DB:7DP

Stock Analysis Report

Diplomat Pharmacy

Executive Summary

Diplomat Pharmacy, Inc. operates as an independent specialty pharmacy in the United States.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Diplomat Pharmacy has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Diplomat Pharmacy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.7%

DB:7DP

2.4%

DE Healthcare

0.2%

DE Market


1 Year Return

-69.7%

DB:7DP

-30.6%

DE Healthcare

-10.0%

DE Market

7DP underperformed the Healthcare industry which returned -31.4% over the past year.

7DP underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

7DPIndustryMarket
7 Day6.7%2.4%0.2%
30 Day7.8%-6.0%-3.3%
90 Day8.8%-9.5%-3.9%
1 Year-69.7%-69.7%-29.5%-30.6%-7.1%-10.0%
3 Year-82.6%-82.6%-26.5%-29.2%11.3%1.7%
5 Yearn/a21.8%15.0%25.8%8.4%

Price Volatility Vs. Market

How volatile is Diplomat Pharmacy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Diplomat Pharmacy undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Diplomat Pharmacy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Diplomat Pharmacy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Diplomat Pharmacy is loss making, we can't compare its value to the DE Healthcare industry average.

Diplomat Pharmacy is loss making, we can't compare the value of its earnings to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Diplomat Pharmacy, we can't assess if its growth is good value.


Price Based on Value of Assets

Diplomat Pharmacy is good value based on assets compared to the DE Healthcare industry average.


Next Steps

Future Growth

How is Diplomat Pharmacy expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

48.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Diplomat Pharmacy's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Diplomat Pharmacy is not considered high growth as it is expected to be loss making for the next 1-3 years.

Diplomat Pharmacy's revenue growth is positive but not above the Germany market average.

Unable to compare Diplomat Pharmacy's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Diplomat Pharmacy's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Diplomat Pharmacy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Diplomat Pharmacy performed over the past 5 years?

-75.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Diplomat Pharmacy does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Diplomat Pharmacy's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Diplomat Pharmacy's 1-year growth to the DE Healthcare industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Diplomat Pharmacy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Diplomat Pharmacy has efficiently used its assets last year compared to the DE Healthcare industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Diplomat Pharmacy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Diplomat Pharmacy's financial position?


Financial Position Analysis

Diplomat Pharmacy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Diplomat Pharmacy's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Diplomat Pharmacy's level of debt (193.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (-0% vs 193.8% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Diplomat Pharmacy has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Diplomat Pharmacy has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.


Next Steps

Dividend

What is Diplomat Pharmacy's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Diplomat Pharmacy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Diplomat Pharmacy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Diplomat Pharmacy has not reported any payouts.

Unable to verify if Diplomat Pharmacy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Diplomat Pharmacy has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Diplomat Pharmacy's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of Diplomat Pharmacy's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Brian Griffin (60yo)

1.2yrs

Tenure

US$10,261,761

Compensation

Mr. Brian Thomas Griffin serves as the Chairman of the board and Chief Executive Officer at Diplomat Pharmacy, Inc. since June 4, 2018. He was an Executive Vice President of Anthem, Inc.(formerly WellPoint ...


CEO Compensation Analysis

Brian's remuneration is higher than average for companies of similar size in Germany.

Insufficient data for Brian to compare compensation growth.


Management Age and Tenure

1.4yrs

Average Tenure

60yo

Average Age

The average tenure for the Diplomat Pharmacy management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

The average tenure for the Diplomat Pharmacy board of directors is less than 3 years, this suggests a new board.


Insider Trading

Diplomat Pharmacy individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$5,50305 Jun 19
Benjamin Wolin
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares1,274
Max PriceUS$4.32
SellUS$5,50305 Jun 19
Shawn Tomasello
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.32
SellUS$5,50305 Jun 19
Kenneth Klepper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.32
SellUS$5,50305 Jun 19
David Dreyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.32
SellUS$5,50305 Jun 19
Regina Benjamin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.32
SellUS$4,66801 Apr 19
Atul Kavthekar
EntityIndividual
Shares901
Max PriceUS$5.18
SellUS$6,51220 Mar 19
Atul Kavthekar
EntityIndividual
Shares1,265
Max PriceUS$5.15
SellUS$1,443,85717 Sep 18
Philip Hagerman
EntityIndividual
Role
Chairman Emeritus
Co-Founder & Chairman Emeritus
Shares90,633
Max PriceUS$15.93
SellUS$3,418,66613 Sep 18
Philip Hagerman
EntityIndividual
Role
Chairman Emeritus
Co-Founder & Chairman Emeritus
Shares209,367
Max PriceUS$16.45

Ownership Breakdown


Management Team

  • Brian Griffin (60yo)

    CEO & Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$10.26m
  • Terri Powers

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Phil Hagerman (67yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 1.6yrs
    • Compensation: US$459.64k
  • Jenny Cretu

    Senior Vice President of Pharma Services & Marketing

    • Tenure: 5.3yrs
  • Mike Flowers

    Senior Vice President of Sales

    • Tenure: 1.4yrs
  • McAllister Beltrand

    Chief Information Security Officer

    • Tenure: 4.3yrs
  • Christina Flint

    VP, General Counsel & Secretary

    • Tenure: 0.0yrs
  • Dave Loschinskey (48yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Leslie Suciu

    Senior Vice President of Human Resources

    • Tenure: 0.0yrs
  • Dan Davison

    CFO & Treasurer

    • Tenure: 0.3yrs

Board Members

  • David Dreyer (62yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$231.18k
  • Kenneth Klepper (65yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$216.99k
  • Regina Benjamin (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$208.77k
  • Ben Wolin (43yo)

    Independent Lead Director

    • Tenure: 1.2yrs
    • Compensation: US$258.16k
  • Brian Griffin (60yo)

    CEO & Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$10.26m
  • Phil Hagerman (67yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 1.6yrs
    • Compensation: US$459.64k
  • Shawn Tomasello (60yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$206.77k

Company Information

Diplomat Pharmacy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Diplomat Pharmacy, Inc.
  • Ticker: 7DP
  • Exchange: DB
  • Founded: 1975
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$432.585m
  • Listing Market Cap: US$389.933m
  • Shares outstanding: 75.63m
  • Website: https://www.diplomatpharmacy.com

Number of Employees


Location

  • Diplomat Pharmacy, Inc.
  • 4100 South Saginaw Street
  • Flint
  • Michigan
  • 48507
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPLONYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2014
7DPDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2014

Biography

Diplomat Pharmacy, Inc. operates as an independent specialty pharmacy in the United States. The company operates through Specialty and PBM (pharmacy benefit management) segment. It provides specialty infus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 22:34
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.