DocGo: Current Post-Earnings Sell-Off Presents Double-Digit Upside Potential

Nov. 21, 2022 2:54 PM ETDocGo Inc. (DCGO)10 Comments
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Summary

  • DocGo Q3 beat topline revenue but missed bottom-line earnings; however, that was due to accounting for a one-time loss from the remeasurement of warrant liabilities.
  • The end of Covid Testing did not materially impact its revenue stream, while its long-term municipal contracts are looking to expand, serving as a recession cushion.
  • The company continued strengthening its technological advantage in Q3.
  • Its healthy earnings growth, controlled operating cost, and low debt burden will propel its momentum in the current challenging environment.

Senior Asian woman having a virtual appointment with doctor online, consulting her prescription and choice of medication on smartphone at home. Telemedicine, elderly and healthcare concept

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Investment Thesis

We previously covered DocGo and rated it as a Buy. DocGo remains firm in its upward growth potential with strong technological advantage and recession-cushioned cash flow through long-term contracts. In addition, it demonstrated in Q3 both continued efficient cost

DCGO Operating Exp vs EBITDA

DCGO Operating Exp vs EBITDA (Calculated and Charted by Waterside Insight with data from DCGO)

DCGO Quick Ratio

DCGO Quick Ratio (Calculated and Charted by Waterside Insight with data from DCGO)

DCGO Earnings from Operation

DCGO Earnings from Operation (Calculated and Charted by Waterside Insight with data from DCGO)

DCGO Debt To Equity Ratio

DCGO Debt To Equity Ratio (Calculated and Charted by Waterside Insight with data from DCGO)

DCGO Operating Expenses vs Cost of Revenue

DCGO Cost Analysis (Calculated and Charted by Waterside Insight with data from DCGO)

DCGO Overview

DCGO Overview (Calculated and Charted by Waterside Insight with data from DCGO, Seeking Alpha, Yahoo Finance!)

This article was written by

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We have over 20 years of investment experience in stocks, fixed income, forex, commodities futures, and options with success. We provide independent opinions and insights focused on discovering medium-term investment opportunities. Waterside Insight is a wholly-owned subsidiary of RootBanyan Capital Management LLC.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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