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BrightSpring Health Services, Inc. (BTSG)
NASDAQ:BTSG
RESEARCH TOOLSreports
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BrightSpring Health Services, Inc.
(NASDAQ:BTSG)
70Outperform
Positive Factors
Financial Forecasts and Guidance
The company raised its 2025-26 EBITDA forecasts, indicating confidence in future financial performance and further reinforcing the positive outlook.
Pharmacy Division Performance
The company's pharmacy division is a significant growth driver, with revenues reaching $2.9 billion, 6% above consensus, and driven by strong specialty and infusion performance.
Provider Segment Growth
Provider segment showed strong performance with revenue growth of 12% year over year, supported by strong growth in home health revenues and operational execution.
Negative Factors
Community Living Business Sale
The sale of C&L accelerates the deleveraging and allows BTSG to recycle capital into faster growing and higher return businesses.
Mergers and Acquisitions
Strategic mergers and acquisitions will continue to support the company's growth as it seeks to expand further.
Valuation Concerns
The recent sell-off in the stock has brought its valuation down to a very compelling level at 10.5x EBITDA, indicating potential for stock upside from current levels.
BrightSpring Health Services, Inc. (BTSG) vs. S&P 500 (SPY)
Market Cap
$3.66B
Dividend YieldN/A
Average Volume (3M)1.45M
Price to Earnings (P/E)75.2
Beta (1Y)1.03
Revenue Growth23.40%
EPS GrowthN/A
CountryUS
Employees37,000
SectorGeneral
Sector StrengthN/A
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding175,183,440
10 Day Avg. Volume1,755,376
30 Day Avg. Volume1,451,261
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.79
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.13
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.36Price Target Upside11.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
BrightSpring Health Services, Inc. Business Overview & Revenue Model
Company DescriptionBrightSpring 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 MoneyBrightSpring Health Services, Inc. generates revenue primarily through the provision of its diverse health services. The company's key revenue streams include payments received from government healthcare programs like Medicaid and Medicare, private health insurance reimbursements, and direct payments from clients for services rendered. Additionally, BrightSpring may engage in partnerships with healthcare facilities, insurance companies, and other organizations to expand its service offerings and client base. The company's financial performance is closely tied to healthcare policy changes, reimbursement rates, and the growing demand for home and community-based care solutions.
BrightSpring Health Services, Inc. Financial Statement Overview
Summary
BrightSpring Health Services shows solid revenue growth and improving financial health, with effective debt reduction and enhanced cash flow management. However, profitability margins remain under pressure, necessitating further optimization of cost structures.Income Statement
BrightSpring Health Services shows a robust revenue growth of 31.1% from 2023 to 2024, driven by the healthcare demand. The gross profit margin stands at 13.5% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 0.5%, reflecting challenges in controlling other expenses or interest costs.―
Balance Sheet
The company's debt-to-equity ratio has improved significantly to 0.13, suggesting a better capital structure and reduced financial risk. However, the return on equity is modest at 3.4% TTM, indicating limited profitability relative to shareholder investment. The equity ratio of 28.9% highlights a moderate reliance on debt.55
Cash Flow
BrightSpring Health Services demonstrates a notable improvement in free cash flow, with a growth rate of 322.7% from 2023 to TTM. The operating cash flow to net income ratio of 3.56 suggests strong cash conversion efficiency. However, fluctuations in financing cash flows highlight potential volatility in financial management.―
| 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 |
| 2.90B | 3.67B | 3.68B | 3.77B | 2.97B | Net Debt |
| 2.84B | 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 |
| 166.96M | -76.91M | -73.81M | 705.22M | 472.92M |
BrightSpring Health Services, Inc. Technical Analysis
Positive
21.83
Price Trends
17.92
Positive
18.89
Positive
16.96
Positive
Market Momentum
0.94
Negative
79.46
Negative
94.52
Negative
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 21.83 is above the 20-day moving average (MA) of 17.94, above the 50-day MA of 17.92, and above the 200-day MA of 16.96, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 79.46 is Negative, neither overbought nor oversold. The STOCH value of 94.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.09B | 16.39 | 6.05% | 3.66% | -17.69% | -10.24% | |
74 Outperform | $2.76B | 198.60 | 2.40% | ― | 4.74% | -39.28% | |
70 Outperform | $3.66B | 75.16 | 2.30% | ― | 23.40% | ― | |
57 Neutral | $1.43B | ― | -22.67% | ― | 17.83% | 59.64% | |
56 Neutral | $1.22B | ― | -5.96% | ― | 30.09% | 36.14% | |
56 Neutral | $4.40B | 7.85 | -18.54% | 5.13% | 19.90% | -56.46% | |
48 Neutral | $1.19B | ― | -54.49% | ― | -2.54% | -322.03% |
* General Sector Average
Performance Comparison
BTSG
BrightSpring Health Services, Inc.
23.04
11.67
102.64%
PINC
Premier
23.12
4.33
23.04%
EVH
Evolent Health
10.45
-16.82
-61.68%
TDOC
Teladoc
6.86
-5.34
-43.77%
PHR
Phreesia
24.40
2.46
11.21%
PRVA
Privia Health Group
23.32
4.46
23.65%
BrightSpring Health Services, Inc. Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q1-2025)
| % Change Since: 21.96%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
BrightSpring Health Services reported a strong first quarter with significant revenue and EBITDA growth, driven by the Pharmacy Solutions and Specialty and Infusion segments. The company increased its financial guidance for the year, reflecting confidence in continued growth and operational efficiency. While there are uncertainties related to tariffs and regulatory changes, the company does not expect significant impacts this year. Overall, the positive financial performance and strategic positioning outweigh the noted challenges.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total company revenue was $2.9 billion, representing growth of 26% year over year. Pharmacy Solutions revenue grew 28% year over year, while provider services revenue grew 12%.
Increased EBITDA and Guidance
Total company adjusted EBITDA was $131 million, growing 28% year over year. The company increased its EBITDA guidance for 2025 by $25 million at both the low and high ends of the prior range.
Specialty and Infusion Business Performance
Revenue growth for the Specialty and Infusion business was 33% year over year, with total script volume growth of 20% in the quarter.
High Quality Metrics in Health Services
Patient satisfaction rates remained high across various services, including a 90% satisfaction rate in home health and 98% in rehab.
Positive Market Positioning
The company demonstrated strong performance in the home and community settings, with a focus on high-quality care and innovative growth.
Negative Updates
Regulatory and Tariff Uncertainties
The company faces uncertainties related to potential future pharma tariffs and regulatory changes, although it does not anticipate material impacts in 2025.
Leap Year Impact
The company experienced a $3.7 million negative EBITDA impact due to fewer days in Q1 2025 compared to Q1 2024, which was a leap year.
Company Guidance
During the BrightSpring Health Services, Inc. Common Stock first quarter 2025 earnings call, guidance for the fiscal year was updated to reflect stronger-than-expected performance, with total revenue anticipated to be between $12 billion and $12.5 billion, and adjusted EBITDA expected to range from $570 million to $585 million. This represents a 19.1% to 24.1% growth in revenue and a 23.9% to 27.2% increase in adjusted EBITDA over the previous year, excluding the community living segment. The company's Pharmacy Solutions segment is projected to achieve revenue between $10.55 billion and $11 billion, while the Provider Services segment is expected to generate $1.45 billion to $1.5 billion in revenue. BrightSpring noted improvements in efficiency and cost reductions, alongside continued investments in technology and patient care. The company also highlighted its capability to drive growth across its pharmacy and provider services, supported by strong operational execution and favorable market conditions.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.
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.