Cross Country Healthcare (CCRN) AI Stock Analysis

• Market Cap: $395.69M
• Dividend Yield: N/A
• Average Volume (3M): 238.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -29.16%
• EPS Growth: -140.16%
• Country: US
• Employees: 9,605
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 0.06
• Shares Outstanding: 32,783,170
• 10 Day Avg. Volume: 144,073
• 30 Day Avg. Volume: 238,741
• PEG Ratio: 0.95
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.56
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 5.15
• 1Y Price Target: $17.91
• Price Target Upside: 48.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 49 Neutral
• Price Target: $13.00 ▲(7.71%Upside)

The overall stock score is primarily impacted by financial performance challenges, particularly declining revenues and profitability. Technical analysis provides a neutral outlook with mixed signals, while valuation concerns arise from a negative P/E ratio and no dividend yield. These factors combine to suggest caution for potential investors.

Positive Factors

Acquisition Agreement

Aya Healthcare's acquisition of Cross Country for $18.61 per share in cash represents a 67% premium to the company’s closing price before the announcement.

Free Cash Flow

Free cash flow of $21.7 million in the quarter was a bright spot.

Negative Factors

Nurse and Allied Staffing Challenges

Nurse & Allied Staffing revenue declined 27% year-over-year and 6% quarter-over-quarter, indicating challenges in the largest part of the business.

Regulatory Uncertainty

Cross Country's shares were down 24% following the FTC's Second Request, reflecting increased uncertainty about the merger's completion.

Revenue Decline

Q1/25 revenue of $293.4 million came in lower than the consensus of $305.4 million, declining 23% year-over-year due to softer demand.

Cross Country Healthcare Business Overview & Revenue Model

Company Description

Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company operates in two segments, Nurse and Allied Staffing and Physician Staffing. The Nurse and Allied Staffing segment offers traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, local nurses, and allied staffing; staffing solutions for registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and clinical and non-clinical professionals on long-term contract assignments, as well as workforce solutions, including MSP, RPO, and consulting services. It also provides retained search services for healthcare professionals, as well as contingent search and recruitment process outsourcing services. This segment serves public and private acute care and non-acute care hospitals, government facilities, local and national healthcare plans, managed care providers, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, and other healthcare providers under the Cross Country brand. The Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Cross Country Locums brand as independent contractors on temporary assignments at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.

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
EBITDA	-387.00K	3.99M	129.34M	285.14M	152.35M	2.41M
Net Income	-17.74M	-14.56M	72.63M	188.46M	132.00M	-12.14M
Balance Sheet
Total Assets	576.24M	589.25M	679.32M	947.84M	732.81M	356.97M
Cash, Cash Equivalents and Short-Term Investments	80.70M	81.63M	17.09M	3.60M	1.04M	1.60M
Total Debt	3.31M	3.87M	5.27M	157.75M	195.49M	73.15M
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: Negative
• Last Price: 12.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 12.07 is below the 20-day moving average (MA) of 13.09, below the 50-day MA of 13.35, and below the 200-day MA of 14.63, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 28.54 is Positive, neither overbought nor oversold. The STOCH value of 14.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$986.59M	23.87	8.37%	―	3.71%	1.32%
PNTG	68 Neutral	$869.65M	33.07	11.28%	―	30.04%	43.47%
AVAH	53 Neutral	$792.08M	233.91	42.49%	―	9.05%	―
Sector *	52 Neutral	$7.52B	0.21	-63.76%	2.30%	16.15%	0.89%
CCRN	49 Neutral	$395.69M	―	-4.00%	―	-29.16%	-140.16%
MODV	49 Neutral	$46.08M	―	-951.52%	―	-0.70%	-2.38%
AMN	49 Neutral	$810.10M	18.62	-21.08%	―	-18.13%	-215.78%

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.