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CorVel

Nasdaq:CRVL
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CRVL
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

CorVel Corporation provides workers’ compensation solutions for employers, third party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. The last earnings update was 43 days ago. More info.


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  • CorVel has significant price volatility in the past 3 months.
CRVL Share Price and Events
7 Day Returns
2.1%
NasdaqGS:CRVL
-2.5%
US Healthcare
-1.2%
US Market
1 Year Returns
62%
NasdaqGS:CRVL
0.9%
US Healthcare
3.4%
US Market
CRVL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CorVel (CRVL) 2.1% 7.7% 34.7% 62% 96.7% 113.6%
US Healthcare -2.5% 2.8% 12.4% 0.9% 21.9% 62.8%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • CRVL outperformed the Healthcare industry which returned 0.9% over the past year.
  • CRVL outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
CRVL
Industry
5yr Volatility vs Market

CRVL Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CorVel to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CorVel.

NasdaqGS:CRVL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CRVL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.625 (1 + (1- 21%) (0%))
0.748
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:CRVL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CorVel is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CRVL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 63.43 Est @ 21.31% 59.00
2021 73.41 Est @ 15.74% 63.52
2022 82.09 Est @ 11.83% 66.09
2023 89.57 Est @ 9.1% 67.07
2024 96.01 Est @ 7.19% 66.88
2025 101.63 Est @ 5.85% 65.86
2026 106.63 Est @ 4.92% 64.28
2027 111.17 Est @ 4.26% 62.34
2028 115.39 Est @ 3.8% 60.20
2029 119.41 Est @ 3.48% 57.95
Present value of next 10 years cash flows $633.19
NasdaqGS:CRVL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $119.41 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$2,572.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,572.75 ÷ (1 + 7.5%)10
$1,248.52
NasdaqGS:CRVL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $633.19 + $1,248.52
$1,881.71
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,881.71 / 18.55
$101.46
NasdaqGS:CRVL Discount to Share Price
Calculation Result
Value per share (USD) From above. $101.46
Current discount Discount to share price of $90.87
= -1 x ($90.87 - $101.46) / $101.46
10.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CorVel is available for.
Intrinsic value
10%
Share price is $90.87 vs Future cash flow value of $101.46
Current Discount Checks
For CorVel to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CorVel's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • CorVel's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CorVel's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CorVel's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CRVL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.48
NasdaqGS:CRVL Share Price ** NasdaqGS (2019-07-19) in USD $90.87
United States of America Healthcare Industry PE Ratio Median Figure of 57 Publicly-Listed Healthcare Companies 21.93x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CorVel.

NasdaqGS:CRVL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CRVL Share Price ÷ EPS (both in USD)

= 90.87 ÷ 2.48

36.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CorVel is overvalued based on earnings compared to the US Healthcare industry average.
  • CorVel is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does CorVel's expected growth come at a high price?
Raw Data
NasdaqGS:CRVL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36.57x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
3.6%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 43 Publicly-Listed Healthcare Companies 1.74x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for CorVel, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CorVel's assets?
Raw Data
NasdaqGS:CRVL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.50
NasdaqGS:CRVL Share Price * NasdaqGS (2019-07-19) in USD $90.87
United States of America Healthcare Industry PB Ratio Median Figure of 95 Publicly-Listed Healthcare Companies 2.41x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:CRVL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CRVL Share Price ÷ Book Value per Share (both in USD)

= 90.87 ÷ 10.50

8.66x

* Primary Listing of CorVel.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CorVel is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess CorVel's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. CorVel has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CRVL Future Performance

 How is CorVel expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover CorVel, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CorVel expected to grow at an attractive rate?
  • CorVel's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • CorVel's earnings growth is positive but not above the United States of America market average.
  • Unable to compare CorVel's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CRVL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CRVL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 3.6%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CRVL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CRVL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 596 79 47
2018-12-31 588 80 44
2018-09-30 583 80 43
2018-06-30 571 64 39
2018-03-31 558 62 36
2017-12-31 548 65 35
2017-09-30 536 62 32
2017-06-30 528 65 31
2017-03-31 519 52 29
2016-12-31 513 51 28
2016-09-30 509 47 28
2016-06-30 505 44 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CorVel's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if CorVel is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CRVL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from CorVel Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CRVL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.48
2018-12-31 2.32
2018-09-30 2.28
2018-06-30 2.05
2018-03-31 1.90
2017-12-31 1.84
2017-09-30 1.69
2017-06-30 1.60
2017-03-31 1.52
2016-12-31 1.44
2016-09-30 1.42
2016-06-30 1.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if CorVel will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess CorVel's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CorVel has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CRVL Past Performance

  How has CorVel performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CorVel's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CorVel's year on year earnings growth rate has been positive over the past 5 years.
  • CorVel's 1-year earnings growth exceeds its 5-year average (30.8% vs 7.1%)
  • CorVel's earnings growth has exceeded the US Healthcare industry average in the past year (30.8% vs 2.7%).
Earnings and Revenue History
CorVel's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CorVel Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CRVL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 595.74 46.70 63.30
2018-12-31 588.23 43.82 62.39
2018-09-30 582.88 43.09 62.08
2018-06-30 571.14 38.70 60.66
2018-03-31 558.35 35.70 59.35
2017-12-31 548.38 34.72 58.80
2017-09-30 536.05 32.20 57.44
2017-06-30 527.84 30.76 58.41
2017-03-31 518.69 29.48 57.24
2016-12-31 513.38 28.16 58.05
2016-09-30 508.86 27.80 58.42
2016-06-30 505.10 29.12 56.98
2016-03-31 503.58 28.53 58.48
2015-12-31 497.49 27.44 56.29
2015-09-30 495.95 27.58 55.62
2015-06-30 495.20 27.19 55.16
2015-03-31 492.63 28.59 54.41
2014-12-31 490.68 31.35 54.49
2014-09-30 489.42 33.29 53.86
2014-06-30 485.07 34.08 53.34
2014-03-31 478.82 34.39 51.97
2013-12-31 470.53 33.64 50.17
2013-09-30 456.72 30.79 48.68
2013-06-30 442.82 28.74 48.43
2013-03-31 429.31 26.73 47.77
2012-12-31 421.78 24.22 49.05
2012-09-30 415.87 23.70 49.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CorVel has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • CorVel used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • CorVel's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CorVel's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CorVel has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CRVL Health

 How is CorVel's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CorVel's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CorVel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CorVel's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CorVel's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • CorVel has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CorVel Company Filings, last reported 3 months ago.

NasdaqGS:CRVL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 194.81 0.00 91.71
2018-12-31 192.27 0.00 96.48
2018-09-30 190.06 0.00 90.13
2018-06-30 181.87 0.00 73.34
2018-03-31 171.18 0.00 55.77
2017-12-31 160.18 0.00 53.59
2017-09-30 147.70 0.00 38.13
2017-06-30 138.66 0.00 35.01
2017-03-31 138.65 0.00 28.61
2016-12-31 143.00 0.00 38.81
2016-09-30 146.15 0.00 40.86
2016-06-30 140.55 0.00 36.23
2016-03-31 131.95 0.00 32.78
2015-12-31 128.06 0.00 26.50
2015-09-30 127.60 0.00 24.89
2015-06-30 127.20 0.00 27.10
2015-03-31 127.92 0.00 25.52
2014-12-31 130.39 0.00 31.03
2014-09-30 132.20 0.00 28.16
2014-06-30 130.52 0.00 34.13
2014-03-31 126.52 0.00 34.87
2013-12-31 119.00 0.00 32.75
2013-09-30 112.39 0.00 22.19
2013-06-30 114.31 0.00 25.03
2013-03-31 111.40 0.00 19.82
2012-12-31 109.97 0.00 20.77
2012-09-30 119.89 0.00 20.01
  • CorVel has no debt.
  • CorVel has not taken on any debt in the past 5 years.
  • CorVel has no debt, it does not need to be covered by operating cash flow.
  • CorVel has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess CorVel's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CorVel has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CRVL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from CorVel dividends.
If you bought $2,000 of CorVel shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate CorVel's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate CorVel's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CRVL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as CorVel has not reported any payouts.
  • Unable to verify if CorVel's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of CorVel's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CorVel has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess CorVel's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CorVel afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CorVel has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CRVL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Combs
COMPENSATION $1,770,006
AGE 55
TENURE AS CEO 0.5 years
CEO Bio

Mr. Michael G. Combs has been as the President of CorVel Corporation since April 1, 2017 and has been its Chief Executive Officer since January 18, 2019. Mr. Combs Chief Information Officer at CorVel Corp from April 30, 2015 to April 2017. Mr. Combs has been with CorVel for 25 years, joining it as a software engineer in October 1991. His prior positions include Vice President of MedCheck Development and a promotion to Deputy Chief Information Officer in 2014. Prior to joining Company, he was with Science Applications International Corporation as a Software Engineer where he developed software for the Naval Oceans System Center Anti-Submarine Warfare program. Mr. Combs holds a Bachelor’s degree in Computer Science from San Diego State University.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michael's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CorVel management team in years:

2.7
Average Tenure
51.5
Average Age
  • The tenure for the CorVel management team is about average.
Management Team

Victor Clemons

TITLE
Chairman & COO
COMPENSATION
$401K
AGE
75
TENURE
7.3 yrs

Michael Combs

TITLE
President & CEO
COMPENSATION
$2M
AGE
55
TENURE
0.5 yrs

Brandon O’Brien

TITLE
Chief Financial Officer
COMPENSATION
$499K
AGE
39
TENURE
0.8 yrs

Jennifer Yoss

TITLE
Vice President of Accounting
COMPENSATION
$252K
AGE
41
TENURE
5.1 yrs

Maxim Shishin

TITLE
Chief Information Officer
COMPENSATION
$524K
AGE
44
TENURE
2.3 yrs

Diane Blaha

TITLE
Chief Marketing Officer
COMPENSATION
$704K
AGE
64
TENURE
2.7 yrs

Michael Saverien

TITLE
Executive Vice President of Risk Management Services
COMPENSATION
$669K
AGE
48
TENURE
2.3 yrs

Stefani Wendel

TITLE
Investor Relation

Sharon O'Connor

TITLE
Vice President of Legal & Human Resources
TENURE
3.3 yrs

Richard Schweppe

TITLE
Secretary
COMPENSATION
$223K
AGE
64
TENURE
24.1 yrs
Board of Directors Tenure

Average tenure and age of the CorVel board of directors in years:

28.2
Average Tenure
71
Average Age
  • The average tenure for the CorVel board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Victor Clemons

TITLE
Chairman & COO
COMPENSATION
$401K
AGE
75
TENURE
28.3 yrs

R. Jessup

TITLE
Lead Independent Director
COMPENSATION
$87K
AGE
71

Alan Hoops

TITLE
Director
COMPENSATION
$80K
AGE
71
TENURE
16.2 yrs

Steve Hamerslag

TITLE
Director
COMPENSATION
$81K
AGE
62
TENURE
28.2 yrs

Jeff Michael

TITLE
Director
COMPENSATION
$77K
AGE
62
TENURE
28.8 yrs

Jean Macino

TITLE
Director
COMPENSATION
$78K
AGE
76
TENURE
11.4 yrs
Who owns this company?
Recent Insider Trading
  • CorVel individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jun 19 Sell Diane Blaha Individual 13. Jun 19 13. Jun 19 -1,000 $81.75 $-81,750
14. Jun 19 Sell Victor Clemons Individual 12. Jun 19 14. Jun 19 -5,566 $82.94 $-458,671
06. Jun 19 Sell Brandon O’Brien Individual 04. Jun 19 04. Jun 19 -1,015 $74.41 $-75,525
06. Jun 19 Sell Michael Combs Individual 03. Jun 19 03. Jun 19 -1,350 $74.00 $-99,900
06. Jun 19 Sell R. Jessup Individual 03. Jun 19 03. Jun 19 -4,859 $74.02 $-359,675
06. Jun 19 Sell Victor Clemons Individual 03. Jun 19 04. Jun 19 -3,000 $74.83 $-222,787
30. Nov 18 Sell Victor Clemons Individual 28. Nov 18 28. Nov 18 -1,000 $66.35 $-66,345
29. Nov 18 Sell R. Jessup Individual 27. Nov 18 28. Nov 18 -3,000 $66.14 $-197,674
27. Nov 18 Sell Victor Clemons Individual 23. Nov 18 26. Nov 18 -1,700 $65.83 $-111,583
21. Nov 18 Sell Victor Clemons Individual 20. Nov 18 21. Nov 18 -2,200 $65.24 $-143,441
19. Nov 18 Sell Victor Clemons Individual 15. Nov 18 19. Nov 18 -4,700 $65.48 $-305,720
14. Nov 18 Sell Victor Clemons Individual 12. Nov 18 14. Nov 18 -722 $64.52 $-46,577
09. Nov 18 Sell Victor Clemons Individual 07. Nov 18 08. Nov 18 -2,600 $65.40 $-169,420
06. Nov 18 Sell Victor Clemons Individual 02. Nov 18 06. Nov 18 -3,000 $63.81 $-187,022
07. Sep 18 Sell Victor Clemons Individual 05. Sep 18 06. Sep 18 -2,000 $60.00 $-119,500
30. Aug 18 Sell Victor Clemons Individual 28. Aug 18 29. Aug 18 -2,500 $60.40 $-150,550
27. Aug 18 Sell Victor Clemons Individual 23. Aug 18 24. Aug 18 -802 $60.35 $-48,376
27. Aug 18 Sell Corstar Holdings, Inc. Company 23. Aug 18 24. Aug 18 -4,741 $60.42 $-285,903
22. Aug 18 Sell Victor Clemons Individual 20. Aug 18 22. Aug 18 -4,916 $60.33 $-294,177
15. Aug 18 Sell Victor Clemons Individual 13. Aug 18 14. Aug 18 -3,000 $58.78 $-172,814
08. Aug 18 Sell Victor Clemons Individual 06. Aug 18 08. Aug 18 -2,929 $57.00 $-166,578
X
Management checks
We assess CorVel's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CorVel has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CRVL News

Simply Wall St News

Investors Who Bought CorVel (NASDAQ:CRVL) Shares Five Years Ago Are Now Up 98%

For example, long term CorVel Corporation (NASDAQ:CRVL) shareholders have enjoyed a 98% share price rise over the last half decade, well in excess of the market return of around 42% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, CorVel managed to grow its earnings per share at 8.8% a year.

Simply Wall St -

Is CorVel Corporation (NASDAQ:CRVL) A High Quality Stock To Own?

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.24 in profit. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for CorVel: 24% = US$47m ÷ US$195m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Calculating The Fair Value Of CorVel Corporation (NASDAQ:CRVL)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of CorVel Corporation (NASDAQ:CRVL) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $63.43 $73.41 $82.09 $89.57 $96.01 $101.63 $106.63 $111.17 $115.39 $119.41 Growth Rate Estimate Source Est @ 21.31% Est @ 15.74% Est @ 11.83% Est @ 9.1% Est @ 7.19% Est @ 5.85% Est @ 4.92% Est @ 4.26% Est @ 3.8% Est @ 3.48% Present Value ($, Millions) Discounted @ 7.5% $59.00 $63.52 $66.09 $67.07 $66.88 $65.86 $64.28 $62.34 $60.20 $57.95 Present Value of 10-year Cash Flow (PVCF)= $633.19m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$119m × (1 + 2.7%) ÷ (7.5% – 2.7%) = US$2.6b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$2.6b ÷ ( 1 + 7.5%)10 = $1.25b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.88b.

Simply Wall St -

Despite Its High P/E Ratio, Is CorVel Corporation (NASDAQ:CRVL) Still Undervalued?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for CorVel: P/E of 31.79 = $79 ÷ $2.48 (Based on the year to March 2019.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … NasdaqGS:CRVL Price Estimation Relative to Market, June 11th 2019 Its relatively high P/E ratio indicates that CorVel shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Why CorVel Corporation’s (NASDAQ:CRVL) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CorVel: 0.29 = US$57m ÷ (US$314m - US$117m) (Based on the trailing twelve months to December 2018.) Therefore, CorVel has an ROCE of 29%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

CorVel Corporation (NASDAQ:CRVL) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in CorVel Corporation (NASDAQ:CRVL). … Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders. … While we feel good about high insider ownership of CorVel, we can't say the same about the selling of shares.

Simply Wall St -

Do CorVel's (NASDAQ:CRVL) Earnings Warrant Your Attention?

Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing. … CorVel's Earnings Per Share Are Growing. … In the chart below, you can see how the company has grown earnings, and revenue, over time

Simply Wall St -

How CorVel Corporation (NASDAQ:CRVL) Could Add Value To Your Portfolio

CorVel Corporation (NASDAQ:CRVL) 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 CRVL, it.

Simply Wall St -

Does CorVel Corporation's (NASDAQ:CRVL) 26% Earnings Growth Reflect The Long-Term Trend?

After looking at CorVel Corporation's (NASDAQ:CRVL) latest earnings update (31 December 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … How CRVL fared against its long-term earnings performance and its industry. … CRVL's trailing twelve-month earnings (from 31 December 2018) of US$44m has

Simply Wall St -

If You Had Bought CorVel Shares Three Years Ago You'd Have Made 64%

For example, the CorVel Corporation (NASDAQ:CRVL) share price is up 64% in the last three years, clearly besting than the market return of around 41% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … CorVel was able to grow its EPS at 19% per year over three years, sending the share price higher.

Simply Wall St -

CRVL Company Info

Description

CorVel Corporation provides workers’ compensation solutions for employers, third party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. It enables its clients to intervene and connect to the critical intelligence they need to proactively manage risk. The company offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement services, retrospective utilization review, facility claim review, professional review, pharmacy services, directed care services, Medicare solutions, clearinghouse services, independent medical examinations, and inpatient medical bill review. It also provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management, and auto claims management. The company was incorporated in 1987 and is based in Irvine, California.

Details
Name: CorVel Corporation
CRVL
Exchange: NasdaqGS
Founded: 1987
$1,685,293,103
18,546,199
Website: http://www.corvel.com
Address: CorVel Corporation
2010 Main Street,
Suite 600,
Irvine,
California, 92614,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CRVL Common Stock Nasdaq Global Select US USD 28. Jun 1991
Number of employees
Current staff
Staff numbers
3,904
CorVel employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 23:35
End of day share price update: 2019/07/19 00:00
Last earnings filing: 2019/06/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.