| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
CHNG Overview
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.
Change Healthcare Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$21.84 |
| 52 Week High | US$13.49 |
| 52 Week Low | US$24.21 |
| Beta | 1.49 |
| 1 Month Change | 2.34% |
| 3 Month Change | -5.70% |
| 1 Year Change | 48.27% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 45.60% |
Recent News & Updates
Shareholder Returns
| CHNG | US Healthcare Services | US Market | |
|---|---|---|---|
| 7D | 0.3% | 0.7% | -0.6% |
| 1Y | 48.3% | 8.8% | 33.8% |
Return vs Industry: CHNG exceeded the US Healthcare Services industry which returned 8.8% over the past year.
Return vs Market: CHNG exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| CHNG volatility | |
|---|---|
| CHNG Beta | 1.49 |
| Industry Beta | 0.78 |
| Market Beta | 1 |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2016 | 15,000 | Neil de Crescenzo | https://www.changehealthcare.com |
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. It operates through three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment offers software and analytics solutions for revenue cycle management, provider network management, payment accuracy, clinical decision support, value-based payment, consumer engagement, risk adjustment and quality performance, and imaging and clinical workflow.
Change Healthcare Fundamentals Summary
| CHNG fundamental statistics | |
|---|---|
| Market Cap | US$6.79b |
| Earnings (TTM) | -US$57.12m |
| Revenue (TTM) | US$3.26b |
2.1x
P/S Ratio-118.9x
P/E RatioIs CHNG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CHNG income statement (TTM) | |
|---|---|
| Revenue | US$3.26b |
| Cost of Revenue | US$1.57b |
| Gross Profit | US$1.69b |
| Expenses | US$1.75b |
| Earnings | -US$57.12m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.18 |
| Gross Margin | 51.88% |
| Net Profit Margin | -1.75% |
| Debt/Equity Ratio | 146.3% |
How did CHNG perform over the long term?
See historical performance and comparisonValuation
Is Change Healthcare undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CHNG ($21.84) is trading below our estimate of fair value ($50.18)
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 (2.1x) compared to the US Healthcare Services industry average (6.2x).
Future Growth
How is Change Healthcare forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
80.9%
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 (4.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: CHNG's revenue (4.9% 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 low in 3 years time (18.9%).
Past Performance
How has Change Healthcare performed over the past 5 years?
-61.0%
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 61% 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 (32.4%).
Return on Equity
High ROE: CHNG has a negative Return on Equity (-1.75%), 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 (146.3%) 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 76.6% 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?
1.6yrs
Average management tenure
CEO
Neil de Crescenzo (60 yo)
8.67yrs
Tenure
US$9,523,099
Compensation
Mr. Neil E. de Crescenzo, IV serves as President and Chief Executive Officer at Change Healthcare, Inc. since 2013 and has been its Director since 2017. He has been the Chief Executive Officer and Presiden...
CEO Compensation Analysis
Compensation vs Market: Neil's total compensation ($USD9.52M) is above average for companies of similar size in the US market ($USD6.44M).
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 ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: CHNG's board of directors are considered experienced (4.7 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.
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 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$6.789b
- Shares outstanding: 310.86m
- Website: https://www.changehealthcare.com
Number of Employees
Location
- Change Healthcare Inc.
- 424 Church Street
- Suite 1400
- Nashville
- Tennessee
- 37219
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:13 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/03/31 |
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.