Doximity, Inc. (DOCS) stock analysis

P/E below its 5-year median

Doximity's P/E of 45.0 is below its own 5-year median of 49.6.

P/E above the industry

Doximity's P/E of 45.0 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.1.

EV/EBITDA below its 5-year median

Doximity's EV/EBITDA of 29.1 is below its 5-year median of 41.0.

P/B above the industry

Doximity's price-to-book of 6.22 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.11.

Trading above fair value

The share price of $32.42 is above our fair value estimate of $27.04.

Margin of safety under 20%

The price is 19.9% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 15.5% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 22.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -44.8% over the last twelve months, against a 5-year average of 31.3% a year.

Growing slower than the industry

Revenue grew 6.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.5%.

Guidance raised

Doximity raised its fiscal year ending March 31, 2027 Revenue outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 86.8% over the last twelve months, against 90.2% a year earlier.

Return on equity under 15%

Return on equity was 13.8% over the last twelve months and averaged 20.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Doximity's return on equity of 13.8% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.1%.

Earnings grew over 5 years

Net income grew 31.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 21.1% over the last twelve months, against a 5-year average of 34.5%.

Net margin above the industry

Doximity's net margin of 21.1% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -5.0%.

No debt

Doximity has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 6.37 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 23.04; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Doximity has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.