DB:7DP

Stock Analysis Report

Diplomat Pharmacy

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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

Stable Share Price: 7DP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

7DP

10.2%

DE Healthcare

7.1%

DE Market


1 Year Return

-70.3%

7DP

-23.4%

DE Healthcare

-17.5%

DE Market

Return vs Industry: 7DP underperformed the German Healthcare industry which returned 6.2% over the past year.

Return vs Market: 7DP underperformed the German Market which returned 16% over the past year.


Shareholder returns

7DPIndustryMarket
7 Day1.1%10.2%7.1%
30 Day2.3%-17.5%-20.0%
90 Day25.0%-20.9%-26.1%
1 Year-70.3%-70.3%-22.0%-23.4%-15.0%-17.5%
3 Year-73.5%-73.5%-40.9%-43.1%-18.8%-25.8%
5 Year-83.9%-83.9%-27.5%-31.5%-17.9%-29.2%

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 compared to its fair value and its price relative to the market?

44.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7DP (€3.6) is trading below our estimate of fair value (€6.5)

Significantly Below Fair Value: 7DP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7DP is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: 7DP is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7DP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7DP is overvalued based on its PB Ratio (2.3x) compared to the DE Healthcare industry average (1.4x).


Next Steps

Future Growth

How is Diplomat Pharmacy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

43.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7DP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 7DP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 7DP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 7DP's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: 7DP's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 7DP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Diplomat Pharmacy performed over the past 5 years?

-84.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7DP is currently unprofitable.

Growing Profit Margin: 7DP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 7DP is unprofitable, and losses have increased over the past 5 years at a rate of -84.1% per year.

Accelerating Growth: Unable to compare 7DP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 7DP is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-6.8%).


Return on Equity

High ROE: 7DP has a negative Return on Equity (-495.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Diplomat Pharmacy's financial position?


Financial Position Analysis

Short Term Liabilities: 7DP's short term assets ($542.2M) do not cover its short term liabilities ($991.5M).

Long Term Liabilities: 7DP's short term assets ($542.2M) exceed its long term liabilities ($40.0M).


Debt to Equity History and Analysis

Debt Level: 7DP's debt to equity ratio (426.2%) is considered high.

Reducing Debt: 7DP's debt to equity ratio has reduced from 1140% to 426.2% over the past 5 years.


Balance Sheet

Inventory Level: 7DP has a high level of physical assets or inventory.

Debt Coverage by Assets: 7DP's debt is not covered by short term assets (assets are 1x 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.

Stable Cash Runway: Whilst unprofitable 7DP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 7DP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 33% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 7DP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 7DP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 7DP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7DP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 7DP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Brian Griffin (60yo)

1.67s

Tenure

US$10,261,761

Compensation

Mr. Brian Thomas Griffin has been the Chief Executive Officer at Diplomat Pharmacy, Inc. since June 4, 2018 and served as the Chairman of the board since June 4, 2018 until February 10, 2020. He was an Exe ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD10.26M) is above average for companies of similar size in the German market ($USD809.07K).

Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Griffin
Chief Executive Officer1.67yrsUS$10.26m1.22% $3.7m
Daniel Davison
CFO & Treasurer0.83yrno datano data
Dave Loschinskey
Chief Operating Officer0.75yrno data0.13% $400.1k
Terri Powers
Vice President of Investor Relationsno datano datano data
Christina Flint
SVP & General Counselno datano datano data
Jennifer Cretu
Senior Vice President of Pharma Services & Marketing5.75yrsno datano data
Michael Flowers
Senior Vice President of Sales1.92yrsno datano data
Leslie Suciu
Senior Vice President of Human Resourcesno datano datano data
Shannon Beltrand
Chief Information Security Officer4.83yrsno datano data
Robyn Peters
Executive Vice President of Sales & Payer Strategies2.33yrsno datano data

1.9yrs

Average Tenure

Experienced Management: 7DP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

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: €303.255m
  • Shares outstanding: 75.81m
  • 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
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 infusion pharmacy, patient care coordination, clinical, compliance and persistency program, patient financial assistance, specialty pharmacy training, benefits investigation, prior authorization, risk evaluation and medication strategy, retail specialty, and hub services, as well as clinical and administrative support services to hospitals and health systems. The company primarily focuses on medication management programs for individuals with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialized infusion therapy, and various other serious or long-term conditions. It also offers PBM services, including electronic point-of-sale pharmacy claims management, retail pharmacy network management, mail pharmacy claims management, specialty pharmacy claims management, Medicare Part D services, benefit design consultation, drug review and analysis, consulting services, data access, and reporting, information analysis, and preferred drug management programs to managed care organizations, self-insured employer groups, unions, and third-party healthcare plan administrators and worker’s compensation payers. The company was founded in 1975 and is headquartered in Flint, Michigan.As of February 7, 2020, Diplomat Pharmacy, Inc. operates as a subsidiary of OptumRx, Inc.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/11 22:58
End of Day Share Price2020/02/10 00:00
Earnings2019/09/30
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.