BrightSpring Health Services, Inc. (BTSG) AI Stock Analysis

• Market Cap: $4.25B
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): 81.0
• Beta (1Y): 1.09
• Revenue Growth: 20.60%
• EPS Growth: N/A
• Country: US
• Employees: 37,000
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.22
• Shares Outstanding: 177,148,700
• 10 Day Avg. Volume: 2,282,702
• 30 Day Avg. Volume: 2,444,463
• PEG Ratio: 2.03
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -57.52
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 5.02
• Enterprise Value/Ebitda: 18.24
• 1Y Price Target: $29.71
• Price Target Upside: 24.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $26.00 ▲(8.65% Upside)

BrightSpring Health Services demonstrates strong revenue growth and positive market sentiment, supported by strategic corporate actions. However, high valuation and profitability challenges pose risks. The company's focus on core services and raised guidance are positive indicators for future performance.

Positive Factors

Market Position

There is increasing confidence in BTSG's market position and the setup for future growth.

Revenue Growth

Pharmacy Solutions revenue growth should help drive enterprise EBITDA growth over the next few years.

Negative Factors

Home Health Rate Shortfall

BTSG noted the shortfall in the home health rate, which could be disruptive to the lower cost of care setting.

Policy Risks

Some policy questions linger regarding government exposure and policy/funding risks, particularly with changes in Medicaid exposure.

BrightSpring Health Services, Inc. Business Overview & Revenue Model

Company Description

BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. BrightSpring Health Services, Inc. was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. The company was founded in 1974 and is based in Louisville, Kentucky.

How the Company Makes Money

BrightSpring Health Services, Inc. generates revenue through a diverse range of health care services. The company's primary revenue streams include payments for home health care services, where they provide in-home medical and personal care to patients. Additionally, BrightSpring earns from hospice services, offering end-of-life care, and from behavioral health services, which include mental health and substance abuse treatment. The company also benefits financially from its pharmacy services division, which delivers medications and pharmaceutical care to patients. Key partnerships with healthcare providers, insurance companies, and government programs like Medicare and Medicaid significantly contribute to BrightSpring's earnings by facilitating access to a wide patient base and ensuring payment for services rendered.

BrightSpring Health Services, Inc. Financial Statement Overview

Summary

BrightSpring Health Services shows strong revenue and cash flow improvements, indicating positive growth. However, challenges with profitability and leverage remain, posing potential risks if not addressed.

Income Statement

BrightSpring Health Services has shown a positive revenue growth trajectory, with revenue increasing significantly over recent years. The TTM revenue grew by 6.4% from the previous annual figure. Gross profit and EBIT margins are stable, though net profit margin is low due to relatively small net income. Despite profitability challenges, the company demonstrates strong revenue expansion.

Balance Sheet

The company's debt-to-equity ratio has improved, reflecting reduced leverage, though it remains a concern with high total liabilities. Stockholders' equity has strengthened, supporting a better equity ratio. Return on equity shows improvement but remains modest, highlighting the need for better profitability to enhance shareholder value.

Cash Flow

Operating cash flow has improved significantly, and free cash flow has turned positive, indicating better cash management. The free cash flow to net income ratio is favorable, suggesting efficient cash conversion. However, fluctuations in cash flow in previous years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.99B	11.27B	8.83B	7.72B	6.70B	5.58B
Gross Profit	1.54B	1.59B	1.43B	1.35B	1.25B	1.05B
EBITDA	424.68M	398.13M	349.52M	391.80M	433.34M	346.69M
Net Income	65.52M	-18.06M	-154.60M	-53.91M	49.80M	20.81M
Balance Sheet
Total Assets	5.94B	5.93B	5.53B	5.64B	5.51B	4.73B
Cash, Cash Equivalents and Short-Term Investments	70.07M	61.25M	13.07M	13.63M	46.73M	262.00M
Total Debt	2.71B	2.90B	3.67B	3.68B	3.77B	2.97B
Total Liabilities	4.20B	4.27B	4.92B	4.85B	4.71B	4.00B
Stockholders Equity	1.74B	1.65B	584.74M	754.78M	774.82M	704.98M
Cash Flow
Free Cash Flow	191.12M	-57.14M	137.26M	-74.77M	210.90M	170.73M
Operating Cash Flow	268.53M	23.77M	210.78M	-4.65M	270.17M	222.64M
Investing Cash Flow	-99.04M	-140.24M	-134.43M	45.36M	-1.19B	-451.85M
Financing Cash Flow	-124.29M	164.65M	-76.91M	-73.81M	705.22M	472.92M

BrightSpring Health Services, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTSG, the sentiment is Positive. The current price of 23.93 is above the 20-day moving average (MA) of 22.09, above the 50-day MA of 21.67, and above the 200-day MA of 20.17, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 67.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTSG.

BrightSpring Health Services, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTSG	76 Outperform	$4.25B	80.95	1.60%	―	20.60%	―
PRVA	73 Outperform	$2.63B	182.98	2.32%	―	12.05%	-2.46%
PHR	71 Outperform	$1.83B	―	-15.97%	―	16.29%	66.01%
PINC	61 Neutral	$2.13B	116.55	3.56%	3.20%	-24.79%	-78.38%
Sector *	56 Neutral	$6.56B	-1.65	0.45%	6.25%	14.92%	10.98%
EVH	55 Neutral	$1.09B	―	-13.38%	―	-6.71%	-71.40%
TDOC	47 Neutral	$1.38B	―	-14.18%	―	-2.57%	79.86%

BrightSpring Health Services, Inc. Corporate Events

BrightSpring Health Services Executive Resignation Announced

On June 20, 2025, Michael McMaude resigned from his roles as President of Hospice Services at BrightSpring Health Services, Inc. and CEO of its subsidiary, Abode Healthcare, Inc. His resignation was not due to any disagreements with the company. McMaude will continue as a consultant until January 26, 2027, under a Resignation Agreement that includes a monthly consulting fee and continued vesting of stock options. The agreement also outlines non-competition and non-solicitation clauses for McMaude.

BrightSpring Health Services Stock Offering Agreement

On June 10, 2025, BrightSpring Health Services, Inc. entered into an underwriting agreement for an offering of 14,000,000 shares of its common stock at $21.75 per share, with the closing occurring on June 12, 2025. The company did not receive proceeds from the offering, which was conducted by the selling stockholders, but it involved customary legal and financial arrangements, including indemnification obligations under the Securities Act of 1933.

BrightSpring Health Divests Community Living Business

On January 17, 2025, BrightSpring Health Services, Inc. announced the divestiture of its Community Living business for $835 million, marking a strategic shift to focus on its core services. This divestiture is expected to enhance BrightSpring’s operational efficiencies and strategic focus, allowing the company to better serve its target growth markets in home health, rehab, primary care, and hospice. The financial results of the Community Living business have been classified as discontinued operations, reflecting this major change in the company’s business strategy.

BrightSpring Health Services Holds 2025 Annual Stockholders Meeting

On May 28, 2025, BrightSpring Health Services, Inc. held its 2025 Annual Meeting of Stockholders, where significant decisions were made regarding the company’s governance and operations. During the meeting, Johnny Kim and Timothy A. Wicks were elected as Class I directors, and the appointment of KPMG LLP as the independent registered public accounting firm was ratified. Additionally, the stockholders approved the executive officers’ compensation and decided to hold advisory votes on executive compensation annually.