Cross Country Healthcare, Inc. (NASDAQ:CCRN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CCRN, it is a financially-healthy company with a an impressive history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Cross Country Healthcare here.
Very undervalued with excellent balance sheet
In the past couple of years, CCRN has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, CCRN also outperformed its industry, which delivered a growth of 28%. This is what investors like to see! CCRN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. CCRN’s has produced operating cash levels of 0.43x total debt over the past year, which implies that CCRN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
CCRN’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CCRN’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, CCRN’s share price is trading below the group’s average. This supports the theory that CCRN is potentially underpriced.
For Cross Country Healthcare, I’ve compiled three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CCRN’s future growth? Take a look at our free research report of analyst consensus for CCRN’s outlook.
- Dividend Income vs Capital Gains: Does CCRN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from CCRN as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CCRN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.