R1 RCM Inc.

NasdaqGS:RCM Stock Report

Market Cap: US$6.0b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

R1 RCM Valuation

Is RCM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RCM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCM ($14.31) is trading below our estimate of fair value ($53.68)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCM?

Key metric: As RCM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RCM. This is calculated by dividing RCM's market cap by their current revenue.
What is RCM's PS Ratio?
PS Ratio2.5x
SalesUS$2.46b
Market CapUS$6.04b

Price to Sales Ratio vs Peers

How does RCM's PS Ratio compare to its peers?

The above table shows the PS ratio for RCM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
RDNT RadNet
3x7.5%US$5.3b
CRVL CorVel
6.7xn/aUS$5.7b
GH Guardant Health
6x16.8%US$4.2b
OPCH Option Care Health
0.8x7.3%US$4.0b
RCM R1 RCM
2.5x12.2%US$6.0b

Price-To-Sales vs Peers: RCM is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

How does RCM's PS Ratio compare vs other companies in the US Healthcare Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
MCK McKesson
0.2x8.1%US$73.30b
CVS CVS Health
0.2x4.4%US$57.60b
COR Cencora
0.2x6.4%US$44.30b
CNC Centene
0.2x5.5%US$31.04b
RCM 2.5xIndustry Avg. 1.1xNo. of Companies27PS012345+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RCM is expensive based on its Price-To-Sales Ratio (2.5x) compared to the US Healthcare industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is RCM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: RCM is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RCM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$14.82
0%
10.0%US$19.00US$14.30n/a9
Dec ’25n/a
US$14.82
0%
10.0%US$19.00US$14.30n/a9
Nov ’25US$14.26
US$14.70
+3.1%
9.3%US$19.00US$14.00n/a11
Oct ’25US$14.18
US$14.69
+3.6%
8.6%US$19.00US$14.00n/a13
Sep ’25US$14.11
US$14.69
+4.1%
8.6%US$19.00US$14.00n/a13
Aug ’25US$14.13
US$15.63
+10.6%
11.6%US$20.00US$14.00n/a14
Jul ’25US$12.56
US$16.57
+31.9%
11.8%US$20.00US$14.00n/a14
Jun ’25US$12.86
US$16.79
+30.5%
11.5%US$20.00US$14.00n/a14
May ’25US$12.36
US$16.93
+37.0%
10.6%US$20.00US$14.00n/a14
Apr ’25US$12.56
US$17.20
+36.9%
8.5%US$20.00US$15.00n/a15
Mar ’25US$14.00
US$17.06
+21.9%
9.4%US$20.00US$14.00n/a16
Feb ’25US$10.75
US$16.18
+50.5%
15.8%US$20.00US$11.00n/a17
Jan ’25US$10.57
US$17.25
+63.2%
18.2%US$26.00US$11.00n/a16
Dec ’24US$10.87
US$18.09
+66.5%
14.5%US$26.00US$14.00n/a16
Nov ’24US$12.10
US$21.41
+76.9%
9.6%US$26.00US$18.00US$14.2616
Oct ’24US$15.07
US$21.38
+41.9%
9.3%US$26.00US$18.00US$14.1817
Sep ’24US$17.61
US$21.38
+21.4%
9.3%US$26.00US$18.00US$14.1117
Aug ’24US$17.65
US$20.13
+14.0%
12.3%US$26.00US$16.00US$14.1316
Jul ’24US$18.45
US$20.06
+8.7%
12.4%US$26.00US$16.00US$12.5616
Jun ’24US$16.43
US$19.44
+18.3%
12.2%US$26.00US$16.00US$12.8616
May ’24US$15.54
US$18.88
+21.5%
13.6%US$26.00US$15.00US$12.3616
Apr ’24US$15.00
US$18.96
+26.4%
15.0%US$26.00US$15.00US$12.5613
Mar ’24US$14.19
US$18.25
+28.6%
18.6%US$26.00US$11.00US$14.0014
Feb ’24US$14.65
US$15.36
+4.8%
21.4%US$25.00US$11.00US$10.7514
Jan ’24US$10.95
US$14.00
+27.9%
25.7%US$25.00US$10.00US$10.5713

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/11/20 08:39
End of Day Share Price 2024/11/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

R1 RCM Inc. is covered by 27 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Vikram KesavabhotlaBaird
Michael ChernyBofA Global Research
Bret JonesBrean Capital