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Progyny (PGNY)
NASDAQ:PGNY
US Market

Progyny (PGNY) AI Stock Analysis

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Progyny

(NASDAQ:PGNY)

Rating:77Outperform
Price Target:
$24.00
▲(12.68%Upside)
Progyny's overall stock score is driven by robust financial performance and positive earnings call sentiment, reflecting strong growth potential. The technical analysis shows mixed signals, and high valuation suggests some caution. Strategic expansions and a diversified client base support a positive long-term outlook, despite macroeconomic challenges.
Positive Factors
Earnings
Progyny posted a second consecutive quarter of solid results well ahead of analyst and consensus estimates.
Revenue Growth
Revenue growth was driven by higher clients and utilization, with a 16.5% year-over-year increase.
Negative Factors
Macro-economic Concerns
Incremental uncertainty is present due to market-wide macro concerns.
Market Uncertainty
Continuation services for Amazon customers are expected to contribute more revenue, creating noise and uncertainty.

Progyny (PGNY) vs. SPDR S&P 500 ETF (SPY)

Progyny Business Overview & Revenue Model

Company DescriptionProgyny, 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 MoneyProgyny 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 Key Performance Indicators (KPIs)

Any
Any
Member Utilization Rate
Member Utilization Rate
Chart InsightsProgyny's member utilization rate has stabilized around the mid-50s since 2023, reflecting consistent engagement despite macroeconomic uncertainties. The latest earnings call highlights robust revenue growth and expanded partnerships, which may support future utilization. However, slight decreases in female utilization and ART cycles suggest variability in member engagement. Progyny's strategic focus on product expansion and a diversified client base positions it well for continued growth, even as it navigates the transition of a large client and broader economic challenges.
Data provided by:Main Street Data

Progyny Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -8.86%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Progyny's earnings call reflects strong financial performance and growth potential, highlighted by record revenues, expanded partnerships, and a raised guidance. However, challenges include the transition of a large client and macroeconomic uncertainties impacting pipeline growth. Despite these challenges, the company's strategic expansions and diversified client base provide a positive outlook.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth and Guidance Increase
First quarter revenue grew 16.5% to $324 million, primarily due to an increase in the number of clients and covered lives. Full-year guidance has been raised, projecting revenue growth between 1.5% and 5.8% with expectations excluding a large client to be 11% to 15%.
Record Quarterly Results and Cash Flow
The company reported record quarterly results for both revenue and adjusted EBITDA, along with significant quarterly cash flow generation, nearly doubling operating cash flow compared to the prior year.
Expansion of Product Portfolio and Partnerships
Progyny made meaningful progress in expanding its product portfolio and platform, enhancing member experience, and extending its position in women's health and family building. New partnerships include Cigna and large regional plans.
High Client Diversification and Growth in Covered Lives
Progyny reported 532 clients and an average of 6.7 million covered lives, with diversification across 45 industries, showing resilience and growth even after losing a large client.
Negative Updates
Large Client Transition and Impact on Revenue
A large former client is providing an extended transition period, contributing approximately $31 million in the first quarter. This transition impacts comparability and revenue growth metrics.
Slight Decrease in Utilization Metrics
Female utilization and ART cycles per unique female utilizer showed slight decreases compared to the prior year, reflecting some variability in member engagement.
Macroeconomic Uncertainty Affecting Sales Pipeline
The average number of lives in the sales pipeline is lower than the previous year, possibly due to macroeconomic uncertainties affecting decision-making processes of potential clients.
Company Guidance
During the first quarter 2025 earnings call, Progyny Inc. reported robust financial results with double-digit growth in both revenue and adjusted EBITDA compared to the prior year. Revenue increased 16.5% to $324 million, driven primarily by an uptick in the number of clients and covered lives. The company saw a record 16,160 ART cycles, reflecting a 9% growth year-over-year. Progyny raised its full-year guidance, projecting revenue between $1.185 billion and $1.235 billion and adjusted EBITDA between $190 million and $203 million. The guidance assumes a contribution of $44 million to $46 million from a large client under a transition of care agreement. The company also reported record gross margins and significant quarterly cash flow, with a focus on expanding its product portfolio and platform to enhance member experience. With stable utilization rates and a diversified client base across 45 industries, Progyny remains optimistic about its growth trajectory and market position in women's health and family building solutions.

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
85
Very Positive
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
80
Positive
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
78
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.17B1.09B786.91M500.62M344.86M
Gross Profit
253.36M238.80M167.32M112.14M70.06M
EBIT
67.45M62.18M23.34M32.34M8.35M
EBITDA
67.45M64.47M24.94M33.64M10.25M
Net Income Common Stockholders
54.34M62.04M30.36M65.77M46.46M
Balance SheetCash, Cash Equivalents and Short-Term Investments
227.95M371.09M189.30M119.42M109.30M
Total Assets
607.10M756.62M542.99M358.06M253.93M
Total Debt
19.27M19.39M7.71M7.42M8.32M
Net Debt
-143.04M-77.91M-112.36M-83.99M-61.99M
Total Liabilities
185.04M203.19M166.02M106.24M86.98M
Stockholders Equity
422.06M553.43M376.97M251.82M166.95M
Cash FlowFree Cash Flow
173.70M185.17M77.15M23.91M35.17M
Operating Cash Flow
179.10M188.81M80.39M26.04M36.20M
Investing Cash Flow
195.79M-200.53M-43.87M8.77M-40.03M
Financing Cash Flow
-309.88M-11.07M-7.86M-13.70M-6.25M

Progyny Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.30
Price Trends
50DMA
22.09
Negative
100DMA
21.98
Negative
200DMA
19.69
Positive
Market Momentum
MACD
-0.22
Negative
RSI
45.42
Neutral
STOCH
71.80
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 21.3 is below the 20-day moving average (MA) of 21.67, below the 50-day MA of 22.09, and above the 200-day MA of 19.69, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PGNY.

Progyny Risk Analysis

Progyny disclosed 57 risk factors in its most recent earnings report. Progyny reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Progyny Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.88B37.5910.11%9.47%-7.81%
76
Outperform
$1.88B40.046.05%3.64%-17.69%-10.24%
62
Neutral
$1.41B53.974.43%4.35%
PHPHR
58
Neutral
$1.48B-15.97%16.29%66.01%
56
Neutral
$1.59B-43.33%22.29%-32.89%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
48
Neutral
$1.24B-54.49%-2.54%-322.03%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PGNY
Progyny
21.30
-6.63
-23.74%
PINC
Premier
23.17
4.98
27.38%
TDOC
Teladoc
7.12
-3.91
-35.45%
PHR
Phreesia
25.22
5.47
27.70%
SDGR
Schrodinger
23.73
0.33
1.41%
GDRX
GoodRx Holdings
4.01
-4.78
-54.38%

Progyny Corporate Events

Executive/Board ChangesShareholder Meetings
Progyny Stockholders Meeting Highlights Governance Decisions
Neutral
May 28, 2025

On May 22, 2025, Progyny, Inc. held its Annual Meeting of Stockholders where key decisions were made regarding the company’s governance and financial oversight. Stockholders elected Class III directors, ratified Ernst & Young LLP as the independent accounting firm, but did not approve the executive compensation package, indicating potential concerns among stakeholders about executive pay.

The most recent analyst rating on (PGNY) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Progyny stock, see the PGNY Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Progyny Director Fred Cohen to Step Down
Neutral
Apr 11, 2025

On April 9, 2025, Dr. Fred E. Cohen informed Progyny, Inc. that he will not seek reelection at the company’s 2025 Annual Meeting of Stockholders. His decision is not due to any disagreement with the company’s operations, policies, or practices, and he will remain a director until the end of his current term.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.