Progyny (PGNY) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 36.4
• Beta (1Y): 0.77
• Revenue Growth: 9.62%
• EPS Growth: -6.61%
• Country: US
• Employees: 675
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.19
• Shares Outstanding: 85,982,410
• 10 Day Avg. Volume: 1,282,040
• 30 Day Avg. Volume: 1,040,017
• 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: 0.92
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 20.51
• 1Y Price Target: $28.00
• Price Target Upside: 30.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $23.50 ▲(9.51% Upside)

Progyny's strong financial performance and positive earnings call are the most significant factors driving the stock score. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Progyny's services and successful client acquisition strategies, supporting long-term business expansion.

Client Expansion

Expanding client base enhances revenue stability and showcases the company's ability to attract and retain large-scale clients, strengthening its market position.

Strategic Partnerships

Strategic partnerships with major companies like Amazon enhance service offerings and market reach, potentially driving future growth and competitive advantage.

Negative Factors

Impact of Client Transition

Loss of a large client can lead to significant revenue shortfalls, impacting short-term financial performance and necessitating new client acquisition to fill the gap.

Slower Pipeline Build

A slower pipeline build can delay revenue realization and growth, highlighting potential challenges in adapting to changing economic conditions.

Cash Flow Management

Negative free cash flow growth suggests potential issues in cash management, which could affect the company's ability to invest in growth and manage debt.

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 demonstrates strong financial health with consistent revenue growth, efficient operations, and a solid balance sheet. While profitability margins have faced slight pressure, the company maintains a low leverage position and strong equity base. Cash flow management requires attention due to recent negative growth, but overall cash generation remains robust.

Income Statement

Progyny has shown consistent revenue growth with a TTM revenue growth rate of 2.37% and a strong historical growth trajectory. The gross profit margin is stable at 22.34%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.28% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins have improved over the years, showing operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.05, indicating low financial leverage and risk. The return on equity (ROE) is healthy at 11.55%, showcasing effective use of equity capital. The equity ratio stands at 67.68%, reflecting a strong equity base relative to total assets, enhancing financial stability.

Cash Flow

Progyny's cash flow position is solid, with a high operating cash flow to net income ratio of 0.92, indicating strong cash generation relative to earnings. However, the free cash flow growth rate is negative at -2.85% in the TTM, suggesting a need for attention to cash flow management. The free cash flow to net income ratio remains strong at 0.94, indicating efficient cash conversion.

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: 21.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 21.46 is below the 20-day moving average (MA) of 22.43, below the 50-day MA of 22.76, and below the 200-day MA of 21.54, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 17.30 is Positive, 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
HSTM	75 Outperform	863.74M	43.80	5.80%	0.42%	3.50%	13.99%
PRVA	75 Outperform	2.94B	204.96	2.26%	―	12.05%	-2.46%
PGNY	69 Neutral	$1.85B	36.43	10.94%	―	9.62%	-6.61%
PHR	66 Neutral	1.42B	-57.01	-8.07%	―	15.31%	77.02%
EVH	51 Neutral	1.05B	-5.57	-18.04%	―	-6.71%	-71.40%
TDOC	51 Neutral	1.44B	-6.83	-14.58%	―	-2.57%	79.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%