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Phreesia (PHR) is a Zacks Rank #1 (Strong Buy) that has a F for Value and B for Growth.  This is medical information systems company is flying under the radar of most investors as it is a small cap and currently losing money.  The thing is, the company recently accelerated it push to profitability.  Let’s explore more about this company in this Bull of The Day article.

Description

Phreesia, Inc. engages in the provision of patient check-in solutions for medical practices. The firm offers appointments, clinical support, integration, registration, patient activation, analytics and reports, revenue cycle, patient surveys, and privacy and security products. Its solutions include health systems, multi-specialty, and federally qualified health centers (FQHCs).

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Phreesia, I see four beats of the Zacks Consensus Estimate over the last year.  The average positive earnings surprise over the last year works out to be a positive 12.2%.

The most recent beat saw an acceleration in the push to profitability.  The loss per share was decreasing by two cents in each of the previous quarters, but that changed in the October 2023 quarter.  The loss per share was down to $0.58 and that represented a 10 cent improvement.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

Following the most recent quarter estimates have trended higher.

The consensus estimate for the current quarter stood at a loss of $0.71 before the report and has since moved to a loss of $0.58.

Next quarter has seen the consensus move from a loss of $0.68 to a loss of $0.50.

The full fiscal year 2024 estimate Has moved from a loss of $2.61 to a loss of $2.32.

Next year has moved from a loss of $2.00 to a loss of $1.43.

These estimate revisions are all headed in the right direction and tell us that the company is pushing towards profitability.

Phreesia is a Zacks Rank #1 (Strong Buy) that has a F for Value and B for Growth.  This is medical information systems company is flying under the radar of most investors as it is a small cap and currently losing money.  The thing is, the company recently accelerated it push to profitability.  Let’s explore more about this company in this Bull of The Day article.

Description

Phreesia, Inc. engages in the provision of patient check-in solutions for medical practices. The firm offers appointments, clinical support, integration, registration, patient activation, analytics and reports, revenue cycle, patient surveys, and privacy and security products. Its solutions include health systems, multi-specialty, and federally qualified health centers (FQHCs).

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Phreesia, I see four beats of the Zacks Consensus Estimate over the last year.  The average positive earnings surprise over the last year works out to be a positive 12.2%.

The most recent beat saw an acceleration in the push to profitability.  The loss per share was decreasing by two cents in each of the previous quarters, but that changed in the October 2023 quarter.  The loss per share was down to $0.58 and that represented a 10 cent improvement.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

Following the most recent quarter estimates have trended higher.

The consensus estimate for the current quarter stood at a loss of $0.71 before the report and has since moved to a loss of $0.58.

Next quarter has seen the consensus move from a loss of $0.68 to a loss of $0.50.

The full fiscal year 2024 estimate Has moved from a loss of $2.61 to a loss of $2.32.

Next year has moved from a loss of $2.00 to a loss of $1.43.

These estimate revisions are all headed in the right direction and tell us that the company is pushing towards profitability.

Valuation

No earnings means no PE to lean on so we look to price to book.  The price to book multiple is 5.4x which is a little high for a company not earning money, but also could be double that when they reach profitability.  Price to sales comes in at 4.3x and operating margins continue to improve over the last few quarters.

No earnings means no PE to lean on so we look to price to book.  The price to book multiple is 5.4x which is a little high for a company not earning money, but also could be double that when they reach profitability.  Price to sales comes in at 4.3x and operating margins continue to improve over the last few quarters.

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