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Guardian Pharmacy Services

GRDN
52
Medical - Distribution · Healthcare
Price
$40.52
+0.15 (+0.37%)
Market Cap
$2.57B
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+4.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 60.8M (2021) → 63.3M (2025)

Guardian Pharmacy Services delivers prescription medications and pharmacy services to people living in long-term care facilities, such as nursing homes and assisted living communities. Instead of patients going to a regular pharmacy, Guardian brings the medications directly to these facilities and manages the entire dispensing process. The company operates as a specialty pharmacy focused almost entirely on the long-term care market across the United States.

Guardian makes money by dispensing medications and charging for the pharmacy management services it provides to care facilities. It operates a network of local pharmacy locations spread across multiple states, allowing it to serve facilities with fast, reliable delivery — a key advantage that is hard for large national chains to replicate at the local level. The main growth driver is the aging U.S. population, which is steadily increasing demand for long-term care beds and the pharmacy services that support them, though reimbursement rate pressure from Medicare and Medicaid remains an ongoing risk to profit margins.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+40.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (18%)

Research and development spending

Insider Activity

19.3%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$65M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Guardian Pharmacy Services is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
22.7%
Thin — 22.7% gross margin
Operating Margin
5.3%
Thin — 5.3% operating margin
ROCE
7.7%
Weak — 7.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+13.5%
Fast-growing sales (13.5% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
167%
Turns 167% of profit into real cash
FCF Margin
4.8%
Thin free cash flow (4.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.03
Conservative — low debt load (0.03)
Interest Cover
128.94x
Comfortably covers interest (128.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
47.7x
Expensive — P/E 47.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+14.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (47.7 → 33.3)

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Dividends

Not applicable for this business.
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