NYSE:ARA

Stock Analysis Report

American Renal Associates Holdings

Executive Summary

American Renal Associates Holdings, Inc. operates as a dialysis services provider in the United States.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has American Renal Associates Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.4%

ARA

-0.7%

US Healthcare

2.4%

US Market


1 Year Return

-13.6%

ARA

-1.9%

US Healthcare

-10.0%

US Market

Return vs Industry: ARA exceeded the US Healthcare industry which returned -6.2% over the past year.

Return vs Market: ARA exceeded the US Market which returned -13.3% over the past year.


Shareholder returns

ARAIndustryMarket
7 Day-7.4%-0.7%2.4%
30 Day-25.7%-12.3%-11.0%
90 Day-37.6%-17.2%-19.4%
1 Year-13.6%-13.6%-0.6%-1.9%-8.1%-10.0%
3 Year-66.4%-66.4%21.0%15.6%17.3%9.6%
5 Yearn/a25.4%16.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is American Renal Associates Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Renal Associates Holdings undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: ARA ($6.28) is trading above our estimate of fair value ($0.09)

Significantly Below Fair Value: ARA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARA is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: ARA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARA has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.


Next Steps

Future Growth

How is American Renal Associates Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ARA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ARA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ARA's revenue (5.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: ARA's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARA is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has American Renal Associates Holdings performed over the past 5 years?

-59.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARA is currently unprofitable.

Growing Profit Margin: ARA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARA is unprofitable, and losses have increased over the past 5 years at a rate of -59.8% per year.

Accelerating Growth: Unable to compare ARA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARA is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (14%).


Return on Equity

High ROE: ARA has a negative Return on Equity (12.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is American Renal Associates Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ARA's short term assets ($220.0M) exceed its short term liabilities ($190.9M).

Long Term Liabilities: ARA's short term assets ($220.0M) do not cover its long term liabilities ($684.8M).


Debt to Equity History and Analysis

Debt Level: ARA's debt to equity ratio (275.5%) is considered high.

Reducing Debt: ARA's debt to equity ratio has reduced from 492.1% to 275.5% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: Whilst unprofitable ARA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ARA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -11.7% per year.


Next Steps

Dividend

What is American Renal Associates Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.3yrs

Average management tenure


CEO

Joe Carlucci (65yo)

15.25s

Tenure

US$1,058,804

Compensation

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 Holdin ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD1.06M) is about average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Carlucci
Former Chairman Emeritus15.25yrsUS$1.06m2.73% $5.2m
Syed Kamal
Co-Founder21.25yrsUS$947.14k2.35% $4.5m
Don Williamson
Executive VP & COO2.58yrsUS$1.77m0.54% $1.0m
Mark Herbers
Interim CFO & Interim Chief Accounting Officer1.08yrsno datano data
Richard Pacheco
Vice President of Administration2.42yrsno datano data
Darren Lehrich
Senior Vice President of Strategy & Investor Relations5.25yrsno datano data
Neal Minahan
Chief Compliance Officer & VP3.25yrsno datano data
Victoria Labriola
Acting General Council & Interim Secretaryno datano datano data
Jennifer Hood
Vice President of Human Resourcesno datano datano data
Michael Anger
Chief Medical Officerno datano datano data

3.3yrs

Average Tenure

64yo

Average Age

Experienced Management: ARA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Carlucci
Former Chairman Emeritus15.25yrsUS$1.06m2.73% $5.2m
Syed Kamal
Co-Founder21.25yrsUS$947.14k2.35% $4.5m
Steven Silver
Independent Director10.25yrsno datano data
Michael Boxer
Independent Director10.25yrsUS$211.86k0.30% $580.7k
Thomas Erickson
Director9.25yrsUS$1.67m0.21% $391.6k
Robert Fish
Independent Director3yrsUS$197.59k0.13% $249.7k
John Jureller
Independent Director4.67yrsUS$455.00k0.15% $285.7k
Jared Hendricks
Independent Director10.25yrsno datano data
Susanne Clark
Independent Director3yrsno datano data

9.3yrs

Average Tenure

59yo

Average Age

Experienced Board: ARA's board of directors are considered experienced (9.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

American Renal Associates Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Renal Associates Holdings, Inc.
  • Ticker: ARA
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$190.721m
  • Shares outstanding: 33.00m
  • Website: https://www.americanrenal.com

Number of Employees


Location

  • American Renal Associates Holdings, Inc.
  • 500 Cummings Center
  • Suite 6550
  • Beverly
  • Massachusetts
  • 1915
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARANYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2016
87ADB (Deutsche Boerse AG)YesCommon StockDEEURApr 2016

Biography

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 September 5, 2019, it operated 245 dialysis clinics in partnership with 400 nephrologist partners treating approximately 17,100 patients in 27 states and the District of Columbia. The company was founded in 1999 and is headquartered in Beverly, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 09:58
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.