Definitive Healthcare Corp.
Find Ratings ReportsDEFINITIVE HEALTH CORP's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DEFINITIVE HEALTH CORP is extremely liquid. Currently, the Quick Ratio is 2.37 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 7.44% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 65.33 | 57.38 |
EBITDA ($mil) | 9.75 | 7.25 |
EBIT ($mil) | -3.28 | -5.94 |
Net Income ($mil) | -171.53 | -3.02 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 307.03 | 349.63 |
Total Assets ($mil) | 1819.53 | 2119.77 |
Total Debt ($mil) | 271.62 | 278.1 |
Equity ($mil) | 863.28 | 932.75 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 86.74 | 88.55 |
EBITDA Margin | 14.92 | 12.63 |
Operating Margin | -5.02 | -10.35 |
Sales Turnover | 0.14 | 0.1 |
Return on Assets | -10.01 | -1.26 |
Return on Equity | -21.12 | -2.87 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 2.55 | 3.31 |
Debt/Capital | 0.24 | 0.23 |
Interest Expense | 3.9 | 3.07 |
Interest Coverage | -0.84 | -1.93 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 116.28 | 104.96 |
Div / share | 0.0 | 0.0 |
EPS | -1.5 | -0.03 |
Book value / share | 7.42 | 8.89 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 605474.0 | 832359.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.09 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 17.67. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, DEFINITIVE HEALTH CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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DH NM | Peers 76.09 | DH 29.64 | Peers 32.96 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. DH's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DH is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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DH 19.26 | Peers 26.19 | DH NA | Peers 0.62 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. DH is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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DH 1.09 | Peers 17.67 | DH -482.14 | Peers 89.51 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DH is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DH is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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DH 3.82 | Peers 8.21 | DH 18.10 | Peers 15.59 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DH is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. DH has a sales growth rate that exceeds its peers. |
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