Progyny (PGNY) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.57
• Revenue Growth: 11.41%
• EPS Growth: 8.70%
• Country: US
• Employees: 675
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.15
• Shares Outstanding: 86,211,655
• 10 Day Avg. Volume: 1,570,199
• 30 Day Avg. Volume: 1,540,368
• PEG Ratio: -3.15
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 9.08
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 17.02
• 1Y Price Target: $28.67
• Price Target Upside: 12.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $1.28B

• Rating: 79 Outperform
• Price Target: $28.00 ▲(9.50% Upside)

Progyny's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a positive outlook, although the high valuation presents a potential risk. Overall, the company is well-positioned for growth, with strategic initiatives and strong client retention contributing to a favorable outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Client Retention

High client retention showcases customer satisfaction and loyalty, ensuring stable recurring revenue and market position.

Cash Flow and Share Repurchase

Strong cash flow and share repurchase program reflect financial health and commitment to shareholder value, enhancing long-term stability.

Negative Factors

Impact of Large Client Loss

Loss of a large client can affect revenue stability and growth, highlighting potential vulnerabilities in client diversification.

Economic Uncertainty

Economic uncertainty and cost inflation can slow growth and impact profitability, posing challenges to long-term strategic planning.

Lower Than Expected New Covered Lives

Falling short of new coverage goals may indicate challenges in market penetration and client acquisition, affecting future growth.

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 are offered to employers as part of their employee benefits packages. The company charges employers a fee for access to its comprehensive fertility solutions, which typically includes a per-employee-per-month (PEPM) fee model. This model allows Progyny to secure predictable and recurring revenue streams. Additionally, Progyny collaborates with various healthcare providers and fertility clinics, which can also contribute to its earnings through referral agreements and service contracts. The company’s strong partnerships with employers across diverse industries further enhance its revenue potential, as it continuously expands its client base and increases the adoption of its fertility benefits solutions.

Progyny Financial Statement Overview

Summary

Progyny exhibits strong financial health with consistent revenue and profit growth, efficient cost management, low leverage, and strong cash generation. Slight fluctuations in net profit margin and return on equity are minor compared to the overall stable and promising financial position.

Income Statement

Progyny has demonstrated strong revenue growth with a TTM increase of 2.15% and consistent annual growth over the past years. The gross profit margin is stable at around 22%, indicating efficient cost management. Net profit margin has slightly decreased in the TTM to 4.28% from 4.66% in the previous year, but remains healthy. EBIT and EBITDA margins show slight improvement, reflecting operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.05, indicating prudent financial leverage. Return on equity is solid at 11.55% in the TTM, although slightly down from 12.87% the previous year, suggesting effective use of equity. The equity ratio is strong, highlighting a stable financial structure. Overall, the balance sheet is healthy with low leverage and good returns on equity.

Cash Flow

Progyny's free cash flow growth is positive at 1.72% in the TTM, recovering from a slight decline in the previous year. The operating cash flow to net income ratio is strong at 0.92, indicating good cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.94, reflecting efficient cash management. Overall, the cash flow statement shows strong cash generation and management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.17B	1.09B	786.91M	500.62M	344.86M
Gross Profit	291.04M	253.36M	238.80M	167.32M	112.14M	70.06M
EBITDA	95.45M	70.63M	64.47M	24.94M	33.64M	10.25M
Net Income	56.57M	54.34M	62.04M	30.36M	65.77M	46.46M
Balance Sheet
Total Assets	795.23M	607.10M	756.62M	542.99M	358.06M	253.93M
Cash, Cash Equivalents and Short-Term Investments	345.21M	227.95M	371.09M	189.30M	119.42M	109.30M
Total Debt	24.73M	19.27M	19.39M	7.71M	8.65M	9.55M
Total Liabilities	235.22M	185.04M	203.19M	166.02M	106.24M	86.98M
Stockholders Equity	560.00M	422.06M	553.43M	376.97M	251.82M	166.95M
Cash Flow
Free Cash Flow	190.38M	173.70M	185.17M	77.15M	23.91M	35.17M
Operating Cash Flow	205.07M	179.10M	188.81M	80.39M	26.04M	36.20M
Investing Cash Flow	-92.28M	195.79M	-200.53M	-43.87M	8.77M	-40.03M
Financing Cash Flow	-64.34M	-309.88M	-11.07M	-7.86M	-13.70M	-6.25M

Progyny Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.57
• 50DMA: Positive
• 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 Positive. The current price of 25.57 is below the 20-day moving average (MA) of 25.69, above the 50-day MA of 23.18, and above the 200-day MA of 22.39, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 61.87 is Neutral, 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	79 Outperform	$2.20B	40.48	11.37%	―	11.41%	8.70%
PRVA	71 Outperform	$2.92B	167.11	2.74%	―	19.01%	38.68%
HSTM	69 Neutral	$712.33M	35.19	5.87%	0.52%	3.68%	5.62%
PHR	60 Neutral	$1.01B	-174.61	-1.87%	―	14.33%	93.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	48 Neutral	$464.26M	-2.65	-13.63%	―	-16.65%	-71.92%
TDOC	47 Neutral	$1.28B	-5.63	-15.42%	―	-2.37%	77.85%

Progyny Corporate Events

Progyny President’s Employment to End December 2025

Progyny, Inc. announced that the employment of its President, Michael Sturmer, will end on December 31, 2025. While the company expressed gratitude for Mr. Sturmer’s contributions over the past five years, it will not appoint a successor as it has strengthened its executive leadership team with several key appointments in recent years. To maintain continuity on strategic initiatives, Mr. Sturmer will serve as a consultant for Progyny until December 31, 2026, under a new agreement entitling him to an advisory fee and adjusted options benefits.

Progyny Announces $200 Million Share Repurchase Program

Progyny, Inc. reported strong financial results for the third quarter of 2025, with a 9.3% increase in revenue to $313.3 million compared to the same period in 2024. The company achieved significant growth in its client base, adding over 80 new clients and nearly 900,000 new lives, while maintaining a near 100% client retention rate. The company’s operating cash flow reached a record $156 million for the first nine months of 2025, and it announced a $200 million share repurchase program, reflecting its robust financial position and commitment to returning value to shareholders.