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 correct valuation and a medium 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.
In multiple years BTSG reported negative net income over the last 5 years.
Of the past 5 years BTSG 4 years had a positive operating cash flow.
1.2 Ratios
BTSG has a Return On Assets (0.98%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 3.39%, BTSG is in line with its industry, outperforming 57.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.48%, BTSG is in line with its industry, 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 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 (0.49%) which is in line with its industry peers.
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.
BTSG's Gross Margin of 13.46% is on the low side compared to the rest of the industry. BTSG is outperformed by 69.90% of its industry peers.
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.
BTSG has more shares outstanding than it did 1 year ago.
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
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.
BTSG's Altman-Z score of 2.83 is fine compared to the rest of the industry. BTSG outperforms 60.19% 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.
Looking at the Debt to FCF ratio, with a value of 19.98, BTSG is in line with its industry, outperforming 41.75% 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: 70.87% 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/WACC0.53
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.73 indicates that BTSG should not have too much problems paying its short term obligations.
BTSG has a Current ratio of 1.73. This is in the better half of the industry: BTSG outperforms 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.
The Quick ratio of BTSG (1.37) 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
The Earnings Per Share has grown by an impressive 122.31% over the past year.
Looking at the last year, BTSG shows a small growth in Revenue. The Revenue has grown by 1.45% in the last 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.
The Revenue is expected to grow by 7.63% on average over the next years.
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
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
BTSG is valuated quite expensively with a Price/Earnings ratio of 33.32.
Compared to the rest of the industry, the Price/Earnings ratio of BTSG is on the same level as its industry peers.
BTSG is valuated rather expensively when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.34, BTSG is valued on the expensive side.
BTSG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BTSG to the average of the S&P500 Index (37.54), we can say BTSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
BTSG's Enterprise Value to EBITDA ratio is in line with the industry average.
BTSG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.58 | ||
| EV/EBITDA | 14 |
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.
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 |
20.66
-0.64 (-3%)
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 Cap3.64B
Analysts84.21
Price Target28.67 (38.77%)
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 | 33.32 | ||
| Fwd PE | 19.34 | ||
| P/S | 0.32 | ||
| P/FCF | 28.58 | ||
| P/OCF | 17.84 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14 |
EPS(TTM)0.62
EY3%
EPS(NY)1.07
Fwd EY5.17%
FCF(TTM)0.72
FCFY3.5%
OCF(TTM)1.16
OCFY5.6%
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 | 2.83 |
F-Score6
WACC8.45%
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%