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CHANGE HEALTHCARE INC (CHNG) Stock Fundamental Analysis

USA - 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

Taking everything into account, CHNG scores 2 out of 10 in our fundamental rating. CHNG was compared to 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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1

1. Profitability

1.1 Basic Checks

CHNG had positive earnings in the past year.
In multiple years CHNG reported negative net income over the last 5 years.
Each year in the past 5 years CHNG had a positive operating cash flow.
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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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CHNG is destroying value.
Compared to 1 year ago, CHNG has more shares outstanding
The debt/assets ratio for CHNG has been reduced compared to a year ago.
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.
A Quick Ratio of 1.23 indicates that CHNG should not have too much problems paying 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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5

3. Growth

3.1 Past

The earnings per share for CHNG have decreased by -0.67% in the last year.
The Earnings Per Share has been decreasing by -2.24% on average over the past years.
CHNG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.15%.
The Revenue has been growing by 62.25% on average over the past years. This is a very strong growth!
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

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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
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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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.57, CHNG is valued on the expensive side.
CHNG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.89, CHNG is valued correctly.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, CHNG is valued rather cheaply.
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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0

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.


What is the valuation status for CHNG stock?

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


What is the profitability of CHNG stock?

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


What are the PE and PB ratios of CHANGE HEALTHCARE INC (CHNG) stock?

The Price/Earnings (PE) ratio for CHANGE HEALTHCARE INC (CHNG) is 18.57 and the Price/Book (PB) ratio is 2.74.


How financially healthy is CHANGE HEALTHCARE INC?

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