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American Renal Associates Holdings

NYSE:ARA
Snowflake Description

Mediocre balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARA
NYSE
$195M
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

American Renal Associates Holdings, Inc. operates as a dialysis services provider in the United States. The last earnings update was 165 days ago. More info.


Add to Portfolio Compare Print
  • American Renal Associates Holdings has significant price volatility in the past 3 months.
ARA Share Price and Events
7 Day Returns
2.9%
NYSE:ARA
-3%
US Healthcare
-0.8%
US Market
1 Year Returns
-61.9%
NYSE:ARA
-5.1%
US Healthcare
7%
US Market
ARA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Renal Associates Holdings (ARA) 2.9% -36.7% -50.9% -61.9% -78.6% -
US Healthcare -3% -7.7% -11.8% -5.1% 10.9% 60.2%
US Market -0.8% 2.7% 7.5% 7% 37.9% 47%
1 Year Return vs Industry and Market
  • ARA underperformed the Healthcare industry which returned -5.1% over the past year.
  • ARA underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
ARA
Industry
5yr Volatility vs Market

Value

 Is American Renal Associates Holdings 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 American Renal Associates Holdings 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 American Renal Associates Holdings.

NYSE:ARA 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 13.9%
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 NYSE:ARA
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 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (283.46%))
1.875
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.875 * 5.96%)
13.91%

Discounted Cash Flow Calculation for NYSE:ARA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for American Renal Associates Holdings 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.

NYSE:ARA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 13.91%)
2019 79.93 Analyst x1 70.17
2020 87.18 Analyst x1 67.19
2021 92.65 Est @ 6.28% 62.69
2022 97.47 Est @ 5.21% 57.90
2023 101.83 Est @ 4.47% 53.11
2024 105.85 Est @ 3.95% 48.46
2025 109.64 Est @ 3.58% 44.07
2026 113.28 Est @ 3.33% 39.98
2027 116.85 Est @ 3.15% 36.20
2028 120.38 Est @ 3.02% 32.74
Present value of next 10 years cash flows $512.52
NYSE:ARA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $120.38 × (1 + 2.73%) ÷ (13.91% – 2.73%)
$1,106.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,106.61 ÷ (1 + 13.91%)10
$301.00
NYSE:ARA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $512.52 + $301.00
$813.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $813.52 / 32.52
$25.02
NYSE:ARA Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.02
Current discount Discount to share price of $6.01
= -1 x ($6.01 - $25.02) / $25.02
76%

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

Current Discount
Amount off the current price American Renal Associates Holdings is available for.
Intrinsic value
>50%
Share price is $6.01 vs Future cash flow value of $25.02
Current Discount Checks
For American Renal Associates Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • American Renal Associates Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • American Renal Associates Holdings'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 American Renal Associates Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Renal Associates Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ARA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-0.49
NYSE:ARA Share Price ** NYSE (2019-04-22) in USD $6.01
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.9x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.21x

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

** Primary Listing of American Renal Associates Holdings.

NYSE:ARA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARA Share Price ÷ EPS (both in USD)

= 6.01 ÷ -0.49

-12.2x

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

  • American Renal Associates Holdings is loss making, we can't compare its value to the US Healthcare industry average.
  • American Renal Associates Holdings 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 American Renal Associates Holdings's expected growth come at a high price?
Raw Data
NYSE:ARA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -12.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
48.2%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*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 American Renal Associates Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on American Renal Associates Holdings's assets?
Raw Data
NYSE:ARA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $-2.26
NYSE:ARA Share Price * NYSE (2019-04-22) in USD $6.01
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,186 Publicly-Listed Companies 1.91x
NYSE:ARA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARA Share Price ÷ Book Value per Share (both in USD)

= 6.01 ÷ -2.26

-2.66x

* Primary Listing of American Renal Associates Holdings.

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

  • American Renal Associates Holdings has negative assets, we can't compare the value of its assets to the US Healthcare industry average.
X
Value checks
We assess American Renal Associates Holdings'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. American Renal Associates Holdings 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 American Renal Associates Holdings 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
48.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Renal Associates Holdings expected to grow at an attractive rate?
  • American Renal Associates Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • American Renal Associates Holdings's earnings growth is expected to exceed the United States of America market average.
  • American Renal Associates Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ARA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ARA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 48.2%
NYSE:ARA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 6.9%
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 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*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
NYSE:ARA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months 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.
NYSE:ARA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 949 135 23 4
2019-12-31 879 124 19 4
2018-12-31 828 122 27 4
NYSE:ARA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 817 115 -16
2018-06-30 794 135 -10
2018-03-31 763 133 5
2017-12-31 745 129 -7
2017-09-30 750 128 -10
2017-06-30 755 135 -7
2017-03-31 755 152 -24
2016-12-31 750 172 -8
2016-09-30 725 171 0
2016-06-30 700 161 -7
2016-03-31 676 143 20
2015-12-31 653 134 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Renal Associates Holdings's earnings are expected to grow significantly at over 20% yearly.
  • American Renal Associates Holdings's revenue is expected to grow by 6.9% 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
NYSE:ARA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from American Renal Associates Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.66 0.66 0.66 1.00
2019-12-31 0.54 0.54 0.54 1.00
2018-12-31 0.78 0.78 0.78 1.00
NYSE:ARA Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 -0.49
2018-06-30 -0.31
2018-03-31 0.15
2017-12-31 -0.24
2017-09-30 -0.31
2017-06-30 -0.22
2017-03-31 -0.79
2016-12-31 -0.28
2016-09-30 -0.01
2016-06-30 -0.29
2016-03-31 0.89
2015-12-31 0.85

*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.
  • American Renal Associates Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess American Renal Associates Holdings'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.
American Renal Associates Holdings has a total score of 3/6, 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 American Renal Associates Holdings 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 American Renal Associates Holdings'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.
  • American Renal Associates Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare American Renal Associates Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare American Renal Associates Holdings's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
American Renal Associates Holdings'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 American Renal Associates Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 817.25 -15.65 99.08
2018-06-30 793.94 -9.67 96.74
2018-03-31 762.75 4.59 95.51
2017-12-31 745.11 -7.42 101.80
2017-09-30 749.84 -9.62 118.28
2017-06-30 755.09 -6.93 129.37
2017-03-31 754.66 -23.88 135.73
2016-12-31 749.77 -7.79 125.98
2016-09-30 724.86 -0.31 107.39
2016-06-30 699.86 -6.88 93.40
2016-03-31 675.79 19.73 81.55
2015-12-31 652.98 18.85 77.25
2015-09-30 628.68 16.71 73.43
2015-06-30 602.56 17.44 69.81
2015-03-31 580.48 16.73 65.36
2014-12-31 560.73 16.20 63.03
2013-12-31 495.93 -20.45 72.64
2012-12-31 421.47 9.64 45.90
2012-09-30 398.00 6.08 43.53
2012-06-30 382.13 5.70 41.53

*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.
  • Whilst American Renal Associates Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • American Renal Associates Holdings used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • It is difficult to establish if American Renal Associates Holdings 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 American Renal Associates Holdings'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.
American Renal Associates Holdings 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 American Renal Associates Holdings'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 American Renal Associates Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Renal Associates Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • American Renal Associates Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of American Renal Associates Holdings'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 0.3x 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 American Renal Associates Holdings Company Filings, last reported 6 months ago.

NYSE:ARA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 242.58 553.96 62.90
2018-06-30 241.78 556.64 69.88
2018-03-31 259.47 557.94 64.44
2017-12-31 260.38 560.29 71.52
2017-09-30 255.23 560.56 67.61
2017-06-30 254.06 563.79 74.94
2017-03-31 274.69 566.77 84.00
2016-12-31 276.03 570.33 100.92
2016-09-30 271.60 563.60 105.15
2016-06-30 254.68 558.38 93.27
2016-03-31 162.42 688.54 95.97
2015-12-31 158.92 682.98 90.99
2015-09-30 142.38 686.62 89.85
2015-06-30 134.92 685.91 74.43
2015-03-31 133.84 666.07 60.10
2014-12-31 134.63 663.77 61.48
2013-12-31 108.72 649.28 32.87
2012-12-31 297.65 420.69 31.02
2012-09-30 282.11 409.25 42.78
2012-06-30 279.05 405.17 45.32
  • American Renal Associates Holdings's level of debt (228.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (380.1% vs 228.4% today).
  • Debt is well covered by operating cash flow (20.8%, greater than 20% of total debt).
  • American Renal Associates Holdings is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess American Renal Associates Holdings'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. American Renal Associates Holdings has a total score of 3/6, 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 American Renal Associates Holdings'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 American Renal Associates Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of American Renal Associates Holdings 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 American Renal Associates Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate American Renal Associates Holdings'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
NYSE:ARA 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 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
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 3.6%

Industry and Market average data is calculated daily.

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

NYSE:ARA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2018-12-31 0.00 1.00

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

  • Unable to perform a dividend volatility check as American Renal Associates Holdings has not reported any payouts.
  • Unable to verify if American Renal Associates Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of American Renal Associates Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as American Renal Associates Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of American Renal Associates Holdings'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 American Renal Associates Holdings'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 American Renal Associates Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Renal Associates Holdings 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 American Renal Associates Holdings'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 Carlucci
COMPENSATION $3,352,624
AGE 64
TENURE AS CEO 14.3 years
CEO Bio

Mr. Joseph A. Carlucci, also known as Joe, is a Co-Founder of American Renal Associates LLC and serves as its Chief Executive Officer. Mr. Carlucci has been the Chairman of American Renal Associates Holdings, Inc., since May 15, 2012 and has been its Chief Executive Officer since 2006. Mr. Carlucci also served as Chief Operating Officer and Treasurer of American Renal Associates Holdings, Inc., from 1999 to 2005. He has more than 39 years of experience in the dialysis services industry and is the former President and CEO of Optimal Renal Care, a joint venture in disease management between Fresenius Medical Care North America (FMCNA) and Kaiser Permanente of Southern California. Prior to Optimal, he was Vice President of Administration at Fresenius (FMCNA ) and responsible nationally for managed care, medical director relations and facility development. He has considerable operations experience from Facility Administrator to Director of U.S. Operations. He has been Chairman of the Board at American Renal Associates LLC since 2012 and serves as its Director at FMCNA. Mr. Carlucci also serves on the board of directors of Colorado Center for Reproductive Medicine. Mr. Carlucci received his B.S. degree in Accounting from Bentley University.

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

Average tenure and age of the American Renal Associates Holdings management team in years:

3.3
Average Tenure
59
Average Age
  • The tenure for the American Renal Associates Holdings management team is about average.
Management Team

Joe Carlucci

TITLE
Co-Founder
COMPENSATION
$3M
AGE
64
TENURE
14.3 yrs

Syed Kamal

TITLE
Founder
COMPENSATION
$2M
AGE
65
TENURE
20.3 yrs

Mark Herbers

TITLE
Interim CFO & Interim Chief Accounting Officer
AGE
63
TENURE
0.1 yrs

Don Williamson

TITLE
Executive VP & COO
AGE
55
TENURE
1.6 yrs

Richard Pacheco

TITLE
Vice President of Administration
TENURE
1.4 yrs

Darren Lehrich

TITLE
Senior Vice President of Strategy & Investor Relations
AGE
46
TENURE
4.3 yrs

Michael Costa

TITLE
VP, General Counsel & Secretary
COMPENSATION
$482K
AGE
47
TENURE
12.3 yrs

Neal Minahan

TITLE
Chief Compliance Officer & VP
TENURE
2.3 yrs

Jennifer Hood

TITLE
Vice President of Human Resources

Michael Anger

TITLE
Chief Medical Officer
Board of Directors Tenure

Average tenure and age of the American Renal Associates Holdings board of directors in years:

7.6
Average Tenure
58.5
Average Age
  • The tenure for the American Renal Associates Holdings board of directors is about average.
Board of Directors

Syed Kamal

TITLE
Founder
COMPENSATION
$2M
AGE
65
TENURE
20.3 yrs

Michael Boxer

TITLE
Director
COMPENSATION
$323K
AGE
56
TENURE
9.3 yrs

Joe Carlucci

TITLE
Co-Founder
COMPENSATION
$3M
AGE
64
TENURE
6.9 yrs

Tom Erickson

TITLE
Director
COMPENSATION
$330K
AGE
67
TENURE
8.3 yrs

Jared Hendricks

TITLE
Director
AGE
37
TENURE
9.3 yrs

John Jureller

TITLE
Director
COMPENSATION
$315K
AGE
58
TENURE
3.7 yrs

Steve Silver

TITLE
Director
AGE
49
TENURE
9.3 yrs

Patrick Ryan

TITLE
Director
COMPENSATION
$320K
AGE
59
TENURE
2.9 yrs

Susy Clark

TITLE
Director
AGE
49
TENURE
2 yrs

Bob Fish

TITLE
Director
COMPENSATION
$195K
AGE
67
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess American Renal Associates Holdings'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. American Renal Associates Holdings 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

How American Renal Associates Holdings, Inc. (NYSE:ARA) Can Impact Your Portfolio Volatility

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

What Should You Know About American Renal Associates Holdings Inc's (NYSE:ARA) Return On Capital?

and want to begin learning the link between American Renal Associates Holdings Inc (NYSE:ARA)’s return fundamentals and stock market performance. … Thus, to understand how your money can grow by investing in American Renal Associates Holdings, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … American Renal Associates Holdings's Return On Capital Employed

Simply Wall St -

What is Behind American Renal Associates Holdings Inc's (NYSE:ARA) Superior ROE?

American Renal Associates Holdings Inc (NYSE:ARA) outperformed the healthcare services industry on the basis of its ROE – producing a higher 29.48% relative to the peer average of 15.35% over the past 12 months. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface. … Check out our latest analysis for American Renal Associates Holdings

Simply Wall St -

One Thing To Consider Before Buying American Renal Associates Holdings Inc (NYSE:ARA)

Broadly speaking, there are two types of risk you should consider when investing in stocks such as ARA. … The first type is company-specific risk, which can be diversified away by investing in other companies to reduce exposure to one particular stock. … The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market.

Simply Wall St -

What Does American Renal Associates Holdings Inc's (NYSE:ARA) Share Price Indicate?

American Renal Associates Holdings Inc (NYSE:ARA), a healthcare company based in United States,. … Let’s examine American Renal Associates Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity … View out our latest analysis for American Renal Associates Holdings

Simply Wall St -

Should You Sell American Renal Associates Holdings Inc (NYSE:ARA) At This PE Ratio?

and want to better understand how you can grow your money by investing in American Renal Associates Holdings Inc (NYSE:ARA). … American Renal Associates Holdings Inc (NYSE:ARA) trades with a trailing P/E of 109.7x, which is higher than the industry average of 22.1x. … While ARA might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Does American Renal Associates Holdings Inc's (NYSE:ARA) Past Performance Indicate A Stronger Future?

View our latest analysis for American Renal Associates Holdings Were ARA's earnings stronger than its past performances and the industry? … For American Renal Associates Holdings, its latest earnings (trailing twelve month) is -US$7.42M, which, relative to the prior year's figure, has become less negative. … This shows that whatever tailwind the industry is enjoying, American Renal Associates Holdings has not been able to realize the gains unlike its industry peers.What does this mean?

Simply Wall St -

Is American Renal Associates Holdings Inc's (NYSE:ARA) Balance Sheet A Threat To Its Future?

ARA's debt levels have fallen from US$683.41M to US$570.33M over the last 12 months – this includes both the current and long-term debt. … On top of this, ARA has produced cash from operations of US$172.21M during the same period of time, resulting in an operating cash to total debt ratio of 30.19%, indicating that ARA’s operating cash is sufficient to cover its debt. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: Although ARA’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

What You Must Know About American Renal Associates Holdings Inc's (ARA) ROE

See our latest analysis for ARA Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs ARA’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:ARA Last Perf Nov 15th 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient ARA is with its cost management.

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Company Info

Description

American Renal Associates Holdings, Inc. operates as a dialysis services provider in the United States. It operates dialysis clinics focusing on joint venture partnerships with physicians. The company offers kidney dialysis services to patients suffering from chronic kidney failure or end stage renal disease. As of June 30, 2018, it owned and operated 233 dialysis clinics in partnership with 400 nephrologist partners treating approximately 16,000 patients in 26 states and the District of Columbia. The company was founded in 1999 and is headquartered in Beverly, Massachusetts.

Details
Name: American Renal Associates Holdings, Inc.
ARA
Exchange: NYSE
Founded: 1999
$195,427,560
32,517,065
Website: http://www.americanrenal.com
Address: American Renal Associates Holdings, Inc.
500 Cummings Center,
Suite 6550,
Beverly,
Massachusetts, 01915,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARA Common Stock New York Stock Exchange US USD 22. Apr 2016
DB 87A Common Stock Deutsche Boerse AG DE EUR 22. Apr 2016
Number of employees
Current staff
Staff numbers
4,692
American Renal Associates Holdings employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 00:36
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/05
Last earnings filing: 2018/11/09
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.