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HMS Holdings

Nasdaq:HMSY
Snowflake Description

Flawless balance sheet with solid track record.

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 12 days ago. More info.


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HMSY Share Price and Events
7 Day Returns
4%
NasdaqGS:HMSY
-1%
US Healthcare Services
-1%
US Market
1 Year Returns
23.4%
NasdaqGS:HMSY
16.9%
US Healthcare Services
-0.4%
US Market
HMSY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HMS Holdings (HMSY) 4% 17.2% 27.1% 23.4% 78.4% 73%
US Healthcare Services -1% -3.7% 5.3% 16.9% 53.5% 56.9%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • HMSY outperformed the Healthcare Services industry which returned 16.9% over the past year.
  • HMSY outperformed the Market in United States of America which returned -0.4% 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 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
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 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 21%) (7.68%))
1.098
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.098 * 5.96%)
9.27%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:HMSY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.27%)
2020 99.81 Analyst x6 91.34
2021 105.00 Analyst x3 87.93
2022 181.00 Analyst x1 138.71
2023 204.60 Analyst x1 143.49
2024 223.82 Est @ 9.39% 143.65
2025 240.37 Est @ 7.39% 141.18
2026 254.78 Est @ 5.99% 136.94
2027 267.56 Est @ 5.02% 131.60
2028 279.14 Est @ 4.33% 125.65
2029 289.89 Est @ 3.85% 119.41
Present value of next 10 years cash flows $1,259.89
NasdaqGS:HMSY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $289.89 × (1 + 2.73%) ÷ (9.27% – 2.73%)
$4,550.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,550.26 ÷ (1 + 9.27%)10
$1,874.30
NasdaqGS:HMSY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,259.89 + $1,874.30
$3,134.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,134.20 / 87.35
$35.88
NasdaqGS:HMSY Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.88
Current discount Discount to share price of $39.38
= -1 x ($39.38 - $35.88) / $35.88
-9.8%

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 (2019-06-30) in USD $1.18
NasdaqGS:HMSY Share Price ** NasdaqGS (2019-08-16) in USD $39.38
United States of America Healthcare Services Industry PE Ratio Median Figure of 12 Publicly-Listed Healthcare Services Companies 55.48x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* 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)

= 39.38 ÷ 1.18

33.35x

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 33.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
11.4%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 11 Publicly-Listed Healthcare Services Companies 2.53x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*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

= 33.35x ÷ 11.4%

2.91x

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 (2019-06-30) in USD $9.14
NasdaqGS:HMSY Share Price * NasdaqGS (2019-08-16) in USD $39.38
United States of America Healthcare Services Industry PB Ratio Median Figure of 39 Publicly-Listed Healthcare Services Companies 4.58x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:HMSY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 39.38 ÷ 9.14

4.31x

* 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 14 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
11.4%
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 positive but not above 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 14 Analysts 11.4%
NasdaqGS:HMSY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 8.8%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 23.4%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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 (1 month ago) See Below
Future Estimates Average of up to 14 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
2023-12-31 941 1
2022-12-31 877 147 2
2021-12-31 771 139 119 6
2020-12-31 700 137 89 14
2019-12-31 655 133 88 13
NasdaqGS:HMSY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 626 151 101
2019-03-31 605 110 68
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 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 (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from HMS Holdings Company Filings, last reported 1 month 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 1.67 1.67 1.67 1.00
2021-12-31 1.29 1.35 1.24 2.00
2020-12-31 1.02 1.10 0.90 10.00
2019-12-31 1.01 1.08 0.92 10.00
NasdaqGS:HMSY Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 1.18
2019-03-31 0.81
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

*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 2/6, 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 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%).
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 1 month 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
2019-06-30 626.21 100.71 112.19
2019-03-31 604.82 68.24 110.69
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

*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 more 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 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.

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 2.1x 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 1 month ago.

NasdaqGS:HMSY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 797.97 240.00 268.68
2019-03-31 760.39 240.00 219.86
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
  • 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).
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 14 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 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 1.5%
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.

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 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

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 $4,805,482
AGE 61
TENURE AS CEO 10.4 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, both up more than 20%.
  • 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:

3.3
Average Tenure
50
Average Age
  • The tenure for the HMS Holdings management team is about average.
Management Team

Bill Lucia

TITLE
Chairman
COMPENSATION
$5M
AGE
61
TENURE
10.4 yrs

Jeff Sherman

TITLE
Executive VP
COMPENSATION
$3M
AGE
53
TENURE
4.9 yrs

Doug Williams

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
60
TENURE
0.5 yrs

Emmet O’Gara

TITLE
Group President of Total Population Management
COMPENSATION
$2M
AGE
50
TENURE
1.6 yrs

Greg Aunan

TITLE
Chief Accounting Officer & Senior VP
AGE
50
TENURE
4.2 yrs

Jacob Sims

TITLE
Senior VP & CTO
AGE
38
TENURE
1.3 yrs

Tracy South

TITLE
Executive VP & Chief Administrative Officer
AGE
60
TENURE
5.3 yrs

Robert Borchert

TITLE
Senior Vice President of Investor Relations
TENURE
0.6 yrs

Meredith Bjorck

TITLE
Executive VP
COMPENSATION
$2M
AGE
43
TENURE
3.3 yrs

David Alexander

TITLE
Senior VP
AGE
39
TENURE
3.3 yrs
Board of Directors Tenure

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

5
Average Tenure
66.5
Average Age
  • The tenure for the HMS Holdings board of directors is about average.
Board of Directors

Bill Lucia

TITLE
Chairman
COMPENSATION
$5M
AGE
61
TENURE
4.1 yrs

Ellen Rudnick

TITLE
Independent Director
COMPENSATION
$263K
AGE
68
TENURE
22.6 yrs

Rick Stowe

TITLE
Lead Independent Director
COMPENSATION
$282K
AGE
75
TENURE
4.1 yrs

Bart Schwartz

TITLE
Independent Director
COMPENSATION
$260K
AGE
72
TENURE
9.1 yrs

Craig Callen

TITLE
Independent Director
COMPENSATION
$250K
AGE
63
TENURE
5.8 yrs

Bill Miller

TITLE
Independent Director
COMPENSATION
$241K
AGE
69
TENURE
18.8 yrs

Cora Tellez

TITLE
Independent Director
COMPENSATION
$260K
AGE
69
TENURE
6.8 yrs

Bob Becker

TITLE
Independent Director
COMPENSATION
$245K
AGE
65
TENURE
3.6 yrs

Kate Baicker

TITLE
Director
AGE
47
TENURE
0.2 yrs

Jeff Rideout

TITLE
Director
AGE
57
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • HMS Holdings individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Aug 19 Sell Tracy South Individual 08. Aug 19 08. Aug 19 -6,949 $38.49 $-267,467
08. Aug 19 Sell Tracy South Individual 06. Aug 19 07. Aug 19 -15,264 $38.16 $-582,139
08. Aug 19 Sell Douglas Williams Individual 06. Aug 19 07. Aug 19 -24,954 $38.51 $-945,595
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

With A Return On Equity Of 13%, Has HMS Holdings Corp.'s (NASDAQ:HMSY) Management Done Well?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for HMS Holdings: 13% = US$101m ÷ US$798m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

The Executive VP & COO of HMS Holdings Corp. (NASDAQ:HMSY), Douglas Williams, Just Sold -30.130403% Of Their Holding

View our latest analysis for HMS Holdings HMS Holdings Insider Transactions Over The Last Year Notably, that recent sale by Douglas Williams is the biggest insider sale of HMS Holdings shares that we've seen in the last year. … Over the last year, we note insiders sold 234k shares worth US$8.2m. … Insiders sold HMS Holdings shares recently, but they didn't buy any.

Simply Wall St -

Should You Be Adding HMS Holdings (NASDAQ:HMSY) To Your Watchlist Today?

So if you're like me, you might be more interested in profitable, growing companies, like HMS Holdings (NASDAQ:HMSY). … Although HMS Holdings certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Looking At HMS Holdings Corp. (NASDAQ:HMSY) From All Angles

Flawless balance sheet with solid track record Over the past year, HMSY has grown its earnings by 52%, with its most recent figure exceeding its annual average over the past five years. … NasdaqGS:HMSY Past and Future Earnings, July 26th 2019 HMSY is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. … NasdaqGS:HMSY Historical Debt, July 26th 2019 Next Steps: For HMS Holdings, there are three important aspects you should further examine: Valuation: What is HMSY worth today?

Simply Wall St -

Here's What HMS Holdings Corp.'s (NASDAQ:HMSY) ROCE Can Tell Us

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 HMS Holdings: 0.087 = US$91m ÷ (US$1.1b - US$87m) (Based on the trailing twelve months to March 2019.) Therefore, HMS Holdings has an ROCE of 8.7%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. … HMS Holdings has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.

Simply Wall St -

Is HMS Holdings (NASDAQ:HMSY) Using Too Much Debt?

NasdaqGS:HMSY Historical Debt, July 12th 2019 How Healthy Is HMS Holdings's Balance Sheet? … When analysing debt levels, the balance sheet is the obvious place to start. … Our View The good news is that HMS Holdings's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler.

Simply Wall St -

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

This tells us that HMS Holdings is overvalued compared to the US market average ratio of 18x , and undervalued based on its latest annual earnings update compared to the Healthcare Services average of 57.15x. … A PE ratio of 40.14x and expected year-on-year earnings growth of 21% give HMS Holdings a higher PEG ratio of 1.88x. … Based on this growth, HMS Holdings's stock can be considered a bit overvalued , based on its fundamentals.

Simply Wall St -

What You Must Know About HMS Holdings Corp.'s (NASDAQ:HMSY) Financial Health

View our latest analysis for HMS Holdings HMSY’s Debt (And Cash Flows) HMSY's debt levels surged from US$240m to US$265m over the last 12 months – this includes long-term debt. … Moreover, HMSY has generated cash from operations of US$110m during the same period of time, resulting in an operating cash to total debt ratio of 42%, meaning that HMSY’s current level of operating cash is high enough to cover debt. … With a debt-to-equity ratio of 35%, HMSY's debt level may be seen as prudent.

Simply Wall St -

If You Had Bought HMS Holdings (NASDAQ:HMSY) Shares Three Years Ago You'd Have Made 70%

But over three years, the returns would have left most investors smiling After all, the share price is up a market-beating 70% in that time. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … HMS Holdings was able to grow its EPS at 40% per year over three years, sending the share price higher.

Simply Wall St -

Stocks Take A Hit: How Will HMS Holdings Corp. (NASDAQ:HMSY) Fare?

is a financially healthy and robust stock with a proven track record of outperformance. … We all know HMS Holdings, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Today I will give a high-level overview of the stock, and why I believe it's still attractive.

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
$3,439,979,884
87,353,476
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: 2019/08/17 23:39
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/06
Last earnings filing: 2019/08/05
Last earnings reported: 2019/06/30
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.