GoodRx Holdings (GDRX) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 110.1
• Beta (1Y): 1.06
• Revenue Growth: 5.61%
• EPS Growth: N/A
• Country: US
• Employees: 738
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.04
• Shares Outstanding: 106,740,326
• 10 Day Avg. Volume: 1,486,401
• 30 Day Avg. Volume: 1,913,424
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.25
• Price to Cash Flow (P/CF): 10.00
• P/FCF Ratio: 15.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.56
• Price Target Upside: 39.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

GoodRx Holdings exhibits strong revenue growth and improving profitability, supported by a solid balance sheet. The technical indicators are mildly negative, and the high P/E ratio suggests potential overvaluation. Earnings call insights are positive, highlighting growth and strategic initiatives. The recent appointment of a new CFO is a positive step toward strengthening financial management.

Positive Factors

E-commerce Integration

GoodRx's new e-commerce capability with Hy-Vee allows consumers to purchase medications through the app, increasing convenience and reducing time spent at the pharmacy.

Market Share Growth

GoodRx believes its market share of the prescription discount segment grew by 3%, indicating strong performance in a competitive market.

Profitability Improvements

GoodRx's revenue mix is shifting towards higher margin business lines, leading to consistent profitability improvements and meaningful EBITDA margin expansion.

Negative Factors

Financial Stability Concerns

Investors may be concerned about the CFO's departure, interpreting it as a potential signal of financial risk at GoodRx.

Reimbursement Landscape Changes

Caution is advised due to changes in the PBM-to-pharmacy reimbursement landscape, which may affect GoodRx's business model.

Retail Pharmacy Closures

The recent increase in retail pharmacy closures presents a risk to GoodRx, impacting its operational landscape.

GoodRx Holdings Business Overview & Revenue Model

Company Description

GoodRx Holdings, Inc. is a leading American healthcare technology company that operates within the healthcare services sector. It offers a platform that helps consumers access affordable and transparent prescription drug prices. GoodRx provides a free-to-use website and mobile app that allows users to compare drug prices across different pharmacies and obtain discounts on prescription medications. The company's core products and services focus on improving healthcare accessibility and affordability by offering a wide range of pharmacy discount programs and telehealth services.

How the Company Makes Money

GoodRx makes money primarily through advertising and referral fees from pharmacy benefit managers (PBMs) and pharmacies when consumers use its discount codes to purchase medications. Additionally, the company generates revenue from subscriptions to its GoodRx Gold membership program, which offers even larger discounts on prescription drugs. GoodRx also earns from its telehealth services by charging fees for virtual doctor consultations. Key partnerships with PBMs and pharmacies are significant factors contributing to its earnings, as they allow GoodRx to offer competitive discounts and access to a wide network of pharmacies.

GoodRx Holdings Financial Statement Overview

Summary

GoodRx Holdings demonstrates robust revenue growth and improving profitability, supported by a strong balance sheet with reduced leverage. Cash flow management is stable, though historical volatility in net income and cash flows suggests some risk.

Income Statement

GoodRx Holdings shows a consistent increase in revenue over recent years, indicating healthy growth. The gross profit margin is strong, over 90%, suggesting effective cost management. However, net profit margins have fluctuated, with recent improvements after earlier losses. EBIT and EBITDA margins have shown positive trends, moving from negative to positive, indicating improved operational efficiency.

Balance Sheet

GoodRx Holdings maintains a healthy equity ratio, reflecting a solid financial base with stockholders' equity making up over 50% of total assets. The debt-to-equity ratio has improved, indicating reduced leverage risk. However, the company has experienced volatility in net income, impacting the return on equity, which has been negative in recent years but is now positive.

Cash Flow

The company's free cash flow has improved, although it experienced some fluctuations in recent years. The operating cash flow to net income ratio suggests adequate cash generation relative to net income, despite previous years of negative net income. Free cash flow to net income ratio is stable, indicating effective cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
792.32M	750.26M	766.55M	745.42M	550.70M
	Gross Profit
744.11M	683.34M	701.48M	698.71M	521.11M
	EBIT
65.85M	-27.01M	11.01M	13.41M	-275.72M
	EBITDA
153.92M	108.82M	68.54M	48.00M	-257.11M
	Net Income Common Stockholders
16.39M	-8.87M	-32.83M	-25.25M	-293.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.35M	672.30M	757.16M	941.11M	968.69M
	Total Assets
1.39B	1.59B	1.60B	1.61B	1.47B
	Total Debt
56.68M	711.07M	717.02M	702.33M	704.92M
	Net Debt
-391.67M	38.77M	-40.14M	-238.78M	-263.77M
	Total Liabilities
663.41M	826.84M	789.80M	775.95M	758.75M
	Stockholders Equity
724.66M	761.96M	814.83M	831.68M	711.36M
Cash Flow		Free Cash Flow
163.00K	82.53M	91.57M	144.32M	95.52M
	Operating Cash Flow
163.00K	138.29M	146.78M	178.78M	131.34M
	Investing Cash Flow
-70.35M	-55.77M	-210.50M	-178.73M	-91.62M
	Financing Cash Flow
-337.50M	-167.40M	-120.23M	-30.53M	905.82M

GoodRx Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDRX, the sentiment is Negative. The current price of 4.69 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.67, and below the 200-day MA of 6.01, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDRX.

GoodRx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	78 Outperform	$1.93B	39.92	11.14%	―	7.22%	-9.84%
GDRX	67 Neutral	$1.80B	110.09	2.21%	―	5.61%	―
HSTM	67 Neutral	$967.51M	48.53	5.72%	0.37%	4.51%	32.28%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
TDOC	45 Neutral	$1.37B	―	-52.46%	―	-1.26%	-338.56%
SDGR	45 Neutral	$1.43B	―	-38.58%	―	-4.21%	-544.81%
DH	44 Neutral	$379.19M	―	-63.28%	―	0.31%	-99.23%

GoodRx Holdings Corporate Events

GoodRx Holdings Appoints Christopher McGinnis as CFO

On February 4, 2025, GoodRx Holdings appointed Christopher A. McGinnis as Chief Financial Officer and Treasurer. McGinnis brings extensive experience from his previous roles in pharmacy benefits management and healthcare financial operations. This strategic appointment aligns with GoodRx’s efforts to strengthen its executive team and enhance its financial management capabilities. McGinnis’s employment agreement includes a competitive salary, incentive bonuses, and stock options, signaling a significant investment in leadership to drive future growth and operational efficiency.

GoodRx Holdings Appoints Scott Wagner as Co-Chair

On January 21, 2025, GoodRx Holdings announced the appointment of Scott Wagner as a Class II director and Co-Chair of the Board, following his tenure as Interim CEO. Wagner’s extensive leadership experience, including his role at GoDaddy, is expected to enhance the company’s strategic direction. Simon Patterson resigned from the Board, with no disagreements cited, and his vacancy was filled by Wagner. Wagner will receive compensation in line with GoodRx’s Non-Employee Director Compensation Program.

GoodRx Holdings CFO Resigns, Interim CFO Appointed

GoodRx Holdings has announced that its Chief Financial Officer, Karsten Voermann, has resigned for personal reasons, effective January 17, 2025. The company has appointed Romin Nabiey, the current Chief Accounting Officer, as the Interim Chief Financial Officer while they search for a permanent replacement. The transition is amicable, with no disagreements cited between Voermann and the company. Voermann will enter into a Separation Agreement, allowing him to retain certain stock options and bonuses, while also agreeing to non-disparagement and confidentiality clauses.