(PHR) Phreesia - Overview
Sector: Healthcare | Industry: Health Information Services | Exchange: NYSE (USA) | Market Cap: 561m USD | Total Return: -65.3% in 12m
Industry Rotation: -12.0
Avg Turnover: 12.8M
Qual. Beats: 1
Rev. Trend: 99.4%
Qual. Beats: 0
Warnings
P/E ratio 227.0
Interest Coverage Ratio -0.3 is critical
Altman Z'' -5.56 < 1.0 - financial distress zone
Tailwinds
Shakeout
Phreesia, Inc. (PHR) operates a specialized software-as-a-service (SaaS) platform designed to automate patient intake and financial workflows for healthcare providers in the United States and Canada. The company’s suite includes AI-enabled appointment scheduling, referral management, and automated patient communication tools. Beyond software, Phreesia provides physical hardware, such as self-service kiosks and tablets, to facilitate on-site data capture and clinical documentation.
The business model relies on a dual-revenue stream consisting of subscription fees from healthcare organizations and transaction-based fees from its integrated payment processing solutions. In the Health Care Technology sector, high switching costs often provide established SaaS providers with significant client retention, as clinical data integration is complex to replicate. Phreesia serves a diverse client base ranging from ambulatory practices and large health systems to life sciences companies and government entities.
Investors can evaluate the long-term sustainability of these revenue streams by reviewing the fundamental data on ValueRay. Founded in 2005 and headquartered in Delaware, the company focuses on accelerating cash collections for providers while streamlining the digital patient experience.
- Life sciences engagement revenue growth drives high-margin subscription and media scalability
- Patient payment volume expansion accelerates recurring transaction processing fee income
- Operating leverage and cost discipline determine path to consistent GAAP profitability
- Increasing healthcare provider network density enhances long-term upsell and cross-sell potential
- Regulatory changes in data privacy impact pharmaceutical advertising and patient outreach efficacy
| Net Income: 2.31m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 6.60 > 1.0 |
| NWC/Revenue: 20.10% < 20% (prev 21.26%; Δ -1.16% < -1%) |
| CFO/TA 0.12 > 3% & CFO 78.8m > Net Income 2.31m |
| Net Debt (28.6m) to EBITDA (29.5m): 0.97 < 3 |
| Current Ratio: 1.53 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.5m) vs 12m ago 5.52% < -2% |
| Gross Margin: 61.27% > 18% (prev 0.68%; Δ 6.06k% > 0.5%) |
| Asset Turnover: 91.35% > 50% (prev 108.1%; Δ -16.73% > 0%) |
| Interest Coverage Ratio: -0.29 > 6 (EBITDA TTM 29.5m / Interest Expense TTM 6.95m) |
| A: 0.15 (Total Current Assets 279.8m - Total Current Liabilities 183.2m) / Total Assets 663.8m |
| B: -1.20 (Retained Earnings -799.2m / Total Assets 663.8m) |
| C: -0.00 (EBIT TTM -1.99m / Avg Total Assets 526.1m) |
| D: -2.45 (Book Value of Equity -799.0m / Total Liabilities 326.6m) |
| Altman-Z'' Score: -5.56 = D |
| DSRI: 1.83 (Receivables 154.6m/73.6m, Revenue 480.6m/419.8m) |
| GMI: 1.11 (GM 61.27% / 67.86%) |
| AQI: 1.32 (AQ_t 0.54 / AQ_t-1 0.41) |
| SGI: 1.14 (Revenue 480.6m / 419.8m) |
| TATA: -0.12 (NI 2.31m - CFO 78.8m) / TA 663.8m) |
| Beneish M-Score: -2.07 (Cap -4..+1) = BB |
Over the past week, the price has changed by -3.70%, over one month by -6.15%, over three months by -30.37% and over the past year by -65.28%.
- StrongBuy: 10
- Buy: 5
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 15.4 | 73.9% |
P/E Forward = 18.4843
P/S = 1.1671
P/B = 1.8326
Revenue TTM = 480.6m USD
EBIT TTM = -1.99m USD
EBITDA TTM = 29.5m USD
Long Term Debt = 90.0m USD (from longTermDebt, last quarter)
Short Term Debt = 9.22m USD (from shortTermDebt, last quarter)
Debt = 102.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 28.6m USD (from netDebt column, last quarter)
Enterprise Value = 589.5m USD (560.9m + Debt 102.4m - CCE 73.8m)
Interest Coverage Ratio = -0.29 (Ebit TTM -1.99m / Interest Expense TTM 6.95m)
EV/FCF = 9.24x (Enterprise Value 589.5m / FCF TTM 63.8m)
FCF Yield = 10.83% (FCF TTM 63.8m / Enterprise Value 589.5m)
FCF Margin = 13.28% (FCF TTM 63.8m / Revenue TTM 480.6m)
Net Margin = 0.48% (Net Income TTM 2.31m / Revenue TTM 480.6m)
Gross Margin = 61.27% ((Revenue TTM 480.6m - Cost of Revenue TTM 186.1m) / Revenue TTM)
Gross Margin QoQ = 43.01% (prev 68.40%)
Tobins Q-Ratio = 0.89 (Enterprise Value 589.5m / Total Assets 663.8m)
Interest Expense / Debt = 5.17% (Interest Expense 5.30m / Debt 102.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -1.57m (EBIT -1.99m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.53 (Total Current Assets 279.8m / Total Current Liabilities 183.2m)
Debt / Equity = 0.30 (Debt 102.4m / totalStockholderEquity, last quarter 337.2m)
Debt / EBITDA = 0.97 (Net Debt 28.6m / EBITDA 29.5m)
Debt / FCF = 0.45 (Net Debt 28.6m / FCF TTM 63.8m)
Total Stockholder Equity = 309.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.44% (Net Income 2.31m / Total Assets 663.8m)
RoE = 0.75% (Net Income TTM 2.31m / Total Stockholder Equity 309.4m)
RoCE = -0.50% (EBIT -1.99m / Capital Employed (Equity 309.4m + L.T.Debt 90.0m))
RoIC = -0.46% (negative operating profit) (NOPAT -1.57m / Invested Capital 341.5m)
WACC = 10.56% (E(560.9m)/V(663.4m) * Re(11.74%) + D(102.4m)/V(663.4m) * Rd(5.17%) * (1-Tc(0.21)))
Discount Rate = 11.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 4.87%
[DCF] Terminal Value 60.03% ; FCFF base≈43.0m ; Y1≈28.2m ; Y5≈12.9m
[DCF] Fair Price = 2.41 (EV 177.3m - Net Debt 28.6m = Equity 148.7m / Shares 61.8m; r=10.56% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.82 | # QB: 1
Revenue Correlation: 99.38 | Revenue CAGR: 18.04% | SUE: 0.19 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.31 | Chg30d=-6.65% | Revisions=-40% | Analysts=10
EPS current Year (2027-01-31): EPS=1.39 | Chg30d=-3.62% | Revisions=-43% | GrowthEPS=+7.9% | GrowthRev=+7.3%
EPS next Year (2028-01-31): EPS=1.73 | Chg30d=+2.35% | Revisions=-40% | GrowthEPS=+24.2% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: -43%