R1 RCM Reports Earnings for Q2 of FY2023
August 8, 2023
🌥️Earnings Overview
R1 RCM ($NASDAQ:RCM) reported their financial results for the second quarter of fiscal year 2023, with total revenue reaching USD 560.7 million, a 43.1% increase compared to the same quarter in the previous year. Net income for the quarter also saw a significant increase of 101.5%, coming in at USD 0.3 million.
Market Price
On Wednesday, R1 RCM reported their earnings for the second quarter of FY2023. The stock opened the day at $17.0 and closed at $18.2, showing a 3.2% increase from the previous day’s closing price of 17.6. The overall market sentiment was positive towards the announcement, as investors seemed pleased with the company’s performance. This growth was driven by a strong customer base and an increased demand for their services.
In addition, their cost reduction efforts enabled them to save millions of dollars in costs. Furthermore, they launched new products and services that encouraged clients to use their services for a longer period of time. Overall, R1 RCM had a successful quarter, with their stock price reflecting the positive market response to the announcement. It is expected that they will continue to expand and strengthen their offerings in the upcoming quarters, further reinforcing their position as industry leaders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for R1 Rcm. More…
| Total Revenues | Net Income | Net Margin |
| 2.14k | -66 | 0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for R1 Rcm. More…
| Operations | Investing | Financing |
| 167.7 | -106.7 | -100.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for R1 Rcm. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.07k | 2.33k | 6.55 |
Key Ratios Snapshot
Some of the financial key ratios for R1 Rcm are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.5% | 11.3% | 2.6% |
| FCF Margin | ROE | ROA |
| 3.2% | 1.3% | 0.7% |
Analysis
GoodWhale’s analysis of R1 RCM‘s financials revealed that, according to the Star Chart, the company is strong in growth, medium in profitability and weak in asset and dividend. We classified R1 RCM as a ‘cheetah’ company; one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Considering the health score of 5/10, indicating its ability to pay off debt and fund future operations, investors who are looking for potential growth opportunities with an active approach may be interested in this type of company. However, due to its weaker asset and dividend ratings, investors should be aware of the potential risks associated with such investments. More…
Peers
Its competitors include MobileSmith Inc, Thomson Medical Group Ltd, and Ping An Healthcare And Technology Co Ltd.
– MobileSmith Inc ($SGX:A50)
Thomson Medical Group Ltd is a Singapore-based healthcare group. The Group’s segments include Healthcare Services, which comprises hospital, clinics and health insurance businesses; and Healthcare Equipment and Supplies, which comprises medical equipment and supplies businesses. The Company’s healthcare services segment includes Thomson Medical Centre, Thomson Women’s Clinic, The Children’s Clinic, Camden Medical Centre, Gleneagles Hong Kong Hospital, KK Women’s and Children’s Hospital, Mount Elizabeth Novena Hospital and Parkway East Hospital. The Company’s healthcare equipment and supplies segment includes Thomson Medisave, Thomson Chinese Medicine and Thomson Wellth Clinic.
– Thomson Medical Group Ltd ($SEHK:01833)
Ping An Healthcare and Technology Co Ltd is a holding company that provides technology-enabled healthcare services in China. The company operates an online platform that offers medical and health services, including disease screening, health management, and telemedicine consultation. It also provides online pharmacy services. The company was founded in 2014 and is headquartered in Shenzhen, China.
Summary
R1 RCM Inc. posted strong financial results for the second quarter of their fiscal year 2023, driven by a 43.1% increase in total revenue and a 101.5% increase in net income. The news was well-received by investors, as the stock price rose in response to the earnings announcement. Analysts are now optimistic about the future prospects of R1 RCM, as they continue to deliver strong financial results.
Many are recommending the stock as a buy, as they expect that the company’s growth trajectory should continue. Investors should consider adding R1 RCM to their portfolios, as it may provide attractive returns in the future.
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