GoodRx Holdings Inc (GDRX, Financial) has recently experienced a notable uptick in its stock price, with a 14.14% gain over the past week. This surge has brought the company's market capitalization to $2.92 billion, with the current price standing at $7.4. Despite a 16.80% loss over the past three months, the stock's current GF Value of $6.92 suggests that it is Fairly Valued. This is a shift from the previous valuation of Possible Value Trap, Think Twice, when the GF Value was at $9.07. The recent price movement indicates a positive trend for investors, as the stock appears to be stabilizing after a period of volatility.
Introduction to GoodRx Holdings Inc
GoodRx Holdings Inc operates within the Healthcare Providers & Services industry, providing a digital healthcare platform designed to make prescription medications more affordable in the U.S. The company's price comparison tool and discount codes have become essential for consumers looking to save on their healthcare costs. GoodRx's revenue streams include partnerships with pharmacy benefit managers (PBMs), as well as offerings in pharmaceutical manufacturer solutions, subscriptions, and telehealth services. The company's innovative approach to healthcare cost reduction has positioned it as a key player in the industry.
Assessing GoodRx's Profitability
GoodRx's Profitability Rank stands at 5/10, reflecting a moderate level of profitability within the industry. The company's Operating Margin of -3.60% is better than 32.92% of its industry peers. In terms of return on equity, GoodRx's ROE is -1.06%, surpassing 37.34% of competitors. The ROA at -0.54% and ROIC at -0.51% also indicate that GoodRx is performing better than many of its peers, with 43.05% and 38.74% respectively. Despite these figures, the company has only achieved profitability in 2 of the past 10 years, which is a concern for long-term investors.
Growth Prospects of GoodRx
The Growth Rank for GoodRx is 6/10, indicating a moderate growth trajectory. The company's 3-Year Revenue Growth Rate per Share of -3.00% is better than 19.29% of industry peers, while the 5-Year Revenue Growth Rate per Share of 20.20% outperforms 83.56% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 3.60%, which is more promising than 21.43% of industry peers. Additionally, the 3-Year EPS without NRI Growth Rate stands at an impressive 73.50%, better than 93.26% of industry peers, suggesting strong potential for earnings expansion.
Notable Shareholders in GoodRx
Among the notable shareholders of GoodRx, Jim Simons (Trades, Portfolio) leads with 2,976,899 shares, accounting for a 0.73% share percentage. Joel Greenblatt (Trades, Portfolio) holds a smaller stake with 18,984 shares, representing a negligible share percentage. The involvement of these prominent investors may provide a level of confidence in the company's future direction and management.
Competitive Landscape
GoodRx operates in a competitive environment, with key players such as Certara Inc (CERT, Financial) holding a market cap of $2.73 billion, Premier Inc (PINC, Financial) at $2.59 billion, and Privia Health Group Inc (PRVA, Financial) at $2.31 billion. These companies, with market capitalizations close to that of GoodRx, form the competitive backdrop against which GoodRx must innovate and execute its growth strategies.
Conclusion
In summary, GoodRx Holdings Inc has shown a promising stock performance with a recent 14.14% gain, and its GF Value indicates that the stock is Fairly Valued. The company's profitability metrics, although mixed, show that it is performing better than a significant portion of its industry peers. Growth prospects appear solid, particularly in terms of revenue and EPS growth rates. With notable investors on board and a competitive stance in the healthcare providers and services industry, GoodRx is positioned to continue its trajectory in the market. Investors should keep an eye on the company's future earnings reports and strategic initiatives to better understand its long-term potential.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
