Signify Health Set to be Acquired by CVS After Receiving Delisting Notice from NYSE
April 2, 2023
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Signify Health ($NYSE:SGFY), a leading provider of digital health solutions, received a delisting notice from the New York Stock Exchange (NYSE) after announcing its acquisition by CVS Health. The stock of Signify Health has risen on the NYSE in response to this news. The company works to provide integrated digital solutions that provide insights and analytics to help health care providers give better care. Its services range from helping healthcare providers better manage care for patients to providing virtual care to those with chronic illnesses. The acquisition of Signify Health by CVS Health is part of a larger effort to improve and expand its health services.
CVS Health aims to use Signify’s digital platform to increase access and affordability of care as well as reduce administrative costs. The acquisition includes delisting from the NYSE, which led to an increase in Signify’s stock price. The acquisition is expected to be finalized later this year. Once completed, Signify Health will transition to a private company and become an integrated part of CVS Health’s portfolio of services.
Market Price
On Monday, SIGNIFY HEALTH saw its stock rise 5.8% from its last closing price of 28.8, opening at 30.5 and closing at the same price. The rise in stock was due to news that CVS is set to acquire the healthcare technology company after it received a delisting notice from the New York Stock Exchange (NYSE). SIGNIFY HEALTH provides healthcare-as-a-service solutions which are designed to improve outcomes and reduce cost for healthcare organizations and employers.
The company’s products and services span primary care, mental and behavioral health, data analytics, and digital therapeutics. The acquisition is expected to open the door for CVS to provide a comprehensive suite of healthcare services for the customers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Signify Health. More…
| Total Revenues | Net Income | Net Margin |
| 805.5 | -576.8 | 13.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Signify Health. More…
| Operations | Investing | Financing |
| 98 | -219.1 | 1.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Signify Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.74k | 923.5 | 2.79 |
Key Ratios Snapshot
Some of the financial key ratios for Signify Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.1% | 76.0% | -14.4% |
| FCF Margin | ROE | ROA |
| 8.7% | -11.3% | -4.2% |
Analysis
GoodWhale recently conducted an analysis of SIGNIFY HEALTH‘s wellbeing. The results of our assessment revealed that SIGNIFY HEALTH had a high health score of 8/10 according to our Star Chart. This takes into account their cashflows and debt, indicating that the company is in a strong position to sustain future operations even in times of crisis. Based on our evaluation, we classify SIGNIFY HEALTH as ‘rhino’, which indicates the company has achieved moderate revenue or earnings growth. Investors who are seeking businesses with moderate growth potential may be interested in this company. Our analysis also found that SIGNIFY HEALTH is strong in growth, medium in profitability and weak in asset, dividend. Despite such weaknesses, the company is still in a good position and has the capacity to sustain future operations. More…
Peers
In the healthcare industry, there is intense competition between Signify Health Inc and its competitors Accolade Inc, 1Life Healthcare Inc, and Teladoc Health Inc. All four companies are fighting for a larger share of the market, and each has its own unique strengths and weaknesses.
– Accolade Inc ($NASDAQ:ACCD)
Accolade Inc. is a provider of personalized health and benefits solutions. The company’s solutions include a mobile app and website that offer personalized guidance and support for health, benefits, and daily life; and an engagement platform that helps employers drive better health and benefits outcomes for their employees. Accolade Inc. has a market cap of $818.66M as of 2022 and a return on equity of -47.5%.
– 1Life Healthcare Inc ($NASDAQ:ONEM)
Life Healthcare Inc is a US based company that focuses on providing healthcare services. As of 2022, the company has a market cap of 3.34B and a ROE of -20.76%. The company has been struggling financially in recent years, which is reflected in its ROE. Despite this, the company continues to provide healthcare services to its patients.
– Teladoc Health Inc ($NYSE:TDOC)
Teladoc Health Inc is a company that provides telehealth services. It has a market cap of 4.11B as of 2022 and a Return on Equity of -81.03%. The company offers a variety of services such as primary care, behavioral health, and more.
Summary
Signify Health is a provider of technology-enabled health services with a focus on improving the quality of care and outcomes for patients. This notice was in response to the company’s planned sale to CVS, indicating positive sentiment from investors. Prior to the delisting notice, Signify Health had seen some highs and lows in its stock price, but has since seen steady growth.
Analysts have attributed this to investors having high expectations for the company’s potential with the new partnership. Moving forward, investors should watch Signify Health’s stock performance and announcements related to the sale to CVS for clues as to how the company may progress.
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