Progyny Inc. Common Stock (PGNY)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $213 million in annual free cash flow (14.9% yield on market cap)
• Solid return on equity of 12.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.05, providing financial flexibility
• Altman Z-Score of 5.2 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($10) with negative 83% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Progyny Inc. Common Stock is a micro-cap healthcare company valued at $1.4 billion. The business generates $1.3 billion in annual revenue with a 1.0% net margin and $213 million in free cash flow. From a quality standpoint, Progyny shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 5.2 confirms fortress-level solvency. On valuation, the stock is trading at a premium 27.2x earnings, with trades above its Graham Number with a negative 83% margin. Growth dynamics show revenue growing at 6.7% and profit growth of 18.5%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $213 million in annual free cash flow (14.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer