What Does Progyny’s Falling Multiple Really Say?
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Investors typically view a lower price-to-earnings multiple, which measures what they pay for each dollar of profit, as the sign of a cheaper stock, and Progyny, Inc. (PGNY) has watched its multiple fall a long way. Three years ago, the company traded at 62.5 times its trailing twelve-month profit. At the latest close, it traded at 30.6 times. Does that make Progyny stock cheaper today?
Progyny Stock Rose While Its Multiple Fell
Over the same three years, Progyny’s share price rose 7.3%, not counting dividends. The price went up and the multiple came down at the same time. Buyers from three years ago gained, even as the market paid less for each dollar of Progyny’s profit. Progyny also bought back shares, and its diluted share count fell from 101 million to 81.2 million.
How Much Has Progyny’s Profit Grown?
Progyny generated $91.0 million in profit over the latest twelve months, up from $52.0 million three years ago. That represents about 1.8 times the earlier figure, though profit did not increase every year: profit fell slightly during the twelve months ending in September 2025.
| Twelve months to | Net income | Change in a year | Price-to-earnings |
|---|---|---|---|
| Sep 30, 2021 | $89.8 million | +2,905.1% | 55.9 |
| Sep 30, 2022 | $42 million | -53.2% | 81.4 |
| Sep 30, 2023 | $52 million | +23.7% | 62.5 |
| Sep 30, 2024 | $57.3 million | +10.2% | 26.4 |
| Sep 30, 2025 | $56.6 million | -1.2% | 32.7 |
| Sep 30, 2026 | $91 million | +60.9% | 21.1 |
| Sep 30, 2026 (at the share price of Nov 11, 2026) | $91 million | +60.9% | 30.6 |
Net income is the reported total for the twelve months ending on the date shown. Change in a year is that net income against the twelve months before. Each price-to-earnings multiple is the market value at the calendar quarter end paired with those twelve months, over that net income; the last row uses the share price of Nov 11, 2026.
Progyny sells fertility benefits that employers offer their workers. These fertility benefits services accounted for 64.5% of its revenue in 2025, with the rest coming from the Progyny Rx pharmacy program. For the third quarter of 2026, management said gross margin rose 130 basis points from a year earlier because stock compensation expense fell and the company delivered its care management services more efficiently.
Does A Lower Multiple Make Progyny Cheaper?
Not simply. Progyny’s multiple was highest when it earned far less. Across its quarter ends over the past five years, the multiple peaked at the end of 2022, at 95.5 times profit. Profit today is about three times what it was then. That peak came after profit had fallen.
A buyer today does pay less for each dollar of Progyny’s profit than a buyer three years ago did. But that earlier buyer was paying in advance for growth that has since arrived. A stock’s multiple tends to be highest while profit is small and expected to grow, and lower once that profit is in hand. Progyny’s lower multiple partly reflects that growth.
Where Is Progyny On That Curve Now?
Progyny’s profit is still growing, and at a faster rate than before: it rose 60.9% in the latest twelve months, following a 1.2% drop the year prior. Revenue grew 5.5% over those same twelve months, so profit expanded far faster than sales. Today, Progyny trades at a multiple above the S&P 500’s 21.9. The company is expected to report again in February 2027, and the figure to watch then is whether profit keeps growing at close to the latest year’s pace.
Beyond PGNY: A Systematic Way To Invest
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