NasdaqGS:HMSY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and good value.


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

Stable Share Price: HMSY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

HMSY

0.4%

US Healthcare Services

1.8%

US Market


1 Year Return

-30.7%

HMSY

56.8%

US Healthcare Services

14.2%

US Market

Return vs Industry: HMSY underperformed the US Healthcare Services industry which returned 56.8% over the past year.

Return vs Market: HMSY underperformed the US Market which returned 14.2% over the past year.


Shareholder returns

HMSYIndustryMarket
7 Day-0.5%0.4%1.8%
30 Day-12.4%-2.9%0.04%
90 Day-17.4%11.6%9.8%
1 Year-30.7%-30.7%57.3%56.8%16.7%14.2%
3 Year33.6%33.6%104.4%103.1%41.6%32.2%
5 Year184.6%184.6%151.9%149.6%90.9%69.5%

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?

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HMSY ($25.7) is trading below our estimate of fair value ($39.86)

Significantly Below Fair Value: HMSY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HMSY is good value based on its PE Ratio (39.2x) compared to the US Healthcare Services industry average (54.4x).

PE vs Market: HMSY is poor value based on its PE Ratio (39.2x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: HMSY is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: HMSY is good value based on its PB Ratio (2.6x) compared to the US Healthcare Services industry average (5.4x).


Next Steps

Future Growth

How is HMS Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMSY's forecast earnings growth (18.2% per year) is above the savings rate (2.2%).

Earnings vs Market: HMSY's earnings (18.2% per year) are forecast to grow slower than the US market (23.3% per year).

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

Revenue vs Market: HMSY's revenue (7.6% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: HMSY's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HMSY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HMS Holdings performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMSY has high quality earnings.

Growing Profit Margin: HMSY's current net profit margins (9.3%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: HMSY's earnings have grown significantly by 30.9% per year over the past 5 years.

Accelerating Growth: HMSY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HMSY had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Healthcare Services industry average (-4.8%).


Return on Equity

High ROE: HMSY's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is HMS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HMSY's short term assets ($433.7M) exceed its short term liabilities ($94.9M).

Long Term Liabilities: HMSY's short term assets ($433.7M) exceed its long term liabilities ($286.6M).


Debt to Equity History and Analysis

Debt Level: HMSY's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: HMSY's debt to equity ratio has reduced from 35.8% to 27% over the past 5 years.

Debt Coverage: HMSY's debt is well covered by operating cash flow (50.4%).

Interest Coverage: HMSY's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Bill Lucia (62 yo)

11.5yrs

Tenure

US$5,478,234

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 ($USD5.48M) is about average for companies of similar size in the US market ($USD4.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Lucia
Chairman11.5yrsUS$5.48m0.97%
$ 22.0m
Jeffrey Sherman
Executive VP6yrsUS$2.79m0.16%
$ 3.7m
Douglas Williams
Executive VP & COO1.58yrsUS$2.58m0.028%
$ 627.9k
Emmet O'Gara
Group President of Total Population Management2.67yrsUS$1.82m0.010%
$ 237.3k
Greg Aunan
Chief Accounting Officer & Senior VP5.25yrsno data0.049%
$ 1.1m
Jacob Sims
Senior VP & CTO2.42yrsno data0.031%
$ 698.4k
Robert Borchert
Senior Vice President of Investor Relations1.67yrsno datano data
Meredith Bjorck
Executive VP4.42yrsUS$1.56m0.061%
$ 1.4m
David Alexander
Senior VP4.42yrsno data0.042%
$ 945.2k
Maria Perrin
Executive VP & Chief Growth Officer11.5yrsUS$1.38m0.032%
$ 734.1k
Edith Marshall
Chief Counsel & Senior VP9yrsno datano data
Gary Call
Chief Medical Officer5.42yrsno datano data

4.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HMSY's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Lucia
Chairman11.5yrsUS$5.48m0.97%
$ 22.0m
Richard Stowe
Independent Director31.67yrsUS$297.16kno data
Ellen Rudnick
Independent Director23.67yrsUS$294.52k0.060%
$ 1.4m
Cora Tellez
Lead Independent Director1.25yrsUS$299.47k0.00071%
$ 16.2k
Craig Callen
Independent Director6.92yrsUS$291.49k0.021%
$ 488.2k
Bart Schwartz
Independent Director10.17yrsUS$289.52k0.032%
$ 736.4k
Robert Becker
Independent Director4.67yrsUS$278.38k0.0056%
$ 128.5k
Jeffrey Rideout
Independent Director1.25yrsUS$214.38kno data
Katherine Baicker
Independent Director1.25yrsUS$214.38kno data

5.2yrs

Average Tenure

66yo

Average Age

Experienced Board: HMSY's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.275b
  • Shares outstanding: 88.52m
  • 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 Analysis2020/09/18 05:46
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.