Doximity. High growth and profitability at a great price?

I recently came across DOCS through a 'quality at a discount' screener, where it was number 5 overall, and dug into its fundamentals and earnings. The results suggest it’s a high‑quality business trading below intrinsic value. I've not seen many mentions of it at all. Doximity is a digital platform for doctors and other clinicians that combines a professional network (like LinkedIn for healthcare) with workflow tools such as telehealth, secure messaging, and AI‑powered clinical support, and it earns revenue mainly by selling targeted marketing and engagement programs to pharma companies and health systems. # Key fundamental takeaways **Strong profitability:** TTM revenue of \~$621 M, EBITDA \~$259 M and net income \~$253 M produce robust margins and returns on capital (ROA \~20 %, ROIC >100 %). The company holds net cash (enterprise value is lower than market cap) and has a current ratio of \~7.8. **Healthy growth:** Forward revenue growth around 13 % and EPS growth around 40 % are solid. Analysts’ average EPS estimates for the coming year sit between \~$0.27 and $0.45; DOCS has beaten revenue estimates in the last four quarters by 3–10 %. **Analyst upside:** The consensus price target is about $68, implying \~47 % upside from the current price; the high target is $83. **AI-driven momentum:** Management’s latest call highlighted accelerating adoption of new AI tools (e.g., DoxGPT and Scribe) and record platform engagement. Adjusted EBITDA margins remain around 60 %, and free cash flow grew \~37 % year‑over‑year. # Earnings-call highlights * Revenue (\~$169 M) was up \~23 % YoY and \~7 % above the top of guidance. * Adjusted EBITDA (\~$101 M) beat guidance by \~15 %, with margins around 60 %. * Free cash flow up \~37 % YoY. * The main caution points are potential uncertainty in pharma marketing budgets for 2026 due to policy shifts, but management still guides EBITDA margins above 55 %. Also around the current political uncertainty and their hostility to direct-to-consumer drug marketing. Worst case scenario is still good. # Why it seems undervalued Despite these fundamentals, DOCS trades at a valuation implying roughly a 30 % discount assuming a cautious 22 PE after 10 years. Analysts’ targets and recent estimate beats further support an upside case. Would love to hear thoughts from others: does this line up with your view of DOCS? Is there a bear case or overlooked risk I should consider? Being outside of the US, I'm also unsure of how much the DTC drug advertising risk could cause problems.