Doximity (DOCS) AI Stock Analysis

• Market Cap: $11.30B
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 54.5
• Beta (1Y): 1.39
• Revenue Growth: 19.98%
• EPS Growth: 53.10%
• Country: US
• Employees: 827
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.38
• Shares Outstanding: 136,906,540
• 10 Day Avg. Volume: 1,854,746
• 30 Day Avg. Volume: 2,868,692
• PEG Ratio: 4.86
• Price to Book (P/B): 10.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.06
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 5.08
• Enterprise Value/Gross Profit: 21.02
• Enterprise Value/Ebitda: 12.22
• 1Y Price Target: $61.27
• Price Target Upside: 1.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $64.00 ▲(5.94%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

AI Investment

There is optimism around Doximity's opportunity to leverage AI across its platform.

Financial Stability

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

Revenue Growth

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

Negative Factors

DTC Advertising Challenges

The Trump administration is considering enacting changes that would make it more difficult and less cost-effective for pharma companies to conduct DTC advertising, which could benefit DOCS.

Macro Dynamics

A Neutral rating is maintained due to caution on macro dynamics, despite improving business fundamentals.

Pharma Advertising Legislation

The introduction of the bill is inherently an incremental addition to the likelihood of a DTC pharma ad ban.

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 exhibits strong financial performance with impressive revenue growth of 19.97% and high profitability margins, including a net profit margin of 39.13%. The company's financial health is robust, with minimal leverage as seen in the low debt-to-equity ratio of 0.01 and substantial free cash flow increase of 52.27%.

Income Statement

Doximity has demonstrated impressive revenue growth with a 19.97% increase in TTM (Trailing-Twelve-Months) compared to the previous year. The company maintains strong profitability metrics, with a gross profit margin of 90.21% and a net profit margin of 39.13% in TTM, indicating effective cost management and solid operational efficiency. EBIT and EBITDA margins are also robust at 39.96% and 41.74%, respectively, underscoring strong core business profitability.

Balance Sheet

Doximity's balance sheet showcases strong financial health, with a low debt-to-equity ratio of 0.01, reflecting minimal leverage and reduced financial risk. The equity ratio stands at 85.64% in TTM, indicating a high level of asset financing through equity, which enhances financial stability. Return on equity remains strong at 20.61%, driven by effective use of equity capital.

Cash Flow

The cash flow position is robust, with a substantial increase in free cash flow by 52.27% in TTM, indicating efficient cash generation from operations. The operating cash flow to net income ratio is 1.22, reflecting strong cash conversion efficiency. Additionally, the free cash flow to net income ratio of 1.22 highlights effective cash management relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	570.40M	475.42M	419.05M	343.55M	206.90M
Gross Profit	514.52M	424.75M	365.56M	303.76M	175.70M
EBITDA	240.76M	182.08M	135.39M	118.58M	57.01M
Net Income	223.19M	147.58M	112.82M	154.78M	50.21M
Balance Sheet
Total Assets	1.26B	1.08B	1.14B	991.36M	251.72M
Cash, Cash Equivalents and Short-Term Investments	915.66M	762.90M	841.00M	798.11M	142.53M
Total Debt	12.40M	14.55M	15.64M	1.09M	1.25M
Total Liabilities	181.68M	177.98M	170.77M	112.76M	184.98M
Stockholders Equity	1.08B	901.40M	966.12M	878.59M	66.74M
Cash Flow
Free Cash Flow	273.26M	178.29M	173.42M	120.88M	78.36M
Operating Cash Flow	273.26M	184.10M	179.60M	126.58M	82.97M
Investing Cash Flow	-29.30M	31.19M	-59.92M	-640.57M	-70.42M
Financing Cash Flow	-131.14M	-276.52M	-74.46M	560.41M	5.41M

Doximity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.41
• 50DMA: Positive
• 100DMA: Positive
• 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 60.41 is above the 20-day moving average (MA) of 57.10, above the 50-day MA of 56.17, and above the 200-day MA of 54.63, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.81 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
HQY	78 Outperform	$8.99B	76.32	5.77%	―	19.21%	50.06%
TECH	75 Outperform	$8.13B	63.25	6.53%	0.62%	4.72%	-35.33%
DOCS	73 Outperform	$11.30B	54.55	22.50%	―	19.98%	53.10%
HIMS	72 Outperform	$9.27B	67.37	36.79%	―	85.99%	―
KRYS	71 Outperform	$4.12B	34.34	13.90%	―	247.53%	118.34%
Sector *	60 Neutral	HK$15.14B	5.55	-7.43%	5.48%	11.72%	-20.69%
PCVX	50 Neutral	$4.27B	―	-19.66%	―	―	7.75%

Doximity Corporate Events

Doximity Co-Founder Steps Down to Advisory Role

On June 10, 2025, Dr. Nathan Gross announced his decision to step down as Chief Strategy Officer of Doximity to transition into an advisory role effective June 16, 2025. Dr. Gross, a co-founder of the company, will continue to contribute his expertise under an Independent Contractor Agreement, with his stock options continuing to vest until September 2025. This transition marks a significant change in leadership but reflects confidence in Doximity’s strategic direction and its potential to become a generational company in the healthcare technology sector.

The most recent analyst rating on (DOCS) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Doximity stock, see the DOCS Stock Forecast page.