14.31 USD
+0.01 (+0.07%)
14.33 USD
+0.02 (+0.14%)
Overall RCM gets a fundamental rating of 3 out of 10. We evaluated RCM against 100 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.
1. Profitability
1.1 Basic Checks
In the past year RCM has reported negative net income.
In the past year RCM had a positive cash flow from operations.
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.
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.
The Return On Invested Capital of RCM (2.95%) is comparable to the rest of the industry.
RCM had an Average Return On Invested Capital over the past 3 years of 6.52%. This is below the industry average of 9.44%.
| Industry Rank | Sector 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%
1.3 Margins
RCM's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.07%, RCM is doing good in the industry, outperforming 76.58% of the companies in the same industry.
RCM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 19.19%, RCM is doing worse than 63.96% of the companies in the same industry.
In the last couple of years the Gross Margin of RCM has grown nicely.
| Industry Rank | Sector 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%
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.
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.
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.
RCM has a debt to FCF ratio of 11.85. This is a negative value and a sign of low solvency as RCM would need 11.85 years to pay back of all of its debts.
RCM's Debt to FCF ratio of 11.85 is in line compared to the rest of the industry. RCM outperforms 58.56% of its industry peers.
RCM has a Debt/Equity ratio of 0.76. This is a neutral value indicating RCM is somewhat dependend on debt financing.
RCM has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 11.85 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.36
WACC8.2%
2.3 Liquidity
RCM has a Current Ratio of 1.79. This is a normal value and indicates that RCM is financially healthy and should not expect problems in meeting 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.
RCM has a Quick Ratio of 1.79. This is a normal value and indicates that RCM is financially healthy and should not expect problems in meeting its short term obligations.
RCM has a Quick ratio of 1.79. This is in the better half of the industry: RCM outperforms 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
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.
Looking at the last year, RCM shows a quite strong growth in Revenue. The Revenue has grown by 11.38% in the last year.
The Revenue has been growing by 21.02% on average over the past years. This is a very strong growth!
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
RCM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RCM is valuated quite expensively with a Price/Forward Earnings ratio of 68.23.
RCM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. RCM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 68.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCM.
66.67% of the companies in the same industry are more expensive than RCM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.43 | ||
| EV/EBITDA | 15.73 |
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 |
14.31
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners55.88%
Inst Owner Change0%
Ins Owners39.67%
Ins Owner Change0%
Market Cap6.04B
Revenue(TTM)2.46B
Net Income(TTM)-61.20M
Analysts53.68
Price Target14.89 (4.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y-1.79%
ROICexgc 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 Rank | Sector 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%
R1 RCM Inc / RCM FAQ
What is the fundamental rating for RCM stock?
ChartMill assigns a fundamental rating of 3 / 10 to RCM.
What is the valuation status of R1 RCM Inc (RCM) stock?
ChartMill assigns a valuation rating of 2 / 10 to R1 RCM Inc (RCM). This can be considered as Overvalued.
Can you provide the profitability details for R1 RCM Inc?
R1 RCM Inc (RCM) has a profitability rating of 3 / 10.
What is the financial health of R1 RCM Inc (RCM) stock?
The financial health rating of R1 RCM Inc (RCM) is 3 / 10.