NasdaqGS:HMSY

Stock Analysis Report

Executive Summary

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has HMS Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.2%

HMSY

-2.2%

US Healthcare Services

0.4%

US Market


1 Year Return

12.3%

HMSY

18.6%

US Healthcare Services

11.4%

US Market

Return vs Industry: HMSY underperformed the US Healthcare Services industry which returned 18.6% over the past year.

Return vs Market: HMSY exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

HMSYIndustryMarket
7 Day-3.2%-2.2%0.4%
30 Day-9.4%-4.2%0.3%
90 Day-1.8%-10.6%-1.2%
1 Year12.3%12.3%18.8%18.6%13.9%11.4%
3 Year60.4%60.4%67.8%67.3%47.2%37.6%
5 Year51.5%51.5%61.4%60.1%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HMS Holdings undervalued compared to its fair value and its price relative to the market?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HMSY ($33.25) is trading below our estimate of fair value ($35.36)

Significantly Below Fair Value: HMSY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HMSY is good value based on its PE Ratio (28.2x) compared to the Healthcare Services industry average (53.5x).

PE vs Market: HMSY is poor value based on its PE Ratio (28.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: HMSY is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: HMSY is overvalued based on its PB Ratio (3.6x) compared to the US Healthcare Services industry average (3.5x).


Next Steps

  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is HMS Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMSY's forecast earnings growth (11.1% per year) is above the savings rate (2.7%).

Earnings vs Market: HMSY's earnings (11.1% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: HMSY's earnings are forecast to grow, but not significantly.

Revenue vs Market: HMSY's revenue (8.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: HMSY's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMSY's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has HMS Holdings performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HMSY's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: HMSY's earnings growth over the past year (186.8%) exceeds its 5-year average (28.5% per year).

Earnings vs Industry: HMSY earnings growth over the past year (186.8%) exceeded the Healthcare Services industry -5.7%.


Return on Equity

High ROE: HMSY's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: HMSY has a higher Return on Assets than the Healthcare Services industry average last year.


Return on Capital Employed

ROCE Improving: HMSY has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is HMS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HMSY's short term assets ($499.2M) exceeds its short term liabilities ($74.3M)

Long Term Liabilities: HMSY's short term assets (499.2M) exceeds its long term liabilities (287.5M)


Debt to Equity History and Analysis

Debt Level: HMSY's debt to equity ratio (30.1%) is considered satisfactory

Reducing Debt: HMSY's debt to equity ratio has reduced from 38% to 30.1% over the past 5 years.

Debt Coverage: HMSY's debt is well covered by operating cash flow (62.9%).

Interest Coverage: HMSY's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet

Inventory Level: HMSY has a low level of unsold assets or inventory.

Debt Coverage by Assets: HMSY's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Bill Lucia (61yo)

10.6yrs

Tenure

US$4,805,482

Compensation

Mr. William C. Lucia, also known as Bill, FLMI, has been Chief Executive Officer and President of HMS Holdings Corp. since March 1, 2009 and has been its Chairman of the Board since July 7, 2015. Mr. Lucia ...


CEO Compensation Analysis

Compensation vs. Market: Bill's total compensation ($USD4.81M) is about average for companies of similar size in the US market ($USD5.12M).

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


Management Age and Tenure

3.5yrs

Average Tenure

50yo

Average Age

Experienced Management: HMSY's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HMSY's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: HMSY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$139,01328 Aug 19
Bart Schwartz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,750
Max PriceUS$37.07
SellUS$267,46712 Aug 19
Tracy South
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares6,949
Max PriceUS$38.49
SellUS$582,13908 Aug 19
Tracy South
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares15,264
Max PriceUS$38.16
SellUS$945,59508 Aug 19
Douglas Williams
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares24,954
Max PriceUS$38.51
SellUS$651,84515 Mar 19
William Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,053
Max PriceUS$32.56
SellUS$1,666,44528 Feb 19
Tracy South
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares48,209
Max PriceUS$34.57
SellUS$165,43817 Dec 18
William Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,100
Max PriceUS$33.86
SellUS$887,39313 Dec 18
Richard Stowe
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares25,721
Max PriceUS$34.50
SellUS$228,69213 Dec 18
Douglas Williams
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares6,614
Max PriceUS$34.58
SellUS$1,688,60610 Dec 18
Douglas Williams
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares49,412
Max PriceUS$34.31
SellUS$358,09906 Dec 18
Cynthia Nustad
EntityIndividual
Shares10,338
Max PriceUS$34.64
SellUS$254,38504 Dec 18
Cynthia Nustad
EntityIndividual
Shares7,147
Max PriceUS$35.59
SellUS$437,09301 Dec 18
William Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,515
Max PriceUS$35.20
SellUS$267,64021 Nov 18
Meredith Bjorck
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares7,643
Max PriceUS$35.02
SellUS$45,23321 Nov 18
Semone Neuman
EntityIndividual
Shares1,285
Max PriceUS$35.20

Ownership Breakdown


Management Team

  • Robert Borchert

    Senior Vice President of Investor Relations

    • Tenure: 0.8yrs
  • Bill Lucia (61yo)

    Chairman

    • Tenure: 10.6yrs
    • Compensation: US$4.81m
  • Jeff Sherman (53yo)

    Executive VP

    • Tenure: 5.1yrs
    • Compensation: US$2.77m
  • Doug Williams (60yo)

    Executive VP & COO

    • Tenure: 0.7yrs
    • Compensation: US$2.13m
  • Tracy South (60yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 5.4yrs
  • Meredith Bjorck (43yo)

    Executive VP

    • Tenure: 3.5yrs
    • Compensation: US$1.56m
  • Jacob Sims (38yo)

    Senior VP & CTO

    • Tenure: 1.5yrs
  • Greg Aunan (50yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 4.3yrs
  • Emmet O’Gara (50yo)

    Group President of Total Population Management

    • Tenure: 1.8yrs
    • Compensation: US$1.65m
  • David Alexander (39yo)

    Senior VP

    • Tenure: 3.5yrs

Board Members

  • Rick Stowe (75yo)

    Lead Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$282.24k
  • Ellen Rudnick (68yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$263.07k
  • Cora Tellez (69yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$260.07k
  • Bill Miller (69yo)

    Independent Director

    • Tenure: 19yrs
    • Compensation: US$241.41k
  • Craig Callen (63yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$250.50k
  • Bart Schwartz (72yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$259.74k
  • Bob Becker (65yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$244.74k
  • Bill Lucia (61yo)

    Chairman

    • Tenure: 10.6yrs
    • Compensation: US$4.81m
  • Jeff Rideout (57yo)

    Director

    • Tenure: 0.3yrs
  • Kate Baicker (47yo)

    Director

    • Tenure: 0.3yrs

Company Information

HMS Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HMS Holdings Corp.
  • Ticker: HMSY
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$2.905b
  • Shares outstanding: 87.35m
  • Website: https://investor.hms.com

Number of Employees


Location

  • HMS Holdings Corp.
  • 5615 High Point Drive
  • Irving
  • Texas
  • 75038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMSYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1992
HMMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1992

Biography

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. The company offers coordination of benefits services to government and commerc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:37
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.