R1 RCM Inc
NASDAQ:RCM

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R1 RCM Inc Logo
R1 RCM Inc
NASDAQ:RCM
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Price: 14.31 USD -0.14% Market Closed
Market Cap: 6B USD
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Intrinsic Value

The intrinsic value of one RCM stock under the Base Case scenario is 15.21 USD. Compared to the current market price of 14.31 USD, R1 RCM Inc is Undervalued by 6%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

RCM Intrinsic Value
15.21 USD
Undervaluation 6%
Intrinsic Value
Price
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Base Case
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Valuation Backtest
R1 RCM Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
R1 RCM Inc

Current Assets 768.9m
Cash & Short-Term Investments 167.3m
Receivables 456.2m
Other Current Assets 145.4m
Non-Current Assets 5B
PP&E 281.1m
Intangibles 4.6B
Other Non-Current Assets 144.9m
Current Liabilities 429.6m
Accounts Payable 34.4m
Accrued Liabilities 262.1m
Other Current Liabilities 133.1m
Non-Current Liabilities 2.5B
Long-Term Debt 2.1B
Other Non-Current Liabilities 371.9m
Efficiency

Earnings Waterfall
R1 RCM Inc

Revenue
2.5B USD
Cost of Revenue
-2B USD
Gross Profit
472.7m USD
Operating Expenses
-274m USD
Operating Income
198.7m USD
Other Expenses
-259.9m USD
Net Income
-61.2m USD

Free Cash Flow Analysis
R1 RCM Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q2 2024, the company reported substantial growth with revenues up by 12% to $627.9 million and adjusted EBITDA reaching $156.1 million. This growth was attributed mainly to the inclusion of Acclara and expansion in the Modular business, despite disruptions from cyberattacks. The company also launched significant operational and technological initiatives, including AI and automation improvements. The Ascension cyberattack is expected to impact revenues by $75-$95 million and will incur additional costs of $10-$15 million in the latter half of the year. Despite this, the long-term outlook remains positive with recovery expected in 2025.

What is Earnings Call?
Fundamental Scores

RCM Profitability Score
Profitability Due Diligence

R1 RCM Inc's profitability score is 44/100. The higher the profitability score, the more profitable the company is.

ROE is Increasing
Exceptional 3-Years Revenue Growth
Positive Gross Profit
Positive Revenue Growth Forecast
44/100
Profitability
Score

R1 RCM Inc's profitability score is 44/100. The higher the profitability score, the more profitable the company is.

RCM Solvency Score
Solvency Due Diligence

R1 RCM Inc's solvency score is 47/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Low D/E
Low Altman Z-Score
47/100
Solvency
Score

R1 RCM Inc's solvency score is 47/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

RCM Price Targets Summary
R1 RCM Inc

Wall Street analysts forecast RCM stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for RCM is 14.89 USD with a low forecast of 14.14 USD and a high forecast of 17.85 USD.

Lowest
Price Target
14.14 USD
1% Downside
Average
Price Target
14.89 USD
4% Upside
Highest
Price Target
17.85 USD
25% Upside
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Dividends

R1 RCM Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for RCM is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
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Profile

R1 RCM Inc Logo
R1 RCM Inc

Country

United States of America

Industry

Health Care

Market Cap

6B USD

Dividend Yield

0%

Description

R1 RCM, Inc. engages in the provision of revenue cycle management to healthcare providers. The company is headquartered in Chicago, Illinois and currently employs 10,200 full-time employees. The company went IPO on 2010-05-20. The firm's services help healthcare providers generate sustainable improvements in their operating margins and cash flows while also improving patient, physician, and staff satisfaction for its customers. Its primary service offering consists of end-to-end RCM services for health systems, hospitals, and physician groups. The company also offers modular services, allowing customers to engage for only specific components of its end-to-end RCM service offering, such as physician advisory services (PAS), practice management (PM), revenue integrity solutions (RIS), patient experience (PX), coding management, and business office services. Its PAS offering assists healthcare organizations in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes.

Contact

ILLINOIS
Chicago
401 N Michigan Ave Ste 2700
+13123247820.0
www.r1rcm.com

IPO

2010-05-20

Employees

10 200

Officers

CEO & Director
Mr. Lee Rivas
President
Mr. John M. Sparby
Executive VP, CFO & Treasurer
Ms. Jennifer Williams
Executive VP & Chief Commercial Officer
Mr. Kyle A. Hicok
Principal Accounting Officer & Chief Accounting Officer
Ms. Pamela L. Spikner
EVP & Chief Technology Officer
Mr. Brian Gambs
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Senior Vice President of Finance & Investor Relations
Evan Smith C.F.A.
Executive Vice President of Compliance & Risk
Mr. Corey Perman
Executive VP, General Counsel & Corporate Secretary
Mr. Sean Radcliffe
Executive VP & Chief Human Resources Officer
Ms. Kate Sanderson
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See Also

Discover More
What is the Intrinsic Value of one RCM stock?

The intrinsic value of one RCM stock under the Base Case scenario is 15.21 USD.

Is RCM stock undervalued or overvalued?

Compared to the current market price of 14.31 USD, R1 RCM Inc is Undervalued by 6%.

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