Progyny (PGNY) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 0.97
• Revenue Growth: 7.22%
• EPS Growth: -9.84%
• Country: US
• Employees: 675
• Sector: Healthcare
• Sector Strength: 65
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.56
• Shares Outstanding: 85,413,284
• 10 Day Avg. Volume: 1,750,832
• 30 Day Avg. Volume: 1,941,741
• PEG Ratio: 3.85
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.60
• Price to Cash Flow (P/CF): 9.00
• P/FCF Ratio: 9.30
• 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: $27.14
• Price Target Upside: 17.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Progyny's robust financial performance and positive technical indicators contribute significantly to its overall score. The company's high P/E ratio suggests a premium valuation, while recent earnings call insights highlight strategic growth and client retention but also underline challenges such as client loss and margin impacts. The recent director appointment further supports strategic leadership enhancements.

Positive Factors

Government Policy

The Trump Administration supports expanding access to IVF, which could positively impact PGNY.

Market Share

PGNY is expected to gain significant market share, with health plans generally viewing it as high-quality and reasonably priced.

Negative Factors

Consumption Decline

The decline in consumption reported by PGNY may have been impacted by an increase in the unemployment rate.

EBITDA Margins

Implied adjusted EBITDA margin guidance is a little light versus estimates and consensus with the 16% midpoint a percentage point below FY24 margin of 17%.

Progyny Business Overview & Revenue Model

Company Description

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions for employers in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides surrogacy and adoption reimbursement programs for employers. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

How the Company Makes Money

Progyny makes money through its fertility benefits management services provided to self-insured employers. The company's revenue model is largely based on contracts with these employers, who pay Progyny for administering its fertility benefits plans to their employees. The key revenue streams include service fees for managing the fertility benefits, as well as fees for each fertility treatment cycle covered under the plan, such as IVF or egg freezing. Progyny leverages partnerships with a network of fertility specialists and clinics to provide high-quality care and negotiate favorable rates, which also contributes to its profitability. The company's ability to deliver better clinical outcomes and cost savings for employers further enhances its value proposition and aids in securing and retaining clients.

Progyny Financial Statement Overview

Summary

Progyny has shown substantial revenue growth and maintains healthy gross profit margins. The balance sheet is strong with low debt levels and significant shareholder equity growth. Cash flow statements indicate effective cash management, although there are fluctuations in profit margins and equity ratios.

Income Statement

Progyny has demonstrated robust revenue growth over the years, with a significant increase from $229.7M in 2019 to $1.17B in 2024. The company maintains healthy gross profit margins, averaging around 20% over the past few years. Net profit margin has seen improvement, though it remains somewhat volatile, with a decrease from 2023 to 2024. The EBIT and EBITDA margins indicate steady operational efficiency, further supporting a positive outlook.

Balance Sheet

Progyny's balance sheet is strong with low debt levels, evident by a low debt-to-equity ratio. The company's stockholders' equity has grown significantly, indicating strong shareholder returns. However, the equity ratio has slightly declined over the years, suggesting an increasing reliance on liabilities. Overall, the balance sheet reflects financial stability and a conservative capital structure.

Cash Flow

The company exhibits a consistent positive operating cash flow, with strong free cash flow generation. Though free cash flow growth has been inconsistent, the operating cash flow to net income ratio indicates efficient cash management. The reliance on financing activities has decreased, showcasing a self-sustaining cash flow profile.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.17B	1.09B	786.91M	500.62M	344.86M
	Gross Profit
253.36M	238.80M	167.32M	112.14M	70.06M
	EBIT
67.45M	62.18M	23.34M	32.34M	8.35M
	EBITDA
67.45M	64.47M	24.94M	33.64M	10.25M
	Net Income Common Stockholders
54.34M	62.04M	30.36M	65.77M	46.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
227.95M	371.09M	189.30M	119.42M	109.30M
	Total Assets
607.10M	756.62M	542.99M	358.06M	253.93M
	Total Debt
19.27M	19.39M	7.71M	7.42M	8.32M
	Net Debt
-143.04M	-77.91M	-112.36M	-83.99M	-61.99M
	Total Liabilities
185.04M	203.19M	166.02M	106.24M	86.98M
	Stockholders Equity
422.06M	553.43M	376.97M	251.82M	166.95M
Cash Flow		Free Cash Flow
173.70M	185.17M	77.15M	23.91M	35.17M
	Operating Cash Flow
179.10M	188.81M	80.39M	26.04M	36.20M
	Investing Cash Flow
195.79M	-200.53M	-43.87M	8.77M	-40.03M
	Financing Cash Flow
-309.88M	-11.07M	-7.86M	-13.70M	-6.25M

Progyny Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.09
• 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 PGNY, the sentiment is Positive. The current price of 23.09 is above the 20-day moving average (MA) of 21.30, above the 50-day MA of 22.11, and above the 200-day MA of 20.70, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PGNY.

Progyny Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	78 Outperform	$1.91B	40.85	11.14%	―	7.22%	-9.84%
HIMS	71 Outperform	$6.47B	55.25	30.71%	―	69.33%	―
OSCR	69 Neutral	$3.28B	―	2.80%	―	56.54%	―
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
TDOC	45 Neutral	$1.41B	―	-52.46%	―	-1.26%	-338.56%
CLOV	45 Neutral	$1.83B	―	-14.75%	―	-32.45%	80.24%
AMWL	43 Neutral	$123.01M	―	-54.13%	―	-1.81%	70.88%

Progyny Corporate Events

Progyny Strengthens Leadership with New Director Appointment

Progyny, Inc. announced the appointment of Debra Morris as a Class III director effective January 16, 2025. This appointment, which also includes her joining the Compensation Committee of the Board, is part of the company’s ongoing efforts to strengthen its leadership. Ms. Morris brings a wealth of experience from her previous roles in companies such as AccessHope, LLC, Apria, Inc., and Sitel Group. Her appointment is expected to enhance Progyny’s strategic operations and governance.