# Doximity (DOCS.US)

Canonical: https://gigainvestors.com/s/DOCS

Analysis as of: 2026-10-16T07:28:04.407Z. Financial observations: FY2019–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $31.50 per share; close as of 2026-10-15.

Estimated value: low $16.64 per share, central $18.41 per share, high $20.77 per share. Buy at or below the central value $18.41 per share. Valuation as of 2026-10-16T07:28:04.407Z; scenarios are not confidence intervals.

Expected annual return: 6.6% at the stated quote. About 6.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 9 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.32×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.08×

- FY2020: 0.19×

- FY2021: 0.26×

- FY2022: 0.33×

- FY2023: 0.30×

- FY2024: 0.34×

- FY2025: 0.40×

- FY2026: 0.33×

- LTM to Jun 2026: 0.30×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 68.1%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 88.1%

- Recent gross margin (lower of latest and 3-year median): 88.1%

- Years with nonpositive capital: 3

- Capital spending / revenue: 1.4%

- ROIC including acquisitions, ten-year median: 93.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 14.1%

- FY2020: >100%

- FY2021: 68.1%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

- FY2026: >100%

- LTM to Jun 2026: 93.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $853M

- Net income, five-year total: $834M

- Return on incremental invested capital: 140.1%

- Working capital / revenue, annual change: -0.2 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.04×

- FY2024: 1.03×

- FY2025: 1.02×

- FY2026: 1.03×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 68.1% vs 153.4%

- Per-share earnings: 0.16 to 0.98 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -1.7%

- Diluted shares, 5-year annual growth: -1.7%

- Per-share value growth: 43.7%

- Per-share value change: $0.82

- Per-share value, starting three-year median: $0.16

- Per-share value, ending three-year median: $0.98

- Buybacks concentrated in cheaper years (correlation): 0.90

- Average buyback yield: 3.6%

- Buyback history: 5 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 68.1%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2019: $0.04

- FY2020: $0.16

- FY2021: $0.23

- FY2022: $0.81

- FY2023: $0.53

- FY2024: $0.72

- FY2025: $1.11

- FY2026: $0.98

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -11.6%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 37.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.67×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -8.6%

- FY2020: 2.5%

- FY2021: -13.0%

- FY2022: 2.8%

- FY2023: -5.9%

- FY2024: -3.4%

- FY2025: -4.0%

- FY2026: -11.6%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 57% since Sep 2025 · "Doximity shares plunge 20% on soft guidance and AI margin pressures" (seekingalpha.com, May 2026) · sales +1.7%

Story as of 2026-10-16T09:58:38.953Z; price observation 2026-10-15.

Price needs cash profits to grow 8.9% a year for ten years

- 2025-05-15: Doximity Stock Drops 20% After Outlook Disappoints ([finance.yahoo.com](https://finance.yahoo.com/news/doximity-stock-drops-20-outlook-212109653.html))

- 2025-08-09: Doximity (DOCS) Soars 14% on Strong Earnings, Merger with AI-Powered Platform ([finance.yahoo.com](https://finance.yahoo.com/news/doximity-docs-soars-14-strong-141547159.html))

- 2026-02-06: DOCS Q4 Deep Dive: AI Momentum Overshadowed by Pharma Budget Delays and Cautious Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/docs-q4-deep-dive-ai-130101134.html))

- 2026-04-13: Assessing Doximity (DOCS) Valuation After Soft Guidance And Rising AI Competition Concerns ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/assessing-doximity-docs-valuation-soft-150705322.html))

- 2026-05-14: Doximity shares plunge 20% on soft guidance and AI margin pressures ([seekingalpha.com](https://seekingalpha.com/news/4592734-doximity-shares-plunge-20-on-soft-guidance-and-ai-margin-pressures?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-07: Doximity Raises FY27 Outlook on AI Search Momentum, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/doximity-raises-fy27-outlook-ai-163308353.html))

### Sales · FY2026–2027

sales +1.7%; source https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm; observed 2026-05-19.

- FY2019: $86M 

- FY2020: $116M 

- FY2021: $207M 

- FY2022: $344M 

- FY2023: $419M 

- FY2024: $475M 

- FY2025: $570M 

- FY2026: $645M 

- FY2027: $656M 

### Gross margin · FY2027

gross margin 88.1%; source https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm; observed 2026-05-19.

- FY2019: 87.3% 

- FY2020: 87.2% 

- FY2021: 84.9% 

- FY2022: 88.4% 

- FY2023: 87.2% 

- FY2024: 89.3% 

- FY2025: 90.2% 

- FY2026: 89.1% 

- FY2027: 88.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in health information services; annual sales are USD 644.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm (filed 2026-05-19); FY2026: revenue 644863000; grossProfit 574537000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DOCS.US: Doximity, Inc. operates a digital platform for medical professionals in the United States. Its Doximity platform includes a personalized newsfeed that presents clinical and professional content to members, which offers medical articles, clinical trials or research results in an easy-to-consume video format, professional updates and accomplishments of their peers and colleagues, clinical discussions, Op-Med articles for publication, and sponsored content from pharmaceutical manufacturers and health systems. The company also offers workflow tools, including Ask, a HIPAA-compliant AI assistant, to access and apply evidence-based medical information within clinical workflows; Scribe, a HIPAA-compliant, AI-powered clinical documentation tool; Telehealth tools for hospitals and health systems; and AMiON, an on-call scheduling tool. The company primarily serves physicians, nurse practitioners, physician assistants, medical students, pharmaceutical manufacturers, and healthcare systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

### Why customers stay

Margins ranged from 89.1% to 90.2% during 2024–26; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2024: grossProfit / revenue = 89.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2025: grossProfit / revenue = 90.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm (filed 2026-05-19); FY2026: grossProfit / revenue = 89.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); 9-year return on capital observations [[2019,0.14094354697550426],[2020,6.4823047674758705],[2021,0.6813296234579946],[2022,1.8120820365493575],[2023,1.455753516695017],[2024,1.534488028020797],[2025,1.7312695657561965],[2026,1.322404062244535],[2027,0.9366397832491387]]; median 1.455753516695017. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 8 years; bought back USD 431.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2019: growth capex 0; upkeep 1190000; owner earnings 7194000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2020: growth capex 1182795.0409410605; upkeep 3061204.9590589395; owner earnings 27575795.04094106. Growth capex / owner earnings = 0.04289250914379788.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2021: growth capex 3108000; upkeep 1502000; owner earnings 50210000. Growth capex / owner earnings = 0.06190001991635132.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2022: growth capex 657000; upkeep 5040000; owner earnings 154783000. Growth capex / owner earnings = 0.004244652190486036.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2023: growth capex 0; upkeep 6184000; owner earnings 116917000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2024: growth capex 0; upkeep 5801000; owner earnings 152046000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2025: growth capex 0; upkeep 6525000; owner earnings 227319000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm (filed 2026-05-19); FY2026: growth capex 0; upkeep 8963000; owner earnings 201471000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); Dividend observations: [[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm (filed 2026-05-19); FY2026: cash repurchases 431652000 USD.

### Are managers owners

Insiders own 3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DOCS.US SharesStats.PercentInsiders = 2.978 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); Ten-year compound average after fade. Initial solved rate 0.11527065437045347. Price 31.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-06: $58.20 per share

- 2021-07: $61.90 per share

- 2021-08: $92.00 per share

- 2021-09: $80.70 per share

- 2021-10: $69.48 per share

- 2021-11: $67.65 per share

- 2021-12: $50.13 per share

- 2022-01: $45.57 per share

- 2022-02: $61.35 per share

- 2022-03: $52.09 per share

- 2022-04: $39.87 per share

- 2022-05: $34.99 per share

- 2022-06: $34.82 per share

- 2022-07: $42.32 per share

- 2022-08: $33.19 per share

- 2022-09: $30.22 per share

- 2022-10: $26.47 per share

- 2022-11: $33.99 per share

- 2022-12: $33.56 per share

- 2023-01: $35.27 per share

- 2023-02: $33.63 per share

- 2023-03: $32.38 per share

- 2023-04: $36.75 per share

- 2023-05: $30.67 per share

- 2023-06: $34.02 per share

- 2023-07: $35.73 per share

- 2023-08: $23.84 per share

- 2023-09: $21.22 per share

- 2023-10: $20.43 per share

- 2023-11: $23.25 per share

- 2023-12: $28.04 per share

- 2024-01: $26.95 per share

- 2024-02: $28.23 per share

- 2024-03: $26.91 per share

- 2024-04: $24.29 per share

- 2024-05: $27.73 per share

- 2024-06: $27.97 per share

- 2024-07: $28.00 per share

- 2024-08: $36.78 per share

- 2024-09: $43.57 per share

- 2024-10: $41.74 per share

- 2024-11: $53.00 per share

- 2024-12: $53.39 per share

- 2025-01: $59.10 per share

- 2025-02: $70.50 per share

- 2025-03: $58.03 per share

- 2025-04: $56.88 per share

- 2025-05: $52.09 per share

- 2025-06: $61.34 per share

- 2025-07: $58.75 per share

- 2025-08: $67.94 per share

- 2025-09: $73.15 per share

- 2025-10: $66.00 per share

- 2025-11: $51.44 per share

- 2025-12: $44.28 per share

- 2026-01: $37.47 per share

- 2026-02: $24.53 per share

- 2026-03: $23.30 per share

- 2026-04: $24.44 per share

- 2026-05: $21.40 per share

- 2026-06: $20.74 per share

- 2026-07: $20.91 per share

- 2026-08: $26.71 per share

- 2026-09: $28.34 per share

- 2026-10: $31.50 per share

## Annual estimated value (USD per share)

- FY2023: low $9.11 per share, central $9.83 per share, high $10.78 per share

- FY2024: low $10.71 per share, central $11.68 per share, high $12.97 per share

- FY2025: low $14.40 per share, central $15.77 per share, high $17.59 per share

- FY2026: low $15.02 per share, central $16.58 per share, high $18.66 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1516513/000151651326000025/docs-20260331.htm); period 2026-03-31, filed 2026-05-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.