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R1 RCM

Nasdaq:RCM
Snowflake Description

High growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RCM
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

R1 RCM Inc. provides revenue cycle management (RCM) for healthcare providers in the United States. The last earnings update was 15 days ago. More info.


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RCM Share Price and Events
7 Day Returns
-4.9%
NasdaqGS:RCM
2.8%
US Healthcare
0.2%
US Market
1 Year Returns
41.4%
NasdaqGS:RCM
0.4%
US Healthcare
2.9%
US Market
RCM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
R1 RCM (RCM) -4.9% 8.5% 13.8% 41.4% 546% 51.8%
US Healthcare 2.8% 7.7% -6.7% 0.4% 23.4% 63.5%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • RCM outperformed the Healthcare industry which returned 0.4% over the past year.
  • RCM outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
RCM
Industry
5yr Volatility vs Market

Value

 Is R1 RCM 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 R1 RCM 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 R1 RCM.

NasdaqGS:RCM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
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:RCM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.688 (1 + (1- 21%) (35.55%))
0.921
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.921 * 5.96%)
8.22%

Discounted Cash Flow Calculation for NasdaqGS:RCM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for R1 RCM 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.

NasdaqGS:RCM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.22%)
2019 96.32 Analyst x3 89.01
2020 145.16 Analyst x4 123.95
2021 219.08 Analyst x3 172.87
2022 235.29 Analyst x2 171.56
2023 263.91 Analyst x2 177.81
2024 287.26 Est @ 8.85% 178.85
2025 307.41 Est @ 7.01% 176.86
2026 325.02 Est @ 5.73% 172.80
2027 340.72 Est @ 4.83% 167.39
2028 355.03 Est @ 4.2% 161.17
Present value of next 10 years cash flows $1,592.28
NasdaqGS:RCM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $355.03 × (1 + 2.73%) ÷ (8.22% – 2.73%)
$6,646.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,646.53 ÷ (1 + 8.22%)10
$3,017.34
NasdaqGS:RCM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,592.28 + $3,017.34
$4,609.61
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,609.61 / 110.48
$41.72
NasdaqGS:RCM Discount to Share Price
Calculation Result
Value per share (USD) From above. $41.72
Current discount Discount to share price of $11.37
= -1 x ($11.37 - $41.72) / $41.72
72.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price R1 RCM is available for.
Intrinsic value
>50%
Share price is $11.37 vs Future cash flow value of $41.72
Current Discount Checks
For R1 RCM to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • R1 RCM's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • R1 RCM's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 R1 RCM's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are R1 RCM's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RCM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.38
NasdaqGS:RCM Share Price ** NasdaqGS (2019-05-23) in USD $11.37
United States of America Healthcare Industry PE Ratio Median Figure of 56 Publicly-Listed Healthcare Companies 22.38x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of R1 RCM.

NasdaqGS:RCM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RCM Share Price ÷ EPS (both in USD)

= 11.37 ÷ -0.38

-30.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • R1 RCM is loss making, we can't compare its value to the US Healthcare industry average.
  • R1 RCM is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does R1 RCM's expected growth come at a high price?
Raw Data
NasdaqGS:RCM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -30.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
48.5%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 42 Publicly-Listed Healthcare Companies 1.68x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for R1 RCM, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on R1 RCM's assets?
Raw Data
NasdaqGS:RCM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $0.03
NasdaqGS:RCM Share Price * NasdaqGS (2019-05-23) in USD $11.37
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NasdaqGS:RCM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 11.37 ÷ 0.03

329.81x

* Primary Listing of R1 RCM.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • R1 RCM is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess R1 RCM'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 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 industry average (and greater than 0)? (1 check)
  5. R1 RCM 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 R1 RCM expected to perform in the next 1 to 3 years based on estimates from 4 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
48.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is R1 RCM expected to grow at an attractive rate?
  • R1 RCM's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • R1 RCM's earnings growth is expected to exceed the United States of America market average.
  • R1 RCM's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RCM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RCM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 48.5%
NasdaqGS:RCM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 9.8%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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:RCM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RCM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,726 411 256 2
2022-12-31 1,627 361 218 2
2021-12-31 1,514 302 172 2
2020-12-31 1,362 201 82 4
2019-12-31 1,219 139 21 4
NasdaqGS:RCM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 997 99 -41
2018-12-31 869 18 -64
2018-09-30 746 19 -99
2018-06-30 619 23 -88
2018-03-31 510 39 -92
2017-12-31 450 21 -77
2017-09-30 416 -22 -28
2017-06-30 418 -57 -3
2017-03-31 327 -116 -37
2016-12-31 593 -87 65
2016-09-30 555 -100 68
2016-06-30 445 -57 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • R1 RCM's earnings are expected to grow significantly at over 20% yearly.
  • R1 RCM's revenue is expected to grow by 9.8% 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:RCM 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 4 Analyst Estimates (S&P Global) See Below

All data from R1 RCM Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RCM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.72 0.72 0.72 1.00
2020-12-31 0.62 0.74 0.53 4.00
2019-12-31 0.06 0.17 -0.06 4.00
NasdaqGS:RCM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.38
2018-12-31 -0.60
2018-09-30 -0.93
2018-06-30 -0.85
2018-03-31 -0.89
2017-12-31 -0.75
2017-09-30 -0.28
2017-06-30 -0.03
2017-03-31 -0.36
2016-12-31 0.65
2016-09-30 0.68
2016-06-30 0.17

*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.
  • R1 RCM is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess R1 RCM'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.
R1 RCM has a total score of 5/6, 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 R1 RCM 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 R1 RCM's growth in the last year to its industry (Healthcare).
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.
  • R1 RCM does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare R1 RCM's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare R1 RCM's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
R1 RCM'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 R1 RCM Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RCM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 997.10 -41.30 103.50
2018-12-31 868.50 -64.40 97.90
2018-09-30 745.90 -98.60 83.90
2018-06-30 618.70 -88.40 69.30
2018-03-31 510.20 -91.80 59.00
2017-12-31 449.80 -76.50 56.30
2017-09-30 415.70 -28.40 60.30
2017-06-30 418.00 -2.70 65.10
2017-03-31 327.30 -36.50 70.80
2016-12-31 592.60 65.40 74.10
2016-09-30 554.74 67.55 73.24
2016-06-30 445.08 16.88 74.73
2016-03-31 458.47 35.49 77.80
2015-12-31 117.20 -84.30 75.00
2015-09-30 96.35 -107.35 76.71
2015-06-30 171.26 -64.83 72.25
2015-03-31 208.15 -55.34 70.74
2014-12-31 210.14 -79.62 75.74
2014-09-30 246.55 -55.58 70.41
2014-06-30 174.14 -102.71 76.04
2014-03-31 489.58 101.83 75.26
2013-12-31 504.77 130.08 79.95
2013-09-30 -220.40 0.29 -9.10
2013-06-30 -15.61 40.61 19.50
2013-03-31 -153.33 -147.70 47.44
2012-12-31 72.25 -119.74 67.75
2012-09-30 973.65 16.85 183.55
2012-06-30 969.40 21.37 169.16

*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.
  • It is difficult to establish if R1 RCM has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if R1 RCM has efficiently used its assets last year compared to the US Healthcare industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if R1 RCM improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess R1 RCM'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 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.
R1 RCM has a total score of 0/6, 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 R1 RCM'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 R1 RCM's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • R1 RCM's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • R1 RCM's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of R1 RCM'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 not covered by short term assets, assets are 0.5x 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 R1 RCM Company Filings, last reported 1 month ago.

NasdaqGS:RCM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 217.20 446.60 116.90
2018-12-31 214.70 387.40 62.80
2018-09-30 213.50 359.50 52.40
2018-06-30 222.30 359.40 38.80
2018-03-31 219.00 0.00 167.60
2017-12-31 222.70 0.00 164.90
2017-09-30 259.60 0.00 142.80
2017-06-30 261.00 0.00 132.40
2017-03-31 267.20 0.00 142.70
2016-12-31 159.30 0.00 181.20
2016-09-30 142.48 0.00 201.95
2016-06-30 105.75 0.00 221.67
2016-03-31 137.80 0.00 282.02
2015-12-31 -213.31 0.00 104.52
2015-09-30 -223.51 0.00 137.72
2015-06-30 -190.21 0.00 121.90
2015-03-31 -170.47 0.00 132.00
2014-12-31 -142.25 0.00 145.17
2014-09-30 -127.14 0.00 193.75
2014-06-30 -140.99 0.00 154.12
2014-03-31 -130.39 0.00 207.67
2013-12-31 -85.61 0.00 228.89
2013-09-30
2013-06-30
2013-03-31
2012-12-31 -236.20 0.00 176.96
2012-09-30 258.03 0.00 196.38
2012-06-30 260.89 0.00 200.88
  • R1 RCM's level of debt (205.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 205.6% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making R1 RCM has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making R1 RCM has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -78% per year.
X
Financial health checks
We assess R1 RCM'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. R1 RCM has a total score of 2/6, 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 R1 RCM'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 R1 RCM dividends. Estimated to be 0% next year.
If you bought $2,000 of R1 RCM 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 R1 RCM's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate R1 RCM'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:RCM 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 4 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 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 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:RCM 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 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
NasdaqGS:RCM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2010-11-12 0.000 0.000
2010-11-11 0.000 0.000
2010-08-13 0.000 0.000
2010-08-12 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as R1 RCM has not reported any payouts.
  • Unable to verify if R1 RCM's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of R1 RCM's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as R1 RCM has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of R1 RCM'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 R1 RCM'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 R1 RCM afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. R1 RCM 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 R1 RCM'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
Joe Flanagan
COMPENSATION $4,575,994
AGE 47
TENURE AS CEO 3 years
CEO Bio

Mr. Joseph Gerard Flanagan, also known as Joe, has been the Chief Executive Officer and President of R1 RCM Inc. (Former Name: Accretive Health, Inc.) since May 26, 2016 and April 21, 2016 respectively. Mr. Flanagan served as the Chief Operating Officer of R1 RCM Inc. from June 2013 to May 26, 2016. Mr. Flanagan served as Senior Vice President of Worldwide Operations & Supply Chain at Applied Materials Inc. since February 2010. He served as the President of Nortel Business Services at Nortel Networks Corp. from August 10, 2009 to February 1, 2010, where he was responsible for the full operational needs of Nortel Networks, such as supply chain, sourcing, service delivery and technical and product support on a global scale. He served as Senior Vice President of Global Operations at Nortel Networks Ltd., since September 19, 2007, where he managed supply chain, sourcing, services delivery and technical and product support on a global basis. He served as Senior Vice President of Global Operations at Nortel Networks Corp. since September 19, 2007 and also its Vice President of Global Order Management since February 27, 2006. Mr. Flanagan was responsible for leading and standardizing its business-to-business processes and driving increased efficiencies across operations systems. He has more than ten years of leadership experience at GE in general management, commercial strategy, supply chain operations and services deployment. From 2002 to 2004, he served as General Manager of General Electric's Power Controls Division where he had full P&L responsibility. He served as General Manager of Operations at GE Consumer & Industrial EMEA from 2004 to 2006 and was responsible for the customer service operations, distribution and fulfillment of GE's Consumer & Industrial EMEA Division. Previously, he served as Manager of business development Europe of Applied Materials. He serves as a Director of Singapore Economic Development Board and Human Capital Leadership Institute. He has been a Director of R1 RCM Inc. since May 26, 2016. He served as Division leader for Six Sigma. Mr. Flanagan holds a BS in Mechanical Engineering from the United States Merchant Marine Academy.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Joe's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the R1 RCM management team in years:

2.8
Average Tenure
49
Average Age
  • The tenure for the R1 RCM management team is about average.
Management Team

Joe Flanagan

TITLE
President
COMPENSATION
$5M
AGE
47
TENURE
3 yrs

Chris Ricaurte

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
58
TENURE
3.1 yrs

Gary Long

TITLE
Executive VP & Chief Commercial Officer
COMPENSATION
$1M
AGE
48
TENURE
1.8 yrs

Richard Evans

TITLE
Principal Accounting Officer
AGE
50
TENURE
4.3 yrs

Atif Rahim

TITLE
Senior Vice President of Investor Relations & Business Development

Corey Perman

TITLE
Executive Vice President of Compliance & Risk
TENURE
2.8 yrs

Sean Radcliffe

TITLE
Executive VP
TENURE
2.3 yrs

Kate Sanderson

TITLE
Executive VP & Chief Human Resources Officer
TENURE
0.5 yrs

Doug Berkson

TITLE
Senior Vice President
TENURE
2.8 yrs

Wes Arnett

TITLE
Executive Vice President of Deployment
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the R1 RCM board of directors in years:

3.3
Average Tenure
57.5
Average Age
  • The tenure for the R1 RCM board of directors is about average.
Board of Directors

Joe Flanagan

TITLE
President
COMPENSATION
$5M
AGE
47
TENURE
3 yrs

Alex Mandl

TITLE
Lead Director
COMPENSATION
$220K
AGE
75
TENURE
1.2 yrs

Jack Henneman

TITLE
Director
COMPENSATION
$60K
AGE
56
TENURE
3.3 yrs

Neal Moszkowski

TITLE
Director
AGE
52
TENURE
3.3 yrs

Ian Sacks

TITLE
Director
AGE
47
TENURE
3.3 yrs

Charlie Ditkoff

TITLE
Director
COMPENSATION
$190K
AGE
56
TENURE
4 yrs

Joseph Impicciche

TITLE
Director
AGE
59
TENURE
3.3 yrs

Anthony Speranzo

TITLE
Director
AGE
69
TENURE
3.3 yrs

Michael Feiner

TITLE
Director
COMPENSATION
$190K
AGE
76
TENURE
2.2 yrs

Bert Zimmerli

TITLE
Director
AGE
66
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Nov 18 Sell Charles Ditkoff Individual 16. Nov 18 16. Nov 18 -20,635 $8.47 $-174,778
11. Sep 18 Buy Albert Zimmerli Individual 06. Sep 18 06. Sep 18 10,000 $9.73 $97,300
X
Management checks
We assess R1 RCM'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. R1 RCM 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

Is R1 RCM Inc.'s (NASDAQ:RCM) CEO Pay Fair?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for R1 RCM How Does Joe Flanagan's Compensation Compare With Similar Sized Companies? … Thus we can conclude that Joe Flanagan receives more in total compensation than the median of a group of companies in the same market, and of similar size to R1 RCM Inc..

Simply Wall St -

Is R1 RCM Inc.'s (NASDAQ:RCM) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Joe Flanagan's Compensation Compare With Similar Sized Companies. … We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.2m.

Simply Wall St -

Introducing R1 RCM, The Stock That Zoomed 270% In The Last Three Years

R1 RCM isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … Shareholders of unprofitable companies usually expect strong revenue growth. … Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Simply Wall St -

Who Has Been Selling R1 RCM Inc. (NASDAQ:RCM) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in R1 RCM Inc. … Over the last year, we can see that the biggest insider sale was by Director Charles Ditkoff for US$175k worth of shares, at about US$8.47 per share. … That means that an insider was selling shares at around the current price of US$8.06

Simply Wall St -

Do Institutions Own R1 RCM Inc. (NASDAQ:RCM) Shares?

(NASDAQ:RCM) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'.

Simply Wall St -

How Much Did R1 RCM Inc's (NASDAQ:RCM) CEO Pocket Last Year?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Joe Flanagan's Compensation Compare With Similar Sized Companies. … It would therefore appear that R1 RCM Inc pays Joe Flanagan more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Company Info

Description

R1 RCM Inc. provides revenue cycle management (RCM) for healthcare providers in the United States. It offers end-to-end RCM services to manage their revenue cycle operations, which encompass patient registration, insurance and benefit verification, medical treatment documentation and coding, and bill preparation and collection from patients and payers. The company also provides modular services comprising physician advisory services, which assists hospitals in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes; practice management services that offers administrative and operational support for patient care and outsource non-core functions; and revenue capture services, including charge capture, charge description master maintenance, and pricing services. It serves healthcare providers, including health systems and hospitals, physicians groups, and municipal and private emergency medical service providers, as well as intermountain homecare, hospice and palliative care, and durable medical equipment and infusion therapy business. The company was formerly known as Accretive Health, Inc. and changed its name to R1 RCM Inc. in January 2017. R1 RCM Inc. was founded in 2003 and is headquartered in Chicago, Illinois.

Details
Name: R1 RCM Inc.
RCM
Exchange: NasdaqGS
Founded: 2003
$1,256,168,230
110,480,935
Website: http://www.r1rcm.com
Address: R1 RCM Inc.
401 North Michigan Avenue,
Suite 2700,
Chicago,
Illinois, 60611,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RCM Common Stock Nasdaq Global Select US USD 20. May 2010
DB 6HL Common Stock Deutsche Boerse AG DE EUR 20. May 2010
Number of employees
Current staff
Staff numbers
17,550
R1 RCM employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:18
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
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.