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. There are concerns on the financial health of BTSG while its profitability can be described as average. While showing a medium growth rate, BTSG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BTSG was profitable.
BTSG had a positive operating cash flow in the past year.
In multiple years BTSG reported negative net income over the last 5 years.
BTSG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.98%, BTSG perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
The Return On Equity of BTSG (3.39%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.48%, BTSG perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
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
BTSG has a Profit Margin of 0.49%. This is comparable to the rest of the industry: BTSG outperforms 50.98% of its industry peers.
BTSG has a Operating Margin (2.15%) which is in line with its industry peers.
BTSG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 13.46%, BTSG is not doing good in the industry: 68.63% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BTSG 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
BTSG has an Altman-Z score of 2.83. This is not the best score and indicates that BTSG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BTSG (2.83) is better than 65.69% of its industry peers.
The Debt to FCF ratio of BTSG is 19.98, which is on the high side as it means it would take BTSG, 19.98 years of fcf income to pay off all of its debts.
BTSG's Debt to FCF ratio of 19.98 is in line compared to the rest of the industry. BTSG outperforms 41.18% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that BTSG has dependencies on debt financing.
BTSG has a worse Debt to Equity ratio (1.48) than 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 19.98 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.53
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.73 indicates that BTSG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.73, BTSG is in the better half of 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.
BTSG has a Quick ratio (1.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
BTSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 122.31%, which is quite impressive.
BTSG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.45%.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.10, which means the current valuation is very expensive for BTSG.
BTSG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BTSG to the average of the S&P500 Index (26.34), we can say BTSG is valued slightly more expensively.
A Price/Forward Earnings ratio of 22.79 indicates a rather expensive valuation of BTSG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BTSG is on the same level as its industry peers.
BTSG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.1 | ||
| Fwd PE | 22.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BTSG.
BTSG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.59 | ||
| EV/EBITDA | 13.91 |
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)0.73
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 |
22.38
+1.03 (+4.82%)
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 Cap3.90B
Analysts84.44
Price Target27.38 (22.34%)
Short Float %15.07%
Short Ratio4.78
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 | 36.1 | ||
| Fwd PE | 22.79 | ||
| P/S | 0.34 | ||
| P/FCF | 30.59 | ||
| P/OCF | 19.09 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.91 |
EPS(TTM)0.62
EY2.77%
EPS(NY)0.98
Fwd EY4.39%
FCF(TTM)0.73
FCFY3.27%
OCF(TTM)1.17
OCFY5.24%
SpS66.39
BVpS9.68
TBVpS-7.18
PEG (NY)0.73
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
WACC8.52%
ROIC/WACC0.53
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%