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AMN Healthcare (AMN)
:AMN
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AMN Healthcare Services
(NYSE:AMN)
Rating:42Neutral
Price Target:
$18.00
▼(-12.28%Downside)
Positive Factors
Debt Reduction
AMN announced the sale of its scheduling software for a total purchase price of $75M, which will be used to reduce debt.
Financial Performance
Analyst notes a margin-driven beat to consensus for AMN.
Strategic Partnerships
AMN entered into a commercial partnership with symplr, which may provide strategic business advantages.
Negative Factors
Revenue Guidance
Guidance indicates a decrease in revenue due to lower international revenue and seasonal roll off of winter orders.
Unfilled Orders
Unfilled orders remain high due to still uncompetitive rates, which are too low to attract candidates.
AMN Healthcare Services (AMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$785.60M
Dividend YieldN/A
Average Volume (3M)656.94K
Price to Earnings (P/E)18.6
Beta (1Y)0.34
Revenue Growth-18.13%
EPS Growth-215.78%
CountryUS
Employees2,968
SectorHealthcare
Sector Strength40
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.45
Shares Outstanding38,284,570
10 Day Avg. Volume752,058
30 Day Avg. Volume656,940
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.08
Price to Sales (P/S)0.00
P/FCF Ratio2.98
Enterprise Value/Market Cap2.22
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit2.13
Enterprise Value/Ebitda2.63
Forecast
1Y Price Target
$24.63Price Target Upside20.03% Upside
Rating ConsensusHold
Number of Analyst Covering7
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 Services generates revenue primarily through its staffing and workforce solutions offerings. The company's key revenue streams include placing healthcare professionals such as nurses, physicians, and allied health professionals into temporary, permanent, and travel assignments at hospitals, clinics, and other healthcare facilities. AMN earns fees based on the duration and type of placement, with travel and locum tenens assignments typically commanding premium rates. Additionally, AMN's managed services programs and workforce solutions, which provide strategic workforce planning and management to healthcare institutions, contribute significantly to its earnings. The company also benefits from partnerships with healthcare providers and institutions, which help to expand its network and enhance service offerings, thereby driving revenue growth.
AMN Healthcare Services Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 0.93%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative aspects. While AMN Healthcare exceeded revenue and profit margin guidance, experienced strong performance in certain segments, and received industry recognition, the company also faced challenges such as a year-over-year revenue decline, pressure on Language Services margins, and a net loss for the quarter.Q1-2025 Updates
Positive Updates
Revenue and Profit Margin Exceed Guidance
AMN Healthcare reported first-quarter revenue of $690 million, which topped the high end of guidance by $10 million. The consolidated gross margin was 28.7%, slightly above the high end of the guidance range.
Strong Performance in Labor Disruption and Locum Tenens
The company recorded $39 million in revenue from two labor disruption events in the first quarter. Bookings for locum tenens picked up significantly, with expected sequential revenue growth in the upcoming quarter.
Robust Cash Flow and Debt Reduction
AMN Healthcare generated $93 million in operating cash flow in the first quarter, reducing the revolving credit balance by $60 million and adding $45 million of cash to the balance sheet.
Recognition for Innovation
AMN received industry recognition in the Modern Healthcare 2025 Innovators Award for its Workwise and AMN Passport technologies.
Negative Updates
Year-over-Year Revenue Decline
First-quarter revenue was down 16% from the prior year and down 6% sequentially.
Decline in Nurse and Allied Revenue
First-quarter Nurse and Allied revenue was $413 million, down 20% from the prior year due to lower volume and rates.
Language Services Margin Pressure
Gross margin for Language Services was affected by increased competition and industry consolidation, leading to lower margin performance.
Net Loss and Adjusted Earnings Decline
The company reported a net loss of $1 million for the first quarter. Adjusted earnings per share for the quarter was $0.45 compared with $0.97 in the prior year period.
Company Guidance
During the AMN Healthcare First Quarter 2025 Earnings Call, the company reported revenue of $690 million, exceeding the high end of guidance by $10 million, driven by strength in their labor disruption, Locum Tenens, and Allied businesses. The company achieved an adjusted EBITDA of $64 million and demonstrated robust cash flow, reducing its revolving credit balance by $60 million. For the second quarter, AMN anticipates revenue between $645 million to $660 million, with a projected gross margin of 28.5% to 29%. The company expects continued strong performance in labor disruption activities and sees sequential revenue growth in Locum Tenens, with Allied demand growing in the mid-teens year-over-year. Nurse and Allied Solutions reported a gross margin of 22.7%, 90 basis points above consensus, highlighting improvements in internal execution and recruiter productivity. The company remains focused on leveraging technology to enhance speed and service delivery, with significant investments in AI tools and the AMN Passport app. Despite a competitive environment, AMN continues to achieve client wins and maintain strong client retention rates, with a net leverage ratio of 3.1x to 1 as of March 31.AMN Healthcare Services Financial Statement Overview
Summary
AMN Healthcare Services is facing financial headwinds with declining revenues and profitability, negative profit margins, and operational losses. The company has high leverage, but strong operating cash flow offers 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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.98B | 3.79B | 5.24B | 3.98B | 2.39B |
| Gross Profit | 919.38M | 1.25B | 1.72B | 1.31B | 791.78M |
| EBITDA | 71.11M | 499.36M | 784.21M | 581.70M | 243.45M |
| Net Income | -146.98M | 210.68M | 444.05M | 327.39M | 70.67M |
Balance Sheet | |||||
| Total Assets | 2.42B | 2.92B | 2.89B | 3.13B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 10.65M | 32.94M | 64.52M | 180.93M | 29.21M |
| Total Debt | 1.10B | 1.35B | 860.96M | 867.07M | 955.48M |
| Total Liabilities | 1.71B | 2.09B | 1.84B | 1.97B | 1.53B |
| Stockholders Equity | 706.62M | 831.26M | 1.04B | 1.16B | 819.68M |
Cash Flow | |||||
| Free Cash Flow | 239.53M | 266.78M | 572.81M | 251.69M | 217.72M |
| Operating Cash Flow | 320.42M | 372.17M | 653.73M | 305.36M | 256.83M |
| Investing Cash Flow | -79.94M | -412.49M | -170.71M | -107.40M | -538.17M |
| Financing Cash Flow | -259.45M | 10.73M | -591.87M | -34.90M | 211.49M |
AMN Healthcare Services Technical Analysis
Negative
20.52
Price Trends
21.30
Negative
21.72
Negative
25.58
Negative
Market Momentum
-0.43
Positive
48.24
Neutral
33.48
Neutral
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 20.52 is below the 20-day moving average (MA) of 20.87, below the 50-day MA of 21.30, and below the 200-day MA of 25.58, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.48 is Neutral, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.15B | 31.66 | 5.00% | ― | 54.81% | -45.07% | |
67 Neutral | $1.07B | 103.39 | 2.28% | ― | 5.17% | -65.33% | |
60 Neutral | HK$16.84B | 5.17 | -7.44% | 2.89% | 11.55% | -28.15% | |
52 Neutral | $45.79M | ― | -951.52% | ― | -0.70% | -2.38% | |
50 Neutral | $438.31M | ― | -4.00% | ― | -29.16% | -140.16% | |
45 Neutral | $795.98M | 234.48 | 42.49% | ― | 9.05% | ― | |
42 Neutral | $785.60M | 18.62 | -21.08% | ― | -18.13% | -215.78% |
* Healthcare Sector Average
Performance Comparison
AMN
AMN Healthcare Services
20.52
-42.74
-67.56%
CCRN
Cross Country Healthcare
13.59
-2.93
-17.74%
HCSG
Healthcare Services
14.63
3.28
28.90%
MODV
ModivCare
3.23
-20.66
-86.48%
ASTH
Astrana Health
23.44
-28.76
-55.10%
AVAH
Aveanna Healthcare Holdings
4.08
-0.31
-7.06%
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.