DB:HMM

Stock Analysis Report

Executive Summary

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has HMS Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.7%

HMM

4.1%

DE Healthcare Services

7.3%

DE Market


1 Year Return

-15.2%

HMM

0.9%

DE Healthcare Services

-17.7%

DE Market

Return vs Industry: HMM underperformed the German Healthcare Services industry which returned 0.9% over the past year.

Return vs Market: HMM exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

HMMIndustryMarket
7 Day3.7%4.1%7.3%
30 Day5.7%-8.3%-17.9%
90 Day-15.3%-18.1%-25.8%
1 Year-15.2%-15.2%1.8%0.9%-15.1%-17.7%
3 Year19.2%19.2%28.2%24.9%-18.7%-25.6%
5 Year54.1%54.1%93.8%85.3%-17.7%-29.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HMS Holdings undervalued compared to its fair value and its price relative to the market?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HMM (€22.2) is trading below our estimate of fair value (€33.86)

Significantly Below Fair Value: HMM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HMM is poor value based on its PE Ratio (24.9x) compared to the Healthcare Services industry average (11.1x).

PE vs Market: HMM is poor value based on its PE Ratio (24.9x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: HMM is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: HMM is good value based on its PB Ratio (2.6x) compared to the DE Healthcare Services industry average (2.9x).


Next Steps

Future Growth

How is HMS Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMM's forecast earnings growth (4.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: HMM's earnings (4.2% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: HMM's earnings are forecast to grow, but not significantly.

Revenue vs Market: HMM's revenue (8.2% per year) is forecast to grow faster than the German market (4.2% per year).

High Growth Revenue: HMM's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMM's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has HMS Holdings performed over the past 5 years?

36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMM has high quality earnings.

Growing Profit Margin: HMM's current net profit margins (13.9%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: HMM's earnings have grown significantly by 36.5% per year over the past 5 years.

Accelerating Growth: HMM's earnings growth over the past year (58.6%) exceeds its 5-year average (36.5% per year).

Earnings vs Industry: HMM earnings growth over the past year (58.6%) exceeded the Healthcare Services industry 5.9%.


Return on Equity

High ROE: HMM's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is HMS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HMM's short term assets ($397.4M) exceed its short term liabilities ($101.3M).

Long Term Liabilities: HMM's short term assets ($397.4M) exceed its long term liabilities ($288.1M).


Debt to Equity History and Analysis

Debt Level: HMM's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: HMM's debt to equity ratio has reduced from 37.1% to 28.1% over the past 5 years.

Debt Coverage: HMM's debt is well covered by operating cash flow (55.5%).

Interest Coverage: HMM's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: HMM's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is HMS Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HMM'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 HMM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HMM'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 HMM'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?

3.9yrs

Average management tenure


CEO

Bill Lucia (61yo)

11s

Tenure

US$4,805,482

Compensation

Mr. William C. Lucia, also known as Bill, FLMI, has been Chief Executive Officer and President of HMS Holdings Corp. since March 1, 2009 and has been its Chairman of the Board since July 7, 2015. Mr. Lucia ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD4.81M) is above average for companies of similar size in the German market ($USD1.86M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Lucia
Chairman11yrsUS$4.81m0.97% $19.2m
Jeffrey Sherman
Executive VP5.5yrsUS$2.77m0.25% $5.0m
Douglas Williams
Executive VP & COO1yrUS$2.13m0.096% $1.9m
Emmet O'Gara
Group President of Total Population Management2.17yrsUS$1.65m0.060% $1.2m
Greg Aunan
Chief Accounting Officer & Senior VP4.75yrsno data0.049% $976.1k
Jacob Sims
Senior VP & CTO1.92yrsno data0.031% $620.9k
Tracy South
Executive VP & Chief Administrative Officer5.83yrsno data0.050% $987.1k
Robert Borchert
Senior Vice President of Investor Relations1.17yrsno datano data
Meredith Bjorck
Executive VP3.92yrsUS$1.56m0.062% $1.2m
David Alexander
Senior VP3.92yrsno data0.042% $832.4k

3.9yrs

Average Tenure

50yo

Average Age

Experienced Management: HMM's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Lucia
Chairman11yrsUS$4.81m0.97% $19.2m
Richard Stowe
Lead Independent Director4.67yrsUS$282.24k0.092% $1.8m
Ellen Rudnick
Independent Director23.17yrsUS$263.07k0.088% $1.7m
Cora Tellez
Independent Director7.42yrsUS$260.07k0.00072% $14.2k
William Miller
Independent Director19.42yrsUS$241.41k0.17% $3.3m
Craig Callen
Independent Director6.42yrsUS$250.50k0.022% $426.3k
Bart Schwartz
Independent Director9.67yrsUS$259.74k0.078% $1.5m
Robert Becker
Independent Director4.17yrsUS$244.74k0.0057% $112.3k
Jeffrey Rideout
Director0.75yrno data0.0036% $71.3k
Katherine Baicker
Director0.75yrno data0.0036% $71.3k

5.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HMM'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 4.3%.


Top Shareholders

Company Information

HMS Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HMS Holdings Corp.
  • Ticker: HMM
  • Exchange: DB
  • Founded: 1974
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$2.191b
  • Listing Market Cap: US$1.976b
  • Shares outstanding: 88.11m
  • Website: https://investor.hms.com

Number of Employees


Location

  • HMS Holdings Corp.
  • 5615 High Point Drive
  • Irving
  • Texas
  • 75038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMSYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1992
HMMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1992
HMMBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 1992

Biography

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. The company offers coordination of benefits services to government and commercial healthcare payers to ensure that the correct party pays the claim; and population management solutions that provide risk-bearing organizations with intelligence across their member populations to identify risks, and enhance patient engagement and outcomes, as well as payment integrity, care management and consumer engagement, and analytical solutions. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance program, and other healthcare payers, as well as a subcontractor. The company was founded in 1974 and is headquartered in Irving, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 22:32
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.