of its industry peers.
Looking at the Return On Equity, with a value of 4.34%, GDRX belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Invested Capital of GDRX (5.42%) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 4.34% | ||
| ROIC | 5.42% |
ROA(3y)-0.48%
ROA(5y)-4.6%
ROE(3y)-0.99%
ROE(5y)-9.46%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GDRX's Profit Margin of 3.56% is amongst the best of the industry. GDRX outperforms 88.89% of its industry peers.
GDRX's Profit Margin has declined in the last couple of years.
GDRX has a better Operating Margin (10.25%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of GDRX has declined.
With an excellent Gross Margin value of 93.84%, GDRX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GDRX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.25% | ||
| PM (TTM) | 3.56% | ||
| GM | 93.84% |
OM growth 3Y66.5%
OM growth 5Y-25.43%
PM growth 3YN/A
PM growth 5Y-34.7%
GM growth 3Y0.06%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GDRX is destroying value.
GDRX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GDRX has about the same amount of shares outstanding.
The debt/assets ratio for GDRX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that GDRX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.27, GDRX perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
GDRX has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as GDRX would need 6.18 years to pay back of all of its debts.
The Debt to FCF ratio of GDRX (6.18) is better than 61.11% of its industry peers.
GDRX has a Debt/Equity ratio of 0.74. This is a neutral value indicating GDRX is somewhat dependend on debt financing.
GDRX has a worse Debt to Equity ratio (0.74) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.49
WACC11.04%
2.3 Liquidity
GDRX has a Current Ratio of 5.24. This indicates that GDRX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GDRX (5.24) is better than 91.67% of its industry peers.
A Quick Ratio of 5.24 indicates that GDRX has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.24, GDRX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.24 | ||
| Quick Ratio | 5.24 |
3. Growth
3.1 Past
GDRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.24%, which is quite good.
The earnings per share for GDRX have been decreasing by -25.13% on average. This is quite bad
The Revenue has been growing slightly by 4.34% in the past year.
The Revenue has been growing by 15.34% on average over the past years. This is quite good.
EPS 1Y (TTM)17.24%
EPS 3Y0%
EPS 5Y-25.13%
EPS Q2Q%12.5%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y2.06%
Revenue growth 5Y15.34%
Sales Q2Q%2.57%
3.2 Future
Based on estimates for the next years, GDRX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.44% on average per year.
The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y19.87%
EPS Next 2Y19.07%
EPS Next 3Y16.92%
EPS Next 5Y20.44%
Revenue Next Year3.3%
Revenue Next 2Y4.32%
Revenue Next 3Y5.19%
Revenue Next 5Y5.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.96, GDRX is valued correctly.
Based on the Price/Earnings ratio, GDRX is valued cheaper than 97.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of GDRX to the average of the S&P500 Index (27.30), we can say GDRX is valued slightly cheaper.
GDRX is valuated reasonably with a Price/Forward Earnings ratio of 10.14.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GDRX indicates a rather cheap valuation: GDRX is cheaper than 97.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GDRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
GDRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GDRX is cheaper than 86.11% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GDRX indicates a rather cheap valuation: GDRX is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
GDRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GDRX may justify a higher PE ratio.
GDRX's earnings are expected to grow with 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y19.07%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
GDRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.745
-0.16 (-3.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners59.39%
Inst Owner Change0%
Ins Owners11.68%
Ins Owner Change5.51%
Market Cap1.69B
Analysts75.65
Price Target6.44 (35.72%)
Short Float %5.39%
Short Ratio3.02
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-7.88%
Min EPS beat(2)-8.64%
Max EPS beat(2)-7.12%
EPS beat(4)0
Avg EPS beat(4)-8.74%
Min EPS beat(4)-10.15%
Max EPS beat(4)-7.12%
EPS beat(8)4
Avg EPS beat(8)0.12%
EPS beat(12)8
Avg EPS beat(12)16.11%
EPS beat(16)10
Avg EPS beat(16)12.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-1.6%
Revenue beat(4)0
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)-1.6%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)2
Avg Revenue beat(12)-1.38%
Revenue beat(16)2
Avg Revenue beat(16)-1.48%
PT rev (1m)-0.52%
PT rev (3m)-6.42%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.56%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-2.56%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 10.14 | ||
| P/S | 2.13 | ||
| P/FCF | 21.34 | ||
| P/OCF | 11.27 | ||
| P/B | 2.59 | ||
| P/tB | 51.36 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)0.34
EY7.17%
EPS(NY)0.47
Fwd EY9.86%
FCF(TTM)0.22
FCFY4.69%
OCF(TTM)0.42
OCFY8.87%
SpS2.23
BVpS1.83
TBVpS0.09
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 4.34% | ||
| ROCE | 6.86% | ||
| ROIC | 5.42% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 23.91% | ||
| OM | 10.25% | ||
| PM (TTM) | 3.56% | ||
| GM | 93.84% | ||
| FCFM | 9.96% |
ROA(3y)-0.48%
ROA(5y)-4.6%
ROE(3y)-0.99%
ROE(5y)-9.46%
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 3Y37.98%
ROICexcg growth 5Y-33.13%
ROICexc growth 3Y52.13%
ROICexc growth 5Y-28.35%
OM growth 3Y66.5%
OM growth 5Y-25.43%
PM growth 3YN/A
PM growth 5Y-34.7%
GM growth 3Y0.06%
GM growth 5Y-0.52%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 94.67% | ||
| Cap/Sales | 8.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.96% | ||
| Profit Quality | 279.61% | ||
| Current Ratio | 5.24 | ||
| Quick Ratio | 5.24 | ||
| Altman-Z | 1.27 |
F-Score8
WACC11.04%
ROIC/WACC0.49
Cap/Depr(3y)84.57%
Cap/Depr(5y)109.65%
Cap/Sales(3y)7.83%
Cap/Sales(5y)6.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.24%
EPS 3Y0%
EPS 5Y-25.13%
EPS Q2Q%12.5%
EPS Next Y19.87%
EPS Next 2Y19.07%
EPS Next 3Y16.92%
EPS Next 5Y20.44%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y2.06%
Revenue growth 5Y15.34%
Sales Q2Q%2.57%
Revenue Next Year3.3%
Revenue Next 2Y4.32%
Revenue Next 3Y5.19%
Revenue Next 5Y5.92%
EBIT growth 1Y367.7%
EBIT growth 3Y69.92%
EBIT growth 5Y-13.99%
EBIT Next Year38.86%
EBIT Next 3Y17.8%
EBIT Next 5Y14.15%
FCF growth 1Y-13.59%
FCF growth 3Y-7.56%
FCF growth 5Y8%
OCF growth 1Y0.95%
OCF growth 3Y0.96%
OCF growth 5Y17.17%