GoodRx Holdings (GDRX) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 109.9
• Beta (1Y): 1.06
• Revenue Growth: 5.61%
• EPS Growth: N/A
• Country: US
• Employees: 738
• Sector: Healthcare
• Sector Strength: 60
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.09
• Shares Outstanding: 106,740,326
• 10 Day Avg. Volume: 748,750
• 30 Day Avg. Volume: 1,176,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.44
• Price Target Upside: 37.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

GoodRx Holdings shows strong financial performance with improving profitability and a solid balance sheet. The earnings call was positive, highlighting growth and strategic initiatives, while the recent appointment of a new CFO is expected to support future growth. However, high P/E ratio and recent technical indicators suggest caution, with potential overvaluation and mixed short-term signals.

Positive Factors

Discount Platform Recognition

GoodRx is recognized as the best discount platform for generic Rx discounts in terms of both depth and breadth.

E-commerce Integration

By integrating the prescription purchasing process into GoodRx’s app, consumers could purchase medications before reaching the pharmacy counter, reducing time spent at the pharmacy and increasing convenience.

Manufacturer Solutions Growth

Manufacturer Solutions is likely to be GDRX's biggest growth driver with expected segment growth of approximately 20%.

Negative Factors

Competitive Pressure

The competitive gap between GoodRx and its rivals is narrowing, likely limiting upside to the core business.

PBM-to-Pharmacy Reimbursement

Caution related to changes in the PBM-to-pharmacy reimbursement landscape that are taking place.

Pharmacy Closures

The recent increase in retail pharmacy closures poses a challenge to GoodRx.

GoodRx Holdings Business Overview & Revenue Model

Company Description

GoodRx Holdings, Inc., through its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices through GoodRx codes that are used to save money on prescriptions across the United States. It also offers other healthcare products and services, including subscriptions, pharma manufacturer solutions, and telehealth services. It serves pharmacy benefit managers that manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was incorporated in 2015 and is headquartered in Santa Monica, California.

How the Company Makes Money

GoodRx makes money primarily through advertising and referral fees from pharmacy benefit managers (PBMs) and pharmacies when consumers use its discount codes to purchase medications. Additionally, the company generates revenue from subscriptions to its GoodRx Gold membership program, which offers even larger discounts on prescription drugs. GoodRx also earns from its telehealth services by charging fees for virtual doctor consultations. Key partnerships with PBMs and pharmacies are significant factors contributing to its earnings, as they allow GoodRx to offer competitive discounts and access to a wide network of pharmacies.

GoodRx Holdings Financial Statement Overview

Summary

GoodRx Holdings demonstrates robust revenue growth and improving profitability, supported by a strong balance sheet with reduced leverage. Cash flow management is stable, though historical volatility in net income and cash flows suggests some risk.

Income Statement

GoodRx Holdings shows a consistent increase in revenue over recent years, indicating healthy growth. The gross profit margin is strong, over 90%, suggesting effective cost management. However, net profit margins have fluctuated, with recent improvements after earlier losses. EBIT and EBITDA margins have shown positive trends, moving from negative to positive, indicating improved operational efficiency.

Balance Sheet

GoodRx Holdings maintains a healthy equity ratio, reflecting a solid financial base with stockholders' equity making up over 50% of total assets. The debt-to-equity ratio has improved, indicating reduced leverage risk. However, the company has experienced volatility in net income, impacting the return on equity, which has been negative in recent years but is now positive.

Cash Flow

The company's free cash flow has improved, although it experienced some fluctuations in recent years. The operating cash flow to net income ratio suggests adequate cash generation relative to net income, despite previous years of negative net income. Free cash flow to net income ratio is stable, indicating effective cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
792.32M	750.26M	766.55M	745.42M	550.70M
	Gross Profit
744.11M	683.34M	701.48M	698.71M	521.11M
	EBIT
65.85M	-27.01M	11.01M	13.41M	-275.72M
	EBITDA
153.92M	108.82M	68.54M	48.00M	-257.11M
	Net Income Common Stockholders
16.39M	-8.87M	-32.83M	-25.25M	-293.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.35M	672.30M	757.16M	941.11M	968.69M
	Total Assets
1.39B	1.59B	1.60B	1.61B	1.47B
	Total Debt
56.68M	711.07M	717.02M	702.33M	704.92M
	Net Debt
-391.67M	38.77M	-40.14M	-238.78M	-263.77M
	Total Liabilities
663.41M	826.84M	789.80M	775.95M	758.75M
	Stockholders Equity
724.66M	761.96M	814.83M	831.68M	711.36M
Cash Flow		Free Cash Flow
163.00K	82.53M	91.57M	144.32M	95.52M
	Operating Cash Flow
163.00K	138.29M	146.78M	178.78M	131.34M
	Investing Cash Flow
-70.35M	-55.77M	-210.50M	-178.73M	-91.62M
	Financing Cash Flow
-337.50M	-167.40M	-120.23M	-30.53M	905.82M

GoodRx Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDRX, the sentiment is Positive. The current price of 4.68 is above the 20-day moving average (MA) of 4.51, above the 50-day MA of 4.57, and below the 200-day MA of 5.74, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 60.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDRX.

GoodRx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	75 Outperform	$1.99B	41.40	11.14%	―	7.22%	-9.84%
HSTM	71 Outperform	$1.04B	52.02	5.72%	0.34%	4.51%	32.28%
GDRX	68 Neutral	$1.80B	109.86	2.21%	―	5.61%	―
Sector *	52 Neutral	$5.35B	3.83	-41.61%	2.85%	17.10%	1.22%
SDGR	50 Neutral	$1.86B	―	-38.58%	―	-4.21%	-544.81%
TDOC	48 Neutral	$1.24B	―	-54.49%	―	-2.54%	-322.03%
DH	46 Neutral	$432.50M	―	-63.28%	―	0.31%	-99.23%

GoodRx Holdings Corporate Events

GoodRx Holdings Appoints Christopher McGinnis as CFO

On February 4, 2025, GoodRx Holdings appointed Christopher A. McGinnis as Chief Financial Officer and Treasurer. McGinnis brings extensive experience from his previous roles in pharmacy benefits management and healthcare financial operations. This strategic appointment aligns with GoodRx’s efforts to strengthen its executive team and enhance its financial management capabilities. McGinnis’s employment agreement includes a competitive salary, incentive bonuses, and stock options, signaling a significant investment in leadership to drive future growth and operational efficiency.