Progyny (PGNY) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 40.0
• Beta (1Y): 0.79
• Revenue Growth: 9.62%
• EPS Growth: -6.61%
• Country: US
• Employees: 675
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.19
• Shares Outstanding: 85,982,410
• 10 Day Avg. Volume: 886,152
• 30 Day Avg. Volume: 1,059,568
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 20.51
• 1Y Price Target: $28.00
• Price Target Upside: 24.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $25.00 ▲(10.86% Upside)

Progyny's strong financial performance and positive earnings call outlook are the most significant factors driving the score. Technical indicators suggest a neutral trend, while the high P/E ratio indicates a relatively expensive valuation. The company's strategic initiatives and increased guidance provide a positive outlook despite some challenges.

Positive Factors

Financial Performance

Results came in ahead of expectations and were accompanied by a guidance raise, with the company once again benefiting from favorable utilization.

Investor Confidence

Progyny is getting its mojo back as it tries to restore investor confidence after last year's utilization and consumption variability, and the loss of Amazon's large book-of-business.

Revenue Growth

PGNY increased 2025 revenue guidance, showing confidence in future growth despite macro uncertainties.

Negative Factors

Client Growth

The number of lives added this selling season is trailing last year's levels.

Client Wins

Commentary around lower average lives per client this selling season spurred some questions around new client wins.

Stock Volatility

The initial volatile stock reaction following the print, trading up in the after-market, then down as much as ~8%, illustrates some investor nervousness on the stock.

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 generates revenue primarily through its fertility benefits management services, which it provides to employers as part of their employee benefits packages. The company charges employers a fee based on the number of employees covered under its fertility benefit plans. Key revenue streams include fees for plan administration and management, as well as commissions from fertility clinics within its extensive network. Additionally, Progyny has established strategic partnerships with various employers and health insurance providers, which help to broaden its reach and enhance its service offerings, ultimately contributing to its earnings.

Progyny Financial Statement Overview

Summary

Progyny exhibits strong financial performance with significant revenue growth, robust profit margins, and effective cash management. The income statement shows a 54% revenue increase, while the balance sheet reflects low leverage and strong equity. Cash flow is strong, supporting growth initiatives.

Income Statement

Progyny demonstrates strong revenue growth with a significant increase in total revenue from $786.91M in 2022 to $1.21B in TTM (Trailing-Twelve-Months), marking a 54% growth rate over this period. The gross profit margin remains robust at approximately 22%, and the net profit margin is healthy at 4.33% for TTM. The EBIT and EBITDA margins are stable, reflecting operational efficiency. Overall, the company shows strong revenue growth and profitability.

Balance Sheet

Progyny maintains a solid financial position with a low debt-to-equity ratio of 0.06 in TTM, indicating low financial leverage. The return on equity (ROE) stands at 11.23%, showcasing effective use of shareholder funds. The equity ratio is strong at 64%, indicating a healthy balance between debt and equity financing. The company’s balance sheet reflects stability and financial health with manageable liabilities.

Cash Flow

Progyny demonstrates strong cash flow performance with a free cash flow growth rate of 12.73% from 2024 to TTM. The operating cash flow to net income ratio is high at 3.87, indicating excellent cash conversion efficiency. The free cash flow to net income ratio is also favorable at 3.73, highlighting robust cash generation relative to net income. Overall, the cash flow position is strong, supporting the company's growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.17B	1.09B	786.91M	500.62M	344.86M
Gross Profit	277.44M	253.36M	238.80M	167.32M	112.14M	70.06M
EBITDA	82.67M	67.45M	64.47M	24.94M	33.64M	10.25M
Net Income	53.12M	54.34M	62.04M	30.36M	65.77M	46.46M
Balance Sheet
Total Assets	760.95M	607.10M	756.62M	542.99M	358.06M	253.93M
Cash, Cash Equivalents and Short-Term Investments	305.09M	227.95M	371.09M	189.30M	119.42M	109.30M
Total Debt	25.50M	19.27M	19.39M	7.71M	8.65M	9.55M
Total Liabilities	245.93M	185.04M	203.19M	166.02M	106.24M	86.98M
Stockholders Equity	515.02M	422.06M	553.43M	376.97M	251.82M	166.95M
Cash Flow
Free Cash Flow	190.20M	173.70M	185.17M	77.15M	23.91M	35.17M
Operating Cash Flow	202.00M	179.10M	188.81M	80.39M	26.04M	36.20M
Investing Cash Flow	-34.17M	195.79M	-200.53M	-43.87M	8.77M	-40.03M
Financing Cash Flow	-125.30M	-309.88M	-11.07M	-7.86M	-13.70M	-6.25M

Progyny Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGNY, the sentiment is Negative. The current price of 22.55 is below the 20-day moving average (MA) of 23.00, below the 50-day MA of 22.90, and above the 200-day MA of 20.99, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PGNY.

Progyny Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	74 Outperform	$2.03B	40.00	10.94%	―	9.62%	-6.61%
GDRX	66 Neutral	$1.49B	43.10	5.27%	―	3.20%	―
PHR	66 Neutral	$1.87B	―	-8.76%	―	15.31%	77.02%
PINC	61 Neutral	$2.17B	116.05	3.56%	3.28%	-24.79%	-78.38%
TDOC	55 Neutral	$1.35B	―	-14.18%	―	-2.57%	79.86%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SDGR	50 Neutral	$1.40B	―	-44.40%	―	18.59%	10.96%

Progyny Corporate Events

Progyny Secures $200M Credit Facility with JPMorgan

On July 1, 2025, Progyny, Inc. entered into a $200 million revolving credit facility with JPMorgan Chase Bank, enhancing its operational and financial flexibility. Despite no immediate plans to utilize the facility, the favorable market conditions made it an opportune time for the transaction. Progyny also announced that its second-quarter financial results for 2025 are expected to slightly exceed previous guidance, reflecting favorable member activity and continued strong performance.