Phreesia Stock To $12?

Phreesia (PHR) stock has fallen 23% during the past day, and is currently trading at $15.43. Our multi-factor assessment suggests that it may be time to sell PHR stock. We have, overall, a pessimistic view of the stock, and a price of $12 may not be out of reach. We believe there is a near-equal mix of good and bad in PHR stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $919 Mil in market cap, Phreesia provides an integrated SaaS-based software and payment platform for healthcare across various devices, serving patients, medical practices, health systems, and life sciences companies in the US and Canada.

[1] Valuation Looks Very High

This table highlights how PHR is valued vs broader market. For more details see: PHR Valuation Ratios

[2] Growth Is Very Strong

• Phreesia has seen its top line grow at an average rate of 22.6% over the last 3 years
• Its revenues have grown 15% from $390 Mil to $450 Mil in the last 12 months
• Also, its quarterly revenues grew 14.8% to $117 Mil in the most recent quarter from $102 Mil a year ago.

This table highlights how PHR is growing vs broader market. For more details see: PHR Revenue Comparison

[3] Profitability Appears Very Weak

• PHR last 12 month operating income was $-26 Mil representing operating margin of -5.8%
• With cash flow margin of 11.5%, it generated nearly $52 Mil in operating cash flow over this period
• For the same period, PHR generated nearly $-24 Mil in net income, suggesting net margin of about -5.3%

This table highlights how PHR profitability vs broader market. For more details see: PHR Operating Income Comparison

[4] Financial Stability Looks Very Strong

• PHR Debt was $13 Mil at the end of the most recent quarter, while its current Market Cap is $919 Mil. This implies Debt-to-Equity Ratio of 0.7%
• PHR Cash (including cash equivalents) makes up $98 Mil of $409 Mil in total Assets. This yields a Cash-to-Assets Ratio of 24.0%

[5] Downturn Resilience Is Very Weak

PHR has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• PHR stock fell 84.6% from a high of $80.61 on 9 February 2021 to $12.39 on 30 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $32.55 on 28 August 2025 , and currently trades at $15.43

 
2020 Covid Pandemic

• PHR stock fell 51.4% from a high of $34.13 on 21 February 2020 to $16.59 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 21 October 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read PHR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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