CHANGE HEALTHCARE INC (CHNG)
US15912K1007 - Common Stock
CHNG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 40 industry peers in the Health Care Technology industry. CHNG may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, CHNG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CHNG was profitable.
The reported net income has been mixed in the past 5 years: CHNG reported negative net income in multiple years.
In the past 5 years CHNG always reported a positive cash flow from operatings.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CHNG is destroying value.
The number of shares outstanding for CHNG has been increased compared to 1 year ago.
The debt/assets ratio for CHNG has been reduced compared to a year ago.
2.2 Solvency
CHNG has an Altman-Z score of 1.12. This is a bad value and indicates that CHNG is not financially healthy and even 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.12
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.23 indicates that CHNG should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
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%.
Measured over the past years, CHNG shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.24% on average per year.
CHNG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.15%.
CHNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 62.25% yearly.
EPS 1Y (TTM)-0.67%
EPS 3Y-2.24%
EPS 5YN/A
EPS growth Q2Q-7.32%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y1.98%
Revenue growth 5Y62.25%
Revenue growth Q2Q1.91%
3.2 Future
CHNG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.03% yearly.
CHNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.57, the valuation of CHNG can be described as rather expensive.
CHNG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.20, 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.
The average S&P500 Price/Forward Earnings ratio is at 21.60. CHNG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.89 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.05%
EPS Next 3Y10%
5. Dividend
5.1 Amount
No dividends for CHNG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHANGE HEALTHCARE INC
NASDAQ:CHNG (9/30/2022, 7:12:24 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.43% | ||
| PM (TTM) | -2.2% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.67%
EPS 3Y-2.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.15%
Revenue growth 3Y1.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y