R1 RCM Inc.
R1 RCM Inc. Fundamental Analysis
R1 RCM Inc. (RCM) shows weak financial fundamentals with a PE ratio of 1815.15, profit margin of 0.15%, and ROE of 0.12%. The company generates $2.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RCM's fundamental strength across five key dimensions:
Efficiency Score
WeakRCM struggles to generate sufficient returns from assets.
Valuation Score
ModerateRCM shows balanced valuation metrics.
Growth Score
WeakRCM faces weak or negative growth trends.
Financial Health Score
ExcellentRCM maintains a strong and stable balance sheet.
Profitability Score
WeakRCM struggles to sustain strong margins.
Key Financial Metrics
Is RCM Expensive or Cheap?
P/E Ratio
RCM trades at 1815.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RCM's PEG of -31.44 indicates potential undervaluation.
Price to Book
The market values R1 RCM Inc. at 2.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.51 times EBITDA. This signals the market has high growth expectations.
How Well Does RCM Make Money?
Net Profit Margin
For every $100 in sales, R1 RCM Inc. keeps $0.15 as profit after all expenses.
Operating Margin
Core operations generate 6.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.12 in profit for every $100 of shareholder equity.
ROA
R1 RCM Inc. generates $0.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
R1 RCM Inc. produces operating cash flow of $343.19M, showing steady but balanced cash generation.
Free Cash Flow
R1 RCM Inc. generates strong free cash flow of $239.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
RCM converts 3.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1815.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-31.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.001
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How RCM Stacks Against Its Sector Peers
| Metric | RCM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1815.15 | 28.25 | Worse (Expensive) |
| ROE | 0.12% | 780.00% | Weak |
| Net Margin | 0.15% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.83 | 4.66 | Neutral |
| ROA | 0.07% | -14687.00% (disorted) | Weak |
RCM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews R1 RCM Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation