DocMorris (DOCM) AI Stock Analysis

• Market Cap: CHF250.29M
• Dividend Yield: N/A
• Average Volume (3M): 342.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 4.91%
• EPS Growth: 14.99%
• Country: CH
• Employees: 1,454
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -2.11
• Shares Outstanding: 51,617,825
• 10 Day Avg. Volume: 377,518
• 30 Day Avg. Volume: 342,178
• PEG Ratio: 0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -4.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF8.50
• Price Target Upside: 50.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: CHF5.50 ▼(-2.48% Downside)

DocMorris's overall stock score is primarily impacted by its weak financial performance and valuation concerns, with negative profitability and cash flow issues. However, the positive outlook from the earnings call, highlighting strategic growth initiatives and strong shareholder support, provides some optimism for future improvement.

Positive Factors

Rx Business Revenue Growth

The significant growth in Rx business revenues indicates a strong demand for prescription services, enhancing DocMorris's market position and supporting long-term revenue stability.

TeleClinic Revenue Surge

The rapid growth in TeleClinic revenues highlights the successful expansion into telemedicine, a key growth area that can drive future profitability and market leadership in digital health.

Launch of DocMorris Health Companion

The introduction of the Health Companion positions DocMorris as a leader in digital health innovation, potentially increasing customer engagement and creating new revenue streams.

Negative Factors

Adjusted EBITDA Decline

The decline in adjusted EBITDA reflects operational inefficiencies and increased costs, which could hinder profitability and cash flow improvement efforts.

Q2 Revenue Growth Slowdown

The slowdown in Q2 revenue growth suggests potential challenges in maintaining momentum, which could affect overall growth targets and market competitiveness.

Impact of Zur Rose Pharmacy Closure

The closure of the Zur Rose pharmacy has adversely affected growth in the non-Rx segment, highlighting vulnerabilities in the company's operational footprint and market strategy.

DocMorris Business Overview & Revenue Model

Company Description

DocMorris 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 Money

DocMorris generates revenue primarily through the sale of prescription medications and over-the-counter health products via its online platform. Key revenue streams include the direct sale of pharmaceuticals, which often involves reimbursed prescriptions from health insurance companies, as well as non-reimbursed sales of health and wellness products. The company also benefits from partnerships with various healthcare providers and pharmaceutical manufacturers, allowing it to offer exclusive products and services. Additionally, revenue is supplemented through value-added services such as personalized health consultations and subscription services for regular medication deliveries, enhancing customer loyalty and recurring sales.

DocMorris Financial Statement Overview

Summary

DocMorris is experiencing significant financial challenges, with declining revenues, negative profitability, and cash flow issues. Despite some balance sheet stability, overall financial health is weak, necessitating strategic improvements.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.02B	969.46M	930.97M	1.73B	1.48B
Gross Profit	154.95M	216.54M	203.35M	160.15M	260.05M	241.33M
EBITDA	-61.21M	-37.02M	-54.57M	-109.79M	-150.84M	-76.13M
Net Income	-120.87M	-97.25M	82.28M	-171.12M	-225.74M	-135.69M
Balance Sheet
Total Assets	907.44M	778.13M	866.42M	1.10B	1.27B	1.28B
Cash, Cash Equivalents and Short-Term Investments	230.29M	95.37M	104.03M	156.40M	278.20M	300.97M
Total Debt	310.55M	312.21M	330.81M	528.64M	525.15M	526.43M
Total Liabilities	427.09M	438.02M	435.89M	748.67M	784.29M	746.74M
Stockholders Equity	480.35M	340.11M	430.53M	350.78M	484.92M	531.74M
Cash Flow
Free Cash Flow	-72.45M	-55.21M	-115.12M	-156.58M	-194.11M	-127.34M
Operating Cash Flow	-70.52M	-26.60M	-87.42M	-97.29M	-130.63M	-67.51M
Investing Cash Flow	12.30M	93.88M	219.82M	-89.77M	-67.33M	-199.86M
Financing Cash Flow	104.34M	-26.00M	-202.63M	39.11M	179.72M	363.25M

DocMorris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:DOCM, the sentiment is Neutral. The current price of 5.64 is above the 20-day moving average (MA) of 5.19, above the 50-day MA of 5.61, and below the 200-day MA of 7.62, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 97.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:DOCM.

DocMorris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GALD	70 Outperform	CHF37.13B	114.42	―	0.09%	6.22%	―
GALE	70 Outperform	CHF4.36B	22.68	―	2.52%	5.84%	8.57%
MEDX	56 Neutral	CHF397.36M	―	―	4.75%	-2.42%	-222.68%
SANN	53 Neutral	$159.55M	―	-301.13%	―	-56.85%	-186.55%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DOCM	50 Neutral	CHF250.29M	-1.27	―	―	4.91%	14.99%
IDIA	44 Neutral	CHF905.23M	-5.45	―	―	229.23%	63.47%

DocMorris Corporate Events

DocMorris Completes CHF 49.6 Million Convertible Bond Issuance

DocMorris has successfully issued a CHF 49.6 million convertible bond maturing in 2028, aimed at optimizing its balance sheet and financing costs to support sustainable growth. This issuance will finance the early repurchase of a CHF 95.0 million bond maturing in 2026, inviting eligible holders to tender their bonds at a premium. The transaction is expected to impact DocMorris’ financial strategy positively, enhancing its market positioning and operational efficiency.

The most recent analyst rating on (CH:DOCM) stock is a Hold with a CHF7.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

DocMorris Launches CHF 45 Million Convertible Bond for Strategic Repurchase

DocMorris AG has announced the launch of a CHF 45 million convertible bond maturing in 2028 to finance the early repurchase of its 2026 convertible bond. This strategic move aims to optimize the company’s balance sheet and reduce financing costs, supporting its goal of sustainable growth. The new bond offer is part of a private placement in Switzerland and select jurisdictions, with the repurchase offer set to begin in November 2025. This initiative reflects DocMorris’ commitment to financial efficiency and its strategic positioning in the digital health market.

The most recent analyst rating on (CH:DOCM) stock is a Hold with a CHF7.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

DocMorris Reports Strong Revenue Growth and Strategic AI Expansion

DocMorris has reported a 9.5% increase in total revenue for the first nine months of 2025, driven by significant growth in both Rx and Non-Rx sales. The company has launched the AI-based DocMorris Health Companion, expanded its executive board, and is focusing on sustainable growth and profitability, with plans to achieve EBITDA breakeven by 2026. The strategic use of AI and streamlining of management structures are central to its operational efficiency and market positioning.

The most recent analyst rating on (CH:DOCM) stock is a Hold with a CHF6.00 price target. To see the full list of analyst forecasts on DocMorris stock, see the CH:DOCM Stock Forecast page.

Zur Rose Group AG: Earnings Call Highlights Growth and Innovation

The recent earnings call from Zur Rose Group AG painted a picture of a company on a positive trajectory, marked by significant growth in key areas such as the Rx business and TeleClinic. Despite some financial setbacks, including a decline in adjusted EBITDA and the impact of the Zur Rose pharmacy closure, the overall sentiment was optimistic, supported by strategic innovations and a successful capital increase.

DocMorris Boosts Rx Sales and Expands Digital Health Ecosystem

DocMorris reported a significant increase in Rx sales by over 40% in the first half of the year, alongside a total sales growth of 10.2%. The company launched the AI-based DocMorris Assistant to enhance its digital health ecosystem, aiming to position itself as Europe’s trusted health companion. TeleClinic, part of DocMorris, saw sales surge by over 150%, becoming integral to regular care in Germany. The company’s focus remains on profitability and growth, especially in the non-Rx business, despite the discontinuation of the Zur Rose brand.

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.