NasdaqGS:PRSC

Stock Analysis Report

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Executive Summary

The Providence Service Corporation provides healthcare services in the United States.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Providence Service's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

12.4%

PRSC

0.3%

US Healthcare

1.0%

US Market


1 Year Return

14.4%

PRSC

16.0%

US Healthcare

4.1%

US Market

Return vs Industry: PRSC matched the US Healthcare industry which returned 14.6% over the past year.

Return vs Market: PRSC exceeded the US Market which returned 3.7% over the past year.


Shareholder returns

PRSCIndustryMarket
7 Day12.4%0.3%1.0%
30 Day29.4%2.8%5.4%
90 Day11.0%4.2%-5.7%
1 Year14.4%14.4%17.5%16.0%6.5%4.1%
3 Year59.1%59.1%33.7%27.7%28.3%19.8%
5 Year56.6%56.6%39.8%30.2%52.2%35.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Providence Service undervalued compared to its fair value and its price relative to the market?

43.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRSC ($75.49) is trading below our estimate of fair value ($134.05)

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


Price To Earnings Ratio

PE vs Industry: PRSC is poor value based on its PE Ratio (268.7x) compared to the Healthcare industry average (23.1x).

PE vs Market: PRSC is poor value based on its PE Ratio (268.7x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: PRSC is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: PRSC is overvalued based on its PB Ratio (3x) compared to the US Healthcare industry average (2.7x).


Next Steps

Future Growth

How is Providence Service forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

82.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRSC's forecast earnings growth (82.9% per year) is above the savings rate (2.2%).

Earnings vs Market: PRSC's earnings (82.9% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: PRSC's revenue (10.1% per year) is forecast to grow faster than the US market (8.9% per year).

High Growth Revenue: PRSC's revenue (10.1% 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 PRSC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Providence Service performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRSC has a large one-off loss of $2.3M impacting its March 31 2020 financial results.

Growing Profit Margin: PRSC's current net profit margins (0.2%) are lower than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: PRSC's earnings have grown significantly by 20.7% per year over the past 5 years.

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

Earnings vs Industry: PRSC had negative earnings growth (-44.7%) over the past year, making it difficult to compare to the Healthcare industry average (10.1%).


Return on Equity

High ROE: PRSC's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Providence Service's financial position?


Financial Position Analysis

Short Term Liabilities: PRSC's short term assets ($462.8M) exceed its short term liabilities ($329.1M).

Long Term Liabilities: PRSC's short term assets ($462.8M) exceed its long term liabilities ($62.5M).


Debt to Equity History and Analysis

Debt Level: PRSC's debt to equity ratio (40%) is considered satisfactory.

Reducing Debt: PRSC's debt to equity ratio has reduced from 164.5% to 40% over the past 5 years.

Debt Coverage: PRSC's debt is well covered by operating cash flow (37.6%).

Interest Coverage: PRSC's interest payments on its debt are well covered by EBIT (42.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Providence Service's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PRSC'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 PRSC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRSC'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 PRSC'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?

1.2yrs

Average management tenure


CEO

Dan Greenleaf (54yo)

0.42

Tenure

US$3,759,696

Compensation

Mr. Daniel E. Greenleaf, also known as Dan, has been President and Chief Executive Officer of The Providence Service Corporation and LogistiCare Solutions, LLC since December 11, 2019. He serves as a Direc ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD3.76M) is about average for companies of similar size in the US market ($USD3.24M).

Compensation vs Earnings: Insufficient data to compare Dan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Greenleaf
President0.42yrUS$3.76mno data
Kevin Dotts
Chief Financial Officer1.75yrsUS$999.52k0.027% $263.7k
Suzanne Smith
Chief Accounting Officer1.17yrsUS$518.22k0.014% $137.1k
Kathryn Stalmack
Senior VP0.75yrUS$936.44k0.045% $441.0k
Kenneth Wilson
Chief Operating Officerno datano datano data
Julie Correll
Chief Compliance Officer1yrno datano data
Walter Cooper
Chief Executive Officer of Matrix Medical Network5.58yrsno datano data
Jack Sawyer
Chief Executive Officer of Ingeus4.5yrsno datano data
Albert Cortina
Interim Chief Executive Officer of Logisticareno datano datano data

1.2yrs

Average Tenure

54yo

Average Age

Experienced Management: PRSC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Greenleaf
President0.42yrUS$3.76mno data
David Coulter
Independent Director3.83yrsUS$233.61k0.14% $1.4m
Francis Wright
Independent Director3.83yrsUS$241.11k0.084% $817.4k
Todd Carter
Independent Director3.83yrsUS$226.11k0.069% $672.3k
Leslie Norwalk
Independent Director4.5yrsUS$253.61k0.085% $827.2k
Christopher Shackelton
Chairman of the Board7.5yrsUS$253.61kno data
Richard Kerley
Independent Director10yrsUS$273.61k0.26% $2.5m

3.8yrs

Average Tenure

56yo

Average Age

Experienced Board: PRSC's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

The Providence Service Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Providence Service Corporation
  • Ticker: PRSC
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$974.875m
  • Shares outstanding: 12.91m
  • Website: https://www.prscholdings.com

Number of Employees


Location

  • The Providence Service Corporation
  • 700 Canal Street
  • Third Floor
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2003
PRFDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003

Biography

The Providence Service Corporation provides healthcare services in the United States. It operates through Non-Emergency Transportation Services (NET Services) and Matrix Investment segments. The NET Services segment offers non-emergency medical transportation services for Medicaid or Medicare eligible members, whose limited mobility or financial resources hinder their ability to access necessary healthcare and social services. The Matrix Investment segment provides home and mobile-based healthcare services, including comprehensive health assessments, quality gap closure visits, level of service needs assessments, and post-acute and chronic care management services through a network of community-based clinicians, and a fleet of mobile health clinics. The company was founded in 1996 and is headquartered in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 00:24
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
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.