Cross Country Healthcare Inc (NASDAQ: CCRN)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001141103
Market Cap 256.57 Mn
P/B 0.63
P/E -16.37
P/S 0.23
ROIC (Qtr) -3.33
Div Yield % 0.00
Rev 1y % (Qtr) -20.65
Total Debt (Qtr) 2.20 Mn
Debt/Equity (Qtr) 0.01

About

Cross Country Healthcare Inc, also known as CCRN, operates in the healthcare staffing industry. This market-leading company has been providing traditional staffing, recruiting, and value-added total talent solutions for 37 years. With a strong focus on technology, Cross Country Healthcare Inc aims to help customers tackle complex labor-related challenges and achieve high-quality outcomes through data-driven insights. The company's operations span across the United States, serving a diverse range of healthcare providers, including public and private...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 54.25M provides robust 24.61x coverage of total debt 2.20M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 99.13M provide 117.18x coverage of short-term debt 846000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 367.65M provides 166.81x coverage of total debt 2.20M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 54.25M provides exceptional 24.05x coverage of interest expenses 2.26M, showing strong debt service capability.
  • Operating cash flow of 54.25M provides strong 11.66x coverage of stock compensation 4.65M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 54.25M barely covers its investment activities of (8.57M), with a coverage ratio of -6.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 54.25M provides minimal -107.84x coverage of tax expenses of (503000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (13.92M) show weak coverage of depreciation charges of 18.31M, with a -0.76 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 206.14M provide limited buffer against comprehensive income items of (1.53M), which is -135.08x, indicating elevated exposure to market risks.
  • Operating cash flow of 54.25M is outpaced by equity issuance of (4.39M) (-12.35 ratio), indicating concerning reliance on equity markets for funding operations.

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 0.33 1.26
EV to Cash from Ops. EV/CFO 3.25 12.78
EV to Debt EV to Debt 80.10 12.10
EV to EBIT EV/EBIT -12.68 10.74
EV to EBITDA EV/EBITDA 85.41 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 3.87 18.02
EV to Market Cap EV to Market Cap 0.69 432.64
EV to Revenue EV/Rev 0.16 2.77
Price to Book Value [P/B] P/B 0.62 -1.92
Price to Earnings [P/E] P/E -16.27 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) -6.17 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.33 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 54.84 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -39.83 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -89.31 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) -625.20 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) -3,435.88 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) -1,125.00 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) -53.82 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.83 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.09 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 1.16 0.39
Current Ratio Curr Ratio (Qtr) 3.45 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -13.19
Interest Cover Ratio Int Coverage (Qtr) -6.17 -97.94
Times Interest Earned Times Interest Earned (Qtr) -6.17 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.40 -95.81
EBIT Margin % EBIT Margin % (Qtr) -1.23 -94.97
EBT Margin % EBT Margin % (Qtr) -1.43 -105.60
Gross Margin % Gross Margin % (Qtr) 20.20 23.31
Net Profit Margin % Net Margin % (Qtr) -1.40 -106.14