NasdaqGS:CHNG

Stock Analysis Report

Executive Summary

Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system.

Snowflake

Fundamentals

Adequate balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

19.0%

NasdaqGS:CHNG

2.1%

US Healthcare Services

1.1%

US Market


1 Year Return

n/a

NasdaqGS:CHNG

7.7%

US Healthcare Services

2.1%

US Market

No trading data on CHNG.

No trading data on CHNG.


Share holder returns

CHNGIndustryMarket
7 Day19.0%2.1%1.1%
30 Day-7.1%-4.7%3.7%
90 Dayn/a-4.6%2.3%
1 Yearn/a7.7%7.7%4.4%2.1%
3 Yearn/a51.1%50.8%47.0%37.4%
5 Yearn/a49.2%48.3%61.6%43.8%

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

No news available

Valuation

Is Change Healthcare undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Change Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).

Change Healthcare's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Change Healthcare is loss making, we can't compare its value to the US Healthcare Services industry average.

Change Healthcare is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Change Healthcare, we can't assess if its growth is good value.


Price Based on Value of Assets

Change Healthcare is good value based on assets compared to the US Healthcare Services industry average.


Next Steps

Future Growth

How is Change Healthcare expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

30.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Change Healthcare is high growth as no revenue estimate data is available.

Change Healthcare's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Change Healthcare's revenue growth to the United States of America market average as no estimate data is available.

Change Healthcare's earnings growth is expected to exceed the United States of America market average.

Change Healthcare's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Change Healthcare is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Change Healthcare performed over the past 5 years?

-208.2%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Change Healthcare does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare Change Healthcare's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Change Healthcare's 1-year growth to the US Healthcare Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Change Healthcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Change Healthcare has efficiently used its assets last year compared to the US Healthcare Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Change Healthcare improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Change Healthcare's financial position?


Financial Position Analysis

Change Healthcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Change Healthcare's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Change Healthcare has no debt.

Change Healthcare has not taken on any debt in the past 5 years.


Balance Sheet

Low level of unsold assets.

Change Healthcare has no debt, it does not need to be covered by short term assets.


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.

Whilst loss making Change Healthcare has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Change Healthcare has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -99% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Change Healthcare's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Change Healthcare's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Change Healthcare has not reported any payouts.

Unable to verify if Change Healthcare's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Change Healthcare has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Change Healthcare's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Change Healthcare's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average board tenure


CEO

Neil de Crescenzo (58yo)

0yrs

Tenure

US$2,435,910

Compensation

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


CEO Compensation Analysis

Neil's remuneration is lower than average for companies of similar size in United States of America.

Neil's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

0.3yrs

Average Tenure

58yo

Average Age

The average tenure for the Change Healthcare board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Change Healthcare individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$1,062,75019 Aug 19
Neil de Crescenzo
EntityIndividual
Role
Chief Executive Officer
President
Shares75,000
Max PriceUS$14.17
BuyUS$549,20019 Aug 19
Fredrik Eliasson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares40,000
Max PriceUS$13.73
BuyUS$65,00003 Jul 19
Bansi Nagji
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$13.00
BuyUS$26,00003 Jul 19
Roderick O’Reilly
EntityIndividual
Role
Senior Key Executive
EVP & President of Software and Analytics
Shares2,000
Max PriceUS$13.00
BuyUS$390,00003 Jul 19
Fredrik Eliasson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares30,000
Max PriceUS$13.00
BuyUS$13,00003 Jul 19
Thomas McEnery
EntityIndividual
Role
Head of Marketing
Executive VP & Chief Marketing Officer
Shares1,000
Max PriceUS$13.00
BuyUS$13,00003 Jul 19
August Calhoun
EntityIndividual
Role
Chief Operating Officer
Executive VP and President of Sales & Operations
Shares1,000
Max PriceUS$13.00

Ownership Breakdown


Management Team

  • Neil de Crescenzo (58yo)

    President

    • Tenure: 0yrs
    • Compensation: US$2.44m
  • Alex Choy (57yo)

    Executive VP of Research & Development

    • Tenure: 0yrs
    • Compensation: US$2.98m
  • Fredrik Eliasson (48yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$7.84m
  • Thomas McEnery (57yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 0yrs
  • Rod O’Reilly (57yo)

    EVP & President of Software and Analytics

    • Tenure: 0yrs
    • Compensation: US$3.07m
  • Linda Whitley-Taylor (55yo)

    Chief People Officer & Executive VP

    • Tenure: 0yrs
  • August Calhoun (47yo)

    Executive VP and President of Sales & Operations

    • Tenure: 0yrs
    • Compensation: US$2.65m
  • Evan Smith

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Thomas Laur (44yo)

    Executive VP & President of Technology Enabled Services

    • Tenure: 0yrs
    • Compensation: US$4.00m
  • Loretta Cecil (61yo)

    Executive VP & General Counsel

    • Tenure: 0yrs

Board Members

  • Neil Simpkins (53yo)

    Director

    • Tenure: 0.3yrs
  • Philip Pead (66yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: US$197.76k
  • Neil de Crescenzo (58yo)

    President

    • Tenure: 0yrs
    • Compensation: US$2.44m
  • Bob Zollars (62yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: US$182.76k
  • John Hammergren (60yo)

    Chairman of the Board

    • Tenure: 0.2yrs
  • Howard Lance (63yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: US$209.70k
  • Phil Roe (58yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: US$197.76k
  • Bansi Nagji (54yo)

    Director

    • Tenure: 0.3yrs
  • Nick Kuhar (33yo)

    Director

    • Tenure: 0.3yrs
  • Britt Vitalone (50yo)

    Director

    • Tenure: 0.3yrs

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$1.709b
  • Shares outstanding: 124.85m
  • Website: https://www.changehealthcare.com

Location

  • Change Healthcare Inc.
  • 3055 Lebanon Pike
  • Suite 1000
  • Nashville
  • Tennessee
  • 37214
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHNGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2019
1CBMUN (Boerse Muenchen)YesCommon StockDEEURJun 2019

Biography

Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States heal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 01:00
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.