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Amn Healthcare Services Inc (AMN)
NYSE:AMN
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AMN Healthcare Services
(NYSE:AMN)
52Neutral
Positive Factors
Financial Performance
AMN Healthcare Services reported revenue and adjusted EBITDA that exceeded analyst estimates and consensus, indicating strong financial performance.
Profitability
Management noted that staffing gross margins appear to be stabilizing across all of AMN's staffing businesses, suggesting a positive trend in profitability.
Negative Factors
International Revenue
International nurse revenue decreased significantly, with expectations of a similar decline in the following year, which could impact future income.
Revenue Guidance
1Q25 guidance indicates that N&A revenue is guided down 13% quarter-over-quarter at the midpoint, reflecting various factors including lower international revenue and seasonal roll off of winter orders.
AMN Healthcare Services (AMN) vs. S&P 500 (SPY)
Market Cap
$919.87M
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)18.6
Beta (1Y)0.02
Revenue Growth-21.26%
EPS Growth-172.28%
CountryUS
Employees2,968
SectorHealthcare
Sector Strength74
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-3.84
Shares Outstanding38,200,650
10 Day Avg. Volume1,138,788
30 Day Avg. Volume1,244,478
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.31
Price to Cash Flow (P/CF)3.20
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.00Price Target Upside34.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
AMN Healthcare Services Business Overview & Revenue Model
Company DescriptionAMN Healthcare Services (AMN) is a leading provider of healthcare workforce solutions and staffing services in the United States. The company operates across multiple sectors including nursing, physician, and allied healthcare staffing, as well as workforce management solutions. AMN offers a comprehensive range of services such as temporary and permanent placement of healthcare professionals, recruitment process outsourcing, and consulting services to healthcare facilities and organizations.
How the Company Makes MoneyAMN Healthcare Services primarily generates revenue through the provision of staffing and workforce solutions to the healthcare industry. The company's key revenue streams include temporary staffing, permanent placement services, and workforce management solutions. Temporary staffing services involve placing healthcare professionals, such as nurses and allied health professionals, on short-term assignments at various healthcare facilities. Permanent placement services involve recruiting healthcare professionals for full-time positions at client organizations. Additionally, AMN offers managed services programs and recruitment process outsourcing, which provide clients with comprehensive workforce management solutions. These services help healthcare facilities optimize their workforce operations, reduce costs, and improve patient care. Significant partnerships with hospitals, healthcare systems, and other healthcare organizations play a crucial role in driving AMN's earnings by expanding its client base and service offerings.
AMN Healthcare Services Financial Statement Overview
Summary
AMN Healthcare Services is facing significant profitability challenges, with negative earnings metrics. The balance sheet is moderately leveraged, but the decline in equity is concerning. Despite these issues, strong cash flow management is a positive aspect. Addressing revenue and profit challenges is essential for long-term stability.Income Statement
The TTM data shows significant challenges for AMN Healthcare Services with a negative Net Income and EBIT, leading to a negative Net Profit Margin and EBIT Margin. The revenue has declined substantially from the previous year, indicating potential market or operational challenges. The company needs to address its profitability issues to stabilize its financial health.35
Negative
Balance Sheet
The balance sheet displays a moderate debt-to-equity ratio, indicating a reasonable level of leverage. However, the company's equity has decreased over the year, which may pose risks if not managed well. Despite this, the equity ratio remains healthy, suggesting some stability in the company's asset management.60
Neutral
Cash Flow
AMN Healthcare Services shows strength in its cash flow, with a positive operating cash flow and free cash flow despite a decrease compared to the previous year. The free cash flow to net income ratio is less relevant due to negative net income, but the company has managed its cash effectively amidst declining profitability.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.22B | 2.98B | 3.79B | 5.24B | 3.98B | 2.39B | Gross Profit |
| 1.70B | 919.38M | 1.25B | 1.72B | 1.31B | 791.78M | EBIT |
| 665.89M | -102.67M | 338.43M | 647.10M | 478.00M | 149.26M | EBITDA |
| 784.58M | -102.67M | 499.36M | 784.21M | 581.70M | 243.45M | Net Income Common Stockholders |
| 460.05M | -146.98M | 210.68M | 444.05M | 327.39M | 70.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.65M | 10.65M | 32.94M | 64.52M | 180.93M | 29.21M | Total Assets |
| 2.42B | 2.42B | 2.92B | 2.89B | 3.13B | 2.35B | Total Debt |
| 845.87M | 845.87M | 1.35B | 860.96M | 867.07M | 955.48M | Net Debt |
| 835.22M | 835.22M | 1.32B | 796.43M | 686.14M | 926.27M | Total Liabilities |
| 1.71B | 1.71B | 2.09B | 1.84B | 1.97B | 1.53B | Stockholders Equity |
| 706.62M | 706.62M | 831.26M | 1.04B | 1.16B | 819.68M |
| Cash Flow | Free Cash Flow | ||||
| 457.03M | 239.53M | 266.78M | 572.81M | 251.69M | 217.72M | Operating Cash Flow |
| 519.41M | 320.42M | 372.17M | 653.73M | 305.36M | 256.83M | Investing Cash Flow |
| -169.56M | -79.94M | -412.49M | -170.71M | -107.40M | -538.17M | Financing Cash Flow |
| -415.88M | -259.45M | 10.73M | -591.87M | -34.90M | 211.49M |
AMN Healthcare Services Technical Analysis
Negative
24.49
Price Trends
25.86
Negative
26.99
Negative
38.58
Negative
Market Momentum
-0.35
Positive
44.77
Neutral
12.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMN, the sentiment is Negative. The current price of 24.49 is below the 20-day moving average (MA) of 25.46, below the 50-day MA of 25.86, and below the 200-day MA of 38.58, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 12.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMN.
AMN Healthcare Services Risk Analysis
AMN Healthcare Services disclosed 29 risk factors in its most recent earnings report. AMN Healthcare Services reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AMN Healthcare Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.88B | 25.66 | 58.41% | ― | 11.84% | 42.04% | |
72 Outperform | $7.34B | 82.51 | 4.66% | ― | 20.03% | 71.43% | |
62 Neutral | $12.03B | 14.00 | 159.08% | ― | 5.56% | 45.02% | |
57 Neutral | $492.19M | ― | -3.26% | ― | -33.46% | -121.07% | |
52 Neutral | $919.87M | 18.62 | -19.11% | ― | -21.26% | -172.28% | |
49 Neutral | $6.94B | 0.66 | -52.58% | 2.47% | 22.65% | 0.94% |
* Healthcare Sector Average
Performance Comparison
AMN
AMN Healthcare Services
24.49
-37.82
-60.70%
CCRN
Cross Country Healthcare
15.00
-3.32
-18.12%
DVA
DaVita
150.41
15.64
11.60%
HQY
Healthequity
90.32
10.94
13.78%
MEDP
Medpace Holdings
330.59
-71.68
-17.82%
AMN Healthcare Services Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -5.22% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Negative
The earnings call revealed both positive and negative aspects. While AMN Healthcare exceeded revenue expectations and demonstrated strong cash flow and technological advancements, they also faced significant challenges such as a decline in Nurse and Allied revenue, a drop in gross margin, and an impairment charge. The full-year revenue and EBITDA also decreased. Despite some achievements, the lowlights are notably significant.Highlights
Exceeded Revenue Expectations
Fourth quarter revenue of $735 million was $30 million above the high end of guidance, with adjusted EBITDA of $75 million also exceeding expectations.
Growth in Allied and Locum Tenens
Allied orders grew 7% year-over-year in the fourth quarter, with new orders up 20% year-over-year. Locum tenens demand rose 6% from Q3 to Q4.
Technology Innovations
Launched and scaled best-in-class technology solutions like ShiftWise Flex and Passport app, enhancing visibility, cost control, and efficiency.
Strong Cash Flow and Debt Reduction
Repayment of $75 million in revolver debt during the quarter, enabled by strong cash flow.
Lowlights
Decline in Nurse and Allied Revenue
Fourth quarter Nurse and Allied revenue was $455 million, down 15% from the prior year, primarily due to lower volume and rates.
Gross Margin Decline
Consolidated gross margin for the fourth quarter was 29.8%, down 210 basis points year-over-year, with lower margins across all segments.
International Business Headwinds
Retrogression in international nurse assignments contributed to a year-over-year revenue decline, with an expected $100 million revenue headwind between 2024 and 2025.
Significant Non-cash Impairment
A non-cash impairment charge of $222 million impacted goodwill in the Nurse and Allied and Physician and Leadership Solutions segments.
Lower Full-Year Revenue and EBITDA
Full-year 2024 revenue of $3 billion, a decrease of 21% year-over-year. Adjusted EBITDA was $341 million, down 41% from the prior year.
Company Guidance
During AMN Healthcare's fourth quarter 2024 earnings call, guidance highlighted several key metrics. Fourth quarter revenue was reported at $735 million, surpassing the high end of the guidance range by $30 million, while adjusted EBITDA reached $75 million, exceeding expectations. The Nurse and Allied Solutions segment saw a 6% revenue increase above guidance, with a 1% beat excluding labor disruption revenue. Physician and Leadership Solutions met revenue targets, bolstered by strong physician permanent placement performance. Technology and Workforce Solutions revenue surpassed guidance by 4% due to improved language services volume. Despite a 10% year-over-year revenue decline, the company repaid $75 million in revolver debt, driven by robust cash flow. For the first quarter of 2025, AMN projected consolidated revenue between $660 million and $680 million, accounting for $24 million in labor disruption revenue, and anticipated a gross margin of 28.1% to 28.6%. Adjusted EBITDA margin was expected to range from 7.7% to 8.2%.AMN Healthcare Services Corporate Events
Executive/Board Changes
AMN Healthcare Announces New Chairman Appointment
Neutral
Feb 7, 2025
On February 4, 2025, Douglas D. Wheat, the Chairman of the Board of Directors of AMN Healthcare Services, Inc., announced his immediate retirement. Following his retirement, Mr. Wheat was named Chairman Emeritus, and Mark G. Foletta was appointed as the new Chairman of the Board. The decision was not due to any disagreement with the company’s operations, policies, or practices.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.