GDRX

GoodRx Holdings Inc - Ordinary Shares - Class A

Healthcare, TMT


Presented:04/13/2022
Price:$18.79
Cap:$7.53B
Current Price:$6.96
Cap:$2.64B

Presented

Date04/13/2022
Price$18.79
Market Cap$7.53B
Ent Value$12.85B
P/E RatioN/A
Book Value$2.08
Div Yield0%
Shares O/S400.85M
Ave Daily Vol2,752,306
Short Int12.24%

Current

Price$6.96
Market Cap$2.64B
GoodRx Holdings, Inc. operates a consumer-focused digital healthcare platform. The firm offers information and tools to help consumers compare prices for prescription drugs. It operates applications and websites that provide prices and discounts at local and mail-order pharmacies. The company was founded by in Trevor Bezdek and Douglas Hirsch Joseph in September 2015 and is headquartered in Santa Monica, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), GoodRx Holdings Inc (GDRX)

Highlights

The presenter is long shares of GoodRx Holdings Inc (GDRX) based on the business’s compelling value proposition in an important aspect of the economy. He thinks the company has an attractive growth story and an asset productivity opportunity, especially for a highly profitable business. The stock has rerated meaningfully lower (-60% last 6 months) along with other growth stocks, but he ultimately views GDRX as underfollowed and misunderstood, creating an attractive entry point as secular penetration starts to accelerate. He views this as a consumer story because healthcare is increasingly becoming a consumer proposition, especially in pharmaceuticals with insured individuals becoming increasingly price sensitive due to higher deductibles, tiering within pharmacy benefit manager (PBM) formularies, and the ability to visit supermarkets to see various generic drug savings plans. If GDRX can generate 25% topline growth alongside margin expansion, he is confident that would support a 20x EBITDA multiple, more than doubling the stock price over the next 12 – 18 months. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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