HMS Holdings Corp

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HMSY : NASDAQ : Services
$18.02 -0.12 | -0.66%
Today's Range: 17.85 - 18.09
Avg. Daily Volume: 634600.0
01/19/17 - 1:12 PM ET

Financial Analysis


HMS HOLDINGS CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. HMS HOLDINGS CORP is extremely liquid. Currently, the Quick Ratio is 4.65 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.04% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)124.6118.44
EBITDA ($mil)23.7525.31
EBIT ($mil)12.6513.02
Net Income ($mil)13.516.86


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)171.52144.8
Total Assets ($mil)884.93867.97
Total Debt ($mil)197.8197.8
Equity ($mil)564.91537.77


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin39.0339.35
EBITDA Margin19.0621.37
Operating Margin10.1510.99
Sales Turnover0.560.53
Return on Assets3.991.54
Return on Equity6.252.49
Debt Q3 FY16 Q3 FY15
Current Ratio4.944.09
Debt/Capital0.260.27
Interest Expense2.121.95
Interest Coverage5.966.68


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)84.6686.01
Div / share0.00.0
EPS0.160.08
Book value / share6.676.25
Institutional Own % n/a n/a
Avg Daily Volume612522.0556137.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 94.54 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.76 indicates valuation on par with the S&P 500 average of 2.84 and a significant discount versus the industry average of 5.25. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, HMS HOLDINGS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HMSY 45.00 Peers 94.54   HMSY 18.20 Peers 23.10

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HMSY is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HMSY is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HMSY 22.92 Peers 41.03   HMSY 0.27 Peers 0.69

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HMSY is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HMSY trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HMSY 2.76 Peers 5.25   HMSY 173.33 Peers 29.11

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HMSY is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HMSY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HMSY 3.15 Peers 5.53   HMSY 8.42 Peers 23.39

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HMSY is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HMSY significantly trails its peers on the basis of sales growth

 

 

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