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DocMorris AG (CH:DOCM)
:DOCM
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DocMorris (DOCM) AI Stock Analysis

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DocMorris

(DOCM)

Rating:60Neutral
Price Target:
CHF9.00
▲(7.02%Upside)
DocMorris' score reflects a mixed outlook. The earnings call presents optimism with revenue growth and strategic initiatives, but financial performance and valuation concerns weigh heavily on the overall assessment. Technical indicators suggest potential for near-term improvement, but risks remain due to financial instability.
Positive Factors
Prescription Sales
The company's Rx revenues surged by 52% to CHF 53.9m, showcasing robust growth in prescription sales.
Revenue Growth
DocMorris reported a 13.4% increase in group-level revenues, indicating strong sales performance.
Telemedicine Expansion
TeleClinic significantly boosted its sales, doubling them to CHF 11m, highlighting successful growth in the telemedicine business.
Negative Factors
Balance Sheet Pressure
The balance sheet is under pressure, affecting the company's potential for recovery and growth.
Financial Performance Concerns
DocMorris expects an adjusted EBITDA loss of minus CHF 35 to minus CHF 55m for FY25, indicating cautious financial outlook.
Market Competition
The outlook remains uncertain with potential for peer RDC to gain further share in the German Rx market as ePrescription rollout continues.

DocMorris (DOCM) vs. iShares MSCI Switzerland ETF (EWL)

DocMorris Business Overview & Revenue Model

Company DescriptionDocMorris AG operates e-commerce pharmacies and a wholesale business for medical and pharmaceutical products in Switzerland and internationally. The company offers prescription and over-the-counter medicines, consumer health products, beauty and personal care products, nutritional supplements, painkillers, and first aid products, as well as medicines management services. It also operates stationary pharmacy shops. The company sells its products directly to physicians, online mail-order pharmacies, and private individuals under the Zur Rose, PromoFarma, TeleClinic, and DocMorris brands. The company was formerly known as Zur Rose Group AG and changed its name to DocMorris AG in May 2023. DocMorris AG was founded in 1993 and is headquartered in Frauenfeld, Switzerland.
How the Company Makes MoneyDocMorris makes money through the sale of prescription and over-the-counter medications, health and wellness products, and other healthcare-related goods via its online pharmacy platform. The company generates revenue by purchasing products from pharmaceutical manufacturers and wholesalers at wholesale prices and selling them to consumers at retail prices. Additionally, DocMorris may have partnerships with healthcare providers and insurance companies to facilitate streamlined services for prescription processing and fulfillment, contributing to its earnings. The company also leverages its digital platform for targeted marketing and customer engagement initiatives to drive sales and enhance customer retention.

DocMorris Earnings Call Summary

Earnings Call Date:Mar 13, 2025
(Q4-2024)
|
% Change Since: -19.13%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call presented several positive developments, such as a significant increase in Rx customers, profitability in the non-Rx business, and strategic growth plans. However, challenges remain with lower than expected EBITDA and limited short-term guidance due to the capital raise. Overall, the sentiment is cautiously optimistic with a strong focus on future growth.
Q4-2024 Updates
Positive Updates
Significant Increase in Rx Customers
Since the introduction of CardLink in April 2024, there has been a fivefold increase in new Rx customers.
Profitability Achieved in Non-Rx Business
DocMorris AG reached profitability in its non-Rx business, attributed to strategic efforts and successful execution of a breakeven program.
Revenue Growth Across All Segments
Overall, there was a 7% increase in revenue with contributions from all business segments.
Teleclinic Revenue Doubled
Teleclinic achieved a milestone by doubling its revenues in 2024, demonstrating strong performance and attractive profitability metrics.
Strategic Capital Raise for Growth
DocMorris plans to raise about CHF200 million to support Rx growth and refinancing of the convertible bond 2026.
Sustainability Targets Met
DocMorris successfully reached its sustainability targets for 2024 and is aligned with the European Sustainability Reporting Standard.
Negative Updates
Lower Than Expected EBITDA
Adjusted EBITDA came in lower than last year, reflecting additional marketing expenses for the eRx business.
Challenges with Rx Growth in Early 2025
For Q1 2025, a further decreasing Rx growth in absolute value is expected, at a rate of about 50%.
Limited Guidance Due to Capital Raise
DocMorris is unable to provide a detailed short and midterm guidance due to restrictions related to the upcoming capital raise.
Company Guidance
In the recent conference call, DocMorris AG provided guidance for the upcoming fiscal year, highlighting several key metrics and strategic initiatives. The company reported a 7% increase in overall revenue for 2024, with a notable fivefold increase in new Rx customers since the introduction of CardLink. The non-Rx business reached profitability, contributing to an end-of-year cash balance of CHF95 million. For 2025, DocMorris aims to further expand Rx growth and plans to raise CHF200 million in capital to support this initiative and refinance a convertible bond due in 2026. Additionally, the Teleclinic segment doubled its revenues to CHF11 million, with a positive EBITDA of over CHF3 million, and is expected to continue its growth trajectory. The average order value for eRx customers reached €110, while over 85% of these customers utilized the app for prescriptions, resulting in a next-day home delivery rate exceeding 95%. The company also emphasized its commitment to sustainability, aligning its activities with the European Sustainability Reporting Standard. Despite a temporary lack of detailed guidance due to ongoing capital raising efforts, DocMorris expressed confidence in its strategic direction and market opportunities.

DocMorris Financial Statement Overview

Summary
DocMorris faces significant financial challenges, including declining revenues, negative profitability, and cash flow issues. While the balance sheet shows some stability, overall financial health is weak, necessitating strategic interventions to improve operational efficiency and cash generation.
Income Statement
40
Negative
DocMorris has shown a decline in total revenue over the recent periods, with a negative net profit margin indicating significant losses. The gross profit margin remains relatively low, and the absence of EBIT suggests operational challenges. Overall, the income statement reflects a struggling financial performance with a concerning trend in revenue and profitability.
Balance Sheet
55
Neutral
The company's balance sheet indicates a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio is not particularly strong, and stockholders' equity has decreased over time. Despite these challenges, the company's assets still exceed its liabilities, providing some financial stability.
Cash Flow
45
Neutral
DocMorris has experienced negative operating cash flow, indicating cash flow difficulties. The free cash flow is also negative, and the free cash flow growth rate is concerning. The company needs to improve its cash generation to support its operations and growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.02B969.46M1.61B1.73B1.48B
Gross Profit216.54M203.35M245.63M260.05M241.33M
EBITDA-37.02M-54.57M-109.79M-159.35M-76.13M
Net Income-97.25M82.28M-171.12M-225.74M-135.69M
Balance Sheet
Total Assets778.13M866.42M1.10B1.27B1.28B
Cash, Cash Equivalents and Short-Term Investments95.37M104.03M156.40M278.20M300.97M
Total Debt312.21M330.81M528.64M525.15M526.43M
Total Liabilities438.02M435.89M748.67M784.29M746.74M
Stockholders Equity340.11M430.53M350.78M484.92M531.74M
Cash Flow
Free Cash Flow-55.21M-115.12M-156.58M-194.11M-127.34M
Operating Cash Flow-26.60M-87.42M-97.29M-130.63M-67.51M
Investing Cash Flow93.88M219.82M-89.77M-67.33M-199.86M
Financing Cash Flow-26.00M-202.63M39.11M179.72M363.25M

DocMorris Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.41
Price Trends
50DMA
7.84
Positive
100DMA
8.75
Negative
200DMA
10.78
Negative
Market Momentum
MACD
0.10
Negative
RSI
59.60
Neutral
STOCH
80.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:DOCM, the sentiment is Positive. The current price of 8.41 is above the 20-day moving average (MA) of 6.97, above the 50-day MA of 7.84, and below the 200-day MA of 10.78, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 80.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:DOCM.

DocMorris Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
CHF370.36M
4.91%14.99%
57
Neutral
£4.81B6.73-62.36%5.45%34.03%6.31%
$1.33B-6.44%
DE283
€356.14M16.0913.13%2.35%
77
Outperform
CHF4.37B24.33
2.61%4.67%-35.91%
71
Outperform
CHF29.65B144.42
0.12%5.91%
CHMED
71
Outperform
CHF1.06B310.05
6.05%449.69%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:DOCM
DocMorris
8.07
-13.58
-62.73%
CSBTF
Kuros Biosciences
35.78
20.97
141.59%
DE:283
IVF HARTMANN Holding AG
144.00
14.66
11.33%
CH:GALE
Galenica AG
89.50
16.56
22.70%
CH:GALD
Galderma Group AG
123.70
53.01
74.99%
CH:MED
Medartis Holding AG
83.00
13.50
19.42%

DocMorris Corporate Events

DocMorris Reintroduces Prescription Bonuses Following BGH Ruling
Jul 17, 2025

The Federal Court of Justice (BGH) has overturned a previous ruling prohibiting prescription bonuses, aligning with the European Court of Justice’s stance that such bonuses are permissible under EU law. This decision allows DocMorris to reintroduce cash bonuses for prescription medications, reducing patient costs and potentially enhancing its competitive position in the online pharmacy market.

The most recent analyst rating on (CH:DOCM) stock is a Buy with a CHF15.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

DocMorris Secures CardLink Approval Extension to 2027
Jul 15, 2025

DocMorris has received an extension for its CardLink solution approval from gematik until January 2027, facilitating a smooth transition to the new PoPP technology for e-prescription redemption. This extension allows patients to continue using their electronic health cards and the DocMorris App without disruption, ensuring continuity in digital healthcare services and reinforcing DocMorris’s position in the digital health market.

The most recent analyst rating on (CH:DOCM) stock is a Buy with a CHF10.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

DocMorris AG Completes Successful Rights Offering
May 21, 2025

DocMorris AG successfully completed its rights offering, with 98.7% of subscription rights exercised, generating approximately CHF 200 million in gross proceeds. This capital increase aims to support the company’s growth in prescription drugs, marketing expenses, and potential bond repayment. The new shares will be listed on the SIX Swiss Exchange, enhancing DocMorris’s financial position and strategic growth plans.

The most recent analyst rating on (CH:DOCM) stock is a Sell with a CHF19.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

Pelion Acquires Significant Stake in DocMorris
May 20, 2025

Pelion S.A., the largest healthcare company in Poland, has acquired a 9.68% stake in DocMorris AG, marking a significant strategic investment in the Swiss-based online pharmacy and healthcare marketplace. This participation by Pelion, which is active in multiple European countries, is expected to bolster DocMorris’s industry positioning and expand its market influence, particularly given Pelion’s extensive experience in the pharmacy business.

The most recent analyst rating on (CH:DOCM) stock is a Sell with a CHF19.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

DocMorris AG Shareholders Approve CHF 200 Million Capital Increase
May 8, 2025

DocMorris AG’s shareholders have approved a capital increase through a rights issue to raise approximately CHF 200 million, aimed at financing growth in prescription drugs and achieving positive cash flow by 2027. The capital increase will also support marketing expenses and potentially repay a CHF 95 million convertible bond. The rights issue involves offering new shares to existing shareholders and eligible investors, with trading and settlement scheduled for May 2025.

DocMorris Announces CHF 200 Million Capital Increase to Boost Growth
May 8, 2025

DocMorris AG announced the final details of its planned capital increase, amounting to approximately CHF 200 million, during its General Meeting. The capital is intended to finance growth in prescription drugs and potentially repay a convertible bond. The company reported a 13.4% increase in external sales in the first quarter of 2025, despite a negative EBITDA, and continues to see growth in its Rx business and telemedicine services. The capital increase is expected to strengthen DocMorris’s market position and support its medium-term financial goals.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025