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R1 RCM Inc (RCM) Stock Fundamental Analysis

NASDAQ:RCM - Nasdaq - US77634L1052 - Common Stock - Currency: USD

14.31  +0.01 (+0.07%)

After market: 14.33 +0.02 (+0.14%)

Fundamental Rating

3

Overall RCM gets a fundamental rating of 3 out of 10. We evaluated RCM against 109 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of RCM have multiple concerns. RCM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

RCM had negative earnings in the past year.
In the past year RCM had a positive cash flow from operations.
In multiple years RCM reported negative net income over the last 5 years.
In multiple years RCM reported negative operating cash flow during the last 5 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 2015 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.
RCM has a Return On Equity (-2.18%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.95%, RCM is in line with its industry, outperforming 47.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RCM is in line with the industry average of 8.01%.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

1.3 Margins

RCM's Profit Margin has declined in the last couple of years.
RCM's Operating Margin of 8.07% is fine compared to the rest of the industry. RCM outperforms 76.58% of its industry peers.
In the last couple of years the Operating Margin of RCM has remained more or less at the same level.
The Gross Margin of RCM (19.19%) is worse than 63.96% of its industry peers.
In the last couple of years the Gross Margin of RCM has grown nicely.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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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.
RCM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RCM Yearly Shares OutstandingRCM Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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 has a Altman-Z score (1.80) which is comparable to the rest of the industry.
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.
A Debt/Equity ratio of 0.76 indicates that RCM is somewhat dependend on debt financing.
RCM has a Debt to Equity ratio of 0.76. This is comparable 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 2015 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.
RCM has a better Current ratio (1.79) than 66.67% of its industry peers.
A Quick Ratio of 1.79 indicates that RCM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.79, RCM is in the better half of 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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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%.
RCM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -70.03% yearly.
The Revenue has grown by 11.38% in the past year. This is quite good.
Measured over the past years, RCM shows a very strong growth in Revenue. The Revenue has been growing by 21.02% on average per year.
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.
The Revenue is expected to grow by 12.54% on average over the next years. This is quite good.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 0.5 -0.5

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2

4. Valuation

4.1 Price/Earnings Ratio

RCM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RCM is valuated quite expensively with a Price/Forward Earnings ratio of 68.23.
RCM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RCM to the average of the S&P500 Index (96.58), we can say RCM is valued slightly cheaper.
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

RCM's Enterprise Value to EBITDA ratio is in line with the industry average.
RCM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RCM is cheaper than 66.67% of the companies in the same industry.
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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0

5. Dividend

5.1 Amount

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

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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 2024-11-05/bmo
Earnings (Next)N/A N/A
Inst Owners55.88%
Inst Owner Change-68.78%
Ins Owners39.67%
Ins Owner Change-89.3%
Market Cap6.04B
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
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%
ROICexcg growth 3Y-1.79%
ROICexcg 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%