Definitive Healthcare (NasdaqGS:DH) - Share price, News & Analysis

DH fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

DH Stock Overview

Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States.

Rewards

Trading at 4.8% below our estimate of its fair value

Revenue is forecast to grow 24.58% per year

Revenue grew by 40.2% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Significant insider selling over the past 3 months

Definitive Healthcare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Definitive Healthcare
Historical stock prices
Current Share Price	US$24.13
52 Week High	US$50.30
52 Week Low	US$14.76
Beta	0
1 Month Change	33.68%
3 Month Change	4.01%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-44.26%

Recent News & Updates

Jun 05

Definitive Healthcare: No Involvement Yet Here

Definitive Healthcare has done quite alright, the business that is, since its IPO last year. The company sees solid topline sales traction and is posting largely break-even results on the bottom line. I like the setup, and while valuations have come down, shares are flat since January, marking huge relative outperformance as this kills appeal here.

Shareholder Returns

	DH	US Healthcare Services	US Market
7D	23.4%	10.0%	6.6%
1Y	n/a	-37.9%	-18.5%

Return vs Industry: Insufficient data to determine how DH performed against the US Healthcare Services industry.

Return vs Market: Insufficient data to determine how DH performed against the US Market.

Price Volatility

Is DH's price volatile compared to industry and market?
DH volatility
DH Average Weekly Movement	10.4%
Healthcare Services Industry Average Movement	13.2%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: DH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: DH's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	676	Jason Krantz	https://www.definitivehc.com

Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States. Its solutions provide information on healthcare providers and their activities to help its customers in the area ranging from product development to go-to-market planning, and sales and marketing execution. The company’s platform offers 16 intelligence modules that cover functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management.

Definitive Healthcare Fundamentals Summary

How do Definitive Healthcare's earnings and revenue compare to its market cap?
DH fundamental statistics
Market Cap	US$3.73b
Earnings (TTM)	-US$15.81m
Revenue (TTM)	US$179.34m

13.1x

P/S Ratio

-149.0x

P/E Ratio

Is DH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DH income statement (TTM)
Revenue	US$179.34m
Cost of Revenue	US$21.18m
Gross Profit	US$158.17m
Other Expenses	US$173.98m
Earnings	-US$15.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.16
Gross Margin	88.19%
Net Profit Margin	-8.82%
Debt/Equity Ratio	18.0%

How did DH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is DH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DH. This is calculated by dividing DH's market cap by their current preferred multiple.
What is DH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.73b

DH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	16.3x
Enterprise Value/EBITDA	85.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DH's PS Ratio compare to its peers?

DH PS Ratio vs Peers

The above table shows the PS ratio for DH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	6.3x

Forward PS

Price-To-Sales vs Peers: DH is expensive based on its Price-To-Sales Ratio (13.1x) compared to the peer average (6.3x).

Price to Earnings Ratio vs Industry

How does DH's PE Ratio compare vs other companies in the U.S. Healthcare Services Industry?

Price-To-Sales vs Industry: DH is expensive based on its Price-To-Sales Ratio (13.1x) compared to the US Healthcare Services industry average (3.4x)

Price to Sales Ratio vs Fair Ratio

What is DH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	13.1x
Fair PS Ratio	16.4x

Price-To-Sales vs Fair Ratio: DH is good value based on its Price-To-Sales Ratio (13.1x) compared to the estimated Fair Price-To-Sales Ratio (16.4x).

Share Price vs Fair Value

What is the Fair Price of DH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DH ($24.13) is trading below our estimate of fair value ($25.34)

Significantly Below Fair Value: DH is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Definitive Healthcare forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

73.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: DH's revenue (24.6% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: DH's revenue (24.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DH's Return on Equity is forecast to be low in 3 years time (6.1%).

Discover growth companies

Past Performance

How has Definitive Healthcare performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-825.9%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: DH is currently unprofitable.

Growing Profit Margin: DH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DH's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: DH is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (3.7%).

Return on Equity

High ROE: DH has a negative Return on Equity (-4.26%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Definitive Healthcare's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DH's short term assets ($392.2M) exceed its short term liabilities ($122.0M).

Long Term Liabilities: DH's short term assets ($392.2M) do not cover its long term liabilities ($522.4M).

Debt to Equity History and Analysis

Debt Level: DH has more cash than its total debt.

Reducing Debt: Insufficient data to determine if DH's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

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 DH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 1.8% per year.

Discover healthy companies

Dividend

What is Definitive Healthcare current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DH has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

Jason Krantz (47 yo)

11.33yrs

Tenure

US$5,953,030

Compensation

Mr. Jason Krantz serves as Chief Executive Officer of Definitive Healthcare, LLC since he founded in February 2011. Mr. Krantz has been the Chief Executive Officer of Definitive Healthcare Corp. since he f...

CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD5.95M) is about average for companies of similar size in the US market ($USD6.92M).

Compensation vs Earnings: Jason's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: DH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: DH's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31