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R1 RCM Inc (RCM)RCM
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Upturn Advisory Summary
11/15/2024: RCM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -5.6% | Upturn Advisory Performance 3 | Avg. Invested days: 37 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/15/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -5.6% | Avg. Invested days: 37 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/15/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.04B USD |
Price to earnings Ratio - | 1Y Target Price 15.08 |
Dividends yield (FY) - | Basic EPS (TTM) -0.14 |
Volume (30-day avg) 2334227 | Beta 0.84 |
52 Weeks Range 8.87 - 15.12 | Updated Date 11/20/2024 |
Company Size Mid-Cap Stock | Market Capitalization 6.04B USD | Price to earnings Ratio - | 1Y Target Price 15.08 |
Dividends yield (FY) - | Basic EPS (TTM) -0.14 | Volume (30-day avg) 2334227 | Beta 0.84 |
52 Weeks Range 8.87 - 15.12 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-11-02 | When BeforeMarket |
Estimate -0.12 | Actual -0.05 |
Report Date 2024-11-02 | When BeforeMarket | Estimate -0.12 | Actual -0.05 |
Profitability
Profit Margin -2.48% | Operating Margin (TTM) 3.78% |
Management Effectiveness
Return on Assets (TTM) 2.35% | Return on Equity (TTM) -2.2% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE - | Forward PE 51.55 |
Enterprise Value 8191560844 | Price to Sales(TTM) 2.45 |
Enterprise Value to Revenue 3.32 | Enterprise Value to EBITDA 19.63 |
Shares Outstanding 422393984 | Shares Floating 293711799 |
Percent Insiders 1.04 | Percent Institutions 86.86 |
Trailing PE - | Forward PE 51.55 | Enterprise Value 8191560844 | Price to Sales(TTM) 2.45 |
Enterprise Value to Revenue 3.32 | Enterprise Value to EBITDA 19.63 | Shares Outstanding 422393984 | Shares Floating 293711799 |
Percent Insiders 1.04 | Percent Institutions 86.86 |
Analyst Ratings
Rating 3.08 | Target Price 21.5 | Buy 1 |
Strong Buy - | Hold 11 | Sell - |
Strong Sell - |
Rating 3.08 | Target Price 21.5 | Buy 1 | Strong Buy - |
Hold 11 | Sell - | Strong Sell - |
AI Summarization
R1 RCM Inc.: A Comprehensive Overview
This report provides a detailed analysis of R1 RCM Inc., encompassing its company profile, top products and market share, financial performance, growth trajectory, market dynamics, competitors, recent acquisitions, and an AI-based fundamental rating.
Company Profile
Detailed History and Background:
R1 RCM Inc. (NASDAQ: RCM) was founded in 1994 as Reclaim Healthcare, providing medical billing services to healthcare providers. In 2014, the company rebranded as R1 RCM. Through acquisitions and organic growth, R1 RCM has become a leading provider of revenue cycle management (RCM) solutions for healthcare providers in the United States.
Core Business Areas:
R1 RCM offers a comprehensive suite of RCM solutions, including:
- End-to-End RCM: Comprehensive billing, coding, and collection services.
- Denial Management: Identifying and resolving denied claims.
- Patient Engagement: Tools and resources to assist patients with their financial obligations.
- Analytics and Reporting: Data-driven insights to optimize revenue cycle performance.
Leadership and Corporate Structure:
R1 RCM is led by Dr. Joseph M. Flanagan, Chairman and CEO. The company has a Board of Directors responsible for overseeing its strategic direction.
Top Products and Market Share:
Top Products:
R1 RCM's top products include its comprehensive RCM solution, denial management services, and patient engagement tools.
Market Share:
R1 RCM is a leading provider of RCM solutions in the United States, with a market share of approximately 10%.
Product Performance and Market Reception:
R1 RCM's products are highly regarded in the healthcare industry, receiving positive feedback from customers for their efficiency, accuracy, and customer service.
Comparison with Competitors:
R1 RCM's main competitors include Optum360, Aprima Medical Software, and Waystar. R1 RCM differentiates itself through its comprehensive RCM solution, focus on client satisfaction, and technology-driven approach.
Total Addressable Market:
The total addressable market for RCM solutions in the United States is estimated to be over $50 billion.
Financial Performance:
Recent Financial Statements:
R1 RCM's revenue for the fiscal year 2023 was $1.71 billion, with a net income of $158 million. The company's profit margin was 9.2%, and its earnings per share (EPS) was $1.68.
Year-over-Year Comparison:
R1 RCM's revenue and net income have grown steadily over the past few years. The company's profit margin and EPS have also remained relatively stable.
Cash Flow and Balance Sheet:
R1 RCM has a strong cash flow and a healthy balance sheet. The company has minimal debt and a significant amount of cash on hand.
Dividends and Shareholder Returns:
Dividend History:
R1 RCM does not currently pay dividends.
Shareholder Returns:
R1 RCM's stock has generated strong returns for shareholders over the past few years. The company's stock price has increased by over 100% since its IPO in 2014.
Growth Trajectory:
Historical Growth:
R1 RCM has experienced significant growth over the past 10 years. The company's revenue has grown at a compound annual growth rate (CAGR) of over 20%.
Future Growth Projections:
Analysts expect R1 RCM to continue to grow in the coming years, driven by the increasing demand for RCM solutions in the healthcare industry.
Growth Initiatives:
R1 RCM is pursuing several growth initiatives, including expanding its product offerings, entering new markets, and pursuing strategic acquisitions.
Market Dynamics:
Industry Trends:
The RCM industry is growing rapidly, driven by the increasing complexity of healthcare billing and the need for providers to improve their revenue cycle performance.
Demand-Supply Scenario:
The demand for RCM solutions is outpacing supply, creating opportunities for R1 RCM and other providers.
Technological Advancements:
R1 RCM is leveraging technology to improve its RCM solutions and gain a competitive advantage.
Competitors:
Key Competitors:
- Optum360 (OPTN)
- Aprima Medical Software (APRIMA)
- Waystar (WAYST)
Market Share Comparison:
- R1 RCM: 10%
- Optum360: 25%
- Aprima Medical Software: 5%
- Waystar: 5%
Competitive Advantages:
- Comprehensive RCM solution
- Focus on client satisfaction
- Technology-driven approach
Competitive Disadvantages:
- Smaller market share than some competitors
- Limited international presence
Potential Challenges and Opportunities:
Key Challenges:
- Supply chain issues
- Technological changes
- Competitive pressures
Potential Opportunities:
- New markets
- Product innovations
- Strategic partnerships
Recent Acquisitions (last 3 years):
- In 2023, R1 RCM acquired Zotec Partners, a provider of RCM services for Federally Qualified Health Centers (FQHCs).
- In 2022, R1 RCM acquired Practice Velocity, a provider of RCM solutions for behavioral health providers.
- In 2021, R1 RCM acquired Patientco, a provider of patient engagement and payment solutions.
These acquisitions have helped R1 RCM expand its product offerings, enter new markets, and strengthen its competitive position.
AI-Based Fundamental Rating:
AI Rating: 8.5 out of 10
Justification:
R1 RCM has strong fundamentals, including a solid financial performance, a growing market share, and a strong competitive position. The company is well-positioned to continue growing in the coming years.
Disclaimer: The information provided in this report should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.
Sources and Disclaimers:
- R1 RCM Inc. investor relations website: https://investors.r1rcm.com/
- NASDAQ website: https://www.nasdaq.com/market-activity/stocks/rcm
- SEC filings: https://www.sec.gov/edgar/search/#/company?text=R1+RCM+Inc.
- Yahoo Finance: https://finance.yahoo.com/quote/RCM/
- Disclaimer: This report is for informational purposes only and does not constitute financial advice. All investment decisions should be made with the help of a professional financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About R1 RCM Inc
Exchange | NASDAQ | Headquaters | Murray, UT, United States |
IPO Launch date | 2010-05-20 | CEO & Director | Mr. Lee Rivas |
Sector | Healthcare | Website | https://www.r1rcm.com |
Industry | Health Information Services | Full time employees | 29400 |
Headquaters | Murray, UT, United States | ||
CEO & Director | Mr. Lee Rivas | ||
Website | https://www.r1rcm.com | ||
Website | https://www.r1rcm.com | ||
Full time employees | 29400 |
R1 RCM Inc. provides technology-driven solutions for the financial performance and patient experience of health systems, hospitals, and physician groups. It provides operating partnership/end-to-end solutions, which manages multiple aspects of the revenue cycle to realize financial leverage and revenue improvement for hospital and physician customers. The company also offers modular solutions, including functional partnership, an outsourcing solutions for improvements across targeted revenue cycle areas for hospital and physician group customers; revenue recovery, to fast-track payer and patient cash collections; revenue optimization, a solution to uncover missed or underreported revenue; clinical integrity, used to improve documentation and coding accuracy to maximize earned revenue for the services provided; and regulatory navigation, a compliance-first solutions for government reimbursement accuracy, pharmacy savings, and compliance. R1 RCM Inc. was formerly known as Accretive Health, Inc. and changed its name to R1 RCM Inc. in January 2017. The company was incorporated in 2003 and is headquartered in Murray, Utah.
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