Amn Healthcare Services Inc (NYSE: AMN)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001142750
Market Cap 612.69 Mn
P/B 0.95
P/E -2.22
P/S 0.23
ROIC (Qtr) -13.61
Div Yield % 0.00
Rev 1y % (Qtr) -7.71
Total Debt (Qtr) 846.76 Mn
Debt/Equity (Qtr) 1.31

About

AMN Healthcare Services Inc., known by its ticker symbol AMN, is a prominent name in the healthcare industry of the United States. The company is renowned for its extensive range of services and solutions that empower the future of care by providing the nation's broadest network of highly qualified healthcare professionals. AMN Healthcare's primary business activities revolve around providing staffing, talent optimization strategies, and technology solutions to support caregivers and patient care. Its comprehensive suite of talent solutions includes...

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Price action

Investment thesis

Bull case

  • Robust free cash flow of 222.80M exceeds capital expenditure of 43.90M by 5.07x, indicating strong organic growth funding capability.
  • Operating cash flow of 266.70M fully covers other non-current liabilities 105.62M by 2.53x, showing strong long-term stability.
  • Retained earnings of 1.22B provide full 1.44x coverage of long-term debt 846.76M, indicating strong internal capital position.
  • Robust tangible asset base of 1.08B provides 38.39x coverage of working capital 28.16M, indicating strong operational backing.
  • Strong free cash flow of 222.80M provides 3.41x coverage of acquisition spending 65.32M, indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of 266.70M barely covers its investment activities of (1.85M), with a coverage ratio of -144.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 97M provide limited coverage of acquisition spending of 65.32M, which is 1.48x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of (266.14M) show weak coverage of depreciation charges of 160.18M, with a -1.66 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 266.70M provides minimal -5.67x coverage of tax expenses of (47.03M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 222.80M represents just -0.78x of debt issuance (286.92M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Medical Care Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HCA HCA Healthcare, Inc. 114.88 Bn 18.11 1.54 46.35 Bn
2 THC Tenet Healthcare Corp 18.07 Bn 13.34 0.87 13.19 Bn
3 UHS Universal Health Services Inc 14.64 Bn 10.65 0.86 5.11 Bn
4 FMS Fresenius Medical Care AG 14.10 Bn 16.69 0.61 14.98 Bn
5 EHC Encompass Health Corp 12.55 Bn 19.95 2.17 2.66 Bn
6 ENSG Ensign Group, Inc 10.08 Bn 30.72 2.09 2.16 Bn
7 DVA Davita Inc. 8.90 Bn 11.53 0.67 12.78 Bn
8 CHE Chemed Corp 6.38 Bn 22.87 2.52 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.67 1.26
EV to Cash from Ops. EV/CFO 5.41 12.78
EV to Debt EV to Debt 1.70 12.10
EV to EBIT EV/EBIT -5.42 10.74
EV to EBITDA EV/EBITDA -13.62 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 6.48 18.02
EV to Market Cap EV to Market Cap 2.36 432.64
EV to Revenue EV/Rev 0.53 2.77
Price to Book Value [P/B] P/B 0.95 -1.92
Price to Earnings [P/E] P/E -2.22 5.13
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.10
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -13.44
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 5.42
Interest Coverage Int. cover (Qtr) -4.72 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 53.56 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.57 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -314.53 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -134.29 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) -298.54 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) -580.75 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) -603.50 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) 99.02 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -17.00 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.27 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.18 0.39
Current Ratio Curr Ratio (Qtr) 1.05 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 1.31 -13.19
Interest Cover Ratio Int Coverage (Qtr) -4.72 -97.94
Times Interest Earned Times Interest Earned (Qtr) -4.72 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3.90 -95.81
EBIT Margin % EBIT Margin % (Qtr) -9.80 -94.97
EBT Margin % EBT Margin % (Qtr) -11.87 -105.60
Gross Margin % Gross Margin % (Qtr) 29.40 23.31
Net Profit Margin % Net Margin % (Qtr) -10.10 -106.14