Doximity (DOCS) AI Stock Analysis

• Market Cap: $10.05B
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 49.3
• Beta (1Y): 1.36
• Revenue Growth: 19.98%
• EPS Growth: 53.10%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.38
• Shares Outstanding: 136,906,540
• 10 Day Avg. Volume: 1,951,166
• 30 Day Avg. Volume: 2,872,368
• PEG Ratio: 3.69
• Price to Book (P/B): 10.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.86
• 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: $61.33
• Price Target Upside: 12.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $64.00 ▲(17.28%Upside)

Doximity's strong financial performance is the most significant factor in its overall score, supported by robust revenue growth and profitability. The earnings call also adds positively due to strong operational highlights. However, the high P/E ratio and mixed technical indicators moderate the overall score, indicating both potential and risks.

Positive Factors

Customer Retention

DOCS' TTM net revenue retention rate of ~119% seems high, indicating strong customer retention and potential for revenue growth.

Financial Performance

DOCS has ~$900M of cash, no debt, and high gross and EBITDA margins, which are favorable financial indicators.

Negative Factors

Biopharma Advertising Budgets

The expert flagged uncertainty-driven biopharma ad budget curtailment likely to adversely impact 2H of the calendar year.

Macroeconomic Uncertainty

Market concerns over tariffs, drug pricing reform, and macroeconomic headwinds have caused a pullback in DOCS shares.

Revenue Guidance

Doximity guided a touch below the Street on revenue for Q1 and FY26.

Doximity Business Overview & Revenue Model

Company Description

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical manufacturers and healthcare systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

How the Company Makes Money

Doximity generates revenue primarily through its subscription-based services, where healthcare organizations and pharmaceutical companies pay for access to its marketing, hiring, and telehealth solutions. The company offers marketing solutions that allow pharmaceutical companies to target specific groups of healthcare professionals with their promotional content. Additionally, Doximity provides hiring solutions enabling hospitals and health systems to recruit medical professionals more efficiently. Another significant revenue stream comes from its telehealth services, which facilitate virtual patient consultations, and are offered to healthcare providers on a subscription basis. Strategic partnerships with key players in the healthcare and pharmaceutical industries further bolster its revenue by expanding its reach and integrating its services into broader healthcare systems.

Doximity Financial Statement Overview

Summary

Doximity presents a strong financial position characterized by consistent revenue growth, high profitability margins, and low leverage. The company's effective cash flow management and high equity ratio further strengthen its financial health. Despite these strengths, optimizing cash reserves could enhance capital efficiency and return strategies.

Income Statement

Doximity's income statement shows a strong performance with a consistent revenue growth, illustrated by a 16% increase in TTM revenue compared to the previous annual report. The company maintains robust profitability with a high gross profit margin of 90.2% and a net profit margin of 36.6% for TTM, indicating effective cost management. The EBIT and EBITDA margins are also solid at 40.2% and 42.0%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet of Doximity is stable, with a debt-to-equity ratio of 0.01, indicating low leverage and financial risk. The company has a strong equity ratio of 88.0%, showing a high level of asset financing through equity. Return on Equity (ROE) is impressive at 19.5%, demonstrating effective use of shareholders' funds. However, the relatively high cash reserves might suggest underutilized capital.

Cash Flow

Doximity exhibits strong cash flow health with a free cash flow to net income ratio of 1.19 for TTM, indicating robust cash conversion. The operating cash flow to net income ratio of 1.19 further supports efficient cash generation from operations. Free cash flow growth is substantial, reflecting effective capital management and operational scaling.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
550.17M	475.42M	419.05M	343.55M	206.90M	116.39M
	Gross Profit
496.19M	424.75M	365.56M	303.76M	175.70M	101.49M
	EBIT
221.17M	163.88M	125.11M	113.54M	53.30M	22.16M
	EBITDA
231.20M	178.03M	125.11M	113.54M	63.90M	26.41M
	Net Income Common Stockholders
201.34M	147.58M	112.82M	154.78M	50.21M	29.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
844.94M	762.90M	841.00M	798.11M	142.53M	86.45M
	Total Assets
1.17B	1.08B	1.14B	991.36M	251.72M	138.92M
	Total Debt
12.95M	14.55M	15.64M	1.09M	1.25M	2.28M
	Net Debt
-152.32M	-82.24M	-142.39M	-111.72M	-65.14M	-46.15M
	Total Liabilities
141.04M	177.98M	170.77M	112.76M	184.98M	137.78M
	Stockholders Equity
1.03B	901.40M	966.12M	878.59M	66.74M	1.14M
Cash Flow		Free Cash Flow
237.00M	178.29M	173.42M	120.88M	78.36M	21.95M
	Operating Cash Flow
240.40M	184.10M	179.60M	126.58M	82.97M	26.20M
	Investing Cash Flow
-81.00M	31.19M	-59.92M	-640.57M	-70.42M	-13.10M
	Financing Cash Flow
-117.22M	-276.52M	-74.46M	560.41M	5.41M	1.72M

Doximity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCS, the sentiment is Positive. The current price of 54.57 is below the 20-day moving average (MA) of 54.75, below the 50-day MA of 55.27, and above the 200-day MA of 52.99, indicating a bullish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 97.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOCS.

Doximity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIMS	77 Outperform	$12.25B	78.03	36.79%	―	85.99%	―
DOCS	73 Outperform	$10.05B	49.27	22.50%	―	19.98%	53.10%
HQY	73 Outperform	$8.99B	82.29	5.77%	―	19.21%	50.06%
TECH	72 Outperform	$7.81B	58.89	6.53%	0.64%	4.72%	-35.33%
KRYS	71 Outperform	$3.78B	31.80	13.90%	―	247.53%	118.34%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%
PCVX	50 Neutral	$4.47B	―	-19.66%	―	―	7.75%