R1 RCM Inc (RCM) Stock Fundamental Analysis

NASDAQ:RCM • US77634L1052

14.31 USD
+0.01 (+0.07%)
At close: Nov 18, 2024
14.33 USD
+0.02 (+0.14%)
After Hours: 11/18/2024, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

RCM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of RCM have multiple concerns. While showing a medium growth rate, RCM is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year RCM has reported negative net income.
  • RCM had a positive operating cash flow in the past year.
  • In multiple years RCM reported negative net income over the last 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: RCM reported negative operating cash flow in multiple 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 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.
  • Looking at the Return On Equity, with a value of -2.18%, RCM is in line with its industry, outperforming 57.66% of the companies in the same industry.
  • RCM has a Return On Invested Capital (2.95%) 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 8.93%.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

1.3 Margins

  • In the last couple of years the Profit Margin of RCM has declined.
  • RCM has a Operating Margin of 8.07%. This is in the better half of the industry: RCM outperforms 76.58% of its industry peers.
  • RCM's Operating Margin has been stable in the last couple of years.
  • RCM has a Gross Margin of 19.19%. This is in the lower half of the industry: RCM underperforms 63.96% of its industry peers.
  • RCM's Gross Margin has improved in the last couple of years.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

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 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 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.80, we must say that RCM is in the distress zone and has some risk of bankruptcy.
  • RCM's Altman-Z score of 1.80 is in line compared to the rest of the industry. RCM outperforms 49.55% of its industry peers.
  • 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 has a Debt to FCF ratio of 11.85. This is comparable 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's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. RCM outperforms 44.14% of its industry peers.
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 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.
  • Looking at the Current ratio, with a value of 1.79, RCM is in the better half of 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.
  • With a decent Quick ratio value of 1.79, RCM is doing good in the industry, outperforming 70.27% of the companies in the same industry.
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 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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%.
  • 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.
  • RCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.38%.
  • 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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
RCM Yearly Revenue VS EstimatesRCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for RCM. In the last year negative earnings were reported.
  • A Price/Forward Earnings ratio of 68.23 indicates a quite expensive valuation of RCM.
  • The rest of the industry has a similar Price/Forward Earnings ratio as RCM.
  • The average S&P500 Price/Forward Earnings ratio is at 27.75. RCM is valued rather expensively when compared to this.
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCM.
  • Based on the Price/Free Cash Flow ratio, RCM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • RCM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

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
Earnings (Next)N/A
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 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
Graham NumberN/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%
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 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%

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 for 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.


Can you provide the financial health for RCM stock?

The financial health rating of R1 RCM Inc (RCM) is 3 / 10.