NasdaqGS:NXGN

Stock Analysis Report

Executive Summary

NextGen Healthcare, Inc. provides ambulatory-focused healthcare software and services solutions in the United States.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has NextGen Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.3%

NXGN

1.4%

US Healthcare Services

1.8%

US Market


1 Year Return

-17.8%

NXGN

15.6%

US Healthcare Services

7.3%

US Market

Return vs Industry: NXGN underperformed the US Healthcare Services industry which returned 15.6% over the past year.

Return vs Market: NXGN underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

NXGNIndustryMarket
7 Day5.3%1.4%1.8%
30 Day0.3%-0.9%-0.7%
90 Day-17.0%-5.3%0.06%
1 Year-17.8%-17.8%15.8%15.6%9.7%7.3%
3 Year35.4%35.4%57.1%56.6%46.3%36.9%
5 Year17.8%11.2%49.8%48.7%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NextGen Healthcare undervalued compared to its fair value and its price relative to the market?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NXGN ($16.26) is trading below our estimate of fair value ($21.17)

Significantly Undervalued: NXGN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NXGN is good value based on its PE Ratio (45.5x) compared to the Healthcare Services industry average (55x).

PE vs Market: NXGN is poor value based on its PE Ratio (45.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NXGN is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NXGN is good value based on its PB Ratio (2.8x) compared to the US Healthcare Services industry average (3.7x).


Next Steps

Future Growth

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

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXGN's forecast earnings growth (24% per year) is above the savings rate (2.7%).

Earnings vs Market: NXGN's earnings (24% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NXGN's revenue (6.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NXGN's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NXGN's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has NextGen Healthcare performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NXGN's earnings have declined by -4.5% per year over the past 5 years.

Accelerating Growth: NXGN's earnings growth over the past year (1870.1%) exceeds its 5-year average (-4.5% per year).

Earnings vs Industry: NXGN earnings growth over the past year (1870.1%) exceeded the Healthcare Services industry 3.3%.


Return on Equity

High ROE: NXGN's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: NXGN's Return on Assets is below or equal to the Healthcare Services industry average last year.


Return on Capital Employed

ROCE Improving: NXGN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NextGen Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: NXGN's short term assets ($155.5M) exceeds its short term liabilities ($128.3M)

Long Term Liabilities: NXGN's short term assets (155.5M) exceeds its long term liabilities (58.2M)


Debt to Equity History and Analysis

Debt Level: NXGN's debt to equity ratio (1.6%) is considered satisfactory

Reducing Debt: Insufficient data to determine if NXGN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NXGN's debt is well covered by operating cash flow (1074.3%).

Interest Coverage: NXGN's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: NXGN's debt is covered by short term assets (assets are 25.919330x debt).


Next Steps

Dividend

What is NextGen Healthcare's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if NXGN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NXGN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NXGN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Rusty Frantz (52yo)

4.3yrs

Tenure

US$6,833,956

Compensation

Mr. John R. Frantz, also known as Rusty, serves as President and Chief Executive Officer of NextGen Healthcare information Systems, LLC. Mr. Frantz has been the President and Chief Executive Officer of Nex ...


CEO Compensation Analysis

Compensation vs. Market: Rusty's total compensation ($USD6.83M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Rusty's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.4yrs

Average Tenure

56yo

Average Age

Experienced Management: NXGN's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

56yo

Average Age

Experienced Board: NXGN's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$13,007,93912 Sep 19
Ahmed Diaa El Din Ali Hussein
EntityIndividual
Shares865,623
Max PriceUS$16.66
SellUS$417,63317 Jun 19
Sheldon Razin
EntityIndividual
Role
Member of the Board of Directors
Chairman Emeritus
Shares21,900
Max PriceUS$19.07
SellUS$76,58313 Jun 19
Sheldon Razin
EntityIndividual
Role
Member of the Board of Directors
Chairman Emeritus
Shares4,018
Max PriceUS$19.06
SellUS$431,04910 Jun 19
Sheldon Razin
EntityIndividual
Role
Member of the Board of Directors
Chairman Emeritus
Shares22,568
Max PriceUS$19.10
SellUS$21,18006 Jun 19
Sheldon Razin
EntityIndividual
Role
Member of the Board of Directors
Chairman Emeritus
Shares1,113
Max PriceUS$19.03
SellUS$619,63905 Jun 19
Sheldon Razin
EntityIndividual
Role
Member of the Board of Directors
Chairman Emeritus
Shares32,301
Max PriceUS$19.40
SellUS$267,00704 Jun 19
George Bristol
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,873
Max PriceUS$19.29

Ownership Breakdown


Management Team

  • Jeff Linton (56yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$1.30m
  • Jamie Arnold (63yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$2.37m
  • John Beck

    Chief Solutions Officer & Executive VP

    • Tenure: 3.2yrs
  • Donna Greene

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Rusty Frantz (52yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$6.83m
  • Betty Rabinowitz

    Chief Medical Officer

    • Tenure: 1.5yrs
  • David Metcalfe (56yo)

    Executive VP & Chief Technology Officer

    • Tenure: 3.7yrs
    • Compensation: US$1.92m
  • Asher Dewhurst

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Lance Rosenzweig (56yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$247.02k
  • Jeff Margolis (56yo)

    Independent Chairman

    • Tenure: 3.9yrs
    • Compensation: US$315.02k
  • Sheldon Razin (81yo)

    Chairman Emeritus

    • Tenure: 45.8yrs
    • Compensation: US$315.02k
  • Morris Panner (56yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$261.02k
  • Julie Klapstein (64yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$265.02k
  • Jim Malone (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$277.02k
  • George Bristol (70yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$281.02k
  • Craig Barbarosh (51yo)

    Independent Vice Chairman

    • Tenure: 3.9yrs
    • Compensation: US$369.02k
  • Rusty Frantz (52yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$6.83m

Company Information

NextGen Healthcare, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NextGen Healthcare, Inc.
  • Ticker: NXGN
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$1.063b
  • Shares outstanding: 65.38m
  • Website: https://www.nextgen.com

Number of Employees


Location

  • NextGen Healthcare, Inc.
  • 18111 Von Karman Avenue
  • Suite 800
  • Irvine
  • California
  • 92612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXGNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1982
QY1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1982

Biography

NextGen Healthcare, Inc. provides ambulatory-focused healthcare software and services solutions in the United States. The company’s principal products include NextGen Enterprise electronic health record (E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.