Performant Healthcare, Inc.
Performant Healthcare, Inc. Fundamental Analysis
Performant Healthcare, Inc. (PHLT) shows weak financial fundamentals with a PE ratio of 406.29, profit margin of 1.42%, and ROE of 1.90%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 8.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PHLT's fundamental strength across five key dimensions:
Efficiency Score
WeakPHLT struggles to generate sufficient returns from assets.
Valuation Score
WeakPHLT trades at a premium to fair value.
Growth Score
ModeratePHLT shows steady but slowing expansion.
Financial Health Score
ExcellentPHLT maintains a strong and stable balance sheet.
Profitability Score
ModeratePHLT maintains healthy but balanced margins.
Key Financial Metrics
Is PHLT Expensive or Cheap?
P/E Ratio
PHLT trades at 406.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PHLT's PEG of 4.54 indicates potential overvaluation.
Price to Book
The market values Performant Healthcare, Inc. at 7.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 87.85 times EBITDA. This signals the market has high growth expectations.
How Well Does PHLT Make Money?
Net Profit Margin
For every $100 in sales, Performant Healthcare, Inc. keeps $1.42 as profit after all expenses.
Operating Margin
Core operations generate 1.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.90 in profit for every $100 of shareholder equity.
ROA
Performant Healthcare, Inc. generates $1.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Performant Healthcare, Inc. generates limited operating cash flow of $6.14M, signaling weaker underlying cash strength.
Free Cash Flow
Performant Healthcare, Inc. generates weak or negative free cash flow of $2.11M, restricting financial flexibility.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
PHLT converts 0.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
406.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How PHLT Stacks Against Its Sector Peers
| Metric | PHLT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 406.29 | 33.94 | Worse (Expensive) |
| ROE | 1.90% | 1002.00% | Weak |
| Net Margin | 1.42% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 2.64 | 5.74 | Strong Liquidity |
| ROA | 1.35% | -288341.00% (disorted) | Weak |
PHLT outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Performant Healthcare, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-43.60%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
74.55%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
127.64%
Industry Style: Growth, Innovation, High Beta
High Growth