BRIGHTSPRING HEALTH SERVICES (BTSG) Stock Fundamental Analysis
NASDAQ:BTSG - Nasdaq - US10950A1060 - Common Stock - Currency: USD
Overall BTSG gets a fundamental rating of 4 out of 10. We evaluated BTSG against 102 industry peers in the Health Care Providers & Services industry. While BTSG is still in line with the averages on profitability rating, there are concerns on its financial health. BTSG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BTSG had positive earnings in the past year.
BTSG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BTSG reported negative net income in multiple years.
Of the past 5 years BTSG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BTSG (0.98%) is comparable to the rest of the industry.
BTSG has a Return On Equity of 3.39%. This is comparable to the rest of the industry: BTSG outperforms 56.86% of its industry peers.
BTSG has a Return On Invested Capital (4.48%) which is in line with its industry peers.
BTSG had an Average Return On Invested Capital over the past 3 years of 3.45%. This is significantly below the industry average of 9.62%.
The last Return On Invested Capital (4.48%) for BTSG is above the 3 year average (3.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 3.39% | ||
| ROIC | 4.48% |
ROA(3y)-1.36%
ROA(5y)-0.55%
ROE(3y)-11.56%
ROE(5y)-5.06%
ROIC(3y)3.45%
ROIC(5y)3.56%
1.3 Margins
The Profit Margin of BTSG (0.49%) is comparable to the rest of the industry.
BTSG's Operating Margin of 2.15% is in line compared to the rest of the industry. BTSG outperforms 49.02% of its industry peers.
In the last couple of years the Operating Margin of BTSG has grown nicely.
Looking at the Gross Margin, with a value of 13.46%, BTSG is doing worse than 68.63% of the companies in the same industry.
BTSG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.15% | ||
| PM (TTM) | 0.49% | ||
| GM | 13.46% |
OM growth 3Y-19.38%
OM growth 5Y5.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.88%
GM growth 5Y-5.21%
2. Health
2.1 Basic Checks
BTSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BTSG has more shares outstanding
BTSG has more shares outstanding than it did 5 years ago.
BTSG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.83 indicates that BTSG is not a great score, but indicates only limited risk for bankruptcy at the moment.
BTSG has a Altman-Z score of 2.83. This is in the better half of the industry: BTSG outperforms 64.71% of its industry peers.
BTSG has a debt to FCF ratio of 19.98. This is a negative value and a sign of low solvency as BTSG would need 19.98 years to pay back of all of its debts.
With a Debt to FCF ratio value of 19.98, BTSG perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
BTSG has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.48, BTSG is not doing good in the industry: 69.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 19.98 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.52
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.73 indicates that BTSG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.73, BTSG is doing good in the industry, outperforming 63.73% of the companies in the same industry.
BTSG has a Quick Ratio of 1.37. This is a normal value and indicates that BTSG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, BTSG is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 122.31% over the past year.
The Revenue has been growing slightly by 1.45% in the past year.
Measured over the past years, BTSG shows a very strong growth in Revenue. The Revenue has been growing by 20.01% on average per year.
EPS 1Y (TTM)122.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%58.33%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y18.93%
Revenue growth 5Y20.01%
Sales Q2Q%11.7%
3.2 Future
The Earnings Per Share is expected to grow by 29.97% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.63% on average over the next years.
EPS Next Y49.38%
EPS Next 2Y33.62%
EPS Next 3Y28.91%
EPS Next 5Y29.97%
Revenue Next Year9.66%
Revenue Next 2Y10.77%
Revenue Next 3Y10.94%
Revenue Next 5Y7.63%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.39, BTSG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BTSG is on the same level as its industry peers.
BTSG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 21.71 indicates a rather expensive valuation of BTSG.
BTSG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. BTSG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.39 | ||
| Fwd PE | 21.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BTSG is on the same level as its industry peers.
BTSG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.14 | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BTSG's earnings are expected to grow with 28.91% in the coming years.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y33.62%
EPS Next 3Y28.91%
5. Dividend
5.1 Amount
No dividends for BTSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.32
+0.14 (+0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners53.2%
Inst Owner Change0.44%
Ins Owners2.93%
Ins Owner Change10.87%
Market Cap3.72B
Analysts84.44
Price Target27.38 (28.42%)
Short Float %14.33%
Short Ratio5.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)47.16%
Min EPS beat(2)-2.7%
Max EPS beat(2)97.01%
EPS beat(4)1
Avg EPS beat(4)3.84%
Min EPS beat(4)-40.94%
Max EPS beat(4)97.01%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.12%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)2.37%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)4.83%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.61%
PT rev (3m)11.21%
EPS NQ rev (1m)-5.45%
EPS NQ rev (3m)30.01%
EPS NY rev (1m)0%
EPS NY rev (3m)25.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.39 | ||
| Fwd PE | 21.71 | ||
| P/S | 0.32 | ||
| P/FCF | 29.14 | ||
| P/OCF | 18.19 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.85 |
EPS(TTM)0.62
EY2.91%
EPS(NY)0.98
Fwd EY4.61%
FCF(TTM)0.73
FCFY3.43%
OCF(TTM)1.17
OCFY5.5%
SpS66.39
BVpS9.68
TBVpS-7.18
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 3.39% | ||
| ROCE | 5.67% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 14.07% | ||
| OM | 2.15% | ||
| PM (TTM) | 0.49% | ||
| GM | 13.46% | ||
| FCFM | 1.1% |
ROA(3y)-1.36%
ROA(5y)-0.55%
ROE(3y)-11.56%
ROE(5y)-5.06%
ROIC(3y)3.45%
ROIC(5y)3.56%
ROICexc(3y)3.47%
ROICexc(5y)3.63%
ROICexgc(3y)17.05%
ROICexgc(5y)18.21%
ROCE(3y)4.37%
ROCE(5y)4.5%
ROICexcg growth 3Y-9.4%
ROICexcg growth 5Y19.06%
ROICexc growth 3Y-3.14%
ROICexc growth 5Y18.48%
OM growth 3Y-19.38%
OM growth 5Y5.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.88%
GM growth 5Y-5.21%
F-Score6
Asset Turnover1.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 19.98 | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 38.81% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 1.22 | ||
| Cash Conversion | 45.71% | ||
| Profit Quality | 222.79% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 2.83 |
F-Score6
WACC8.54%
ROIC/WACC0.52
Cap/Depr(3y)36.76%
Cap/Depr(5y)33.73%
Cap/Sales(3y)0.82%
Cap/Sales(5y)0.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)122.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%58.33%
EPS Next Y49.38%
EPS Next 2Y33.62%
EPS Next 3Y28.91%
EPS Next 5Y29.97%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y18.93%
Revenue growth 5Y20.01%
Sales Q2Q%11.7%
Revenue Next Year9.66%
Revenue Next 2Y10.77%
Revenue Next 3Y10.94%
Revenue Next 5Y7.63%
EBIT growth 1Y60.42%
EBIT growth 3Y-4.13%
EBIT growth 5Y26.66%
EBIT Next Year54.27%
EBIT Next 3Y23.8%
EBIT Next 5YN/A
FCF growth 1Y-141.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.72%
OCF growth 3Y-55.52%
OCF growth 5Y-26.51%