As we delve into the healthcare sector, specifically health information services, Allscripts Healthcare (USA Stocks:MDRX) and So Young (USA Stocks:SY) have recently seen significant gains. However, with Allscripts' negative free cash flow of $154M and a decrease in cash of $
347M, it raises the question of whether it's time to capitalize on this momentum and take profits. Despite a quarterly earnings growth loss of 1.8%, Allscripts has shown a quarterly revenue growth of 5%. The company's profit margin stands at 3.97%, with a return on equity of 8.93%. Analysts' consensus holds a 'Hold' rating, with an estimated target price of $19.214, though the range varies from a low of $13 to a high of $26. The valuation real value is currently pegged at $16.28, slightly above the naive expected forecast value of $12.75. With an EPS estimate of $0.82 for the current year, and a slightly higher $0.87 for the next year, it's crucial to consider whether the current momentum is sustainable in the long run. The stock of So Young appears to be heading for a correction much sooner, as its share price has risen by 2.70% today, compared to the 0.95% increase of Allscripts Healthcare Solutions. While some millennials may be indifferent towards the healthcare technology sector, we will analyze the strength of Allscripts Healthcare's fundamentals in comparison to So Young. We will also assess 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 |
Allscripts Healthcare Solutions (USA Stocks:MDRX), a key player in the Health Information Services industry, has been on a winning streak in the stock market, but it may be time for investors to consider taking profits.
The company's current ratio stands at a healthy 3.23X, indicating a strong ability to cover short-term liabilities. However, the company's cash flow has seen a significant decrease, from a beginning period cash flow of
537.5M to an end period cash flow of 190.5M. The company's net income stands at 133.9M, with a profit margin of 0.0397%, indicating a relatively low profitability. The company's earnings per share (EPS) estimate for the current year is 0.82, while the EPS estimate for the next year is slightly higher at 0.87. Despite these positive figures, the company's total cash from operating activities is in the red, with losses of 75.4M. The company's total debt stands at 434.5M, which is manageable given its net assets of
2.43B. In conclusion, while Allscripts Healthcare Solutions has shown some positive momentum recently, the decrease in cash flow and negative operating activities suggest that it may be time for investors to take profits. As always, investors should consider their own risk tolerance and investment objectives before making any trading decisions. .
Allscripts may start a turnaround in October
Allscripts Healthcare Solutions' stock has shown promising signs of a potential turnaround this October. The kurtosis, a statistical measure that describes the distribution of returns, has decreased to 3.4. This reduction may suggest a possible decline in volatility, indicating a more stable and less risky investment environment. Consequently, investors could potentially benefit from a more predictable trading pattern, which could signal a positive shift in Allscripts' market performance. Allscripts Healthcare Solutions has relatively low volatility with a skewness of 0.89 and kurtosis of 3.4. However, we advise all investors to independently investigate Allscripts Healthcare Solutions to ensure that all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends can often help investors time the market. The proper use of volatility indicators allows traders to measure the risk of Allscripts Healthcare's stock against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Allscripts Healthcare's stock price, adding stress to investors as they watch the value of their shares plummet. This typically forces investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, Allscripts Healthcare Solutions (MDRX) continues to show a steady upward trend despite the overall market's modest decline. The company's real value is currently estimated at
16.28, which is significantly higher than both its market value and hype value of 12.7. The analysts' consensus holds the stock, with an estimated target price value of 19.214, suggesting a potential upside. However, it's important to note the possible downside price of 11.03. The analyst's highest estimated target price reaches up to
26, indicating a promising future for the stock. With the fiscal year-end in December, investors should keep a close eye on this stock's performance. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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