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Amn Healthcare Services Inc (AMN)
NYSE:AMN
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AMN Healthcare Services
(NYSE:AMN)
Rating:48Neutral
Price Target:
$18.50
▼(-0.91% Downside)
Positive Factors
Debt Management
AMN announced the sale of its scheduling software for a total purchase price of $75M, which will be used to reduce debt.
Operational Efficiency
Despite a tough demand environment, AMN’s margin performance has been consistently impressive; adjusted EBITDA margins were ahead of guidance in the second quarter, and third-quarter margin guidance was ahead of consensus despite the revenue shortfall.
Strategic Partnerships
AMN entered into a commercial partnership with symplr, which may provide strategic business advantages.
Negative Factors
Federal Policy Impact
Federal policy uncertainty clearly had a negative impact on client behavior across several of AMN’s service lines, especially concentrated in the academic medical center client base.
Market Demand
Weaker demand and order trends in the quarter led to 3Q guidance below consensus.
Revenue Decline
Total revenue down 11% y/y and 5% q/q, with Nurse & Allied revenue off 14% y/y mainly on lower volume.
AMN Healthcare Services (AMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$715.51M
Dividend YieldN/A
Average Volume (3M)853.15K
Price to Earnings (P/E)18.6
Beta (1Y)0.30
Revenue Growth-14.33%
EPS Growth-398.68%
CountryUS
Employees2,968
SectorHealthcare
Sector Strength43
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.30
Shares Outstanding38,324,257
10 Day Avg. Volume1,264,815
30 Day Avg. Volume853,155
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.36
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda-10.71
Forecast
1Y Price Target
$20.25Price Target Upside8.46% Upside
Rating ConsensusHold
Number of Analyst Covering9
AMN Healthcare Services Business Overview & Revenue Model
Company DescriptionAMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to hospitals and healthcare facilities in the United States. It operates through three segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The Nurse and Allied Solutions segment offers travel nurse staffing, rapid response nurse staffing and labor disruption, allied staffing, local staffing, and revenue cycle solutions. The Physician and Leadership Solutions segment provides locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement solutions. The Technology and Workforce Solutions segment offers language services, vendor management systems, workforce optimization, telehealth, credentialing, and outsourced solutions. The company also provides allied health professionals, such as physical therapists, respiratory therapists, occupational therapists, medical and radiology technologists, lab technicians, speech pathologists, rehabilitation assistants, and pharmacists. It offers its services under the brands, including American Mobile, Nursefinders, NurseChoice, HealthSource Global Staffing, Onward Healthcare, O'Grady Peyton International, Med Travelers, Club Staffing, Staff Care, B.E. Smith, and Merritt Hawkins, as well as AMN Revenue Cycle Solutions and AMN Language Services. The company was founded in 1985 and is based in Dallas, Texas.
How the Company Makes MoneyAMN Healthcare generates revenue primarily through its staffing and workforce solutions services. The company earns money by charging healthcare facilities for the provision of temporary and permanent staffing services, typically on a per-hour or per-placement basis. Key revenue streams include travel nursing, locum tenens staffing, and other allied healthcare staffing solutions. Additionally, AMN offers workforce management solutions and technology services, which contribute to its earnings. Significant partnerships with hospitals, healthcare systems, and other organizations enhance its market presence and drive revenue growth, as these collaborations often lead to long-term contracts and stable income streams.
AMN Healthcare Services Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 10.34%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strong financial performance and strategic initiatives like AMN Passport and AI technology being key positives. However, challenges such as revenue decline, particularly in the Travel Nurse segment, and significant impairment charges highlight areas of concern. Strategic debt reduction and expected growth in international staffing provide some optimism.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Second quarter revenue of $658 million was at the upper end of guidance, with adjusted EBITDA of $58 million and a gross margin of 29.8% exceeding the high end of guidance.
Debt Reduction
The balance on the revolving line of credit was reduced to $70 million after repaying $80 million during the quarter.
Stabilization in Key Metrics
July saw improvements in key metrics across most businesses, with a rebound in traveler extension rates and stable orders in the Nurse and Allied segment.
Growth in Allied Schools Business
Expectations for double-digit volume growth in Q4, driven by strong bookings and innovative solutions like the Televate platform.
International Nurse Staffing Growth
Positioned for sequential growth in Q4, with outsized growth opportunities expected over the next 2-3 years.
Positive Client Reaction to AI-enabled Technology
AI-enabled event management technology has received positive client feedback, enabling scalability and more efficient client support.
AMN Passport Success
The AMN Passport app surpassed 300,000 registered users, enhancing efficiency and user engagement with 20% of Nurse and Allied placements assisted by Passport automation.
Smart Square Sale
Completed the sale of Smart Square scheduling software for $75 million, freeing up resources for other strategic initiatives.
Negative Updates
Decline in Revenue and Volume
Second quarter revenue was down 11% from the prior year and down 5% sequentially, primarily due to lower volume and labor disruption revenue.
Challenges in Travel Nurse Segment
Travel Nurse orders in June were 15% lower than March, with the segment's revenue decreasing by 25% from the prior year quarter.
Academic Medical Centers Impact
Significant reduction in spending by academic medical centers due to federal funding cuts, impacting about 20% of consolidated revenue.
Noncash Impairment Charges
Recorded a noncash goodwill impairment charge of $110 million and an intangible asset impairment charge of $18 million, resulting in a net loss of $116 million for the quarter.
Language Services Revenue Pressure
Revenue was up only 1% year-over-year due to competitive pricing pressure, despite a 6% increase in utilization.
Company Guidance
In the second quarter of 2025, AMN Healthcare reported revenue of $658 million, which was at the upper end of their guidance range. The adjusted EBITDA reached $58 million, and the gross margin exceeded expectations at 29.8%. The company reduced its revolving line of credit balance to $70 million by repaying $80 million during the quarter, with further debt reduction anticipated. The healthcare sector faced caution due to uncertainty around government policy impacts, affecting staffing orders and extensions, with Travel Nurse orders in June dropping 15% from March. Despite these challenges, July saw improvements, with a rebound in traveler extension rates and a 3% rise in Allied orders since March, driven by strength in outpatient therapy and rehabilitation. Language Services revenue grew by 1% year-over-year, while utilization increased 6%, albeit tempered by competitive pricing pressures. AMN expects its international nurse staffing business to resume growth in Q4, with further opportunities as Visa retrogression dates advance. The company is optimistic about its pipeline and aims to achieve historic highs in MSP revenue this year through higher same-client sales and additional locum opportunities.AMN Healthcare Services Financial Statement Overview
Summary
AMN Healthcare Services is facing financial challenges with declining revenues and profitability, as indicated by negative profit margins and operational losses. The company has a high debt-to-equity ratio, which presents financial risk, though strong operating cash flow provides some liquidity cushion.Income Statement
AMN Healthcare Services exhibits a declining revenue trend with a 23.7% decrease from 2022 to 2023 and a further decline in TTM. Gross profit margin has dropped from 32.7% in 2022 to 28.6% TTM, indicating reduced profitability. The net profit margin is negative in the TTM period, reflecting losses. EBIT and EBITDA margins have also turned negative, highlighting operational challenges.45
Neutral
Balance Sheet
The company has a relatively high debt-to-equity ratio of 1.45 TTM, signaling significant leverage. Return on equity is negative due to net losses, and equity ratio dropped to 29.9% TTM, indicating moderate financial health but with risk due to high liabilities.50
Neutral
Cash Flow
Cash flow from operations remains positive, with an operating cash flow to net income ratio of -2.01 TTM, indicating strong cash generation despite net losses. Free cash flow has grown slightly, but the free cash flow to net income ratio is also negative, reflecting operational challenges.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.77B | 2.98B | 3.79B | 5.24B | 3.98B | 2.39B |
| Gross Profit | 826.56M | 919.38M | 1.25B | 1.72B | 1.31B | 791.78M |
| EBITDA | -157.40M | 71.11M | 499.36M | 784.21M | 581.70M | 243.45M |
| Net Income | -297.84M | -146.98M | 210.68M | 444.05M | 327.39M | 70.67M |
Balance Sheet | ||||||
| Total Assets | 2.21B | 2.42B | 2.92B | 2.89B | 3.13B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 41.50M | 10.65M | 32.94M | 64.52M | 180.93M | 29.21M |
| Total Debt | 955.77M | 1.10B | 1.35B | 860.96M | 867.07M | 955.48M |
| Total Liabilities | 1.60B | 1.71B | 2.09B | 1.84B | 1.97B | 1.53B |
| Stockholders Equity | 607.60M | 706.62M | 831.26M | 1.04B | 1.16B | 819.68M |
Cash Flow | ||||||
| Free Cash Flow | 255.48M | 239.53M | 266.78M | 572.81M | 251.69M | 217.72M |
| Operating Cash Flow | 310.74M | 320.42M | 372.17M | 653.73M | 305.36M | 256.83M |
| Investing Cash Flow | -82.84M | -79.94M | -412.49M | -170.71M | -107.40M | -538.17M |
| Financing Cash Flow | -281.80M | -259.45M | 10.73M | -591.87M | -34.90M | 211.49M |
AMN Healthcare Services Technical Analysis
Neutral
18.67
Price Trends
20.18
Negative
20.57
Negative
23.86
Negative
Market Momentum
-0.74
Negative
48.63
Neutral
87.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMN, the sentiment is Neutral. The current price of 18.67 is above the 20-day moving average (MA) of 18.49, below the 50-day MA of 20.18, and below the 200-day MA of 23.86, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 87.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.47B | 57.23 | 3.50% | ― | 51.97% | -64.10% | |
65 Neutral | $1.07B | 107.92 | 2.28% | ― | 5.17% | -65.33% | |
51 Neutral | $7.44B | -0.20 | -46.00% | 2.26% | 22.80% | -2.27% | |
48 Neutral | $715.51M | 18.62 | -40.13% | ― | -14.33% | -398.68% | |
48 Neutral | $33.59M | ― | -951.52% | ― | -0.70% | -2.38% | |
47 Neutral | $1.50B | 95.74 | 42.49% | ― | 11.53% | ― | |
45 Neutral | $426.23M | ― | -1.96% | ― | -24.30% | -210.27% |
* Healthcare Sector Average
Performance Comparison
AMN
AMN Healthcare Services
18.67
-33.36
-64.12%
CCRN
Cross Country Healthcare
13.37
-1.26
-8.61%
HCSG
Healthcare Services
15.09
4.42
41.42%
MODV
ModivCare
2.34
-23.70
-91.01%
ASTH
Astrana Health
29.54
-18.69
-38.75%
AVAH
Aveanna Healthcare Holdings
7.20
2.23
44.87%
AMN Healthcare Services Corporate Events
Shareholder Meetings
AMN Healthcare Approves 2025 Equity Plan at Meeting
Neutral
May 5, 2025
On May 2, 2025, AMN Healthcare Services, Inc. held its Annual Meeting of Shareholders, where the shareholders approved the AMN Healthcare 2025 Equity Plan and several other proposals. The meeting also saw the election of directors and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Notably, a shareholder proposal titled ‘Special Shareholder Meeting Improvement’ was not approved.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.