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Cross Country Healthcare (CCRN)
:CCRN
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Cross Country Healthcare (CCRN) AI Stock Analysis

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CCRN

Cross Country Healthcare

(NASDAQ:CCRN)

Rating:52Neutral
Price Target:
$13.50
▲(4.90% Upside)
The overall stock score is primarily impacted by financial performance challenges, including declining revenues and profitability, which weigh heavily on the company's valuation. Technical analysis shows some positive momentum, but the stock remains below key moving averages. The lack of earnings call data and corporate events excludes their influence on the score.
Positive Factors
Acquisition
Aya Healthcare's acquisition offer for Cross Country at a 67% premium to its previous closing price is a strong positive signal for the stock.
Cash Flow
Free cash flow of $21.7 million in the quarter was a bright spot, showing the company's ability to generate cash despite challenges.
Gross Margin
Cross Country experienced a sequential stabilization in gross margin, which came in at 20.0%, better than analyst estimates.
Negative Factors
Earnings
Adj EBITDA declined 44% year-over-year to $8.6 million, underscoring the financial pressure the company is under.
Regulatory Uncertainty
Cross Country's shares dropped 24% following the FTC's Second Request, reflecting uncertainty over the completion of the merger with Aya Healthcare.
Revenue Decline
Q1 revenue of $293.4 million came in lower than expected, highlighting ongoing challenges in the healthcare travel staffing industry.

Cross Country Healthcare (CCRN) vs. SPDR S&P 500 ETF (SPY)

Cross Country Healthcare Business Overview & Revenue Model

Company DescriptionCross 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 MoneyCross 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q3-2024)
|
% Change Since: -7.01%|
Next Earnings Date:Oct 29, 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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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 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
45
Neutral
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
60
Neutral
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
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.26B1.34B2.02B2.81B1.68B836.42M
Gross Profit246.55M274.25M450.41M627.69M375.00M202.73M
EBITDA-387.00K3.99M129.34M285.14M152.35M2.41M
Net Income-17.74M-14.56M72.63M188.46M132.00M-12.14M
Balance Sheet
Total Assets576.24M589.25M679.32M947.84M732.81M356.97M
Cash, Cash Equivalents and Short-Term Investments80.70M81.63M17.09M3.60M1.04M1.60M
Total Debt3.31M3.87M5.27M157.75M195.49M73.15M
Total Liabilities158.03M170.29M205.92M490.62M435.28M202.06M
Stockholders Equity418.21M418.96M473.39M457.22M297.53M154.38M
Cash Flow
Free Cash Flow111.40M111.40M234.52M125.26M-92.79M22.59M
Operating Cash Flow119.79M120.12M248.50M134.05M-85.62M27.20M
Investing Cash Flow-8.39M-8.71M-13.78M-43.87M-34.05M-4.62M
Financing Cash Flow-35.92M-46.85M-221.24M-87.60M119.09M-22.01M

Cross Country Healthcare Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.87
Price Trends
50DMA
13.13
Negative
100DMA
13.72
Negative
200DMA
14.66
Negative
Market Momentum
MACD
0.02
Positive
RSI
44.67
Neutral
STOCH
11.15
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 12.87 is below the 20-day moving average (MA) of 12.95, below the 50-day MA of 13.13, and below the 200-day MA of 14.66, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 11.15 is Positive, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$1.01B98.872.28%5.17%-65.33%
64
Neutral
$764.87M29.0411.28%30.04%43.47%
52
Neutral
$420.94M-1.96%-29.16%-140.16%
51
Neutral
$7.39B0.40-62.86%2.37%15.56%-1.99%
51
Neutral
$758.92M77.2642.49%9.05%
48
Neutral
$37.18M-951.52%-0.70%-2.38%
45
Neutral
$669.60M18.62-21.08%-18.13%-215.78%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CCRN
Cross Country Healthcare
12.84
-2.83
-18.06%
AMN
AMN Healthcare Services
17.49
-44.72
-71.89%
HCSG
Healthcare Services
13.97
3.39
32.04%
MODV
ModivCare
2.59
-20.52
-88.79%
PNTG
Pennant Group
22.19
-6.58
-22.87%
AVAH
Aveanna Healthcare Holdings
3.78
-0.76
-16.74%

Cross Country Healthcare Corporate Events

M&A TransactionsFinancial Disclosures
Cross Country Healthcare Reports Q1 2025 Financial Results
Neutral
May 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025