BRIGHTSPRING HEALTH SERVICES (BTSG) Stock Fundamental Analysis
NASDAQ:BTSG - Nasdaq - US10950A1060 - Common Stock - Currency: USD
BTSG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. BTSG has a medium profitability rating, but doesn't score so well on its financial health evaluation. BTSG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BTSG had positive earnings in the past year.
In the past year BTSG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BTSG reported negative net income in multiple years.
BTSG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BTSG has a Return On Assets (0.98%) which is comparable to the rest of the industry.
BTSG has a Return On Equity (3.39%) which is in line with its industry peers.
With a Return On Invested Capital value of 4.48%, BTSG perfoms like the industry average, outperforming 53.40% 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 9.70%.
The 3 year average ROIC (3.45%) for BTSG is below the current ROIC(4.48%), indicating increased profibility in the last year.
| 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 has a Operating Margin (2.15%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BTSG has grown nicely.
With a Gross Margin value of 13.46%, BTSG is not doing good in the industry: 69.90% 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
Compared to 5 years ago, BTSG has more shares outstanding
Compared to 1 year ago, BTSG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.82 indicates that BTSG is not a great score, but indicates only limited risk for bankruptcy at the moment.
BTSG's Altman-Z score of 2.82 is fine compared to the rest of the industry. BTSG outperforms 60.19% 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.
The Debt to FCF ratio of BTSG (19.98) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.48 is on the high side and indicates that BTSG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.48, BTSG is doing worse than 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 19.98 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.53
WACC8.44%
2.3 Liquidity
BTSG has a Current Ratio of 1.73. This is a normal value and indicates that BTSG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BTSG (1.73) is better than 62.14% of its industry peers.
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 comparable to the rest of the industry.
| 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.
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
BTSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.97% yearly.
Based on estimates for the next years, BTSG will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y56.48%
EPS Next 2Y39.35%
EPS Next 3Y31.48%
EPS Next 5Y29.97%
Revenue Next Year9.95%
Revenue Next 2Y11.22%
Revenue Next 3Y11.46%
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
A Price/Earnings ratio of 33.11 indicates a quite expensive valuation of BTSG.
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 similar valuation than the S&P500 average which is at 28.04.
BTSG is valuated rather expensively with a Price/Forward Earnings ratio of 19.22.
BTSG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BTSG to the average of the S&P500 Index (37.64), we can say BTSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.11 | ||
| Fwd PE | 19.22 |
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 | 28.4 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
BTSG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BTSG's earnings are expected to grow with 31.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y39.35%
EPS Next 3Y31.48%
5. Dividend
5.1 Amount
No dividends for BTSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.53
-0.13 (-0.63%)
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 Change-0.03%
Ins Owners2.93%
Ins Owner Change11.51%
Market Cap3.62B
Analysts84.21
Price Target28.67 (39.65%)
Short Float %17.58%
Short Ratio5.8
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)4.71%
PT rev (3m)13.87%
EPS NQ rev (1m)7.14%
EPS NQ rev (3m)39.29%
EPS NY rev (1m)1.38%
EPS NY rev (3m)47.27%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.11 | ||
| Fwd PE | 19.22 | ||
| P/S | 0.31 | ||
| P/FCF | 28.4 | ||
| P/OCF | 17.73 | ||
| P/B | 2.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)0.62
EY3.02%
EPS(NY)1.07
Fwd EY5.2%
FCF(TTM)0.72
FCFY3.52%
OCF(TTM)1.16
OCFY5.64%
SpS65.58
BVpS9.57
TBVpS-7.09
PEG (NY)0.59
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 | 2.82 |
F-Score6
WACC8.44%
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 Y56.48%
EPS Next 2Y39.35%
EPS Next 3Y31.48%
EPS Next 5Y29.97%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y18.93%
Revenue growth 5Y20.01%
Sales Q2Q%11.7%
Revenue Next Year9.95%
Revenue Next 2Y11.22%
Revenue Next 3Y11.46%
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%