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BRIGHTSPRING HEALTH SERVICES (BTSG) Stock Fundamental Analysis

NASDAQ:BTSG - Nasdaq - US10950A1060 - Common Stock - Currency: USD

22.15  +0.1 (+0.45%)

After market: 21.64 -0.51 (-2.3%)

Fundamental Rating

3

Overall BTSG gets a fundamental rating of 3 out of 10. We evaluated BTSG against 108 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of BTSG have multiple concerns. BTSG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

BTSG had positive earnings in the past year.
In the past year BTSG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BTSG reported negative net income in multiple years.
BTSG had a positive operating cash flow in 4 of the past 5 years.
BTSG Yearly Net Income VS EBIT VS OCF VS FCFBTSG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

1.2 Ratios

BTSG has a Return On Assets (-0.70%) which is in line with its industry peers.
BTSG has a Return On Equity (-2.51%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.42%, BTSG perfoms like the industry average, outperforming 50.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BTSG is below the industry average of 8.14%.
Industry RankSector Rank
ROA -0.7%
ROE -2.51%
ROIC 3.42%
ROA(3y)-0.96%
ROA(5y)-0.86%
ROE(3y)-9.05%
ROE(5y)-7.04%
ROIC(3y)3.57%
ROIC(5y)3.15%
BTSG Yearly ROA, ROE, ROICBTSG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -10 -20

1.3 Margins

With a Operating Margin value of 1.85%, BTSG perfoms like the industry average, outperforming 46.73% of the companies in the same industry.
BTSG's Operating Margin has declined in the last couple of years.
BTSG has a worse Gross Margin (14.50%) than 72.90% of its industry peers.
In the last couple of years the Gross Margin of BTSG has grown nicely.
Industry RankSector Rank
OM 1.85%
PM (TTM) N/A
GM 14.5%
OM growth 3Y-17.41%
OM growth 5Y-7.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.74%
GM growth 5Y1.85%
BTSG Yearly Profit, Operating, Gross MarginsBTSG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 5 10 15

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BTSG is destroying value.
The number of shares outstanding for BTSG has been reduced compared to 1 year ago.
Compared to 1 year ago, BTSG has an improved debt to assets ratio.
BTSG Yearly Shares OutstandingBTSG Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M
BTSG Yearly Total Debt VS Total AssetsBTSG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

BTSG has an Altman-Z score of 2.53. This is not the best score and indicates that BTSG is in the grey zone with still only limited risk for bankruptcy at the moment.
BTSG has a Altman-Z score of 2.53. This is comparable to the rest of the industry: BTSG outperforms 58.88% of its industry peers.
The Debt to FCF ratio of BTSG is 205.30, which is on the high side as it means it would take BTSG, 205.30 years of fcf income to pay off all of its debts.
BTSG has a Debt to FCF ratio (205.30) which is comparable to the rest of the industry.
BTSG has a Debt/Equity ratio of 1.63. This is a high value indicating a heavy dependency on external financing.
BTSG has a Debt to Equity ratio of 1.63. This is in the lower half of the industry: BTSG underperforms 73.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.63
Debt/FCF 205.3
Altman-Z 2.53
ROIC/WACC0.36
WACC9.4%
BTSG Yearly LT Debt VS Equity VS FCFBTSG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

BTSG has a Current Ratio of 1.35. This is a normal value and indicates that BTSG is financially healthy and should not expect problems in meeting its short term obligations.
BTSG's Current ratio of 1.35 is in line compared to the rest of the industry. BTSG outperforms 42.06% of its industry peers.
BTSG has a Quick Ratio of 1.35. This is a bad value and indicates that BTSG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BTSG (0.97) is worse than 71.03% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 0.97
BTSG Yearly Current Assets VS Current LiabilitesBTSG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 500M 1B

6

3. Growth

3.1 Past

The earnings per share for BTSG have decreased strongly by -322.58% in the last year.
The Revenue has grown by 14.32% in the past year. This is quite good.
Measured over the past years, BTSG shows a very strong growth in Revenue. The Revenue has been growing by 28.33% on average per year.
EPS 1Y (TTM)-322.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%94.54%
Revenue 1Y (TTM)14.32%
Revenue growth 3Y16.51%
Revenue growth 5Y28.33%
Sales Q2Q%28.82%

3.2 Future

Based on estimates for the next years, BTSG will show a very strong growth in Earnings Per Share. The EPS will grow by 43.10% on average per year.
The Revenue is expected to grow by 11.54% on average over the next years. This is quite good.
EPS Next Y246.23%
EPS Next 2Y92.51%
EPS Next 3Y59.43%
EPS Next 5Y43.1%
Revenue Next Year27.21%
Revenue Next 2Y16.95%
Revenue Next 3Y14.82%
Revenue Next 5Y11.54%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
BTSG Yearly Revenue VS EstimatesBTSG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
BTSG Yearly EPS VS EstimatesBTSG Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 1 1.5

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 47.13, the valuation of BTSG can be described as expensive.
BTSG's Price/Earnings is on the same level as the industry average.
BTSG is valuated expensively when we compare the Price/Earnings ratio to 30.43, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 31.82, the valuation of BTSG can be described as expensive.
BTSG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, BTSG is valued a bit more expensive.
Industry RankSector Rank
PE 47.13
Fwd PE 31.82
BTSG Price Earnings VS Forward Price EarningsBTSG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

BTSG's Enterprise Value to EBITDA is on the same level as the industry average.
BTSG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 293.84
EV/EBITDA 16.4
BTSG Per share dataBTSG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BTSG's earnings are expected to grow with 59.43% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y92.51%
EPS Next 3Y59.43%

0

5. Dividend

5.1 Amount

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

BRIGHTSPRING HEALTH SERVICES

NASDAQ:BTSG (2/18/2025, 8:00:01 PM)

After market: 21.64 -0.51 (-2.3%)

22.15

+0.1 (+0.45%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)03-06 2025-03-06/bmo
Inst Owners47.01%
Inst Owner Change0.19%
Ins Owners0.64%
Ins Owner Change-8.13%
Market Cap3.86B
Analysts84.44
Price Target22.81 (2.98%)
Short Float %16.35%
Short Ratio6.44
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-39.48%
Min EPS beat(2)-40.94%
Max EPS beat(2)-38.02%
EPS beat(4)2
Avg EPS beat(4)11.75%
Min EPS beat(4)-40.94%
Max EPS beat(4)77.58%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)2.41%
Max Revenue beat(2)4.83%
Revenue beat(4)3
Avg Revenue beat(4)3.75%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)9.23%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.65%
PT rev (3m)33.33%
EPS NQ rev (1m)2.59%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)0.78%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE 47.13
Fwd PE 31.82
P/S 0.36
P/FCF 293.84
P/OCF 40.36
P/B 2.39
P/tB N/A
EV/EBITDA 16.4
EPS(TTM)0.47
EY2.12%
EPS(NY)0.7
Fwd EY3.14%
FCF(TTM)0.08
FCFY0.34%
OCF(TTM)0.55
OCFY2.48%
SpS60.81
BVpS9.27
TBVpS-10.91
PEG (NY)0.19
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.7%
ROE -2.51%
ROCE 4.33%
ROIC 3.42%
ROICexc 3.44%
ROICexgc 15.92%
OM 1.85%
PM (TTM) N/A
GM 14.5%
FCFM 0.12%
ROA(3y)-0.96%
ROA(5y)-0.86%
ROE(3y)-9.05%
ROE(5y)-7.04%
ROIC(3y)3.57%
ROIC(5y)3.15%
ROICexc(3y)3.6%
ROICexc(5y)3.21%
ROICexgc(3y)19.01%
ROICexgc(5y)16.22%
ROCE(3y)4.53%
ROCE(5y)3.98%
ROICexcg growth 3Y-4.2%
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.64%
ROICexc growth 5YN/A
OM growth 3Y-17.41%
OM growth 5Y-7.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.74%
GM growth 5Y1.85%
F-Score6
Asset Turnover1.83
Health
Industry RankSector Rank
Debt/Equity 1.63
Debt/FCF 205.3
Debt/EBITDA 6.65
Cap/Depr 41.09%
Cap/Sales 0.78%
Interest Coverage 0.81
Cash Conversion 24.12%
Profit Quality N/A
Current Ratio 1.35
Quick Ratio 0.97
Altman-Z 2.53
F-Score6
WACC9.4%
ROIC/WACC0.36
Cap/Depr(3y)33.49%
Cap/Depr(5y)32.43%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-322.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%94.54%
EPS Next Y246.23%
EPS Next 2Y92.51%
EPS Next 3Y59.43%
EPS Next 5Y43.1%
Revenue 1Y (TTM)14.32%
Revenue growth 3Y16.51%
Revenue growth 5Y28.33%
Sales Q2Q%28.82%
Revenue Next Year27.21%
Revenue Next 2Y16.95%
Revenue Next 3Y14.82%
Revenue Next 5Y11.54%
EBIT growth 1Y-35.64%
EBIT growth 3Y-3.78%
EBIT growth 5Y18.2%
EBIT Next Year74.79%
EBIT Next 3Y24.8%
EBIT Next 5YN/A
FCF growth 1Y477.48%
FCF growth 3Y-7.02%
FCF growth 5Y25.98%
OCF growth 1Y34.3%
OCF growth 3Y-1.81%
OCF growth 5Y22.49%