NasdaqGS:CHNG

Stock Analysis Report

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Market Cap

US$7.3b

Last Updated

2021/06/13 23:36 UTC

Data Sources

Company Financials +

Executive Summary

Change Healthcare Inc., an independent healthcare technology company, provides data and analytics-driven solutions to enhance clinical, financial, administrative, and patient engagement outcomes in the United States healthcare system. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Change Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHNG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CHNG's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

CHNG

3.1%

US Healthcare Services

0.8%

US Market


1 Year Return

120.9%

CHNG

33.9%

US Healthcare Services

44.4%

US Market

Return vs Industry: CHNG exceeded the US Healthcare Services industry which returned 33.9% over the past year.

Return vs Market: CHNG exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

CHNGIndustryMarket
7 Day-1.2%3.1%0.8%
30 Day2.2%12.5%3.0%
90 Day1.8%-0.5%4.4%
1 Year120.9%120.9%34.1%33.9%46.7%44.4%
3 Yearn/a117.9%116.3%60.3%50.4%
5 Yearn/a244.8%240.8%128.3%102.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Change Healthcare undervalued compared to its fair value and its price relative to the market?

20.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHNG ($23.39) is trading below our estimate of fair value ($29.37)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CHNG is good value based on its PB Ratio (2.2x) compared to the US Healthcare Services industry average (6.8x).


Future Growth

How is Change Healthcare forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

53.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHNG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: CHNG's revenue (5.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CHNG's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHNG's Return on Equity is forecast to be high in 3 years time (27.7%)


Past Performance

How has Change Healthcare performed over the past 5 years?

-77.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHNG is currently unprofitable.

Growing Profit Margin: CHNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CHNG is unprofitable, and losses have increased over the past 5 years at a rate of 77% per year.

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

Earnings vs Industry: CHNG is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (26.9%).


Return on Equity

High ROE: CHNG has a negative Return on Equity (-3.45%), as it is currently unprofitable.


Financial Health

How is Change Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: CHNG's short term assets ($1.1B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: CHNG's short term assets ($1.1B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: CHNG's debt to equity ratio (147.1%) is considered high.

Reducing Debt: Insufficient data to determine if CHNG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: Whilst unprofitable CHNG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CHNG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 66.2% per year.


Dividend

What is Change Healthcare current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CHNG'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 CHNG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Neil de Crescenzo (59 yo)

no data

Tenure

US$9,501,848

Compensation

Mr. Neil E. de Crescenzo, IV serves as President and Chief Executive Officer at Change Healthcare, Inc. and has been its Director since June 26, 2019. He has been the Chief Executive Officer and President ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD9.50M) is above average for companies of similar size in the US market ($USD6.52M).

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


Leadership Team

Experienced Management: CHNG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: CHNG's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Change Healthcare Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Change Healthcare Inc.
  • Ticker: CHNG
  • Exchange: NasdaqGS
  • Founded: 2016
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$7.254b
  • Shares outstanding: 310.14m
  • Website: https://www.changehealthcare.com

Number of Employees


Location

  • Change Healthcare Inc.
  • 424 Church Street
  • Suite 1400
  • Nashville
  • Tennessee
  • 37219
  • United States

Listings


Biography

Change Healthcare Inc., an independent healthcare technology company, provides data and analytics-driven solutions to enhance clinical, financial, administrative, and patient engagement outcomes in the Uni...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 23:36
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.