NYSE:DPLO

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 39.7% below its fair value

Risk Analysis

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet and fair value.


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: DPLO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-26.6%

DPLO

-0.2%

US Healthcare

1.1%

US Market


1 Year Return

-73.6%

DPLO

3.9%

US Healthcare

17.8%

US Market

Return vs Industry: DPLO underperformed the US Healthcare industry which returned 3.9% over the past year.

Return vs Market: DPLO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

DPLOIndustryMarket
7 Day-26.6%-0.2%1.1%
30 Day-36.5%4.8%1.4%
90 Day-34.2%14.0%3.9%
1 Year-73.6%-73.6%5.8%3.9%20.3%17.8%
3 Year-68.9%-68.9%46.7%40.0%44.8%35.4%
5 Year-87.4%-87.4%69.6%58.0%71.3%52.4%

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

Valuation

Is Diplomat Pharmacy undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DPLO ($3.94) is trading below our estimate of fair value ($6.53)

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


Price To Earnings Ratio

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

PE vs Market: DPLO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DPLO is good value based on its PB Ratio (2.3x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

How is Diplomat Pharmacy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

47.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: DPLO's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: DPLO's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DPLO's Return on Equity is forecast to be low in 3 years time (13.3%).


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: DPLO is currently unprofitable.

Growing Profit Margin: DPLO is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: DPLO is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (6.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Diplomat Pharmacy's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

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

Reducing Debt: DPLO's debt to equity ratio has reduced from 1124.6% to 426.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DPLO'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 DPLO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DPLO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -8.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate DPLO'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 DPLO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DPLO'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 DPLO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Brian Griffin (60yo)

1.5yrs

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

Compensation vs Market: Brian's total compensation ($USD10.26M) is above average for companies of similar size in the US market ($USD1.12M).

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


Management Age and Tenure

1.8yrs

Average Tenure

60yo

Average Age

Experienced Management: DPLO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: DPLO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DPLO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$4,15804 Oct 19
Benjamin Wolin
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares859
Max PriceUS$4.84
SellUS$4,15804 Oct 19
Shawn Tomasello
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares859
Max PriceUS$4.84
SellUS$4,15504 Oct 19
Kenneth Klepper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares859
Max PriceUS$4.84
SellUS$4,14804 Oct 19
David Dreyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares860
Max PriceUS$4.82
SellUS$4,15804 Oct 19
Regina Benjamin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares859
Max PriceUS$4.84
SellUS$12,52904 Oct 19
Philip Hagerman
EntityIndividual
Role
Chairman Emeritus
Co-Founder & Chairman Emeritus
Shares2,610
Max PriceUS$4.80
SellUS$6,18505 Jun 19
Benjamin Wolin
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares1,274
Max PriceUS$4.85
SellUS$6,18505 Jun 19
Shawn Tomasello
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.85
SellUS$6,18505 Jun 19
Kenneth Klepper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.85
SellUS$6,18505 Jun 19
David Dreyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.85
SellUS$6,18505 Jun 19
Regina Benjamin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,274
Max PriceUS$4.85
SellUS$5,23901 Apr 19
Atul Kavthekar
EntityIndividual
Shares901
Max PriceUS$5.82
SellUS$7,39220 Mar 19
Atul Kavthekar
EntityIndividual
Shares1,265
Max PriceUS$5.84

Ownership Breakdown

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


Management Team

  • Brian Griffin (60yo)

    CEO & Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$10.26m
  • Terri Powers

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Phil Hagerman (67yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 1.9yrs
    • Compensation: US$459.64k
  • Jenny Cretu

    Senior Vice President of Pharma Services & Marketing

    • Tenure: 5.6yrs
  • Mike Flowers

    Senior Vice President of Sales

    • Tenure: 1.8yrs
  • McAllister Beltrand

    Chief Information Security Officer

    • Tenure: 4.7yrs
  • Christina Flint

    SVP, General Counsel & Secretary

    • Tenure: 0yrs
  • Dave Loschinskey (48yo)

    Chief Operating Officer

    • Tenure: 0.6yrs
  • Leslie Suciu

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Dan Davison

    CFO & Treasurer

    • Tenure: 0.7yrs

Board Members

  • David Dreyer (62yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$231.18k
  • Kenneth Klepper (65yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$216.99k
  • Regina Benjamin (62yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$208.77k
  • Ben Wolin (43yo)

    Independent Lead Director

    • Tenure: 1.5yrs
    • Compensation: US$258.16k
  • Brian Griffin (60yo)

    CEO & Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$10.26m
  • Phil Hagerman (67yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 1.9yrs
    • Compensation: US$459.64k
  • Shawn Tomasello (60yo)

    Independent Director

    • Tenure: 4.2yrs
    • 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: DPLO
  • Exchange: NYSE
  • Founded: 1975
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$298.535m
  • Shares outstanding: 75.77m
  • 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 Analysis2019/12/11 00:49
End of Day Share Price2019/12/10 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.