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Cross Country Healthcare (CCRN)
NASDAQ:CCRN
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Cross Country Healthcare
(NASDAQ:CCRN)
57Neutral
Positive Factors
Acquisition
Aya Healthcare has agreed to acquire Cross Country for $18.61 per share in cash, which represents a 67% premium to the company’s closing price on the day before the transaction was announced.
Cash Flow
Cash from operations in 4Q doubled year over year to $24.2M, bringing full year cash from operations to $120M.
Revenue Performance
Revenue of $309.9M exceeded both internal and consensus estimates, highlighting strength in physician, education, and home care business lines.
Negative Factors
Financial Performance
Cross Country's adjusted EBITDA and adjusted EPS were well below expectations.
Market Valuation
Cross Country's stock has historically traded at lower multiples compared to its peers, which could result in a lower valuation if the deal does not go through.
Regulatory Delays
The Federal Trade Commission's second request will increase uncertainty and delay the completion of Cross Country Healthcare's acquisition by Aya Healthcare.
Cross Country Healthcare (CCRN) vs. S&P 500 (SPY)
Market Cap
$490.88M
Dividend YieldN/A
Average Volume (3M)562.48K
Price to Earnings (P/E)―
Beta (1Y)0.19
Revenue Growth-33.46%
EPS Growth-121.07%
CountryUS
Employees9,605
SectorHealthcare
Sector Strength66
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.43
Shares Outstanding32,812,580
10 Day Avg. Volume444,370
30 Day Avg. Volume562,481
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)5.10
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.61Price Target Upside24.07% Upside
Rating ConsensusHold
Number of Analyst Covering6
Cross Country Healthcare Business Overview & Revenue Model
Company DescriptionCross Country Healthcare, Inc. (CCRN) is a leading provider of healthcare staffing and workforce solutions in the United States. The company operates across various sectors, including travel nursing, per diem nursing, and allied health staffing, as well as physician and advanced practice staffing. With a focus on meeting the diverse needs of healthcare facilities, Cross Country Healthcare offers comprehensive staffing solutions that ensure quality patient care and operational efficiency.
How the Company Makes MoneyCross Country Healthcare generates revenue primarily by providing temporary healthcare staffing services to hospitals, clinics, and other healthcare facilities. The company earns money through the placement of healthcare professionals, such as nurses and allied health workers, on short-term assignments. Key revenue streams include travel nurse staffing, where healthcare professionals are placed on assignments away from their home locations, and per diem staffing, which involves filling daily or short-term shift needs. Additionally, the company engages in permanent placement services, offering a direct hire solution for healthcare organizations. Cross Country Healthcare's earnings are also supported by strategic partnerships with healthcare providers, enabling them to address workforce challenges effectively. The company's revenue model is largely influenced by the demand for healthcare services, workforce shortages, and regulatory changes within the healthcare industry.
Cross Country Healthcare Financial Statement Overview
Summary
Cross Country Healthcare exhibits strong cash flow and a stable balance sheet, but faces challenges with profitability as indicated by a decline in revenue and margins in 2024. The company needs to address these issues to improve its financial health.Income Statement
The income statement shows significant revenue growth from 2020 to 2023, peaking in 2022. However, there was a decline in 2023, resulting in a net loss for 2024. The gross profit margins showed improvement until 2022 but have decreased since. The net profit margin deteriorated in 2024, indicating profitability challenges.60
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with a stable debt-to-equity ratio. Stockholders' equity has been increasing, which is a positive sign. However, the total assets have decreased since 2022, and there is a need to monitor liabilities closely.65
Positive
Cash Flow
The cash flow statement indicates robust operating cash flow with a significant increase in free cash flow from 2020 to 2023. The free cash flow to net income ratio is favorable, suggesting effective cash management despite net losses in some periods.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.34B | 2.02B | 2.81B | 1.68B | 836.42M | Gross Profit |
| 274.25M | 450.41M | 627.69M | 375.00M | 202.73M | EBIT |
| -16.86M | 112.71M | 273.11M | 139.30M | 15.97M | EBITDA |
| 3.99M | 129.34M | 285.14M | 152.35M | 2.41M | Net Income Common Stockholders |
| -14.56M | 72.63M | 188.46M | 132.00M | -12.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 81.63M | 17.09M | 3.60M | 1.04M | 1.60M | Total Assets |
| 589.25M | 679.32M | 947.84M | 732.81M | 356.97M | Total Debt |
| 3.87M | 5.27M | 157.75M | 195.49M | 73.15M | Net Debt |
| -77.76M | -11.83M | 154.14M | 194.45M | 71.55M | Total Liabilities |
| 170.29M | 205.92M | 490.62M | 435.28M | 202.06M | Stockholders Equity |
| 418.96M | 473.39M | 457.22M | 297.53M | 154.38M |
| Cash Flow | Free Cash Flow | |||
| 111.40M | 234.52M | 125.26M | -92.79M | 22.59M | Operating Cash Flow |
| 120.12M | 248.50M | 134.05M | -85.62M | 27.20M | Investing Cash Flow |
| -8.71M | -13.78M | -43.87M | -34.05M | -4.62M | Financing Cash Flow |
| -46.85M | -221.24M | -87.60M | 119.09M | -22.01M |
Cross Country Healthcare Technical Analysis
Negative
15.00
Price Trends
17.17
Negative
15.89
Negative
15.03
Negative
Market Momentum
-0.68
Positive
21.32
Positive
23.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCRN, the sentiment is Negative. The current price of 15 is below the 20-day moving average (MA) of 15.79, below the 50-day MA of 17.17, and below the 200-day MA of 15.03, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 21.32 is Positive, neither overbought nor oversold. The STOCH value of 23.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCRN.
Cross Country Healthcare Risk Analysis
Cross Country Healthcare disclosed 36 risk factors in its most recent earnings report. Cross Country Healthcare reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cross Country Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.92B | 30.52 | 27.12% | 0.31% | 7.37% | 11.17% | |
64 Neutral | $761.33M | 19.57 | 8.25% | ― | 2.65% | 3.34% | |
62 Neutral | $12.06B | 14.09 | 159.08% | ― | 5.56% | 45.02% | |
57 Neutral | $490.88M | ― | -3.26% | ― | -33.46% | -121.07% | |
52 Neutral | $935.53M | 18.62 | -19.11% | ― | -21.26% | -172.28% | |
52 Neutral | $387.48M | ― | 39.18% | ― | 1.16% | -278.41% | |
49 Neutral | $6.88B | 0.82 | -52.97% | 2.48% | 20.92% | 1.17% |
* Healthcare Sector Average
Performance Comparison
CCRN
Cross Country Healthcare
15.00
-3.72
-19.87%
AMN
AMN Healthcare Services
23.50
-39.01
-62.41%
CHE
Chemed
609.17
-30.57
-4.78%
CYH
Community Health
2.77
-0.73
-20.86%
DVA
DaVita
151.37
13.32
9.65%
HCSG
Healthcare Services
10.44
-2.04
-16.35%
Cross Country Healthcare Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -11.03% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive growth in home care, physician staffing, and education segments, along with strong financial management. However, significant declines in revenue and ongoing margin pressures in the Travel Nursing & Allied segment present notable challenges.Highlights
Home Care Staffing Growth
Home care staffing saw a 13% year-over-year increase in the third quarter, with expectations for mid-teens growth in the fourth quarter. The number of PACE programs has doubled since the acquisition in 2021.
Physician Staffing Expansion
Physician Staffing grew 4% sequentially and 10% year-over-year. The business has doubled in size since late 2022 and is expected to continue growing in double digits in 2024.
Education Business Performance
The education business is approaching $100 million on an annualized run rate with expected continued mid to high single-digit growth.
Intellify Platform Implementation
The company renewed its largest MSP customer under a multi-year agreement and has nearly completed client conversion to the Intellify platform.
Share Buyback and Financial Strength
Bought back 800,000 shares worth $12 million in the third quarter, with a strong cash position of $64 million and no outstanding debt.
Lowlights
Revenue Decline
Consolidated revenue for the third quarter was down 7% sequentially and 29% year-over-year, primarily due to declines in Travel Nursing & Allied.
Gross Margin Pressure
Gross margin decreased to 20.4%, down 160 basis points year-over-year due to bill pay spread compression in the travel business.
Travel Nursing Challenges
Travel Nursing saw a decline of 11% sequentially and 41% year-over-year, with ongoing challenges in bill and pay rate alignment.
SG&A Expenses
Selling, general, and administrative expenses were down 22% year-over-year but were impacted by reductions in headcount.
Company Guidance
During the third quarter 2024 earnings call for Cross Country Healthcare, key guidance metrics were discussed for the upcoming fourth quarter. The company projects revenue to range between $300 million and $310 million, with an anticipated adjusted EBITDA of $11 million to $13 million, reflecting ongoing gross margin pressures due to competitive compensation packages affecting bill pay spreads. Despite a 7% sequential decline in third-quarter revenue to $315 million, there was a notable 20% increase in order volume entering the fourth quarter. The Physician Staffing segment grew 4% sequentially and 10% year-over-year, while Home Care Staffing experienced a 13% year-over-year increase. The company highlighted an anticipated regrowth in Travel Nursing & Allied as market conditions improve. Additionally, Cross Country Healthcare bought back 800,000 shares for approximately $12 million and plans to focus on strategic investments and M&A opportunities, maintaining a strong cash position with $64 million and no outstanding debt.Cross Country Healthcare Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Cross Country Healthcare Reports 2024 Financial Results
Negative
Mar 5, 2025
On March 5, 2025, Cross Country Healthcare announced its financial results for the fourth quarter and full year of 2024, revealing a decrease in revenue and profit margins compared to the previous year. Despite a net loss attributable to common stockholders and a decline in adjusted EBITDA, the company experienced growth in its Physician and Homecare Staffing segments and maintained a strong balance sheet with $82 million in cash and no debt. The company also repurchased over 2.4 million shares of common stock in 2024 and secured a three-year contract renewal with its largest managed service program. As the company awaits the closing of a pending transaction with Aya Healthcare, it continues to focus on delivering clinical excellence to meet client needs in a competitive market.
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.