NasdaqGS:CHNG

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Executive Summary

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

Rewards

Trading at 44.1% below our estimate of its fair value

Earnings are forecast to grow 100.81% per year

Risk Analysis

No risks detected for CHNG from our risk checks.


Snowflake Analysis

Exceptional 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

CHNG

4.3%

US Healthcare Services

4.0%

US Market


1 Year Return

-27.3%

CHNG

23.9%

US Healthcare Services

4.9%

US Market

Return vs Industry: CHNG underperformed the US Healthcare Services industry which returned 23.9% over the past year.

Return vs Market: CHNG underperformed the US Market which returned 5% over the past year.


Shareholder returns

CHNGIndustryMarket
7 Day-0.7%4.3%4.0%
30 Day-8.7%13.2%1.3%
90 Day23.3%42.6%29.5%
1 Year-27.3%-27.3%24.3%23.9%7.2%4.9%
3 Yearn/a94.1%92.9%36.1%27.2%
5 Yearn/a104.4%102.5%65.3%46.9%

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?

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHNG ($10.85) is trading below our estimate of fair value ($19.4)

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 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 (1x) compared to the US Healthcare Services industry average (4.5x).


Next Steps

Future Growth

How is Change Healthcare forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

100.8%

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 (2.2%).

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 (26.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: CHNG's revenue (26.2% per year) is forecast to grow faster 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 (31.3%)


Next Steps

Past Performance

How has Change Healthcare performed over the past 5 years?

-1714.2%

Last years 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: Insufficient data to determine if CHNG's year-on-year earnings growth rate was positive over the past 5 years.

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 (19.1%).


Return on Equity

High ROE: CHNG has a negative Return on Equity (-28.84%), as it is currently unprofitable.


Next Steps

Financial Health

How is Change Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: CHNG's short term assets ($1.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: CHNG's short term assets ($1.4B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: CHNG's debt to equity ratio (153.3%) 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: CHNG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CHNG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

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?

1.1yrs

Average board tenure


CEO

Neil de Crescenzo (59yo)

no data

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

Compensation vs Market: Neil's total compensation ($USD2.44M) is below average for companies of similar size in the US market ($USD5.82M).

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


Board Members

NamePositionTenureCompensationOwnership
Neil de Crescenzo
Presidentno dataUS$2.44m0.066% $2.2m
Neil Simpkins
Director1.08yrsno datano data
Philip Pead
Independent Director1.08yrsUS$197.76k0.020% $672.2k
Robert Zollars
Independent Director1.08yrsUS$182.76kno data
Howard Lance
Independent Chairman0.50yrUS$209.70k0.061% $2.0m
Phillip Roe
Independent Director1.08yrsUS$197.76kno data
Bansi Nagji
Independent Director0.083yrno data0.0033% $108.3k
Diana McKenzie
Independent Director0.92yrno datano data
Nicholas Kuhar
Independent Director1.08yrsno datano data
Nella Domenici
Independent Director0.17yrno datano data

1.1yrs

Average Tenure

59yo

Average Age

Experienced Board: CHNG's board of directors are not considered experienced ( 1.1 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: CHNG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$3.293b
  • Shares outstanding: 303.53m
  • Website: https://www.changehealthcare.com

Number of Employees


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
CHNG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2019

Biography

Change Healthcare Inc., an independent healthcare technology platform, 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 financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:52
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.