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CHANGE HEALTHCARE INC (CHNG) Stock Fundamental Analysis

NASDAQ:CHNG - Nasdaq - US15912K1007 - Common Stock - Currency: USD

27.49  +0.07 (+0.26%)

After market: 27.45 -0.04 (-0.15%)

Fundamental Rating

2

CHNG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 39 industry peers in the Health Care Technology industry. CHNG may be in some trouble as it scores bad on both profitability and health. CHNG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year CHNG was profitable.
In multiple years CHNG reported negative net income over the last 5 years.
Each year in the past 5 years CHNG had a positive operating cash flow.
CHNG Yearly Net Income VS EBIT VS OCF VS FCFCHNG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 0 200M 400M 600M

1.2 Ratios

Industry RankSector Rank
ROA -0.8%
ROE N/A
ROIC 1.09%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CHNG Yearly ROA, ROE, ROICCHNG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 0 5 -5 -10 -15

1.3 Margins

Industry RankSector Rank
OM 3.43%
PM (TTM) -2.2%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CHNG Yearly Profit, Operating, Gross MarginsCHNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 0 20 -20 40

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CHNG is destroying value.
The number of shares outstanding for CHNG has been increased compared to 1 year ago.
The debt/assets ratio for CHNG has been reduced compared to a year ago.
CHNG Yearly Shares OutstandingCHNG Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 100M 200M 300M
CHNG Yearly Total Debt VS Total AssetsCHNG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

CHNG has an Altman-Z score of 1.12. This is a bad value and indicates that CHNG is not financially healthy and even has some risk of bankruptcy.
CHNG has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Altman-Z 1.12
ROIC/WACC0.12
WACC9.35%
CHNG Yearly LT Debt VS Equity VS FCFCHNG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 0 2B 4B

2.3 Liquidity

A Current Ratio of 1.23 indicates that CHNG should not have too much problems paying its short term obligations.
A Quick Ratio of 1.23 indicates that CHNG should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23
CHNG Yearly Current Assets VS Current LiabilitesCHNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 500M 1B

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3. Growth

3.1 Past

The earnings per share for CHNG have decreased by -0.67% in the last year.
The Earnings Per Share has been decreasing by -2.24% on average over the past years.
The Revenue has been growing slightly by 7.15% in the past year.
Measured over the past years, CHNG shows a very strong growth in Revenue. The Revenue has been growing by 62.25% on average per year.
EPS 1Y (TTM)-0.67%
EPS 3Y-2.24%
EPS 5YN/A
EPS Q2Q%-7.32%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y1.98%
Revenue growth 5Y62.25%
Sales Q2Q%1.91%

3.2 Future

The Earnings Per Share is expected to grow by 12.03% on average over the next years. This is quite good.
CHNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-1.57%
EPS Next 2Y7.05%
EPS Next 3Y10%
EPS Next 5Y12.03%
Revenue Next Year3.51%
Revenue Next 2Y3.6%
Revenue Next 3Y4.45%
Revenue Next 5Y4.23%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CHNG Yearly Revenue VS EstimatesCHNG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B
CHNG Yearly EPS VS EstimatesCHNG Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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4. Valuation

4.1 Price/Earnings Ratio

CHNG is valuated rather expensively with a Price/Earnings ratio of 18.57.
When comparing the Price/Earnings ratio of CHNG to the average of the S&P500 Index (29.62), we can say CHNG is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.89 indicates a correct valuation of CHNG.
CHNG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.57
Fwd PE 15.89
CHNG Price Earnings VS Forward Price EarningsCHNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.58
CHNG Per share dataCHNG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.05%
EPS Next 3Y10%

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0

5. Dividend

5.1 Amount

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

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CHANGE HEALTHCARE INC

NASDAQ:CHNG (9/30/2022, 8:12:24 PM)

After market: 27.45 -0.04 (-0.15%)

27.49

+0.07 (+0.26%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)08-03 2022-08-03/amc
Earnings (Next)11-02 2022-11-02/amc
Inst Owners0.07%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change0%
Market Cap9.03B
Analysts71.76
Price Target27.85 (1.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 18.57
Fwd PE 15.89
P/S 2.58
P/FCF N/A
P/OCF N/A
P/B 2.74
P/tB N/A
EV/EBITDA 16.58
EPS(TTM)1.48
EY5.38%
EPS(NY)1.73
Fwd EY6.29%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS10.65
BVpS10.02
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.8%
ROE N/A
ROCE N/A
ROIC 1.09%
ROICexc N/A
ROICexgc 9.33%
OM 3.43%
PM (TTM) -2.2%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z 1.12
F-Score6
WACC9.35%
ROIC/WACC0.12
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.67%
EPS 3Y-2.24%
EPS 5YN/A
EPS Q2Q%-7.32%
EPS Next Y-1.57%
EPS Next 2Y7.05%
EPS Next 3Y10%
EPS Next 5Y12.03%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y1.98%
Revenue growth 5Y62.25%
Sales Q2Q%1.91%
Revenue Next Year3.51%
Revenue Next 2Y3.6%
Revenue Next 3Y4.45%
Revenue Next 5Y4.23%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A