DOCSDoximity, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.1×) and elite returns on assets, but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 22% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DOCS?
Doximity, Inc. earns 24% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 15 points above what the capital costs: growth creates value
- Operating margin
- 30%
Operating margin · Health Information Services median 2.8% · 12 months to Q1 2027
- Cash conversion
- 2.14×
Cash conversion · 1.45× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 26% |
| FY2022 | 33% |
| FY2023 | 30% |
| FY2024 | 34% |
| FY2025 | 40% |
| FY2026 | 33% |
Details›
- Gross margin12 months to Q1 2027
- 88%
- Operating margin12 months to Q1 2027
- 30%
- Net margin12 months to Q1 2027
- 25%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 22%
- Revenue, trailing twelve months
- $656M
- Free cash flow, trailing twelve months
- $98M
- Net income, trailing twelve months
- $167M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 24%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Health Information Services
Ranks #1 of 20 by RyuScore