HMS Holdings Corp

Find Ratings Reports
HMSY : NASDAQ : Services
$19.52 up 0.17 | 0.88%
Today's Range: 19.19 - 19.62
Avg. Daily Volume: 427000.0
07/20/17 - 12:55 PM ET

Financial Analysis


HMS HOLDINGS CORP's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HMS HOLDINGS CORP is extremely liquid. Currently, the Quick Ratio is 4.83 which clearly shows the ability to cover any short-term cash needs. HMSY managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.44% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)113.73119.76
EBITDA ($mil)15.8122.78
EBIT ($mil)5.2411.16
Net Income ($mil)1.444.56


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)168.29143.45
Total Assets ($mil)867.12841.02
Total Debt ($mil)197.8197.8
Equity ($mil)560.83531.88


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin34.6537.12
EBITDA Margin13.8919.01
Operating Margin4.619.32
Sales Turnover0.570.58
Return on Assets3.983.03
Return on Equity6.154.8
Debt Q1 FY17 Q1 FY16
Current Ratio5.075.05
Debt/Capital0.260.27
Interest Expense2.292.09
Interest Coverage2.295.34


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)83.8984.13
Div / share0.00.0
EPS0.020.05
Book value / share6.696.32
Institutional Own % n/a n/a
Avg Daily Volume415738.0404150.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 89.37 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 2.74 indicates a discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 6.41. 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 44.68 Peers 89.37   HMSY 16.74 Peers 39.04

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 significant 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 19.49 Peers 45.14   HMSY 0.50 Peers 0.99

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 2.74 Peers 6.41   HMSY 41.37 Peers -8.49

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 3.14 Peers 6.14   HMSY 1.30 Peers 18.15

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

 

 

Latest Stock Upgrades/Downgrades