Hanger (NYSE:HNGR) - Share price, News & Analysis

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

HNGR ($14.65) is trading below our estimate of [[fair value]] ($15.87)

HNGR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

HNGR Stock Overview

Hanger, Inc. provides orthotic and prosthetic (O&P) services in the United States.

Rewards

Trading at 7.7% below our estimate of its fair value

Earnings are forecast to grow 15.67% per year

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (3.3%) are lower than last year (5%)

Hanger Competitors

Community Health Systems

NYSE:CYH

US$520.1m

Oncology Institute

NasdaqCM:TOI

US$392.4m

National HealthCare

NYSEAM:NHC

US$1.1b

Pennant Group

NasdaqGS:PNTG

US$367.5m

Price History & Performance

Summary of all time highs, changes and price drops for Hanger
Historical stock prices
Current Share Price	US$14.65
52 Week High	US$25.58
52 Week Low	US$13.42
Beta	1.3
1 Month Change	-4.75%
3 Month Change	-22.61%
1 Year Change	-42.46%
3 Year Change	-16.24%
5 Year Change	27.39%
Change since IPO	200.51%

Recent News & Updates

Jun 15

Is It Too Late To Consider Buying Hanger, Inc. (NYSE:HNGR)?

Hanger, Inc. ( NYSE:HNGR ), might not be a large cap stock, but it received a lot of attention from a substantial price...

May 12

Returns At Hanger (NYSE:HNGR) Are On The Way Up

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Apr 29

Calculating The Fair Value Of Hanger, Inc. (NYSE:HNGR)

How far off is Hanger, Inc. ( NYSE:HNGR ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

	HNGR	US Healthcare	US Market
7D	-2.5%	0.8%	-2.2%
1Y	-42.5%	4.4%	-19.1%

Return vs Industry: HNGR underperformed the US Healthcare industry which returned 4.4% over the past year.

Return vs Market: HNGR underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is HNGR's price volatile compared to industry and market?
HNGR volatility
HNGR Average Weekly Movement	6.6%
Healthcare Industry Average Movement	9.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.3%

Stable Share Price: HNGR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HNGR's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1861	5,200	Vinit Asar	https://hangerclinic.com

Hanger, Inc. provides orthotic and prosthetic (O&P) services in the United States. It operates in two segments, Patient Care and Products & Services. The Patient Care segment owns and operates Hanger clinic, which specializes in the design, fabrication, and delivery of custom O&P devices through patient care clinics and satellite locations; and offers payor network contracting services to other O&P providers.

Hanger Fundamentals Summary

How do Hanger's earnings and revenue compare to its market cap?
HNGR fundamental statistics
Market Cap	US$571.78m
Earnings (TTM)	US$37.34m
Revenue (TTM)	US$1.14b

15.3x

P/E Ratio

0.5x

P/S Ratio

Is HNGR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HNGR income statement (TTM)
Revenue	US$1.14b
Cost of Revenue	US$774.13m
Gross Profit	US$370.17m
Other Expenses	US$332.84m
Earnings	US$37.34m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.96
Gross Margin	32.35%
Net Profit Margin	3.26%
Debt/Equity Ratio	470.7%

How did HNGR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HNGR. This is calculated by dividing HNGR's market cap by their current preferred multiple.
What is HNGR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$571.78m

HNGR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	11.8x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does HNGR's PE Ratio compare to its peers?

HNGR PE Ratio vs Peers

The above table shows the PE ratio for HNGR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	52.6x
CYH Community Health Systems	1.8x	17.2%	US$520.1m
TOI Oncology Institute	67.2x	n/a	US$392.4m
NHC National HealthCare	8.3x	n/a	US$1.1b
PNTG Pennant Group	133.2x	47.2%	US$367.5m
HNGR Hanger	15.3x	15.7%	US$571.8m

Forward PE

Price-To-Earnings vs Peers: HNGR is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (52.6x).

Price to Earnings Ratio vs Industry

How does HNGR's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Earnings vs Industry: HNGR is good value based on its Price-To-Earnings Ratio (15.3x) compared to the US Healthcare industry average (18.8x)

Price to Earnings Ratio vs Fair Ratio

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

HNGR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.3x
Fair PE Ratio	24x

Price-To-Earnings vs Fair Ratio: HNGR is good value based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (24x).

Share Price vs Fair Value

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

Below Fair Value: HNGR ($14.65) is trading below our estimate of fair value ($15.87)

Significantly Below Fair Value: HNGR is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: HNGR is good value based on its PEG Ratio (1x)

Discover undervalued companies

Future Growth

How is Hanger forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNGR's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).

Earnings vs Market: HNGR's earnings (15.7% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: HNGR's earnings are forecast to grow, but not significantly.

Revenue vs Market: HNGR's revenue (5.4% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: HNGR's revenue (5.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Discover growth companies

Past Performance

How has Hanger performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

79.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HNGR has high quality earnings.

Growing Profit Margin: HNGR's current net profit margins (3.3%) are lower than last year (5%).

Past Earnings Growth Analysis

Earnings Trend: HNGR has become profitable over the past 5 years, growing earnings by 79.6% per year.

Accelerating Growth: HNGR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HNGR had negative earnings growth (-26.2%) over the past year, making it difficult to compare to the Healthcare industry average (10.1%).

Return on Equity

High ROE: Whilst HNGR's Return on Equity (34.39%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Hanger's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HNGR's short term assets ($279.4M) exceed its short term liabilities ($200.3M).

Long Term Liabilities: HNGR's short term assets ($279.4M) do not cover its long term liabilities ($650.8M).

Debt to Equity History and Analysis

Debt Level: HNGR's net debt to equity ratio (436.3%) is considered high.

Reducing Debt: HNGR's debt to equity ratio has reduced from 1109.1% to 470.7% over the past 5 years.

Debt Coverage: HNGR's debt is not well covered by operating cash flow (13.8%).

Interest Coverage: HNGR's interest payments on its debt are not well covered by EBIT (2.4x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Hanger current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if HNGR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HNGR has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure

CEO

Vinit Asar (56 yo)

10.83yrs

Tenure

US$4,606,723

Compensation

Mr. Vinit K. Asar has been the Chief Executive Officer and President of Hanger Orthopedic Group Inc. (known as Hanger, Inc.) since May 21, 2012 and September 12, 2011 respectively. Mr. Asar serves as Direc...

CEO Compensation Analysis

Compensation vs Market: Vinit's total compensation ($USD4.61M) is above average for companies of similar size in the US market ($USD2.92M).

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

Leadership Team

Experienced Management: HNGR's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: HNGR's board of directors are considered experienced (7.5 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31