R1 RCM INC (RCM)
US77634L1052 - Common Stock
Overall RCM gets a fundamental rating of 4 out of 10. We evaluated RCM against 118 industry peers in the Health Care Providers & Services industry. RCM has an average financial health and profitability rating. RCM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RCM had negative earnings in the past year.
In the past year RCM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RCM reported negative net income in multiple years.
RCM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RCM has a Return On Assets (0.07%) which is in line with its industry peers.
The Return On Equity of RCM (0.12%) is better than 60.68% of its industry peers.
RCM has a Return On Invested Capital (4.47%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for RCM is below the industry average of 8.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 0.12% | ||
| ROIC | 4.47% |
ROA(3y)-11.74%
ROA(5y)-6.43%
ROE(3y)-48.27%
ROE(5y)-26.87%
ROIC(3y)6.52%
ROIC(5y)8.3%
1.3 Margins
RCM has a Profit Margin (0.15%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RCM has declined.
RCM has a better Operating Margin (11.57%) than 88.03% of its industry peers.
RCM's Operating Margin has been stable in the last couple of years.
RCM has a Gross Margin (21.49%) which is comparable to the rest of the industry.
RCM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.57% | ||
| PM (TTM) | 0.15% | ||
| GM | 21.49% |
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%
2. Health
2.1 Basic Checks
RCM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RCM has more shares outstanding than it did 1 year ago.
RCM has more shares outstanding than it did 5 years ago.
RCM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.07 indicates that RCM is not a great score, but indicates only limited risk for bankruptcy at the moment.
RCM has a Altman-Z score of 2.07. This is comparable to the rest of the industry: RCM outperforms 57.27% of its industry peers.
The Debt to FCF ratio of RCM is 6.89, which is on the high side as it means it would take RCM, 6.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCM (6.89) is better than 70.94% of its industry peers.
RCM has a Debt/Equity ratio of 0.57. This is a neutral value indicating RCM is somewhat dependend on debt financing.
RCM has a Debt to Equity ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.54
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.83 indicates that RCM should not have too much problems paying its short term obligations.
RCM has a better Current ratio (1.83) than 69.23% of its industry peers.
A Quick Ratio of 1.83 indicates that RCM should not have too much problems paying its short term obligations.
RCM's Quick ratio of 1.83 is fine compared to the rest of the industry. RCM outperforms 72.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.22% over the past year.
Measured over the past years, RCM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -70.03% on average per year.
The Revenue has grown by 24.79% in the past year. This is a very strong growth!
The Revenue has been growing by 21.02% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)65.22%
EPS 3Y-70.03%
EPS 5YN/A
EPS growth Q2QN/A
Revenue 1Y (TTM)24.79%
Revenue growth 3Y21.05%
Revenue growth 5Y21.02%
Revenue growth Q2Q10.69%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
RCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.01% yearly.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.43%
Revenue Next 2Y14.1%
Revenue Next 3Y15.23%
Revenue Next 5Y13.01%
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.
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 53.76, the valuation of RCM can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, RCM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 53.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCM is valued a bit cheaper than 70.09% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCM indicates a somewhat cheap valuation: RCM is cheaper than 73.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
R1 RCM INC
NASDAQ:RCM (5/17/2024, 5:21:15 PM)
After market: 12.43 0 (0%)12.43
+0.12 (+0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.23B
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | N/A | ||
| Fwd PE | 53.76 | ||
| 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 | 0.07% | ||
| ROE | 0.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.57% | ||
| PM (TTM) | 0.15% | ||
| GM | 21.49% | ||
| 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| 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)65.22%
EPS 3Y-70.03%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.79%
Revenue growth 3Y21.05%
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