Concentra Group Holdings Parent, Inc. (NYSE: CON)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0002014596
Market Cap 2.60 Bn
P/B 6.74
P/E 16.97
P/S 1.24
ROIC (Qtr) 9.63
Div Yield % 1.26
Rev 1y % (Qtr) 16.98
Total Debt (Qtr) 2.14 Bn
Debt/Equity (Qtr) 5.55

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 254.42M provides exceptional 40.93x coverage of minority interest expenses 6.22M, showing strong core operations.
  • Operating cash flow of 254.42M provides strong 29.21x coverage of stock compensation 8.71M, indicating sustainable incentive practices.
  • Robust free cash flow of 176.31M exceeds capital expenditure of 78.11M by 2.26x, indicating strong organic growth funding capability.
  • Operating cash flow of 254.42M provides solid 0.81x coverage of current liabilities 312.65M, showing strong operational health.
  • Operating cash flow of 254.42M fully covers other non-current liabilities 78.81M by 3.23x, showing strong long-term stability.

Bear case

  • Operating cash flow of 254.42M barely covers its investment activities of (411.41M), with a coverage ratio of -0.62, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 254.42M provides thin coverage of dividend payments of (31.99M) with a -7.95 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 49.94M provide limited coverage of acquisition spending of (333.30M), which is -0.15x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 254.42M is outpaced by equity issuance of (15.40M) (-16.52 ratio), indicating concerning reliance on equity markets for funding operations.
  • High financing cash flow of 70.11M relative to working capital of 62.79M, which is 1.12x suggests concerning dependence on external funding for operational needs.

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 1.65 1.26
EV to Cash from Ops. EV/CFO 18.43 12.78
EV to Debt EV to Debt 2.19 12.10
EV to EBIT EV/EBIT 14.83 10.74
EV to EBITDA EV/EBITDA 11.89 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 26.60 18.02
EV to Market Cap EV to Market Cap 1.81 432.64
EV to Revenue EV/Rev 2.24 2.77
Price to Book Value [P/B] P/B 6.70 -1.92
Price to Earnings [P/E] P/E 16.86 5.13
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.79 0.10
Dividend Payout Ratio % Div Payout % (Qtr) 21.50 -13.44
Dividend per Basic Share Div per Share (Qtr) 0.25 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 18.24 5.42
Interest Coverage Int. cover (Qtr) 2.91 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -9.65 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -63.50 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.76 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.08 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) 10.52 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) -10.74 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) -27.33 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) -5.16 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.48 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.73 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.10 0.04
Cash Ratio Cash Ratio (Qtr) 0.16 0.39
Current Ratio Curr Ratio (Qtr) 1.20 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 5.55 -13.19
Interest Cover Ratio Int Coverage (Qtr) 2.91 -97.94
Times Interest Earned Times Interest Earned (Qtr) 2.91 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.50 -95.81
EBIT Margin % EBIT Margin % (Qtr) 15.14 -94.97
EBT Margin % EBT Margin % (Qtr) 9.93 -105.60
Gross Margin % Gross Margin % (Qtr) 28.40 23.31
Net Profit Margin % Net Margin % (Qtr) 7.30 -106.14