Definitive Healthcare Corp (DH) AI Stock Analysis

• Market Cap: $557.55M
• Dividend Yield: N/A
• Average Volume (3M): 731.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -3.04%
• EPS Growth: -152.59%
• Country: US
• Employees: 782
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.05
• Shares Outstanding: 107,341,900
• 10 Day Avg. Volume: 975,895
• 30 Day Avg. Volume: 731,057
• PEG Ratio: 0.77
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.78
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: -0.61
• 1Y Price Target: $4.20
• Price Target Upside: 10.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $4.00 ▲(4.99%Upside)

Definitive Healthcare Corp's overall stock score reflects a combination of moderate financial performance and positive short-term technical indicators. Financial challenges, especially in profitability and equity trends, weigh heavily on the score. On the positive side, technical analysis suggests upward momentum, and the recent earnings call indicates operational improvements and strategic progress, despite ongoing sector-specific challenges.

Positive Factors

Earnings

Definitive Healthcare reported positive first-quarter earnings, with revenue and adjusted EBITDA both tracking above the high end of guidance and Street expectations for the period.

New Partnerships

Definitive is in the early stages of building out a new distribution channel through agency partners, notably signing two leading healthcare advertising agencies in the quarter.

Strategic Initiatives

The company is better positioned today to navigate a tougher macro environment than in prior years, indicating effective implementation of strategic changes.

Negative Factors

Customer Churn

Churn continues to be a challenge with a decline in the number of total and enterprise customers, indicating a struggle to maintain client base.

Market Competition

Heightened competition from larger companies with robust data sets, like Veeva and IQVIA, may be contributing to DH's churn and revenue declines.

Revenue Decline

Revenue and adjusted EBITDA declined significantly year-over-year, posing challenges for the company's growth.

Definitive Healthcare Corp Business Overview & Revenue Model

Company Description

Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States. Its solutions provide information on healthcare providers and their activities to help its customers in the area ranging from product development to go-to-market planning, and sales and marketing execution. The company's platform offers 16 intelligence modules that cover functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate companies, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.

How the Company Makes Money

Definitive Healthcare Corp generates revenue primarily through subscription-based models. Clients subscribe to the company's data analytics platforms, gaining access to extensive healthcare datasets and analytics tools. The company's key revenue streams include subscriptions from healthcare providers, life sciences companies, and other organizations within the healthcare ecosystem that require actionable insights to inform their strategic decisions. Additionally, Definitive Healthcare may engage in partnerships with other businesses to enhance its data offerings and expand its market reach, thus contributing to its revenue growth.

Definitive Healthcare Corp Financial Statement Overview

Summary

The company's financial performance is a mixed bag. While revenue growth is consistent, there are significant profitability challenges with deteriorating margins and negative net income. The balance sheet shows manageable leverage but declining equity trends that raise concerns. Cash flow is a bright spot, with strong free cash flow generation supporting operations despite profitability issues.

Income Statement

Definitive Healthcare Corp shows consistent revenue growth from 2020 to TTM 2025, but faces significant challenges in profitability. The company has experienced deteriorating EBIT and EBITDA margins, with substantial negative net income indicating ongoing operational inefficiencies. Despite gross profit margins being relatively stable, the company struggles with high operational costs negatively affecting net profit margins.

Balance Sheet

The company's balance sheet reveals a mixed outlook. The debt-to-equity ratio is relatively moderate, suggesting manageable leverage. However, there is a declining trend in stockholders’ equity and total assets over recent years. The equity ratio has been decreasing, indicating a potential risk in financial stability if the trend continues. Overall, the company's financial structure is stable but facing downward pressure.

Cash Flow

Cash flow analysis is relatively positive with consistent free cash flow generation. The operating cash flow to net income ratio is strong, indicating effective cash generation despite net losses. However, the free cash flow growth rate has been volatile, reflecting potential challenges in sustaining cash flow improvements. Despite this, the company maintains a positive free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	247.91M	252.20M	251.41M	222.65M	166.15M	118.32M
Gross Profit	181.44M	197.47M	203.93M	180.03M	125.47M	87.85M
EBITDA	-587.20M	-567.24M	-241.23M	23.44M	23.05M	44.91M
Net Income	-510.83M	-413.12M	-202.39M	-22.25M	-61.26M	-87.65M
Balance Sheet
Total Assets	808.66M	1.09B	1.83B	2.12B	2.12B	1.75B
Cash, Cash Equivalents and Short-Term Investments	200.67M	290.16M	308.07M	331.87M	387.50M	24.77M
Total Debt	180.61M	253.11M	267.93M	275.85M	270.68M	461.88M
Total Liabilities	372.75M	482.19M	626.73M	633.77M	612.73M	549.80M
Stockholders Equity	322.78M	444.38M	861.36M	952.14M	873.21M	1.20B
Cash Flow
Free Cash Flow	47.89M	45.85M	38.21M	27.25M	18.48M	21.82M
Operating Cash Flow	67.67M	58.20M	41.19M	35.58M	25.21M	23.22M
Investing Cash Flow	81.17M	-26.41M	-31.78M	-248.90M	-46.73M	-23.86M
Financing Cash Flow	-149.26M	-56.75M	-25.58M	-26.70M	384.37M	16.66M

Definitive Healthcare Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DH, the sentiment is Positive. The current price of 3.81 is above the 20-day moving average (MA) of 3.70, above the 50-day MA of 3.27, and below the 200-day MA of 3.91, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 43.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DH.

Definitive Healthcare Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VREX	66 Neutral	$356.07M	―	-7.46%	―	-3.31%	-199.23%
TALK	61 Neutral	$463.46M	165.87	2.52%	―	25.02%	―
DH	57 Neutral	$557.55M	―	-86.36%	―	-3.04%	-152.59%
PSNL	55 Neutral	$581.18M	―	-51.25%	―	15.57%	31.82%
EHAB	52 Neutral	$484.09M	―	-22.81%	―	-1.08%	-65.84%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	17.09%	1.64%
FLGT	51 Neutral	$599.13M	―	-3.61%	―	1.71%	76.00%

Definitive Healthcare Corp Corporate Events

Definitive Healthcare Announces CFO Departure and Stock Buyback

Definitive Healthcare has announced key developments including the transition of its CFO, Richard Booth, who will depart in June 2025, and a $100 million stock repurchase program set to commence following a previous $20 million program. The company reported a third-quarter revenue of $62.7 million, exceeding its guidance, despite a net loss due to goodwill impairment. With an eye on future growth, the company is actively assessing market opportunities and strengthening its customer base, evident from recent strategic partnerships and customer acquisitions.