DB:PF3

Stock Analysis Report

Executive Summary

Performant Financial Corporation provides technology-enabled audit, recovery, outsource customer, and related analytics services in the United States.

Rewards

Earnings are forecast to grow 92.71% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€64M)



Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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Share Price & News

How has Performant Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PF3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

PF3

-1.1%

DE Commercial Services

0.1%

DE Market


1 Year Return

-57.1%

PF3

-4.3%

DE Commercial Services

14.1%

DE Market

Return vs Industry: PF3 underperformed the German Commercial Services industry which returned -4.3% over the past year.

Return vs Market: PF3 underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

PF3IndustryMarket
7 Day-4.7%-1.1%0.1%
30 Day4.6%-1.1%0.2%
90 Day23.6%4.8%3.3%
1 Year-57.1%-57.1%-0.8%-4.3%17.6%14.1%
3 Year-40.2%-40.2%10.4%0.9%14.8%4.8%
5 Year-80.5%-80.5%2.7%-11.7%22.2%5.4%

Price Volatility Vs. Market

How volatile is Performant Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Performant Financial undervalued compared to its fair value and its price relative to the market?

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PF3's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PF3's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PF3 is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: PF3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PF3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PF3 is good value based on its PB Ratio (1.1x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is Performant Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

92.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PF3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: PF3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PF3's is expected to become profitable in the next 3 years.

Revenue vs Market: PF3's revenue (15.5% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: PF3's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PF3's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has Performant Financial performed over the past 5 years?

-52.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PF3 is currently unprofitable.

Growing Profit Margin: PF3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PF3 is unprofitable, and losses have increased over the past 5 years at a rate of -52.7% per year.

Accelerating Growth: Unable to compare PF3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PF3 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.8%).


Return on Equity

High ROE: PF3 has a negative Return on Equity (-49.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Performant Financial's financial position?


Financial Position Analysis

Short Term Liabilities: PF3's short term assets ($33.8M) exceed its short term liabilities ($20.5M).

Long Term Liabilities: PF3's short term assets ($33.8M) do not cover its long term liabilities ($68.5M).


Debt to Equity History and Analysis

Debt Level: PF3's debt to equity ratio (109.7%) is considered high.

Reducing Debt: PF3's debt to equity ratio has reduced from 123.7% to 109.7% over the past 5 years.


Balance Sheet

Inventory Level: PF3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: PF3's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PF3 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: PF3 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Performant Financial's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PF3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PF3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PF3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PF3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PF3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Lisa Im (54yo)

15.8yrs

Tenure

US$423,848

Compensation

Ms. Lisa C. Im serves as the Chief Executive Officer of Performant Recovery, Inc. Ms. Im has been the Chief Executive Officer of Performant Financial Corporation since April 2004 and as its Chairwoman sinc ...


CEO Compensation Analysis

Compensation vs Market: Lisa's total compensation ($USD423.85K) is about average for companies of similar size in the German market ($USD413.42K).

Compensation vs Earnings: Lisa's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Lisa Im
Chairman & CEO15.8yrsUS$423.85k2.63% $1.5m
Ian Johnston
Vice President2.6yrsUS$387.05k0.19% $105.4k
Harold Leach
Chief Compliance Officer3.8yrsUS$551.82k0.81% $458.7k
Simeon Kohl
VP of Healthcare & GM of Healthcare2.8yrsUS$424.25k0.11% $62.5k
Jeffrey Nelson
Vice President of Technology0yrsno datano data
Richard Zubek
Investor Relations Professional0yrsno datano data

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PF3's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lisa Im
Chairman & CEO15.8yrsUS$423.85k2.63% $1.5m
Jeffrey Stein
Director0.8yrsno datano data
William Hansen
Lead Independent Director6yrsUS$136.00k0.22% $122.8k
Bradley Fluegel
Independent Director6yrsUS$122.00k0.24% $136.9k
James LaCamp
Director0.3yrsno datano data

5.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: PF3's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

Performant Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Performant Financial Corporation
  • Ticker: PF3
  • Exchange: DB
  • Founded: 1976
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$60.907m
  • Listing Market Cap: US$56.418m
  • Shares outstanding: 53.90m
  • Website: https://performantcorp.com

Number of Employees


Location

  • Performant Financial Corporation
  • 333 North Canyons Parkway
  • Suite 100
  • Livermore
  • California
  • 94551
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFMTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2012
PF3DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2012

Biography

Performant Financial Corporation provides technology-enabled audit, recovery, outsource customer, and related analytics services in the United States. The company offers recovery services primarily to the government-supported student loan industry serving guaranty agencies, private financial institutions, and the Department of Education; and restructures and recovers student loans issued directly by banks to students outside of federal lending programs. It also provides audit and recovery services related to improper payments in the healthcare market; and recovery and risk management advisory services to the Department of the Treasury and various financial institutions, as well as to federal, state, and municipal tax authorities. In addition, the company offers services from post-and pre-payment audit of healthcare claims to detection of fraud, waste and abuse of healthcare claims, to coordination of benefits and pharmacy fraud detection. The company was formerly known as DCS Holdings, Inc. and changed its name to Performant Financial Corporation in 2005. Performant Financial Corporation was founded in 1976 and is headquartered in Livermore, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:20
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.