Cross Country Healthcare (CCRN) AI Stock Analysis

• Market Cap: $457.33M
• Dividend Yield: N/A
• Average Volume (3M): 221.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -29.16%
• EPS Growth: -140.16%
• Country: US
• Employees: 9,605
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Care Facilities
• EPS (TTM): 0.06
• Shares Outstanding: 32,783,170
• 10 Day Avg. Volume: 220,983
• 30 Day Avg. Volume: 221,587
• PEG Ratio: 0.13
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.85
• Enterprise Value/Market Cap: 2.49
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 18.40
• 1Y Price Target: $17.91
• Price Target Upside: 25.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 47 Neutral
• Price Target: $13.50 ▼(-5.26%Downside)

Cross Country Healthcare is experiencing significant financial performance challenges, with declining revenues and profitability being the most pressing concerns. The technical indicators suggest bearish momentum, adding caution to the stock's outlook. The negative P/E ratio and lack of dividend yield further highlight valuation challenges. Despite some positive corporate actions, the overall sentiment remains cautious, reflecting the need for substantial improvements in financial health and operational stability.

Positive Factors

Acquisition Agreement

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.

Homecare and Education Growth

Homecare and education grew by double digits sequentially, and homecare grew by 29.5% year-over-year.

Negative Factors

Gross Margin Pressure

Gross margin has been pressured recently by reduced bill rate-pay rate spreads, resulting from lower demand and a more competitive environment within travel staffing.

Merger Uncertainty

Cross Country’s shares were down 24% since the announcement of the Second Request from the FTC, reflecting increased uncertainty as to whether the merger with Aya will be completed.

Revenue Decline

Q1/25 revenue of $293.4 million came in lower than the consensus of $305.4 million, while declining -23% YOY due to the continuation of softer demand conditions across the healthcare travel staffing industry.

Cross Country Healthcare Business Overview & Revenue Model

Company Description

Cross Country Healthcare, Inc. (CCRN) is a leading provider of healthcare workforce solutions and staffing services in the United States. The company specializes in placing highly qualified healthcare professionals, including nurses, physicians, and other clinical experts, in a variety of healthcare settings such as hospitals, clinics, and long-term care facilities. Cross Country Healthcare operates across multiple sectors within the healthcare industry, focusing on delivering flexible workforce solutions to meet the dynamic needs of healthcare providers.

How the Company Makes Money

Cross Country Healthcare makes money primarily through the provision of staffing services to healthcare facilities. Its revenue model is based on the fees charged for placing healthcare professionals in temporary, travel, or permanent positions. The company earns a significant portion of its income from travel nurse staffing, where it supplies nurses to healthcare facilities on a short-term basis to fill gaps in staffing needs. Additionally, Cross Country Healthcare generates revenue from its managed services programs, which offer comprehensive workforce management solutions to healthcare systems, including recruitment, scheduling, and compliance services. Key revenue streams also include locum tenens staffing, which involves placing physicians and advanced practice providers on temporary assignments. Strategic partnerships with healthcare organizations and a broad network of qualified professionals are crucial factors contributing to the company's earnings.

Cross Country Healthcare Financial Statement Overview

Summary

Cross Country Healthcare faces significant challenges with declining revenues and profitability, as seen in the income statement. The balance sheet showcases moderate stability with low leverage, but declining asset levels raise concerns about liquidity. Cash flows exhibit volatility, indicating potential operational difficulties. Overall, the company must address its profitability issues to enhance financial health.

Income Statement

The company's income statement shows a concerning trend with declining revenues and profitability. The TTM data reveals negative EBIT and net income, indicating operational and profitability challenges. The gross profit margin has decreased over the years, suggesting increased cost pressures or inefficiencies.

Balance Sheet

The balance sheet exhibits moderate stability with a commendable equity ratio and manageable debt levels. However, the declining stockholders' equity and total assets over the recent periods indicate potential liquidity challenges. The company's debt-to-equity ratio remains low, mitigating financial risk to some extent.

Cash Flow

Cash flow analysis reveals a decline in operating cash flows and free cash flow generation over time. Despite recent positive free cash flow, the operating cash flow to net income ratio indicates struggles in converting earnings to cash. The volatility in cash flows suggests potential liquidity issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.26B	1.34B	2.02B	2.81B	1.68B	836.42M
	Gross Profit
246.55M	274.25M	450.41M	627.69M	375.00M	202.73M
	EBIT
-14.59M	-16.86M	112.71M	273.11M	139.30M	15.97M
	EBITDA
-387.00K	3.99M	129.34M	285.14M	152.35M	2.41M
	Net Income Common Stockholders
-17.74M	-14.56M	72.63M	188.46M	132.00M	-12.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.70M	81.63M	17.09M	3.60M	1.04M	1.60M
	Total Assets
576.24M	589.25M	679.32M	947.84M	732.81M	356.97M
	Total Debt
3.31M	3.87M	5.27M	157.75M	195.49M	73.15M
	Net Debt
-77.39M	-77.76M	-11.83M	154.14M	194.45M	71.55M
	Total Liabilities
158.03M	170.29M	205.92M	490.62M	435.28M	202.06M
	Stockholders Equity
418.21M	418.96M	473.39M	457.22M	297.53M	154.38M
Cash Flow		Free Cash Flow
111.40M	111.40M	234.52M	125.26M	-92.79M	22.59M
	Operating Cash Flow
119.79M	120.12M	248.50M	134.05M	-85.62M	27.20M
	Investing Cash Flow
-8.39M	-8.71M	-13.78M	-43.87M	-34.05M	-4.62M
	Financing Cash Flow
-35.92M	-46.85M	-221.24M	-87.60M	119.09M	-22.01M

Cross Country Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCRN, the sentiment is Neutral. The current price of 14.25 is above the 20-day moving average (MA) of 13.36, above the 50-day MA of 13.73, and below the 200-day MA of 14.74, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 69.26 is Neutral, neither overbought nor oversold. The STOCH value of 93.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CCRN.

Cross Country Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCSG	73 Outperform	$1.06B	25.80	8.37%	―	3.71%	1.32%
PNTG	69 Neutral	$960.65M	36.61	11.28%	―	30.04%	43.47%
Sector *	54 Neutral	$5.25B	3.27	-44.35%	6.27%	16.79%	-0.10%
MODV	48 Neutral	$46.65M	―	-951.52%	―	-0.70%	-2.38%
CCRN	47 Neutral	$457.33M	―	-4.00%	―	-29.16%	-140.16%
AMN	45 Neutral	$841.88M	18.62	-21.08%	―	-18.13%	-215.78%
AVAH	44 Neutral	$942.30M	275.29	42.49%	―	9.05%	―

Cross Country Healthcare Corporate Events

Cross Country Healthcare Reports Q1 2025 Financial Results

Cross Country Healthcare announced its financial results for the first quarter of 2025, showing a consolidated revenue of $293.4 million, which represents a 23% decrease year-over-year. Despite the decline in revenue, the company reported growth in its Homecare and Physician Staffing segments, with double-digit revenue increases. The company maintained a strong balance sheet with $81 million in cash and no debt as of March 31, 2025. The company is also in the process of a merger with Aya Healthcare, expected to be completed in the second half of the year.