Education
About Us
Working with TipRanks
Follow Us
BrightSpring Health Services, Inc. (BTSG)
NASDAQ:BTSG
RESEARCH TOOLSreports
Top Page
BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
60Neutral
Positive Factors
Future Performance
Analyst reiterates an Outperform rating for BrightSpring Health Services, indicating strong future performance expectations.
Pharmacy Segment Growth
BrightSpring Health Services' pharmacy segment is anticipated to drive earnings with solid volume momentum, fueled by the infusion and specialty business.
Revenue Growth
BrightSpring Health Services raised its 2025 revenue guidance, reflecting confidence in continued strong execution and solid performance.
Negative Factors
EBITDA Margin
Despite strong revenue growth, the EBITDA margin contracted due to a shift towards lower-margin specialty products.
Inflation Reduction Act
There is uncertainty on the actual mechanism of price cuts under the Inflation Reduction Act for long-term care pharmacy, although the company is confident it can grow through this headwind.
BrightSpring Health Services, Inc. (BTSG) vs. S&P 500 (SPY)
Market Cap
$3.15B
Dividend YieldN/A
Average Volume (3M)1.60M
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth27.65%
EPS Growth86.89%
CountryUS
Employees37,000
SectorGeneral
Sector StrengthN/A
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding174,973,800
10 Day Avg. Volume1,238,161
30 Day Avg. Volume1,595,694
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)8.70
P/FCF Ratio7.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.81Price Target Upside37.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
BrightSpring Health Services, Inc. Business Overview & Revenue Model
Company DescriptionBrightSpring Health Services, Inc. (BTSG) is a leading provider of comprehensive home and community-based health services. The company operates across multiple sectors, including behavioral health, home health, and pharmacy services, delivering personalized and high-quality care to individuals with complex health needs. BrightSpring is committed to enhancing the quality of life for its patients through its innovative care models and a broad range of support services.
How the Company Makes MoneyBrightSpring Health Services, Inc. generates revenue through its diverse portfolio of health and human services. The company primarily earns money by providing behavioral health services, home health care, and pharmacy services. Key revenue streams include service fees from managed care organizations, government contracts, private pay clients, and partnerships with healthcare providers and facilities. BrightSpring's ability to integrate its services and focus on value-based care models allows it to capitalize on the growing demand for at-home and community-based healthcare solutions, thus contributing significantly to its earnings.
BrightSpring Health Services, Inc. Financial Statement Overview
Summary
BrightSpring Health Services presents a mixed financial picture, characterized by robust revenue growth but persistent profitability challenges. While the balance sheet shows improvement with increased equity and reduced leverage, the company must address ongoing net losses to enhance long-term financial health. Cash flow management remains a notable strength, supporting operational activities despite income setbacks.Income Statement
BrightSpring Health Services shows a strong revenue growth trajectory, with a 27.6% increase from 2023 to 2024. However, the company struggles with profitability, exhibiting negative net profit margins over recent years. The EBIT margin is modest at 1.83%, indicating operational challenges in translating revenues into operating profits. Despite these profitability issues, the company demonstrates resilience with consistent revenue growth.65
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 0.21, suggesting leverage concerns, though this is an improvement from previous levels. Stockholders' equity has increased significantly, enhancing the equity ratio to 27.80%. This indicates a stronger financial foundation, albeit with potential risks due to historical high leverage.58
Neutral
Cash Flow
Cash flow analysis reveals a positive trajectory in free cash flow, with substantial growth from negative figures in 2022 to a positive free cash flow in 2024. The operating cash flow to net income ratio is notable, reflecting the company's ability to convert income into cash flow, despite negative net income figures. This highlights effective cash management amidst profitability struggles.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.27B | 8.83B | 7.72B | 6.70B | 5.58B | Gross Profit |
| 1.59B | 1.43B | 1.35B | 1.25B | 1.05B | EBIT |
| 206.37M | 147.18M | 296.03M | 234.18M | 273.81M | EBITDA |
| 398.13M | 349.52M | 500.00M | 433.34M | 346.69M | Net Income Common Stockholders |
| -18.06M | -154.60M | -53.91M | 49.80M | 20.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 61.25M | 13.07M | 13.63M | 46.73M | 262.00M | Total Assets |
| 5.93B | 5.53B | 5.64B | 5.51B | 4.73B | Total Debt |
| 343.11M | 3.67B | 3.68B | 3.77B | 2.97B | Net Debt |
| 281.86M | 3.66B | 3.67B | 3.72B | 2.71B | Total Liabilities |
| 4.27B | 4.92B | 4.85B | 4.71B | 4.00B | Stockholders Equity |
| 1.65B | 584.74M | 754.78M | 774.82M | 704.98M |
| Cash Flow | Free Cash Flow | |||
| -57.14M | 137.26M | -74.77M | 210.90M | 170.73M | Operating Cash Flow |
| 23.77M | 210.78M | -4.65M | 270.17M | 222.64M | Investing Cash Flow |
| -140.24M | -134.43M | 45.36M | -1.19B | -451.85M | Financing Cash Flow |
| 164.65M | -76.91M | -73.81M | 705.22M | 472.92M |
BrightSpring Health Services, Inc. Technical Analysis
Negative
18.03
Price Trends
20.05
Negative
19.14
Negative
16.08
Positive
Market Momentum
-0.33
Negative
45.45
Neutral
52.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTSG, the sentiment is Negative. The current price of 18.03 is above the 20-day moving average (MA) of 17.81, below the 50-day MA of 20.05, and above the 200-day MA of 16.08, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 52.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTSG.
BrightSpring Health Services, Inc. Risk Analysis
BrightSpring Health Services, Inc. disclosed 57 risk factors in its most recent earnings report. BrightSpring Health Services, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BrightSpring Health Services, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.15B | 22.60 | 24.52% | 0.64% | 11.91% | 28.47% | |
70 Outperform | $8.87B | 30.46 | 27.12% | 0.31% | 7.37% | 11.17% | |
70 Neutral | $3.04B | 71.19 | 3.93% | ― | 5.01% | ― | |
64 Neutral | $1.77B | 22.98 | 8.78% | ― | 9.06% | 10.68% | |
60 Neutral | $3.15B | ― | -1.62% | ― | 27.65% | 86.89% | |
58 Neutral | $1.25B | ― | -65.55% | ― | 3.95% | -5.53% | |
54 Neutral | $4.11B | -18.71 | -17.06% | 5.82% | 26.02% | -79.79% |
* General Sector Average
Performance Comparison
BTSG
BrightSpring Health Services, Inc.
18.09
7.52
71.14%
ADUS
Addus Homecare
98.89
-2.77
-2.72%
AMED
Amedisys
92.63
0.17
0.18%
BKD
Brookdale Senior Living
6.26
-0.26
-3.99%
CHE
Chemed
615.32
-19.33
-3.05%
EHC
Encompass Health
101.28
19.72
24.18%
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -1.96% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
BrightSpring Health Services reported strong revenue and adjusted EBITDA growth for the fourth quarter and full year 2024, with significant performance in the Pharmacy Solutions and Provider Services segments. The company has implemented numerous operational efficiencies and increased its 2025 financial guidance. However, there are challenges in the Infusion business and potential impacts from the Inflation Reduction Act that need to be monitored.Highlights
Strong Revenue Growth
BrightSpring Health Services reported a total revenue growth of 29% year-over-year for the fourth quarter, leading to total company revenue of $11.3 billion for the full year 2024, representing 28% growth.
Pharmacy Solutions Segment Performance
The Pharmacy Solutions segment revenue in the fourth quarter was $2.4 billion, achieving 34% year-over-year growth, with Infusion and Specialty revenue growing 42%.
Provider Services Segment Growth
Provider Services segment revenue was $656 million in the fourth quarter, representing 11% growth compared to the prior year period.
Adjusted EBITDA Growth
Adjusted EBITDA for the total company was $167 million in the fourth quarter, growing 17% compared to the fourth quarter of 2023. For full year 2024, adjusted EBITDA was $588 million, representing 16% growth.
Operational Efficiencies
BrightSpring has over 100 procurement, workflow augmentation, and automation programs completed or ongoing, driving process improvements and cost efficiencies.
Increased 2025 Guidance
BrightSpring increased total revenue and adjusted EBITDA guidance for 2025, with an adjusted EBITDA guidance increase by $5 million at both the low and high ends of the prior range.
Lowlights
Infusion Business Challenges
The Infusion business has been focused on operational improvements and investments over the last 18 to 24 months, with growth expected to pick up in 2025.
Potential IRA Impact
There is uncertainty regarding the impact of the Inflation Reduction Act (IRA) on BrightSpring's financials, with potential downside risk of a couple of percent of EBITDA depending on how the legislation plays out.
Company Guidance
During BrightSpring Health Services' fourth quarter and full year 2024 earnings call, the company reported a total revenue increase of 28% year-over-year, reaching $11.3 billion, with Pharmacy Solutions and Provider Services contributing $8.8 billion and $2.5 billion, respectively. The adjusted EBITDA grew by 16% year-over-year to $588 million, excluding a $30 million quality incentive payment from 2023. BrightSpring announced an increase in its 2025 guidance, raising adjusted EBITDA by $5 million at both ends of the prior range. The company highlighted its focus on operational efficiencies and quality improvements, achieving impressive Net Promoter Scores of 98 and 100 in its specialty pharmacy services. Looking ahead, BrightSpring expects total revenue for 2025 to be between $11.6 billion and $12.1 billion, reflecting a growth rate of 15.2% to 20.1%, with adjusted EBITDA projected to rise by 18.4% to 21.7% over 2024 figures, excluding the community living business divestiture.BrightSpring Health Services, Inc. Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
BrightSpring Health Services Appoints New Chief Financial Officer
Positive
Mar 5, 2025
On March 4, 2025, Jennifer Phipps was promoted to Chief Financial Officer of BrightSpring Health Services, succeeding Jim Mattingly. Phipps, who has been with the company for eight years, has held various leadership roles and contributed significantly to the company’s financial and operational processes. Her promotion is expected to support BrightSpring’s growth and strategic objectives in providing high-quality healthcare solutions.
M&A TransactionsBusiness Operations and Strategy
BrightSpring Health Divests Community Living to Sevita
Positive
Jan 21, 2025
On January 17, 2025, BrightSpring Health Services, through its subsidiary Res-Care, Inc., entered into a purchase agreement to divest its Community Living business to Sevita for $835 million. This transaction, expected to close in 2025, aligns with BrightSpring’s strategic focus on optimizing its Provider Services segment and reducing debt, while enhancing growth in its remaining service lines such as Home Health, Hospice, and Pharmacy Solutions. The divestiture is anticipated to improve operational efficiencies, increase revenue, and accelerate the company’s deleveraging efforts.
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.