Healthcare Services Intrinsic Value Calculation – Healthcare Services Reports Positive Earnings Despite Lower Than Expected Revenue
April 27, 2023
Trending News ☀️
Healthcare Services ($NASDAQ:HCSG) reported a positive earnings report, despite missing expectations on their revenue figures. Healthcare Services, a publicly-traded medical services provider, reported a GAAP Earnings Per Share (EPS) of $0.17, beating expectations by $0.04. On the other hand, the company’s revenue of $417.23M fell short of the estimated figure of $6.28M. Healthcare Services provides a variety of medical services ranging from primary care to specialty services. The company has operations across the United States, Canada, and Mexico and is focused on providing quality care to patients and families at an affordable price.
Since its inception, Healthcare Services has established itself as a leader in providing quality medical care, as evidenced by its strong performance in the earnings report. This is a testament to the company’s commitment to providing quality health care services and its dedication to meeting the needs of its customers. Going forward, Healthcare Services looks well-positioned to continue growing and delivering positive results for its shareholders.
Market Price
The company’s stock opened at $14.0 and closed at $14.9, representing a rise of 7.5% from its previous closing price of 13.9. This indicates that investors are optimistic about the company’s future prospects and are confident in its ability to make a recovery. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Healthcare Services. More…
| Total Revenues | Net Income | Net Margin |
| 1.69k | 34.63 | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Healthcare Services. More…
| Operations | Investing | Financing |
| -8.17 | 2.58 | -38.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Healthcare Services. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 718.33 | 292.16 | 5.75 |
Key Ratios Snapshot
Some of the financial key ratios for Healthcare Services are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.8% | -19.6% | 2.8% |
| FCF Margin | ROE | ROA |
| -0.8% | 7.1% | 4.2% |
Analysis – Healthcare Services Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of the fundamentals of HEALTHCARE SERVICES. Based on our proprietary Valuation Line, we have determined that the fair value of a share in HEALTHCARE SERVICES is currently around $19.5. However, HEALTHCARE SERVICES stock is currently being traded at $14.9, which is undervalued by 23.5%. This suggests that now may be a good time to invest in HEALTHCARE SERVICES, as long-term investors may be able to benefit from the current price discrepancy. More…
Peers
Companies such as Cross Country Healthcare Inc, Nexteligent Holdings Inc, and AMN Healthcare Services Inc all present stiff competition in the market, making it a highly competitive environment. Although each company has its own unique strategy, they all share a common goal of providing the best healthcare services possible to their customers.
– Cross Country Healthcare Inc ($NASDAQ:CCRN)
Cross Country Healthcare Inc is a leading provider of healthcare staffing and workforce solutions for healthcare organizations in the United States. With a market cap of 990.94M as of 2023, it is one of the most influential players in the healthcare staffing industry. The company also has a strong return on equity (ROE) of 44.54%, indicating that it has been able to generate a healthy return on its investments. Cross Country Healthcare Inc provides a range of services to healthcare organizations, including temporary and permanent placement of nurses and allied professionals, travel nurse and allied staffing, managed services programs, and recruitment process outsourcing.
– Nexteligent Holdings Inc ($OTCPK:NXGT)
AMN Healthcare Services Inc is a healthcare staffing and workforce solutions company based in San Diego, California. It provides healthcare staffing, recruitment process outsourcing, and consulting services to healthcare organizations and healthcare providers. The company has a market capitalization of 4.46 billion dollars as of 2023 and a return on equity of 40.08%. This indicates that the company is performing well financially and has been able to generate significant returns for its shareholders. Furthermore, the market capitalization implies that the stock is highly valued by investors, making it attractive for potential investors.
Summary
Healthcare Services stocks continue to attract investor interest due to their potential for growth. The recent quarterly report of one of the leading healthcare services stocks shows that the company beat EPS estimates by $0.04 while revenue missed estimates by $6.28M. Despite the miss in revenue, the stock price moved up the same day. This highlights the strong confidence of investors in healthcare services stocks and the potential for long-term appreciation in value.
Analyst reports point to increasing demand for healthcare services worldwide and a large potential market of untapped customers. The growth of technology and innovation also create opportunities for healthcare services companies to expand their operations. Investors should continue to monitor this sector and take advantage of potential opportunities.
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