Goodrx Holdings Stock Fair Value – GoodRx Holdings Overvalued Without Clear Path to Double-Digit Growth
December 17, 2023
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GOODRX ($NASDAQ:GDRX): GoodRx Holdings (GDRX) is a publicly traded company that provides online prescription drug coupons and services. It is currently highly valued on the stock market, with its share price reaching record highs.
However, despite this high price, there is little indication that GoodRx is on a path to achieving double-digit growth in the near future. The company has seen a decline in coupon usage since its initial public offering and it is unclear how the company plans to revive this part of their business. Furthermore, the company does not have any blockbuster drug offerings in its pipeline which could potentially result in a large increase in revenue. This lack of growth could mean that GoodRx’s current share price is significantly overvalued; investors should proceed with caution.
Price History
GoodRx Holdings (GOODRX) has seen some success in the market this week, with its stock opening at $5.9 and closing at $6.0 on Friday, up by 0.5% from its last closing price of 5.9. Despite this minor uptick, investors remain wary of the company’s prospects, noting that the stock is still overvalued without a clear path to double-digit growth. Analysts are concerned that GoodRx has yet to prove itself as a reliable source of long-term revenue growth, and is instead relying on short-term “quick wins” such as store promotions and discounts to drive sales. Furthermore, the company has yet to establish a strong competitive advantage in the healthcare technology space, leaving them exposed to potential disruption by larger and more well-funded competitors.
GoodRx has responded by introducing new products and services such as a digital pharmacy platform and health advice app, but these have yet to prove their worth in terms of long-term growth. Until GoodRx can find a clear path to double-digit growth, analysts will continue to see its stock as overvalued in the current market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Goodrx Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 737.73 | 15.03 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Goodrx Holdings. More…
| Operations | Investing | Financing |
| 154.3 | -41.61 | -46.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Goodrx Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.71k | 826.7 | 2.17 |
Key Ratios Snapshot
Some of the financial key ratios for Goodrx Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.1% | -76.8% | 2.5% |
| FCF Margin | ROE | ROA |
| 13.0% | 1.3% | 0.7% |
Analysis – Goodrx Holdings Stock Fair Value
GoodWhale is the perfect tool for analyzing the fundamentals of GOODRX HOLDINGS. Our proprietary Valuation Line puts the fair value of GOODRX HOLDINGS shares at around $20.4. This means that, right now, GOODRX HOLDINGS stock is being traded at $6.0, which is a whopping 70.6% undervalued! With GoodWhale, you can easily and quickly get a comprehensive analysis of GOODRX HOLDINGS stock and make a more informed decision. More…
Peers
The company’s competitors include Walgreens Boots Alliance Inc, Rite Aid Corp, and CVS Health Corp.
– Walgreens Boots Alliance Inc ($NASDAQ:WBA)
Walgreens Boots Alliance Inc is a global pharmacy-led, health and wellbeing enterprise. The company has a market cap of 29.66B as of 2022 and a ROE of 10.64%. Walgreens Boots Alliance is the largest retail pharmacy chain in the United States with over 8,000 stores in all 50 states. The company also has a strong international presence with over 4,000 stores in 25 countries.
– Rite Aid Corp ($NYSE:RAD)
Rite Aid Corporation is a drugstore chain in the United States. The company’s market cap is $237.45 million as of 2022. The company’s return on equity is 240.91%. Rite Aid Corporation operates drugstores in 31 states and the District of Columbia. The company offers a variety of products and services, including prescriptions, over-the-counter medications, health and beauty aids, personal care items, food and beverages, greeting cards, and convenience items.
– CVS Health Corp ($NYSE:CVS)
The company’s market cap is 121.73B as of 2022. The company’s ROE is 10.96%. CVS Health Corp is a company that provides healthcare services. The company operates through three segments: Pharmacy Services, Retail/LTC, and Corporate. The Pharmacy Services segment provides pharmacy benefit management services, mail order pharmacy services, and specialty pharmacy services. The Retail/LTC segment operates retail pharmacies, long-term care pharmacies, and retail clinics. The Corporate segment provides management and administrative services.
Summary
GoodRx Holdings is an online pharmacy platform that offers discounted drug prices and prescription services. Although GoodRx has been successful in garnering users and increasing revenue, the company’s current market value may be overvalued without a clear path for sustained double-digit growth. Investing in GoodRx requires careful analysis of the company’s market opportunities and long-term potential.
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