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Amn Healthcare Services Inc (AMN)
NYSE:AMN
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AMN Healthcare Services
(NYSE:AMN)
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Rating:54Neutral
Price Target:
$20.00
▲(5.99% Upside)
AMN Healthcare Services is currently facing financial headwinds with declining revenue and profitability. Despite these challenges, the company has shown some positive signs, such as exceeding earnings expectations and reducing debt. Technical indicators suggest potential for recovery, but valuation remains unattractive due to recent losses. Overall, the stock score reflects a cautious outlook with some optimism for improvement.
Positive Factors
Debt Reduction
Debt reduction enhances financial flexibility and reduces interest expenses, supporting long-term financial health and investment capacity.
Technology Adoption
The success of the AMN Passport app indicates strong adoption of digital solutions, enhancing operational efficiency and customer satisfaction.
AI Technology
Positive reception of AI technology suggests improved service delivery and scalability, potentially attracting more clients and boosting revenue.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in maintaining market share and demand, which could impact long-term growth and profitability.
Travel Nurse Segment Challenges
Weakness in the Travel Nurse segment suggests potential structural issues, affecting a key revenue stream and overall business performance.
Impairment Charges
Significant impairment charges reflect reduced asset value, impacting financial statements and indicating potential overvaluation of past investments.
AMN Healthcare Services (AMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$723.18M
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)18.6
Beta (1Y)0.26
Revenue Growth-14.33%
EPS Growth-398.68%
CountryUS
Employees2,968
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.30
Shares Outstanding38,324,257
10 Day Avg. Volume1,170,453
30 Day Avg. Volume1,068,368
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 Cap2.33
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda-10.71
Forecast
1Y Price Target
$20.17Price Target Upside6.89% Upside
Rating ConsensusHold
Number of Analyst Covering8
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: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive achievements, such as exceeding revenue and EBITDA expectations, reducing debt, and the success of the AMN Passport app and AI technology. However, these positives were countered by significant challenges, including year-over-year revenue declines, issues in the Travel Nurse segment, impairment charges, and competitive pricing pressures. The improvement in key metrics in July provides some optimism for the future.Q2-2025 Updates
Positive Updates
Revenue and EBITDA Exceed Expectations
Second quarter revenue of $658 million was at the upper end of guidance. Adjusted EBITDA of $58 million and gross margin of 29.8% exceeded the high end of guidance.
Debt Reduction Achieved
The company repaid $80 million during the quarter, reducing the revolving line of credit balance down to $70 million, with expectations for further debt reduction.
AMN Passport Success
The AMN Passport app surpassed 300,000 registered users, significantly improving efficiency and user engagement. More than 20% of Nurse and Allied placements are now assisted by Passport automation.
Positive Client Reaction to AI-Enabled Technology
AMN's AI-enabled event management technology received positive client feedback, improving the ability to scale and support more clients.
Improved Booking Trends in July
Key metrics across most businesses improved in July, with a rebound in traveler extension rates and increased orders in the Allied segment.
Negative Updates
Revenue Decline Year-Over-Year
Revenue was down 11% from the prior year and 5% sequentially, primarily driven by lower volume.
Challenges in Travel Nurse Segment
Travel Nurse orders in June were 15% lower than in March, with a decrease of 25% in revenue from the prior year period.
Goodwill and Intangible Asset Impairment
A noncash goodwill impairment charge of $110 million was recorded in the Physician and Leadership Solutions segment, along with a noncash intangible asset impairment charge of $18 million in the Nurse and Allied segment.
Physician and Leadership Solutions Revenue Decline
Segment revenue was down 6% year-over-year, driven by lower volume across search and interim leadership businesses.
Impact of Competitive Pricing Pressure
Language Services revenue increased only 1% year-over-year due to significant competitive pricing pressure, despite a 6% increase in utilization.
Company Guidance
During the second quarter of 2025, AMN Healthcare reported revenue of $658 million, which was at the upper end of its guidance range. The company achieved an adjusted EBITDA of $58 million and a gross margin of 29.8%, both exceeding the high end of its guidance. Despite a challenging healthcare sector marked by a 15% decline in Travel Nurse orders from March to June and a dip in the rebook retention rate for travelers, AMN saw a rebound in key metrics in July. The company noted a sharp recovery in traveler extension rates, highlighting the ongoing demand for flexible staffing. Volume in locum tenens was 5% higher than in Q2, and Allied orders increased by 3% from March to July, driven by outpatient therapy, rehabilitation, and imaging. AMN’s Technology and Workforce Solutions segment saw Language Services revenue grow by 1% year-over-year, with utilization up by 6%. The company also highlighted its strategic initiatives, such as the sale of its Smart Square scheduling software and the expansion of its AMN Passport app, which recently surpassed 300,000 registered users. Looking forward, AMN expects further debt reduction and is poised for sequential growth in its international nurse staffing business by Q4, with further growth anticipated into 2026.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.55
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
18.87
Price Trends
19.15
Negative
20.25
Negative
22.20
Negative
Market Momentum
-0.32
Positive
47.75
Neutral
31.06
Neutral
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 18.87 is below the 20-day moving average (MA) of 19.36, below the 50-day MA of 19.15, and below the 200-day MA of 22.20, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 31.06 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | 1.18B | 115.62 | 2.27% | ― | 5.17% | -65.33% | |
68 Neutral | 1.48B | 57.50 | 3.90% | ― | 51.97% | -64.10% | |
59 Neutral | 1.83B | 116.36 | -154.73% | ― | 11.53% | ― | |
54 Neutral | $723.18M | 18.62 | -40.13% | ― | -14.33% | -398.68% | |
52 Neutral | 466.20M | -54.96 | -2.02% | ― | -24.30% | -210.27% | |
40 Underperform | 2.56M | -0.01 | 523.15% | ― | -0.70% | -2.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
AMN
AMN Healthcare Services
18.87
-23.52
-55.48%
CCRN
Cross Country Healthcare
14.23
0.79
5.88%
HCSG
Healthcare Services
16.36
5.19
46.46%
MODVQ
ModivCare
0.18
-14.10
-98.74%
ASTH
Astrana Health
29.68
-28.26
-48.77%
AVAH
Aveanna Healthcare Holdings
8.75
3.55
68.27%
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.