NEXTGEN HEALTHCARE INC (NXGN) Stock Fundamental Analysis
NASDAQ:NXGN - Nasdaq - US65343C1027 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NXGN. NXGN was compared to 39 industry peers in the Health Care Technology industry. NXGN has an average financial health and profitability rating. NXGN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NXGN had positive earnings in the past year.
NXGN had a negative operating cash flow in the past year.
Of the past 5 years NXGN 4 years were profitable.
NXGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NXGN has a Return On Assets of -0.72%. This is in the better half of the industry: NXGN outperforms 78.57% of its industry peers.
The Return On Equity of NXGN (-1.47%) is better than 78.57% of its industry peers.
NXGN has a better Return On Invested Capital (0.82%) than 78.57% of its industry peers.
NXGN had an Average Return On Invested Capital over the past 3 years of 1.91%. This is below the industry average of 6.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.72% | ||
| ROE | -1.47% | ||
| ROIC | 0.82% |
ROA(3y)0.48%
ROA(5y)1.41%
ROE(3y)0.64%
ROE(5y)2.06%
ROIC(3y)1.91%
ROIC(5y)2.95%
1.3 Margins
NXGN has a Operating Margin of 1.06%. This is in the better half of the industry: NXGN outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of NXGN has declined.
NXGN has a Gross Margin of 46.40%. This is comparable to the rest of the industry: NXGN outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of NXGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.06% | ||
| PM (TTM) | N/A | ||
| GM | 46.4% |
OM growth 3Y-58.31%
OM growth 5Y-27.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.93%
GM growth 5Y-2.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NXGN is destroying value.
The number of shares outstanding for NXGN has been reduced compared to 1 year ago.
NXGN has more shares outstanding than it did 5 years ago.
NXGN has a worse debt/assets ratio than last year.
2.2 Solvency
NXGN has an Altman-Z score of 3.59. This indicates that NXGN is financially healthy and has little risk of bankruptcy at the moment.
NXGN has a Altman-Z score of 3.59. This is in the better half of the industry: NXGN outperforms 78.57% of its industry peers.
NXGN has a Debt/Equity ratio of 0.63. This is a neutral value indicating NXGN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, NXGN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.59 |
ROIC/WACC0.08
WACC10.14%
2.3 Liquidity
NXGN has a Current Ratio of 2.52. This indicates that NXGN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NXGN (2.52) is comparable to the rest of the industry.
NXGN has a Quick Ratio of 2.52. This indicates that NXGN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NXGN (2.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
NXGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past 5 years, NXGN shows a small growth in Earnings Per Share. The EPS has been growing by 6.96% on average per year.
The Revenue has grown by 13.25% in the past year. This is quite good.
NXGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.23% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y5.69%
EPS 5Y6.96%
EPS Q2Q%24%
Revenue 1Y (TTM)13.25%
Revenue growth 3Y6.53%
Revenue growth 5Y4.23%
Sales Q2Q%10.65%
3.2 Future
Based on estimates for the next years, NXGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.15% on average per year.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y14.49%
EPS Next 2Y17.83%
EPS Next 3Y17.28%
EPS Next 5Y17.15%
Revenue Next Year11.2%
Revenue Next 2Y9.22%
Revenue Next 3Y8.41%
Revenue Next 5Y7.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NXGN is valuated rather expensively with a Price/Earnings ratio of 21.38.
NXGN's Price/Earnings ratio is rather cheap when compared to the industry. NXGN is cheaper than 92.86% of the companies in the same industry.
NXGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
A Price/Forward Earnings ratio of 17.59 indicates a rather expensive valuation of NXGN.
Based on the Price/Forward Earnings ratio, NXGN is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. NXGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
NXGN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXGN is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as NXGN's earnings are expected to grow with 17.28% in the coming years.
PEG (NY)1.48
PEG (5Y)3.07
EPS Next 2Y17.83%
EPS Next 3Y17.28%
5. Dividend
5.1 Amount
No dividends for NXGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.94
+0.03 (+0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners31.12%
Ins Owner Change0%
Market Cap1.61B
Analysts50.77
Price Target24.41 (1.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.71
Dividend Growth(5Y)3.39%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.08%
Min EPS beat(2)6.95%
Max EPS beat(2)23.21%
EPS beat(4)3
Avg EPS beat(4)7.54%
Min EPS beat(4)-6.17%
Max EPS beat(4)23.21%
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)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)0.72%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)2.24%
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)-0.11%
PT rev (3m)16.34%
EPS NQ rev (1m)-2.38%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 17.59 | ||
| P/S | 2.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.8 | ||
| P/tB | 94.94 | ||
| EV/EBITDA | 34.12 |
EPS(TTM)1.12
EY4.68%
EPS(NY)1.36
Fwd EY5.68%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)-0.11
OCFYN/A
SpS10.36
BVpS6.31
TBVpS0.25
PEG (NY)1.48
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.72% | ||
| ROE | -1.47% | ||
| ROCE | 1.04% | ||
| ROIC | 0.82% | ||
| ROICexc | 1.14% | ||
| ROICexgc | 5.45% | ||
| OM | 1.06% | ||
| PM (TTM) | N/A | ||
| GM | 46.4% | ||
| FCFM | N/A |
ROA(3y)0.48%
ROA(5y)1.41%
ROE(3y)0.64%
ROE(5y)2.06%
ROIC(3y)1.91%
ROIC(5y)2.95%
ROICexc(3y)2.27%
ROICexc(5y)3.46%
ROICexgc(3y)18.71%
ROICexgc(5y)23.54%
ROCE(3y)2.41%
ROCE(5y)3.74%
ROICexcg growth 3Y-50.16%
ROICexcg growth 5Y-31.62%
ROICexc growth 3Y-56.26%
ROICexc growth 5Y-28.38%
OM growth 3Y-58.31%
OM growth 5Y-27.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.93%
GM growth 5Y-2.66%
F-Score2
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.98 | ||
| Cap/Depr | 95.52% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 1.1 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z | 3.59 |
F-Score2
WACC10.14%
ROIC/WACC0.08
Cap/Depr(3y)75.15%
Cap/Depr(5y)68.18%
Cap/Sales(3y)5.17%
Cap/Sales(5y)5.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y5.69%
EPS 5Y6.96%
EPS Q2Q%24%
EPS Next Y14.49%
EPS Next 2Y17.83%
EPS Next 3Y17.28%
EPS Next 5Y17.15%
Revenue 1Y (TTM)13.25%
Revenue growth 3Y6.53%
Revenue growth 5Y4.23%
Sales Q2Q%10.65%
Revenue Next Year11.2%
Revenue Next 2Y9.22%
Revenue Next 3Y8.41%
Revenue Next 5Y7.76%
EBIT growth 1Y-70.75%
EBIT growth 3Y-55.58%
EBIT growth 5Y-24.47%
EBIT Next Year47.96%
EBIT Next 3Y27.47%
EBIT Next 5Y21.11%
FCF growth 1Y-203.01%
FCF growth 3Y-52.24%
FCF growth 5Y-32.4%
OCF growth 1Y-110.78%
OCF growth 3Y-20.1%
OCF growth 5Y-10.01%