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HMS Holdings

Nasdaq:HMSY
Snowflake Description

Flawless balance sheet with reasonable growth potential.

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

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. The last earnings update was 23 days ago. More info.


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HMSY Share Price and Events
7 Day Returns
1%
NasdaqGS:HMSY
1.7%
US Healthcare Services
1.2%
US Market
1 Year Returns
92.4%
NasdaqGS:HMSY
21.4%
US Healthcare Services
3%
US Market
HMSY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HMS Holdings (HMSY) 1% 1.4% 16.4% 92.4% 145.8% 68.2%
US Healthcare Services 1.7% -0.7% 19.3% 21.4% 62.8% 24.4%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • HMSY outperformed the Healthcare Services industry which returned 21.4% over the past year.
  • HMSY outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
HMSY
Industry
5yr Volatility vs Market

Value

 Is HMS Holdings 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 HMS Holdings 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 HMS Holdings.

NasdaqGS:HMSY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
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:HMSY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 1.22
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.221 (1 + (1- 21%) (8.62%))
1.204
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.204 * 5.96%)
9.9%

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

The calculations below outline how an intrinsic value for HMS Holdings 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:HMSY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.9%)
2019 94.35 Analyst x5 85.85
2020 113.69 Analyst x4 94.12
2021 139.60 Analyst x1 105.16
2022 161.60 Analyst x1 110.76
2023 183.50 Analyst x1 114.44
2024 201.32 Est @ 9.71% 114.23
2025 216.65 Est @ 7.62% 111.85
2026 229.97 Est @ 6.15% 108.03
2027 241.75 Est @ 5.12% 103.33
2028 252.41 Est @ 4.41% 98.16
Present value of next 10 years cash flows $1,045.93
NasdaqGS:HMSY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $252.41 × (1 + 2.73%) ÷ (9.9% – 2.73%)
$3,614.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,614.18 ÷ (1 + 9.9%)10
$1,405.59
NasdaqGS:HMSY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,045.93 + $1,405.59
$2,451.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,451.52 / 85.27
$28.75
NasdaqGS:HMSY Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.75
Current discount Discount to share price of $32.67
= -1 x ($32.67 - $28.75) / $28.75
-13.6%

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

  • The current share price of HMS Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 HMS Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HMS Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:HMSY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.66
NasdaqGS:HMSY Share Price ** NasdaqGS (2019-03-20) in USD $32.67
United States of America Healthcare Services Industry PE Ratio Median Figure of 14 Publicly-Listed Healthcare Services Companies 73.33x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

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

** Primary Listing of HMS Holdings.

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

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

= 32.67 ÷ 0.66

49.68x

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

  • HMS Holdings is good value based on earnings compared to the US Healthcare Services industry average.
  • HMS Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does HMS Holdings's expected growth come at a high price?
Raw Data
NasdaqGS:HMSY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 49.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
21.4%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 13 Publicly-Listed Healthcare Services Companies 2.94x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:HMSY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 49.68x ÷ 21.4%

2.32x

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

  • HMS Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HMS Holdings's assets?
Raw Data
NasdaqGS:HMSY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $8.37
NasdaqGS:HMSY Share Price * NasdaqGS (2019-03-20) in USD $32.67
United States of America Healthcare Services Industry PB Ratio Median Figure of 35 Publicly-Listed Healthcare Services Companies 4.39x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGS:HMSY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 32.67 ÷ 8.37

3.9x

* Primary Listing of HMS Holdings.

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

  • HMS Holdings is good value based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess HMS Holdings'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 Services 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 Services industry average (and greater than 0)? (1 check)
  5. HMS Holdings has a total score of 2/6, 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.

Future Performance

 How is HMS Holdings expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

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
21.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HMS Holdings expected to grow at an attractive rate?
  • HMS Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HMS Holdings's earnings growth is expected to exceed the United States of America market average.
  • HMS Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:HMSY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:HMSY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 21.4%
NasdaqGS:HMSY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 8.8%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 21.9%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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:HMSY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:HMSY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 912 1
2022-12-31 915 164 2
2021-12-31 787 124 3
2020-12-31 699 152 81 10
2019-12-31 646 133 69 11
NasdaqGS:HMSY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 598 96 55
2018-09-30 591 87 47
2018-06-30 562 89 35
2018-03-31 549 98 45
2017-12-31 521 86 40
2017-09-30 498 88 23
2017-06-30 495 62 31
2017-03-31 484 91 35
2016-12-31 490 89 38
2016-09-30 493 88 37
2016-06-30 488 99 30
2016-03-31 484 73 26

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HMS Holdings's earnings are expected to grow significantly at over 20% yearly.
  • HMS Holdings's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
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:HMSY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from HMS Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HMSY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.90 1.90 1.90 1.00
2021-12-31 1.44 1.44 1.44 1.00
2020-12-31 0.93 1.09 0.86 6.00
2019-12-31 0.79 0.83 0.77 7.00
NasdaqGS:HMSY Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.66
2018-09-30 0.57
2018-06-30 0.42
2018-03-31 0.54
2017-12-31 0.48
2017-09-30 0.28
2017-06-30 0.37
2017-03-31 0.41
2016-12-31 0.45
2016-09-30 0.44
2016-06-30 0.35
2016-03-31 0.29

*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.
  • HMS Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HMS Holdings'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.
HMS Holdings has a total score of 4/6, 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.

Past Performance

  How has HMS Holdings 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 HMS Holdings's growth in the last year to its industry (Healthcare Services).
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.
  • HMS Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • HMS Holdings's 1-year earnings growth exceeds its 5-year average (37.3% vs 12.8%)
  • HMS Holdings's earnings growth has not exceeded the US Healthcare Services industry average in the past year (37.3% vs 39.9%).
Earnings and Revenue History
HMS Holdings'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 HMS Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HMSY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 598.29 54.99 113.44
2018-09-30 590.96 47.32 118.96
2018-06-30 562.38 35.12 108.49
2018-03-31 548.90 45.00 109.51
2017-12-31 521.21 40.05 101.12
2017-09-30 498.31 23.48 92.00
2017-06-30 495.50 31.16 97.43
2017-03-31 483.70 34.52 90.06
2016-12-31 489.72 37.64 89.38
2016-09-30 492.64 37.21 88.83
2016-06-30 488.23 30.03 86.99
2016-03-31 483.65 25.57 86.09
2015-12-31 474.22 24.53 83.12
2015-09-30 457.86 13.41 86.76
2015-06-30 453.22 13.50 84.80
2015-03-31 448.84 14.12 84.54
2014-12-31 443.23 13.95 81.07
2014-09-30 452.66 27.43 70.90
2014-06-30 466.61 31.99 71.25
2014-03-31 479.86 36.37 68.99
2013-12-31 491.76 40.00 65.13
2013-09-30 503.27 48.89 63.63
2013-06-30 488.73 47.89 58.10
2013-03-31 482.99 50.45 56.21
2012-12-31 473.70 50.52 55.27
2012-09-30 440.27 41.66 55.92
2012-06-30 419.41 45.57 52.32
2012-03-31 388.68 45.01 48.11

*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.
  • HMS Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HMS Holdings used its assets less efficiently than the US Healthcare Services industry average last year based on Return on Assets.
  • HMS Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HMS Holdings'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 Services 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.
HMS Holdings has a total score of 3/6, 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.

Health

 How is HMS Holdings'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 HMS Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HMS Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HMS Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HMS Holdings'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.
  • Debt is covered by short term assets, assets are 1.8x debt.
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 HMS Holdings Company Filings, last reported 2 months ago.

NasdaqGS:HMSY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 713.40 240.00 178.95
2018-09-30 651.78 240.00 124.30
2018-06-30 618.64 240.00 88.13
2018-03-31 615.14 240.00 83.90
2017-12-31 606.23 240.00 83.31
2017-09-30 587.38 240.00 79.48
2017-06-30 573.06 240.00 51.37
2017-03-31 560.83 197.80 168.29
2016-12-31 556.61 197.80 176.00
2016-09-30 564.91 197.80 171.52
2016-06-30 547.13 197.80 187.88
2016-03-31 531.88 197.80 143.45
2015-12-31 524.70 197.80 145.61
2015-09-30 537.77 197.80 144.80
2015-06-30 552.14 197.80 150.43
2015-03-31 543.59 197.80 133.55
2014-12-31 533.09 197.80 133.12
2014-09-30 530.50 197.80 120.19
2014-06-30 520.51 197.80 95.88
2014-03-31 511.03 197.80 76.29
2013-12-31 502.44 232.80 93.37
2013-09-30 511.56 267.80 130.84
2013-06-30 495.45 302.80 131.47
2013-03-31 479.79 323.75 139.22
2012-12-31 462.87 332.50 135.23
2012-09-30 443.07 336.88 127.95
2012-06-30 420.91 341.25 105.36
2012-03-31 412.07 345.63 107.26
  • HMS Holdings's level of debt (33.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (46.2% vs 33.6% today).
  • Debt is well covered by operating cash flow (40.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess HMS Holdings'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. HMS Holdings 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.

Dividends

 What is HMS Holdings'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 HMS Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of HMS Holdings 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 HMS Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate HMS Holdings'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:HMSY 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 11 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
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 3.6%

Industry and Market average data is calculated daily.

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

NasdaqGS:HMSY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

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

  • Unable to perform a dividend volatility check as HMS Holdings has not reported any payouts.
  • Unable to verify if HMS Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of HMS Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as HMS Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of HMS Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess HMS Holdings'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 HMS Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HMS Holdings 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.

Management

 What is the CEO of HMS Holdings'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
Bill Lucia
COMPENSATION $4,183,578
AGE 60
TENURE AS CEO 10 years
CEO Bio

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 served as the Chief Operating Officer of HMS Holdings Corp. from May 2005 to March 2009. He was Health Management Systems, Inc., from 2002 to 2009. He has more than 20 years of experience in healthcare reimbursement, information systems and large-scale insurance administration. He served as President of Payor Services Division from 2001 to 2002. He served as Vice President and General Manager of Payor Services Division from 2000 to 2001. He served as Vice President of Business Office Services from 1999 to 2000. Mr. Lucia served as the Chief Operating Officer of Quality Medical Adjudication, Incorporated (QMA) and Vice President of West Coast Operations from 1998 to 1999. He served as Vice President and General Manager of QMA, 1997 to 1998 and Director of Information Systems for QMA, 1996 to 1997. He served in multiple positions in the life and health insurance and managed care industries, including Senior Vice President, Operations and Information Systems, at Celtic Insurance Company and Senior Vice President, Insurance Operations, at North American Company for Life and Health Insurance. Mr. Lucia has been a Director of HMS Holdings Corp. since May 2008. Mr. Lucia is a Fellow of Life Management Institute (LOMA).

CEO Compensation
  • Bill's compensation has been consistent with company performance over the past year.
  • Bill's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HMS Holdings management team in years:

2.9
Average Tenure
55.5
Average Age
  • The tenure for the HMS Holdings management team is about average.
Management Team

Bill Lucia

TITLE
Chairman
COMPENSATION
$4M
AGE
60
TENURE
10 yrs

Jeff Sherman

TITLE
Executive VP
COMPENSATION
$2M
AGE
52
TENURE
4.5 yrs

Doug Williams

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
59
TENURE
0.1 yrs

Meredith Bjorck

TITLE
Executive VP
COMPENSATION
$2M
AGE
42
TENURE
2.9 yrs

Greg Aunan

TITLE
Chief Accounting Officer & Senior VP
AGE
49
TENURE
3.8 yrs

Jacob Sims

TITLE
Senior VP & CTO
TENURE
0.9 yrs

Tracy South

TITLE
Executive VP and Chief Administrative & Human Resources Officer
AGE
59
TENURE
4.8 yrs

Robert Borchert

TITLE
Senior Vice President of Investor Relations
TENURE
0.2 yrs

David Alexander

TITLE
Chief Compliance & Ethics Officer & VP
TENURE
2.9 yrs

Francesca Marraro

TITLE
Vice President of Marketing and Communications
Board of Directors Tenure

Average tenure and age of the HMS Holdings board of directors in years:

5.9
Average Tenure
67.5
Average Age
  • The tenure for the HMS Holdings board of directors is about average.
Board of Directors

Bill Lucia

TITLE
Chairman
COMPENSATION
$4M
AGE
60
TENURE
3.7 yrs

Ellen Rudnick

TITLE
Independent Director
COMPENSATION
$294K
AGE
67
TENURE
22.2 yrs

Rick Stowe

TITLE
Lead Independent Director
COMPENSATION
$284K
AGE
74
TENURE
3.7 yrs

Bart Schwartz

TITLE
Independent Director
COMPENSATION
$264K
AGE
71
TENURE
8.7 yrs

Cora Tellez

TITLE
Independent Director
COMPENSATION
$264K
AGE
68
TENURE
6.4 yrs

Bill Miller

TITLE
Independent Director
COMPENSATION
$244K
AGE
68
TENURE
18.4 yrs

Craig Callen

TITLE
Independent Director
COMPENSATION
$247K
AGE
62
TENURE
5.4 yrs

Bob Becker

TITLE
Independent Director
COMPENSATION
$264K
AGE
64
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • HMS Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Sell William Miller Individual 13. Mar 19 15. Mar 19 -20,053 $32.56 $-651,845
28. Feb 19 Sell Tracy South Individual 26. Feb 19 26. Feb 19 -48,209 $34.57 $-1,666,445
17. Dec 18 Sell William Miller Individual 06. Dec 18 14. Dec 18 -5,100 $33.86 $-165,438
13. Dec 18 Sell Richard Stowe Individual 11. Dec 18 11. Dec 18 -25,721 $34.50 $-887,393
13. Dec 18 Sell Douglas Williams Individual 11. Dec 18 11. Dec 18 -6,614 $34.58 $-228,692
10. Dec 18 Sell Douglas Williams Individual 07. Dec 18 10. Dec 18 -49,412 $34.31 $-1,688,606
06. Dec 18 Sell Cynthia Nustad Individual 04. Dec 18 04. Dec 18 -10,338 $34.64 $-358,099
04. Dec 18 Sell Cynthia Nustad Individual 30. Nov 18 30. Nov 18 -7,147 $35.59 $-254,385
01. Dec 18 Sell William Miller Individual 28. Nov 18 29. Nov 18 -12,515 $35.20 $-437,093
21. Nov 18 Sell Semone Neuman Individual 19. Nov 18 19. Nov 18 -1,285 $35.20 $-45,233
21. Nov 18 Sell Meredith Bjorck Individual 20. Nov 18 20. Nov 18 -7,643 $35.02 $-267,640
X
Management checks
We assess HMS Holdings'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. HMS Holdings 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.

News

Simply Wall St News

Should HMS Holdings Corp.’s (NASDAQ:HMSY) Weak Investment Returns Worry You?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is:

Simply Wall St -

How Did HMS Holdings Corp's (NASDAQ:HMSY) 7.3% ROE Fare Against The Industry?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.073 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Want To Invest In HMS Holdings Corp (NASDAQ:HMSY)? Here's How It Performed Lately

In this article, I will take a look at HMS Holdings Corp's (NASDAQ:HMSY) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Were HMSY's earnings stronger than its past performances and the industry. … HMSY's trailing twelve-month earnings (from 30 June 2018) of US$35.1m has

Simply Wall St -

Has HMS Holdings Corp (NASDAQ:HMSY) Got Enough Cash?

Today we will look at HMSY’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further. … Check out our latest analysis for HMS Holdings

Simply Wall St -

What Are The Drivers Of HMS Holdings Corp's (NASDAQ:HMSY) Risks?

Broadly speaking, there are two types of risk you should consider when investing in stocks such as HMSY. … The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.

Simply Wall St -

What Should Investors Know About HMS Holdings Corp's (NASDAQ:HMSY) Profit Margin?

HMS Holdings Corp (NASDAQ:HMSY) to … earnings growth of 12.76% annualised … it's important to take a step back

Simply Wall St -

Is HMS Holdings Corp (NASDAQ:HMSY) Undervalued After Accounting For Its Future Growth?

Looking at HMS Holdings Corp’s (NASDAQ:HMSY) fundamentals some investors are wondering if its last closing price of $22.65 represents a good value for money for this high growth stock. … See our latest analysis for HMS Holdings? … Investors in HMS Holdings have been patiently waiting for the uptick in earnings.

Simply Wall St -

When Should You Buy HMS Holdings Corp (NASDAQ:HMSY)?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on HMS Holdings’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

HMS Holdings Corp (NASDAQ:HMSY) Investors Are Paying Above The Intrinsic Value

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Should You Be Tempted To Buy HMS Holdings Corp (NASDAQ:HMSY) At Its Current PE Ratio?

and want to begin learning the link between HMS Holdings Corp (NASDAQ:HMSY)’s fundamentals and stock market performance. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Company Info

Description

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 commercial healthcare payers to ensure that the correct party pays the claim; and population management solutions that provide risk-bearing organizations with intelligence across their member populations to identify risks, and enhance patient engagement and outcomes, as well as payment integrity, care management and consumer engagement, and analytical solutions. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance program, and other healthcare payers, as well as a subcontractor. The company was founded in 1974 and is headquartered in Irving, Texas.

Details
Name: HMS Holdings Corp.
HMSY
Exchange: NasdaqGS
Founded: 1974
$2,785,831,894
85,271,867
Website: http://investor.hms.com
Address: HMS Holdings Corp.
5615 High Point Drive,
Irving,
Texas, 75038,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HMSY Common Stock Nasdaq Global Select US USD 18. Dec 1992
DB HMM Common Stock Deutsche Boerse AG DE EUR 18. Dec 1992
Number of employees
Current staff
Staff numbers
2,500
HMS Holdings employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:38
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/14
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.