Privia Health Group, Inc. (NASDAQ: PRVA)

Sector: Healthcare Industry: Health Information Services CIK: 0001759655
Market Cap 2.79 Bn
P/B 3.94
P/E 153.67
P/S 1.37
ROIC (Qtr) 2.01
Div Yield % 0.00
Rev 1y % (Qtr) 32.54
Total Debt (Qtr) 6.24 Mn
Debt/Equity (Qtr) 0.01

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 110.70M provides robust 17.75x coverage of total debt 6.24M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 441.35M provide 172.20x coverage of short-term debt 2.56M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 110.70M provides exceptional 17.46x coverage of minority interest expenses 6.34M, showing strong core operations.
  • Strong tangible asset base of 1.01B provides 162.19x coverage of total debt 6.24M, indicating robust asset backing and low credit risk.
  • Cash position of 441.35M provides exceptional 69.60x coverage of minority interest expenses 6.34M, indicating strong liquidity.

Bear case

  • Operating cash flow of 110.70M barely covers its investment activities of (96.52M), with a coverage ratio of -1.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 441.35M provide limited coverage of acquisition spending of (95.31M), which is -4.63x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 110.70M shows concerning coverage of stock compensation expenses of 70.89M, with a 1.56 ratio indicating potential earnings quality issues.
  • R&D investment of 0 represents just 0x of SG&A expenses of 170.46M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Other current assets of 30.53M provide weak coverage of payables of 84.67M, which is 0.36x, suggesting potential working capital stress in near term.

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.78 2.77
EV to Cash from Ops. EV/CFO 21.75 -10.86
EV to Debt EV to Debt 386.24 161.93
EV to EBIT EV/EBIT 74.68 -106.48
EV to EBITDA EV/EBITDA 64.58 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 21.75 7.46
EV to Market Cap EV to Market Cap 0.86 -14.93
EV to Revenue EV/Rev 1.18 1.76
Price to Book Value [P/B] P/B 3.94 10.57
Price to Earnings [P/E] P/E 153.67 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) 0.00 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.59 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 41.66 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 83.12 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 40.58 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 40.58 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 25.00 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 12.29 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 23.71 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.51 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.76 1.87
Current Ratio Curr Ratio (Qtr) 1.67 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 -584.72
Times Interest Earned Times Interest Earned (Qtr) 0.00 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.00 -435.80
EBIT Margin % EBIT Margin % (Qtr) 1.58 -464.70
EBT Margin % EBT Margin % (Qtr) 1.58 -461.74
Gross Margin % Gross Margin % (Qtr) 10.20 44.03
Net Profit Margin % Net Margin % (Qtr) 0.90 -468.01