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

• Market Cap: $3.92B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 79.1
• Beta (1Y): 1.06
• Revenue Growth: 23.40%
• EPS Growth: N/A
• Country: US
• Employees: 37,000
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.19
• Shares Outstanding: 175,804,020
• 10 Day Avg. Volume: 3,967,687
• 30 Day Avg. Volume: 2,622,866
• PEG Ratio: 0.17
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.19
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $27.45
• Price Target Upside: 23.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $24.50 ▲(10.01%Upside)

BrightSpring Health Services shows strong financial health and strategic growth potential, supported by technical indicators and positive earnings guidance. However, the current valuation is high, potentially limiting upside. The strategic divestiture further reinforces its focus on core growth areas.

Positive Factors

Earnings

1Q EBITDA of $131M was ahead of consensus, with impressive revenue rising 25.9%, largely on strength across Pharmacy Solutions.

Financial Performance

BTSG raised 2025 guidance, calling for revenue growth of 19.1%-24.1%, driven by double-digit growth across both segments.

Growth Strategy

The Infusion Pharmacy sector is seen as a significant growth opportunity, with management expecting it to grow over 20% annually.

Negative Factors

Competition

BTSG's competitive advantage lies in its sales force, which is crucial for handling generic launches amidst increased competition.

Policy Risks

Policy headwinds from the Inflation Reduction Act are acknowledged, but other operational efficiencies are expected to offset these challenges.

Sector Dynamics

The home/community pharmacy business, though slower growing than Specialty, is vital for the company due to its purchasing scale and leverage with payors.

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 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 is experiencing solid revenue growth and improving financial health, with a focus on reducing debt and enhancing cash flow. Despite robust revenue growth and efficient cost management, profitability margins remain under pressure.

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.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.57B	11.27B	8.83B	7.72B	6.70B	5.58B
	Gross Profit
1.56B	1.59B	1.43B	1.35B	1.25B	1.05B
	EBIT
260.12M	206.37M	147.18M	296.03M	234.18M	273.81M
	EBITDA
415.68M	398.13M	349.52M	500.00M	433.34M	346.69M
	Net Income Common Stockholders
57.23M	-18.06M	-154.60M	-53.91M	49.80M	20.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.34M	61.25M	13.07M	13.63M	46.73M	262.00M
	Total Assets
5.85B	5.93B	5.53B	5.64B	5.51B	4.73B
	Total Debt
227.54M	2.90B	3.67B	3.68B	3.77B	2.97B
	Net Debt
175.20M	2.84B	3.66B	3.67B	3.72B	2.71B
	Total Liabilities
4.16B	4.27B	4.92B	4.85B	4.71B	4.00B
	Stockholders Equity
1.69B	1.65B	584.74M	754.78M	774.82M	704.98M
Cash Flow		Free Cash Flow
127.28M	-57.14M	137.26M	-74.77M	210.90M	170.73M
	Operating Cash Flow
204.01M	23.77M	210.78M	-4.65M	270.17M	222.64M
	Investing Cash Flow
-133.49M	-140.24M	-134.43M	45.36M	-1.19B	-451.85M
	Financing Cash Flow
-75.91M	166.96M	-76.91M	-73.81M	705.22M	472.92M

BrightSpring Health Services, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 22.27 is below the 20-day moving average (MA) of 22.84, above the 50-day MA of 21.00, and above the 200-day MA of 18.61, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 29.31 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
PINC	76 Outperform	$1.83B	39.01	6.05%	3.77%	-17.69%	-10.24%
PRVA	73 Outperform	$2.66B	176.78	2.53%	―	6.79%	-18.52%
BTSG	70 Outperform	$3.92B	79.14	2.30%	―	23.40%	―
PHR	58 Neutral	$1.53B	―	-15.97%	―	16.29%	66.01%
Sector *	58 Neutral	$4.92B	18.67	-16.94%	10.08%	13.73%	-24.47%
EVH	56 Neutral	$1.02B	―	-10.99%	―	10.24%	2.63%
TDOC	48 Neutral	$1.23B	―	-54.49%	―	-2.54%	-322.03%

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.

The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.

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.

The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.

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.

The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.

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.

The most recent analyst rating on (BTSG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on BrightSpring Health Services, Inc. stock, see the BTSG Stock Forecast page.