One-glance verdict
Undervalued
$58.38 our estimate vs market $25.94
Wall Street consensus: $29.94 (-48.7% lower than our fair-value estimate)
56% below our estimate, below the bear case
Fundamentals snapshot
Doximity, Inc.
DOCS · NYQ · Healthcare · Health Information Services
Current price
$25.94
52-week range
$17.15 - $76.51
Market cap
$4.62B
Balance sheet
Healthy
6.02x Adequate
Net cash $678.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.7% last year.
- Reward Returns 17.2% on equity, ahead of 83% of its peers.
- Risk Operating margin compressed from 29.9% to 21.5% over 3 years.
- Risk Insider ownership is only 2.9% (peer median: 3.0%).
What this company does
Doximity, Inc.
Doximity operates an online platform, similar to a private social network, where a large majority of U.S. doctors and medical professionals connect and access medical news. The company makes most of its money by selling highly targeted advertising to pharmaceutical companies and hospitals that want to reach this specific audience of healthcare providers. This business model is powerful because it provides advertisers a direct channel to the people who make critical decisions about which medications and treatments patients use.
How the company got here
Doximity was founded in 2010 to create a private online network for doctors, something like a LinkedIn just for medical professionals. The founders realized that doctors needed a secure way to connect with colleagues for referrals and to discuss cases. The company grew by offering free, useful tools that made doctors' daily work easier, such as a feature to call patients from their personal cell phones without revealing their number. This focus on being a helpful utility led to very high adoption, with over 80% of U.S. physicians joining the platform. The company had a successful initial public offering (IPO, the first time a private company sells its stock to the public) in 2021.
What it actually does
Think of Doximity as a members-only club for U.S. healthcare professionals that is part professional network and part digital toolkit. For its members (doctors, nurse practitioners, etc.), it offers a secure platform to find and communicate with colleagues, read medical news, and use workflow tools like digital faxing and telehealth (conducting patient visits virtually). The platform is free for individual medical professionals to join and use. The company makes money by selling access to this large and specialized audience to pharmaceutical companies, hospitals, and medical recruiting firms.
Marketing Solutions
This is Doximity's largest business, making up most of its revenue. Pharmaceutical companies and health systems pay Doximity to place sponsored content and advertisements in front of its network of medical professionals. For example, a drug manufacturer can pay to show articles about a new medication specifically to doctors who treat the relevant condition. This is valuable because it gives these customers a very targeted way to reach influential decision-makers in the healthcare industry.
Hiring Solutions
This part of the business helps hospitals, clinics, and medical recruiting firms find and hire healthcare professionals. Customers pay a subscription fee that allows them to post job openings and search Doximity's large network of members to find candidates with specific specialties. Think of it as a specialized recruiting service built on top of their professional network. This is a smaller but important part of Doximity's overall business.
Telehealth and Workflow Solutions
Doximity provides software tools that help doctors and hospitals manage their daily work. This includes their 'Dialer' feature, which allows for secure video and voice calls with patients, a service that became very popular during the COVID-19 pandemic. While the basic tools are free for individual doctors, Doximity sells premium and enterprise (company-wide) versions with more features to individuals, small practices, and large health systems. This segment also includes tools for things like on-call scheduling, which it added through the acquisition (when one company buys another) of a company called Amion.
What management is betting on now
Doximity is heavily investing in artificial intelligence (AI) to become an essential digital assistant for doctors. They are expanding AI-powered tools, like 'Scribe' which helps write clinical notes and 'Ask' which acts as a medical search engine, to save doctors time on administrative tasks. Management believes that hospitals, not just individual doctors, will be the main buyers of these AI tools as they become more concerned with data privacy and accuracy. The company's strategy is to continue providing useful, free tools to keep doctors engaged on the platform while selling more advanced AI and marketing solutions to large healthcare organizations.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$68.35M
FY2025 Q3
$65.19M
FY2025 Q4
$98.49M
FY2026 Q1
$62.10M
FY2026 Q4
$109.52M
FY2027 Q1
$41.92M
Revenue
$156.62M
Net income
$24.32M
Diluted EPS
0.13
Operating cash flow
$41.99M
Free cash flow
$41.92M
Fetching…
Sources
Revenue
$145.37M
Net income
$19.11M
Diluted EPS
0.09
Operating cash flow
$109.52M
Free cash flow
$109.52M
Fetching…
Sources
Revenue
$185.05M
Net income
$61.56M
Diluted EPS
0.31
Operating cash flow
$60.89M
Free cash flow
—
Fetching…
Sources
Revenue
$168.53M
Net income
$62.06M
Diluted EPS
0.31
Operating cash flow
$93.94M
Free cash flow
—
Fetching…
Sources
Revenue
$145.91M
Net income
$53.32M
Diluted EPS
0.27
Operating cash flow
$62.10M
Free cash flow
$62.10M
Fetching…
Sources
Revenue
$138.29M
Net income
$62.46M
Diluted EPS
0.31
Operating cash flow
$98.49M
Free cash flow
$98.49M
Fetching…
Sources
Revenue
$168.60M
Net income
$75.20M
Diluted EPS
0.37
Operating cash flow
$65.19M
Free cash flow
$65.19M
Fetching…
Sources
Revenue
$136.83M
Net income
$44.15M
Diluted EPS
0.22
Operating cash flow
$68.35M
Free cash flow
$68.35M
Fetching…
Sources
Is it cheap or expensive?
Fair value $58.38 vs current price $25.94
Wall Street consensus is the average analyst price target: $29.94 (-48.7% lower than our fair-value estimate).
Our most-likely fair value is $58.38 a share — about 125.0% above today's price of $25.94, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $678.1M - more cash than debt. Interest coverage 6.0x.
Net debt
$-678.12M
Interest coverage
6.02x
Doximity, Inc.'s profit covers its interest bill about 6.0 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DOCS
BASELINE
Doximity, Inc.
Total debt $9.67M Interest coverage 6.02x This is the baseline the peer rows are being compared against.
Total debt $151.70M Interest coverage 3.43x -43% vs DOCS Carries about 1.8x less debt cushion than DOCS.
Total debt $1.04B Interest coverage -8.29x -100% vs DOCS This peer has almost no interest-payment cushion compared with DOCS.
Total debt $538.95M Interest coverage 2.05x -66% vs DOCS Carries about 2.9x less debt cushion than DOCS.
Total debt $108.00M Interest coverage -157.90x -100% vs DOCS This peer has almost no interest-payment cushion compared with DOCS.
Total debt $301.94M Interest coverage 1.06x -82% vs DOCS Carries about 5.7x less debt cushion than DOCS.
What you should know
The case for and against DOCS
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.7% last year.
-
Returns 17.2% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Operating margin compressed from 29.9% to 21.5% over 3 years.
-
Insider ownership is only 2.9% (peer median: 3.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.88x
Forward P/E
16.74x
P/B
5.09x
P/S
7.05x
EV/EBITDA
18.82x
PEG ratio
0.59x
Profitability
How much profit each dollar creates
Gross margin
88.1%
Operating margin
21.5%
Net margin
25.5%
ROE
17.2%
ROA
10.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
6.08x
Quick ratio
5.80x
Total debt
$9.67M
Total cash
$687.79M
Growth
How the business has been compounding
Revenue TTM
$655.57M
Revenue 5Y CAGR
17.0%
EPS TTM
0.84
EPS 5Y CAGR
22.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$306.34M
Free CF TTM
$326.46M
FCF margin
49.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—