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

0.2%

NasdaqGS:HMSY

0.4%

US Healthcare Services

2.1%

US Market


1 Year Return

21.9%

NasdaqGS:HMSY

11.6%

US Healthcare Services

-0.04%

US Market

HMSY outperformed the Healthcare Services industry which returned 15.1% over the past year.

HMSY outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

HMSYIndustryMarket
7 Day0.2%0.4%2.1%
30 Day14.4%-2.0%-3.2%
90 Day26.1%4.4%2.8%
1 Year21.9%21.9%11.7%11.6%2.2%-0.04%
3 Year75.0%75.0%54.2%53.8%41.5%32.3%
5 Year67.4%67.4%54.9%53.9%55.0%37.8%

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

32.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

HMS Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

HMS Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

HMS Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

HMS Holdings is good value based on assets compared to the US Healthcare Services industry average.


Next Steps

Future Growth

How is HMS Holdings expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HMS Holdings's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).

HMS Holdings's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

HMS Holdings's revenue growth is expected to exceed the United States of America market average.

HMS Holdings's earnings growth is positive but not above the United States of America market average.

HMS Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

HMS Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

HMS Holdings has delivered over 20% year on year earnings growth in the past 5 years.

HMS Holdings's 1-year earnings growth exceeds its 5-year average (186.8% vs 28.5%)

HMS Holdings's earnings growth has exceeded the US Healthcare Services industry average in the past year (186.8% vs 3.3%).


Return on Equity

HMS Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

HMS Holdings used its assets more efficiently than the US Healthcare Services industry average last year based on Return on Assets.


Return on Capital Employed

HMS Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HMS Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

HMS Holdings's level of debt (30.1%) 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 (38% vs 30.1% today).

Debt is well covered by operating cash flow (62.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.3x coverage).


Balance Sheet

Low level of unsold assets.

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 and Payments Analysis

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.

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

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.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Bill Lucia (61yo)

10.4yrs

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

Bill's remuneration is about average for companies of similar size in United States of America.

Bill's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

The tenure for the HMS Holdings management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

66.5yo

Average Age

The tenure for the HMS Holdings board of directors is about average.


Insider Trading

HMS Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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: 0.6yrs
  • Bill Lucia (61yo)

    Chairman

    • Tenure: 10.4yrs
    • Compensation: US$4.81m
  • Jeff Sherman (53yo)

    Executive VP

    • Tenure: 4.9yrs
    • Compensation: US$2.77m
  • Doug Williams (60yo)

    Executive VP & COO

    • Tenure: 0.5yrs
    • Compensation: US$2.13m
  • Tracy South (60yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 5.3yrs
  • Meredith Bjorck (43yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$1.56m
  • Jacob Sims (38yo)

    Senior VP & CTO

    • Tenure: 1.3yrs
  • Greg Aunan (50yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 4.2yrs
  • Emmet O’Gara (50yo)

    Group President of Total Population Management

    • Tenure: 1.6yrs
    • Compensation: US$1.65m
  • David Alexander (39yo)

    Senior VP

    • Tenure: 3.3yrs

Board Members

  • Rick Stowe (75yo)

    Lead Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$282.24k
  • Ellen Rudnick (68yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$263.07k
  • Cora Tellez (69yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$260.07k
  • Bill Miller (69yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$241.41k
  • Craig Callen (63yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$250.50k
  • Bart Schwartz (72yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$259.74k
  • Bob Becker (65yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$244.74k
  • Bill Lucia (61yo)

    Chairman

    • Tenure: 10.4yrs
    • Compensation: US$4.81m
  • Jeff Rideout (57yo)

    Director

    • Tenure: 0.2yrs
  • Kate Baicker (47yo)

    Director

    • Tenure: 0.2yrs

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$3.349b
  • 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 Analysis2019/08/22 23:37
End of Day Share Price2019/08/22 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.