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CHANGE HEALTHCARE INC (CHNG) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:CHNG - US15912K1007 - Common Stock

27.49 USD
+0.07 (+0.26%)
Last: 9/30/2022, 8:12:24 PM
27.45 USD
-0.04 (-0.15%)
After Hours: 9/30/2022, 8:12:24 PM
Fundamental Rating

2

CHNG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 35 industry peers in the Health Care Technology industry. CHNG may be in some trouble as it scores bad on both profitability and health. CHNG is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

CHNG had positive earnings in the past year.
CHNG Yearly Net Income VS EBIT VS OCF VS FCFCHNG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 0 200M 400M 600M

1.2 Ratios

Industry RankSector Rank
ROA -0.8%
ROE N/A
ROIC 1.09%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CHNG Yearly ROA, ROE, ROICCHNG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 0 5 -5 -10 -15

1.3 Margins

Industry RankSector Rank
OM 3.43%
PM (TTM) -2.2%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CHNG Yearly Profit, Operating, Gross MarginsCHNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 0 20 -20 40

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2. Health

2.1 Basic Checks

CHNG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CHNG has been increased compared to 1 year ago.
Compared to 1 year ago, CHNG has an improved debt to assets ratio.
CHNG Yearly Shares OutstandingCHNG Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 100M 200M 300M
CHNG Yearly Total Debt VS Total AssetsCHNG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 1.12, we must say that CHNG is in the distress zone and has some risk of bankruptcy.
A Debt/Equity ratio of 1.36 is on the high side and indicates that CHNG has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Altman-Z 1.12
ROIC/WACC0.12
WACC9.35%
CHNG Yearly LT Debt VS Equity VS FCFCHNG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 0 2B 4B

2.3 Liquidity

CHNG has a Current Ratio of 1.23. This is a normal value and indicates that CHNG is financially healthy and should not expect problems in meeting its short term obligations.
CHNG has a Quick Ratio of 1.23. This is a normal value and indicates that CHNG is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23
CHNG Yearly Current Assets VS Current LiabilitesCHNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 500M 1B

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3. Growth

3.1 Past

CHNG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.67%.
The Earnings Per Share has been decreasing by -2.24% on average over the past years.
Looking at the last year, CHNG shows a small growth in Revenue. The Revenue has grown by 7.15% in the last year.
Measured over the past years, CHNG shows a very strong growth in Revenue. The Revenue has been growing by 62.25% on average per year.
EPS 1Y (TTM)-0.67%
EPS 3Y-2.24%
EPS 5YN/A
EPS Q2Q%-7.32%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y1.98%
Revenue growth 5Y62.25%
Sales Q2Q%1.91%

3.2 Future

Based on estimates for the next years, CHNG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.03% on average per year.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y-1.57%
EPS Next 2Y7.05%
EPS Next 3Y10%
EPS Next 5Y12.03%
Revenue Next Year3.51%
Revenue Next 2Y3.6%
Revenue Next 3Y4.45%
Revenue Next 5Y4.23%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CHNG Yearly Revenue VS EstimatesCHNG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B
CHNG Yearly EPS VS EstimatesCHNG Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.57 indicates a rather expensive valuation of CHNG.
CHNG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.89, which indicates a correct valuation of CHNG.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, CHNG is valued a bit cheaper.
Industry RankSector Rank
PE 18.57
Fwd PE 15.89
CHNG Price Earnings VS Forward Price EarningsCHNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.58
CHNG Per share dataCHNG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.05%
EPS Next 3Y10%

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5. Dividend

5.1 Amount

CHNG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CHANGE HEALTHCARE INC

NASDAQ:CHNG (9/30/2022, 8:12:24 PM)

After market: 27.45 -0.04 (-0.15%)

27.49

+0.07 (+0.26%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)08-03 2022-08-03/amc
Earnings (Next)11-02 2022-11-02/amc
Inst Owners0.07%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0%
Market Cap9.03B
Revenue(TTM)3.50B
Net Income(TTM)-76.95M
Analysts71.76
Price Target27.85 (1.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 18.57
Fwd PE 15.89
P/S 2.58
P/FCF N/A
P/OCF N/A
P/B 2.74
P/tB N/A
EV/EBITDA 16.58
EPS(TTM)1.48
EY5.38%
EPS(NY)1.73
Fwd EY6.29%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS10.65
BVpS10.02
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.8%
ROE N/A
ROCE N/A
ROIC 1.09%
ROICexc N/A
ROICexgc 9.33%
OM 3.43%
PM (TTM) -2.2%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z 1.12
F-Score6
WACC9.35%
ROIC/WACC0.12
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.67%
EPS 3Y-2.24%
EPS 5YN/A
EPS Q2Q%-7.32%
EPS Next Y-1.57%
EPS Next 2Y7.05%
EPS Next 3Y10%
EPS Next 5Y12.03%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y1.98%
Revenue growth 5Y62.25%
Sales Q2Q%1.91%
Revenue Next Year3.51%
Revenue Next 2Y3.6%
Revenue Next 3Y4.45%
Revenue Next 5Y4.23%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

CHANGE HEALTHCARE INC / CHNG FAQ

What is the ChartMill fundamental rating of CHANGE HEALTHCARE INC (CHNG) stock?

ChartMill assigns a fundamental rating of 4 / 10 to CHNG.


Can you provide the valuation status for CHANGE HEALTHCARE INC?

ChartMill assigns a valuation rating of 3 / 10 to CHANGE HEALTHCARE INC (CHNG). This can be considered as Overvalued.


Can you provide the profitability details for CHANGE HEALTHCARE INC?

CHANGE HEALTHCARE INC (CHNG) has a profitability rating of 4 / 10.


Can you provide the financial health for CHNG stock?

The financial health rating of CHANGE HEALTHCARE INC (CHNG) is 3 / 10.


What is the expected EPS growth for CHANGE HEALTHCARE INC (CHNG) stock?

The Earnings per Share (EPS) of CHANGE HEALTHCARE INC (CHNG) is expected to decline by -1.57% in the next year.