DocMorris (DOCM) AI Stock Analysis

• Market Cap: CHF341.75M
• Dividend Yield: N/A
• Average Volume (3M): 517.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 4.91%
• EPS Growth: 14.99%
• Country: CH
• Employees: 1,454
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.71
• Shares Outstanding: 51,117,825
• 10 Day Avg. Volume: 488,888
• 30 Day Avg. Volume: 517,595
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: CHF10.07
• Price Target Upside: 43.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 47 Neutral
• Price Target: CHF6.50 ▼(-7.67% Downside)

DocMorris's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics, reflecting significant financial challenges. However, the positive sentiment from the earnings call, highlighting strategic growth initiatives and successful capital raising, provides some optimism for future improvement. Technical analysis further underscores the current bearish outlook.

Positive Factors

Capital Raise Support

The planned CHF 200m capital raise is fully underwritten by a banking syndicate, providing financial support for future growth.

Rx Revenue Increase

The company's Rx revenues were up 52% to CHF 53.9m, indicating strong performance in prescription sales.

Telemedicine Growth

TeleClinic grew rapidly, with an increase of over 150% year-on-year.

Negative Factors

German Non-Rx Slowdown

German non-Rx growth slowed to 2.3% in local currency and decreased by 2.6% year-on-year due to negative foreign exchange effects.

Potential Market Share Loss

The outlook remains highly uncertain and could result in peer RDC gaining further share in the Germany Rx market as the rollout of ePrescription continues.

Uncertain Financial Outlook

For FY25, DOCM expects sales growth of over 10% and adjusted EBITDA of minus CHF 35 to minus CHF 55m, which appears cautious compared to consensus expectations.

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, over-the-counter drugs, and health-related products through its online platform. Key revenue streams include direct sales from its extensive range of pharmaceutical products, as well as partnerships with healthcare providers and insurance companies that facilitate the processing and fulfillment of prescriptions. The company also benefits from the growing trend of e-commerce in the healthcare sector, which has expanded its customer base and increased sales volume. Additionally, DocMorris may explore further income sources through value-added services such as telehealth consultations or subscription models for regular medication deliveries.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	969.46M	1.61B	1.73B	1.48B
Gross Profit	216.54M	203.35M	245.63M	260.05M	241.33M
EBITDA	-37.02M	-54.57M	-109.79M	-159.35M	-76.13M
Net Income	-97.25M	82.28M	-171.12M	-225.74M	-135.69M
Balance Sheet
Total Assets	778.13M	866.42M	1.10B	1.27B	1.28B
Cash, Cash Equivalents and Short-Term Investments	95.37M	104.03M	156.40M	278.20M	300.97M
Total Debt	312.21M	330.81M	528.64M	525.15M	526.43M
Total Liabilities	438.02M	435.89M	748.67M	784.29M	746.74M
Stockholders Equity	340.11M	430.53M	350.78M	484.92M	531.74M
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 Flow	93.88M	219.82M	-89.77M	-67.33M	-199.86M
Financing Cash Flow	-26.00M	-202.63M	39.11M	179.72M	363.25M

DocMorris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:DOCM, the sentiment is Negative. The current price of 7.04 is below the 20-day moving average (MA) of 7.64, below the 50-day MA of 7.34, and below the 200-day MA of 9.64, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:DOCM.

DocMorris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GALD	71 Outperform	CHF32.57B	99.23		0.11%	6.22%	―
GALE	63 Neutral	CHF4.22B	21.90		2.72%	5.84%	8.57%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
IDIA	51 Neutral	CHF604.47M	―		―	67.18%	-480.10%
DOCM	47 Neutral	CHF341.75M	―		―	4.91%	14.99%
SPHDF	―	$220.54M	2.70	-93.91%	―	―	―
MEDX	49 Neutral	CHF436.56M	―		4.67%	-2.42%	-222.68%

DocMorris Corporate Events

DocMorris Reintroduces Prescription Bonuses Following BGH Ruling

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

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

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

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.