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R1 RCM Inc (RCM) Stock Fundamental Analysis

USA - NASDAQ:RCM - US77634L1052 - Common Stock

14.31 USD
+0.01 (+0.07%)
Last: 11/18/2024, 8:00:01 PM
14.33 USD
+0.02 (+0.14%)
After Hours: 11/18/2024, 8:00:01 PM
Fundamental Rating

3

Taking everything into account, RCM scores 3 out of 10 in our fundamental rating. RCM was compared to 100 industry peers in the Health Care Providers & Services industry. RCM has a bad profitability rating. Also its financial health evaluation is rather negative. RCM is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year RCM has reported negative net income.
RCM had a positive operating cash flow in the past year.
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

With a Return On Assets value of -1.06%, RCM perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
RCM has a Return On Equity (-2.18%) which is in line with its industry peers.
RCM has a Return On Invested Capital (2.95%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCM is below the industry average of 9.33%.
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

In the last couple of years the Profit Margin of RCM has declined.
The Operating Margin of RCM (8.07%) is better than 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.
RCM has a worse Gross Margin (19.19%) 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 of 1.80. This is comparable to the rest of the industry: RCM outperforms 49.55% of its industry peers.
The Debt to FCF ratio of RCM is 11.85, which is on the high side as it means it would take RCM, 11.85 years of fcf income to pay off all of its debts.
RCM has a Debt to FCF ratio (11.85) which is in line with 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 (0.76) which is in line with 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.
The Current ratio of RCM (1.79) is better 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.
The Quick ratio of RCM (1.79) is better than 70.27% of its industry peers.
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

The earnings per share for RCM have decreased strongly by -66.67% in the last year.
Measured over the past years, RCM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -70.03% on average per year.
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 0 0.5 -0.5

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RCM. In the last year negative earnings were reported.
RCM is valuated quite expensively with a Price/Forward Earnings ratio of 68.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCM is on the same level as its industry peers.
RCM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.99.
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.
Based on the Price/Free Cash Flow ratio, RCM is valued a bit 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 Change0%
Ins Owners39.67%
Ins Owner Change0%
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%