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DocGo (DCGO)
NASDAQ:DCGO
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DocGo
(NASDAQ:DCGO)
63Neutral
Positive Factors
Growth in health services
The Transport business is growing nicely, and DCGO expects the Primary Care and Mobile Health business to grow too.
Investments in technology
The core payer and care gap closure business is performing well, with significant investments in Artificial Intelligence and automation.
Negative Factors
Contract wind down impact
An accelerated wind down of the HPD contract led to a Q4 miss, impacting the company's performance.
Revenue and EBITDA miss
Revenue was ~7% below our estimate and adj-EBITDA of $1.1 million compared to our $14.1 million estimate, so a big swing and miss.
DocGo (DCGO) vs. S&P 500 (SPY)
Market Cap
$230.87M
Dividend YieldN/A
Average Volume (3M)787.66K
Price to Earnings (P/E)12.5
Beta (1Y)0.68
Revenue Growth-1.24%
EPS Growth196.79%
CountryUS
Employees3,404
SectorHealthcare
Sector Strength56
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.18
Shares Outstanding99,941,750
10 Day Avg. Volume600,425
30 Day Avg. Volume787,663
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.71
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.85
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.23Price Target Upside126.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
DocGo Business Overview & Revenue Model
Company DescriptionDocGo, Inc. provides mobile health and medical transportation services for various health care providers in the United States and the United Kingdom. The company's transportation services include emergency response services; and non-emergency transport services comprise ambulance and wheelchair transportation services. It also offers mobile health services through its platform that are performed at home and offices; COVID-19 testing; and event services, which include on-site healthcare support at sporting events and concerts. DocGo, Inc. was incorporated in 2015 and is headquartered in New York, New York.
How the Company Makes MoneyDocGo makes money primarily through its mobile health services and medical transportation solutions. The company generates revenue by providing on-demand healthcare services, which include mobile medical units that deliver care directly to patients' locations, thereby increasing convenience and accessibility. Additionally, DocGo earns income from its medical transportation services, which involve the safe and efficient transfer of patients between healthcare facilities, homes, and other locations. The company also leverages telehealth technologies to offer remote medical consultations and monitoring, further expanding its service offerings. Significant partnerships with healthcare providers, insurance companies, and government agencies enhance DocGo's market reach and contribute to its revenue streams by facilitating access to a broad customer base and securing long-term service contracts.
DocGo Financial Statement Overview
Summary
DocGo has demonstrated strong financial performance with significant revenue growth and improved profitability. The balance sheet is solid, with low leverage and good equity levels, but there is some concern over liquidity. Cash flow management shows positive trends but requires attention to maintain stability.Income Statement
DocGo has shown impressive revenue growth over the years, with a significant increase in total revenue from 2019 to 2024. The company has transitioned from a negative net income in earlier years to a positive net income in recent years, indicating improved profitability. Gross profit margin has also been strong, contributing to the overall financial health. However, there was a slight decline in total revenue from 2023 to 2024, which could be a potential area of concern.―
Balance Sheet
The company's balance sheet shows a healthy equity ratio, with stockholders' equity making up a significant portion of total assets. The debt-to-equity ratio is relatively low, indicating low financial leverage and reduced risk from debt obligations. The return on equity has been improving, reflecting better utilization of equity. However, the decline in cash and equivalents from 2021 to 2023 suggests the need for careful liquidity management.70
Cash Flow
DocGo's cash flow statement reveals a positive trend in free cash flow growth, which is a good indicator of operational efficiency. The operating cash flow has improved significantly in recent years, turning positive after a period of negative cash flow. However, the volatility in free cash flow and the negative investing cash flow highlight potential risks in capital allocation and investment strategy.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 616.56M | 624.29M | 440.52M | 318.72M | 94.09M | Gross Profit |
| 213.57M | 195.38M | 154.72M | 109.75M | 31.35M | EBIT |
| 28.69T | 15.05M | 21.83M | 10.49M | -14.76M | EBITDA |
| 41.70T | 31.75M | 32.40M | 28.07M | -9.25M | Net Income Common Stockholders |
| 19.99M | 6.86M | 34.58M | 23.74M | -14.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 89.24T | 59.29M | 157.34M | 175.54M | 32.42M | Total Assets |
| 10.00T> | 490.45M | 393.28M | 309.60M | 100.17M | Total Debt |
| 57.19T | 46.50M | 19.91M | 16.51M | 13.89M | Net Debt |
| -32.05T | -12.79M | -137.42M | -159.03M | -18.53M | Total Liabilities |
| 10.00T> | 185.28M | 114.35M | 82.55M | 33.23M | Stockholders Equity |
| 10.00T> | 300.79M | 273.23M | 219.58M | 55.00M |
| Cash Flow | Free Cash Flow | |||
| 70.34T | -74.35M | 23.37M | -8.60M | -16.97M | Operating Cash Flow |
| 70.34T | -64.22M | 28.87M | -1.95M | -10.65M | Investing Cash Flow |
| -10.87T | -29.88M | -38.45M | -8.59M | -6.04M | Financing Cash Flow |
| -24.15M | 1.12M | -6.18M | 155.21M | -812.09K |
DocGo Technical Analysis
Negative
2.31
Price Trends
2.76
Negative
3.68
Negative
3.63
Negative
Market Momentum
-0.17
Negative
41.23
Neutral
79.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCGO, the sentiment is Negative. The current price of 2.31 is above the 20-day moving average (MA) of 2.30, below the 50-day MA of 2.76, and below the 200-day MA of 3.63, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DCGO.
DocGo Risk Analysis
DocGo disclosed 70 risk factors in its most recent earnings report. DocGo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DocGo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $512.17M | 18.78 | 7.44% | ― | 12.77% | ― | |
63 Neutral | $230.87M | 12.51 | 6.43% | ― | -1.24% | 196.79% | |
61 Neutral | $537.31M | 514.52 | 0.97% | ― | 25.02% | ― | |
52 Neutral | $5.35B | 3.81 | -42.57% | 2.86% | 17.10% | 1.33% | |
46 Neutral | $397.07M | ― | 39.18% | ― | 1.05% | -288.07% | |
42 Neutral | $63.20M | ― | -124.59% | ― | 18.48% | -37.42% | |
41 Neutral | $426.02M | ― | -9.64% | ― | 11.91% | 18.44% |
* Healthcare Sector Average
Performance Comparison
DCGO
DocGo
2.35
-1.35
-36.49%
CYH
Community Health
2.84
-0.54
-15.98%
TALK
Talkspace
3.13
-0.05
-1.57%
INNV
InnovAge Holding
3.15
-1.17
-27.08%
PIII
P3 Health Partners
8.79
-27.45
-75.75%
AUNA
Auna S.A. Class A
6.92
0.20
2.98%
DocGo Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: -41.07%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in pipeline expansion, net income growth, and recognition as an innovator and employer. However, these positive aspects were balanced by revenue declines, EBITDA shortfalls, increased SG&A, and challenges related to the winding down of migrant-related revenues and unexpected expenses.Q4-2024 Updates
Positive Updates
Strong Pipeline and Expansion in Payer Relationships
DocGo reported a robust pipeline with 27 municipal contracts, 29 health system deals, and over 120 payer and provider deals. The company highlighted significant expansions with major payers in various regions, looking to expand into services such as mobile mammography and chronic care management.
Positive Net Income Growth for Full Year
Net income for the full year 2024 rose to $13.4 million, a 34% increase from $10 million in 2023.
Significant Cash Flow from Operations
In 2024, DocGo generated $70.3 million in cash flow from operations, a significant turnaround from a negative $64.2 million in 2023.
Recognition as a Top Innovator and Employer
DocGo was recognized as one of the top innovators and places to work in healthcare, with over 40,000 job applications received from healthcare clinicians and corporate staff.
Expanding Tech Platform and Care Gap Closure
DocGo's tech platform calculated over 15 million estimated arrival times, and the company completed over 1.5 million patient interactions, including 58,000 vaccinations and 99,000 behavioral health screenings.
Negative Updates
Revenue Shortfall and Profitability Impact
Fourth-quarter revenues were $120.8 million, a 39% decrease from $199.2 million in the fourth quarter of 2023, attributed to the decline in migrant-related revenues.
Adjusted EBITDA Below Expectations
Adjusted EBITDA for the fourth quarter of 2024 was $1.1 million, significantly below the $22.6 million in the previous year's fourth quarter, missing guidance by approximately $10 million.
Increased SG&A as a Percentage of Revenue
SG&A as a percentage of revenues increased to 39.7% in the fourth quarter of 2024 from 27.6% in the fourth quarter of 2023, although it declined in absolute terms.
Migrant Revenue Decline
Migrant-related work, which was a significant revenue contributor, is winding down faster than expected, contributing to revenue and profitability challenges.
Unanticipated Insurance Expenses
There were $3.2 million of unanticipated expenses related to self-insured lines of insurance, impacting the fourth-quarter results.
Company Guidance
During the DocGo Fourth Quarter and Full Year 2024 Earnings Call, the company provided extensive guidance on various metrics for the upcoming fiscal year. DocGo's fourth quarter revenues were $120.8 million, a 39% decrease from the previous year, largely due to the decline in migrant-related projects. For fiscal year 2024, total revenues were reported at $616.6 million, with mobile health revenues down 4% from the previous year. The company achieved a net income of $13.4 million for the year, a 34% increase compared to 2023, despite a fourth quarter net loss of $7.6 million. Adjusted EBITDA for the full year was $60.3 million, marking a 12% increase from 2023, with an adjusted EBITDA margin of 9.8%. Looking ahead, DocGo forecasts full year 2025 revenues between $410 million and $450 million, with gross margins expected to remain stable or improve slightly, and EBITDA margins projected to be in the mid-single digits. Additionally, the company anticipates generating significantly higher cash flow from operations compared to the $70 million achieved in 2024, driven by continued collections of accounts receivable from its migrant programs.DocGo Corporate Events
Stock Buyback
DocGo Extends Share Repurchase Program to 2025
Neutral
Dec 20, 2024
DocGo Inc. has extended its share repurchase program, initially set to expire on December 31, 2024, to June 30, 2025. The program allows the discretionary repurchase of up to $26 million in common stock, utilizing the company’s existing cash or future cash flows, and may be adjusted or halted without notice depending on various market and corporate conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.