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R1 RCM Inc (RCM) Stock Fundamental Analysis

NASDAQ:RCM - Nasdaq - US77634L1052 - Common Stock - Currency: USD

14.31  +0.01 (+0.07%)

After market: 14.33 +0.02 (+0.14%)

Fundamental Rating

3

RCM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. RCM may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, RCM is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

RCM had negative earnings in the past year.
RCM had a positive operating cash flow in the past year.
In multiple years RCM reported negative net income over the last 5 years.
In multiple years RCM reported negative operating cash flow during the last 5 years.
RCM Yearly Net Income VS EBIT VS OCF VS FCFRCM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

1.2 Ratios

RCM has a Return On Assets of -1.06%. This is comparable to the rest of the industry: RCM outperforms 51.35% of its industry peers.
RCM has a Return On Equity (-2.18%) which is in line with its industry peers.
RCM's Return On Invested Capital of 2.95% is in line compared to the rest of the industry. RCM outperforms 47.75% of its industry peers.
RCM had an Average Return On Invested Capital over the past 3 years of 6.52%. This is below the industry average of 9.71%.
Industry RankSector Rank
ROA -1.06%
ROE -2.18%
ROIC 2.95%
ROA(3y)-11.74%
ROA(5y)-6.43%
ROE(3y)-48.27%
ROE(5y)-26.87%
ROIC(3y)6.52%
ROIC(5y)8.3%
RCM Yearly ROA, ROE, ROICRCM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

1.3 Margins

RCM's Profit Margin has declined in the last couple of years.
The Operating Margin of RCM (8.07%) is better than 76.58% of its industry peers.
RCM's Operating Margin has been stable in the last couple of years.
The Gross Margin of RCM (19.19%) is worse than 63.96% of its industry peers.
In the last couple of years the Gross Margin of RCM has grown nicely.
Industry RankSector Rank
OM 8.07%
PM (TTM) N/A
GM 19.19%
OM growth 3Y0.73%
OM growth 5YN/A
PM growth 3Y-66.02%
PM growth 5YN/A
GM growth 3Y3.04%
GM growth 5Y13.78%
RCM Yearly Profit, Operating, Gross MarginsRCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCM is destroying value.
There is no outstanding debt for RCM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RCM Yearly Shares OutstandingRCM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
RCM Yearly Total Debt VS Total AssetsRCM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

RCM has an Altman-Z score of 1.80. This is a bad value and indicates that RCM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RCM (1.80) is comparable to the rest of the industry.
The Debt to FCF ratio of RCM is 11.85, which is on the high side as it means it would take RCM, 11.85 years of fcf income to pay off all of its debts.
RCM has a Debt to FCF ratio (11.85) which is comparable to the rest of the industry.
RCM has a Debt/Equity ratio of 0.76. This is a neutral value indicating RCM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, RCM is in line with its industry, outperforming 44.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 11.85
Altman-Z 1.8
ROIC/WACC0.36
WACC8.2%
RCM Yearly LT Debt VS Equity VS FCFRCM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.79 indicates that RCM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.79, RCM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that RCM should not have too much problems paying its short term obligations.
The Quick ratio of RCM (1.79) is better than 70.27% of its industry peers.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.79
RCM Yearly Current Assets VS Current LiabilitesRCM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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5

3. Growth

3.1 Past

RCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.67%.
RCM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -70.03% yearly.
The Revenue has grown by 11.38% in the past year. This is quite good.
RCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.02% yearly.
EPS 1Y (TTM)-66.67%
EPS 3Y-70.03%
EPS 5YN/A
EPS Q2Q%-1754.39%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y21.05%
Revenue growth 5Y21.02%
Sales Q2Q%14.66%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
Based on estimates for the next years, RCM will show a quite strong growth in Revenue. The Revenue will grow by 12.54% on average per year.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.91%
Revenue Next 2Y13.64%
Revenue Next 3Y12.22%
Revenue Next 5Y12.54%

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
RCM Yearly Revenue VS EstimatesRCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B 4B
RCM Yearly EPS VS EstimatesRCM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RCM. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 68.23, the valuation of RCM can be described as expensive.
RCM's Price/Forward Earnings ratio is in line with the industry average.
RCM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
Industry RankSector Rank
PE N/A
Fwd PE 68.23
RCM Price Earnings VS Forward Price EarningsRCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCM is on the same level as its industry peers.
66.67% of the companies in the same industry are more expensive than RCM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 32.43
EV/EBITDA 15.73
RCM Per share dataRCM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for RCM!.
Industry RankSector Rank
Dividend Yield N/A

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R1 RCM Inc

NASDAQ:RCM (11/18/2024, 8:00:01 PM)

After market: 14.33 +0.02 (+0.14%)

14.31

+0.01 (+0.07%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)N/A N/A
Inst Owners55.88%
Inst Owner Change0%
Ins Owners39.67%
Ins Owner Change0%
Market Cap6.04B
Analysts53.68
Price Target14.89 (4.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.26%
Min EPS beat(2)59.52%
Max EPS beat(2)61%
EPS beat(4)2
Avg EPS beat(4)-3620.23%
Min EPS beat(4)-14501.4%
Max EPS beat(4)61%
EPS beat(8)4
Avg EPS beat(8)-1806.91%
EPS beat(12)5
Avg EPS beat(12)-1242.95%
EPS beat(16)6
Avg EPS beat(16)-924.88%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)2.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.5%
Revenue beat(12)2
Avg Revenue beat(12)-1.07%
Revenue beat(16)6
Avg Revenue beat(16)-0.45%
PT rev (1m)0.56%
PT rev (3m)0.42%
EPS NQ rev (1m)-256.69%
EPS NQ rev (3m)-256.69%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-177.85%
Revenue NQ rev (1m)-3.01%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.31%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 68.23
P/S 2.45
P/FCF 32.43
P/OCF 20.74
P/B 2.15
P/tB N/A
EV/EBITDA 15.73
EPS(TTM)-0.15
EYN/A
EPS(NY)0.21
Fwd EY1.47%
FCF(TTM)0.44
FCFY3.08%
OCF(TTM)0.69
OCFY4.82%
SpS5.83
BVpS6.66
TBVpS-4.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.06%
ROE -2.18%
ROCE 3.74%
ROIC 2.95%
ROICexc 3.05%
ROICexgc 26.25%
OM 8.07%
PM (TTM) N/A
GM 19.19%
FCFM 7.57%
ROA(3y)-11.74%
ROA(5y)-6.43%
ROE(3y)-48.27%
ROE(5y)-26.87%
ROIC(3y)6.52%
ROIC(5y)8.3%
ROICexc(3y)7.09%
ROICexc(5y)9.45%
ROICexgc(3y)41.82%
ROICexgc(5y)41.22%
ROCE(3y)8.29%
ROCE(5y)10.56%
ROICexcg growth 3Y-1.79%
ROICexcg growth 5YN/A
ROICexc growth 3Y-30.85%
ROICexc growth 5YN/A
OM growth 3Y0.73%
OM growth 5YN/A
PM growth 3Y-66.02%
PM growth 5YN/A
GM growth 3Y3.04%
GM growth 5Y13.78%
F-Score2
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 11.85
Debt/EBITDA 4.16
Cap/Depr 33.29%
Cap/Sales 4.26%
Interest Coverage 250
Cash Conversion 56.68%
Profit Quality N/A
Current Ratio 1.79
Quick Ratio 1.79
Altman-Z 1.8
F-Score2
WACC8.2%
ROIC/WACC0.36
Cap/Depr(3y)54.24%
Cap/Depr(5y)68.8%
Cap/Sales(3y)4.56%
Cap/Sales(5y)4.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.67%
EPS 3Y-70.03%
EPS 5YN/A
EPS Q2Q%-1754.39%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.38%
Revenue growth 3Y21.05%
Revenue growth 5Y21.02%
Sales Q2Q%14.66%
Revenue Next Year12.91%
Revenue Next 2Y13.64%
Revenue Next 3Y12.22%
Revenue Next 5Y12.54%
EBIT growth 1Y-11.37%
EBIT growth 3Y21.94%
EBIT growth 5YN/A
EBIT Next Year246.03%
EBIT Next 3Y70.15%
EBIT Next 5Y47.21%
FCF growth 1Y315.74%
FCF growth 3Y166.88%
FCF growth 5YN/A
OCF growth 1Y4383.08%
OCF growth 3Y76.55%
OCF growth 5Y79.4%