NYSE:AMN: good value for what you're paying.

Discover AMN HEALTHCARE SERVICES INC (NYSE:AMN)—an undervalued stock our stock screener has picked out. NYSE:AMN demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Deciphering NYSE:AMN's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:AMN has earned a 7 for valuation:

• The Price/Earnings ratio is 7.20, which indicates a rather cheap valuation of AMN.
• 97.41% of the companies in the same industry are more expensive than AMN, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 25.59, AMN is valued rather cheaply.
• Based on the Price/Forward Earnings ratio, AMN is valued cheaper than 81.03% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 22.07. AMN is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMN indicates a rather cheap valuation: AMN is cheaper than 90.52% of the companies listed in the same industry.
• 88.79% of the companies in the same industry are more expensive than AMN, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of AMN may justify a higher PE ratio.

What does the Profitability looks like for NYSE:AMN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:AMN has achieved a 8:

• With an excellent Return On Assets value of 7.20%, AMN belongs to the best of the industry, outperforming 88.79% of the companies in the same industry.
• AMN has a Return On Equity of 25.35%. This is amongst the best in the industry. AMN outperforms 91.38% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.99%, AMN belongs to the top of the industry, outperforming 92.24% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for AMN is significantly above the industry average of 8.60%.
• The last Return On Invested Capital (10.99%) for AMN is well below the 3 year average (17.26%), which needs to be investigated, but indicates that AMN had better years and this may not be a problem.
• AMN's Profit Margin of 5.56% is amongst the best of the industry. AMN outperforms 82.76% of its industry peers.
• AMN has a better Operating Margin (8.93%) than 86.21% of its industry peers.

Understanding NYSE:AMN's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:AMN scores a 5 out of 10:

• An Altman-Z score of 3.09 indicates that AMN is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.09, AMN is doing good in the industry, outperforming 77.59% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 4.89, AMN is doing good in the industry, outperforming 72.41% of the companies in the same industry.

Assessing Growth for NYSE:AMN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:AMN boasts a 4 out of 10:

• The Earnings Per Share has been growing by 19.92% on average over the past years. This is quite good.
• The Revenue has been growing by 12.15% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 8.16% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of AMN contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.