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

Fundamentals

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


Market Performance


7 Day Return

10.0%

ARA

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-61.7%

ARA

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: ARA underperformed the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: ARA underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

ARAIndustryMarket
7 Day10.0%5.8%1.8%
30 Day-20.1%2.5%-0.7%
90 Day-4.1%-1.8%0.06%
1 Year-61.7%-61.7%-5.0%-6.5%9.7%7.3%
3 Year-62.6%-62.6%33.9%28.6%46.3%36.9%
5 Yearn/a65.6%55.8%64.5%46.5%

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

Undervalued: ARA ($6.79) is trading above our estimate of fair value ($0.95)

Significantly Undervalued: 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

Low 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 3 analysts?

123.0%

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 (5.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ARA's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ARA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-71.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARA is unprofitable, and losses have increased over the past 5 years at a rate of -71.9% 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 (5.3%).


Return on Equity

High ROE: ARA has a negative Return on Equity (11.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ARA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ARA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is American Renal Associates Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ARA's short term assets ($230.1M) exceeds its short term liabilities ($222.6M)

Long Term Liabilities: ARA's short term assets (230.1M) do not cover its long term liabilities (711.6M)


Debt to Equity History and Analysis

Debt Level: ARA's debt to equity ratio (284.2%) is considered high

Reducing Debt: ARA's debt to equity ratio has reduced from 539.2% to 284.2% over the past 5 years.


Balance Sheet

Inventory Level: ARA has a high level of physical assets or inventory.

Debt Coverage by Assets: ARA's debt is not covered by short term assets (assets are 0.4x debt).


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 -33.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of American Renal Associates Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Joe Carlucci (65yo)

14.8yrs

Tenure

US$3,636,719

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 ($USD3.64M) is above average for companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

64yo

Average Age

Experienced Management: ARA's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ARA's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Darren Lehrich (47yo)

    Senior Vice President of Strategy & Investor Relations

    • Tenure: 4.8yrs
  • Syed Kamal (66yo)

    Founder

    • Tenure: 20.8yrs
    • Compensation: US$2.22m
  • Joe Carlucci (65yo)

    Co-Founder

    • Tenure: 14.8yrs
    • Compensation: US$3.64m
  • Richard Cronin

    Chief Medical Officer

    • Tenure: 0yrs
  • Mark Herbers (64yo)

    Interim CFO & Interim Chief Accounting Officer

    • Tenure: 0.6yrs
  • Richard Pacheco

    Vice President of Administration

    • Tenure: 1.9yrs
  • Michael Anger

    Chief Medical Officer

    • Tenure: 0yrs
  • Don Williamson (56yo)

    Executive VP & COO

    • Tenure: 2.1yrs
    • Compensation: US$2.29m
  • Jennifer Hood

    Vice President of Human Resources

    • Tenure: 0yrs
  • Neal Minahan

    Chief Compliance Officer & VP

    • Tenure: 2.8yrs

Board Members

  • Steve Silver (50yo)

    Director

    • Tenure: 9.8yrs
  • Michael Boxer (57yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$210.02k
  • Patrick Ryan (60yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$210.02k
  • Tom Erickson (68yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$220.02k
  • Bob Fish (68yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$195.02k
  • John Jureller (59yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$205.02k
  • Jared Hendricks (38yo)

    Director

    • Tenure: 9.8yrs
  • Syed Kamal (66yo)

    Founder

    • Tenure: 20.8yrs
    • Compensation: US$2.22m
  • Joe Carlucci (65yo)

    Co-Founder

    • Tenure: 14.8yrs
    • Compensation: US$3.64m
  • Susy Clark (50yo)

    Director

    • Tenure: 2.5yrs

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$221.112m
  • Shares outstanding: 32.56m
  • 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 offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:04
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.