Allscripts Healthcare Solutions, a prominent player in the Health Care Technology sector, has been making waves in the US stock market. With a valuation market value of
13.5, it offers an intriguing comparison to So Young International, another key player in the Healthcare Equipment & Supplies industry. Allscripts has a solid return on equity of 0.0893 and a return on assets of 0.0216, indicating efficient use of its resources. However, the company has been facing some financial challenges, with a total cash from operating activities showing a loss of 75.4M and a significant change in cash of a loss of 347M. Despite these challenges, the company maintains a cash and short term investments balance of 188.3M, providing some financial stability. The company's earnings per share (EPS) estimate for the current quarter stands at 0.19, while the EPS estimate for the next quarter is projected at 0.32. With a PE ratio of 15.7294, Allscripts' stock is reasonably priced given its earnings. The company's earnings per share is 0.85, and it has an end period cash flow of
190.5M. Analysts have a positive outlook on Allscripts, with 5 strong buy recommendations. The Wall Street target price is 18.44, while the highest estimated target price stands at 26. However, there is a possible downside price of 11.54, indicating potential risk. The naive expected forecast value is 13.19, and the possible upside price is 14.84. In terms of price action, Allscripts has a price action indicator of 0.075 and a rate of daily change of 1.01. The company's short ratio is 8.42, suggesting a moderate level of short interest. In conclusion, Allscripts Healthcare Solutions offers a mixed investment opportunity. While it faces some financial challenges, its strong return on equity, reasonable PE ratio, and positive analyst recommendations suggest potential for growth. Investors should carefully consider these factors when comparing Allscripts to So Young International. It appears that So Young may be due for a correction much sooner, as its share price surged 1.26% today, compared to Allscripts Healthcare's modest gain of 0.97%. With a growing number of millennials showing interest in the healthcare technology sector, we are set to dissect Allscripts Healthcare and So Young as potential short-term trades. We will delve into some of the competitive aspects of both Allscripts and So Young.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Veradigm or National is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Veradigm's Liquidity
Veradigm
financial leverage refers to using borrowed capital as a funding source to finance Veradigm ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Veradigm financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Veradigm's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Veradigm's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Veradigm's total debt and its cash.
Correlation Between Veradigm and National Research Corp
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Veradigm together with similar or unrelated positions with a negative correlation. For example, you can also add National Research to your portfolio. If National Research is not perfectly correlated to Veradigm it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Veradigm, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Veradigm and National Research in your portfolio? Please note if you are using this as a pair-trade strategy between Veradigm and National Research, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between MDRX and NRC for more information.
A Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Allscripts Healthcare revenue. Based on the latest financial disclosure, Allscripts Healthcare Solutions reported 1.5
B of revenue. This is 80.29% lower than that of the Health Care Technology sector and significantly higher than that of the
Health Care industry. The revenue for all United States stocks is 84.07% higher than that of Allscripts Healthcare. As for So Young we see revenue of 1.26
B, which is much higher than that of the Health Care
| Allscripts | 1.5 Billion |
| Sector | 0.0 |
| So Young | 1.26 Billion |
In the healthcare equipment and supplies industry, two stocks are currently battling for investor attention: Allscripts Healthcare Solutions and So Young International. Allscripts, a key player in health care technology, shows a strong
financial position with a net asset value of
$2.43B.
Its book value stands at 10.77X per share, which is a positive sign for investors looking for intrinsic value. The company's earnings per share (EPS) are currently at 0.85X, with Wall Street analysts
predicting an EPS of 0.32 for the next quarter. However, Allscripts has a high PEG ratio of 2.42X, which indicates that it may be overvalued. It also shows a high probability of bankruptcy at 14.66%, which may be a red flag for risk-averse investors. The company's market capitalization is
$1.46B, and its shares are primarily owned by institutions at 97.53%. Allscripts' cash flow situation is concerning, with a negative cash flow from operating activities at $-75.4M. However, it holds a significant amount of cash and equivalents at $500.16M. Comparing the two, So Young International may offer a lower risk profile given Allscripts' high PEG ratio and bankruptcy probability. However, investors should consider other factors such as future growth prospects and industry trends before making a decision. .
Possible September bounce back of Allscripts?
Allscripts Healthcare Solutions (NASDAQ: MDRX) recently experienced a maximum drawdown of 8.73%, which has raised concerns among investors. However, historical trends and market dynamics suggest the potential for a recovery in September. The company's consistent focus on product innovation, along with strategic partnerships, could drive growth and counterbalance recent losses. Investors are advised to monitor Allscripts closely, as it may present an appealing buying opportunity if it rebounds as expected. Currently, Allscripts Healthcare Solutions exhibits a below-average downside deviation. It has an Information Ratio of 0.03 and a Jensen Alpha of 0.04. We recommend that investors further scrutinize Allscripts Healthcare Solutions' expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding different
market volatility trends often assists investors in timing the market. Correct use of volatility indicators allows traders to gauge Allscripts Healthcare's stock risk against market volatility during both bullish and bearish trends.
The increased level of volatility that accompanies bear markets can directly affect
Allscripts Healthcare's stock price, adding stress to investors as they watch the value of their shares plummet. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, Allscripts Healthcare Solutions (MDRX) stock has been on a slow upward trajectory, and the data suggests this trend may continue. The naive expected forecast value is
13.19, while the valuation real value is a significantly higher
16.34. This indicates a potential for growth, further supported by the analyst overall consensus which is a 'Buy'. The analyst target price estimated value is an impressive 19.687, with the highest estimated target price reaching as high as 26. However, investors should also consider the possible downside price of 11.54. With 5 strong buys and 4 holds among the 8 analyst estimates, it seems the market is leaning towards a positive outlook for Allscripts. As always, investors should conduct their own research and consider their risk tolerance before making investment decisions. .
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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