Concentra Group Holdings Parent, Inc. (CON) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: 0.31%
• Average Volume (3M): 825.19K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 8,758
• Sector: Services
• Sector Strength: N/A
• Industry: Medical - Equipment & Services
• EPS (TTM): 1.31
• Shares Outstanding: 128,171,950
• 10 Day Avg. Volume: 831,486
• 30 Day Avg. Volume: 825,189
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.42
• Price to Cash Flow (P/CF): 10.10
• P/FCF Ratio: 13.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.86
• Price Target Upside: 31.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Concentra Group's stock score is driven by strong financial performance with robust cash generation and revenue growth. However, challenges in maintaining profit margins and a low equity ratio slightly dampen the outlook. Technical indicators show a neutral trend but caution due to potential overbought conditions. The stock is reasonably valued with a moderate P/E ratio, but a low dividend yield limits income potential.

Positive Factors

Acquisition

The acquisition of Nova Medical Centers closed successfully, aligning with Concentra's expectations and reinforcing their strategic growth plans.

Financial Performance

Concentra's free cash flow was stronger than estimated, indicating robust financial health.

Revenue Growth

Revenue from Onsite Health Clinics increased by 7.3% year over year, showcasing growth in this segment.

Negative Factors

Employer Services

Employer Services revenues missed estimates due to declining volumes.

Patient Visits

Patient visits in Employer Services declined by 3.3% year over year, reflecting a decrease in demand.

Volume Pressure

CON continues to face volume pressures, with total patient visits slightly below consensus.

Concentra Group Holdings Parent, Inc. Business Overview & Revenue Model

Company Description

Concentra Group Holdings Parent, Inc. provides occupational health services in the United States. The company offers occupational and consumer health services, including workers' compensation injury care, urgent care, clinical testing, preventative care, and employer services, as well as wellness programs through occupational health centers and onsite clinics. It also provides Concentra Telemed, a telemedicine solution for the treatment of work-related injuries and illnesses, and employer services; pharmacy solution under the Concentra Pharmacy name; and Concentra Medical Compliance Administration, a third-party administrator that helps to manage abuse testing programs for employers with regulated or non-regulated workforces. The company was founded in 1979 and is based in Mechanicsburg, Pennsylvania. Concentra Group Holdings Parent, Inc. operates as a subsidiary of Select Medical Corporation.

How the Company Makes Money

Concentra generates revenue primarily through the provision of occupational health services to businesses and their employees. The company operates a network of medical centers that offer services such as urgent care, physical therapy, drug testing, and preventive wellness programs. Revenue streams include fees from employers for health services provided to their employees, as well as payments from insurance providers. Concentra may also enter into partnerships with corporations to deliver tailored healthcare solutions, further contributing to its earnings. Additionally, the company may receive income from ancillary services and products offered at its medical centers.

Concentra Group Holdings Parent, Inc. Financial Statement Overview

Summary

Concentra Group demonstrates robust revenue growth and strong cash flow generation, contributing to a stable financial position. However, the decline in net profit margin and equity ratio suggests challenges in maintaining profitability and financial resilience. Improved debt management is a positive sign, yet the company should focus on enhancing operational efficiency to sustain growth.

Income Statement

Concentra Group has shown consistent revenue growth over the past three years, with the latest annual increase of 3.38%. The gross profit margin improved to 27.78% in 2024, indicating effective cost management. However, the net profit margin decreased to 8.76% from 9.79% in 2023, suggesting challenges in controlling operational expenses. The EBIT margin dropped significantly due to lower EBIT, but EBITDA margin remains strong at 14.28%, reflecting healthy cash profitability.

Balance Sheet

The company's debt-to-equity ratio improved to 1.75 from 0.78 last year, signifying reduced leverage and financial risk. Return on equity decreased to 60.42% from 15.57%, largely due to a decrease in net income. The equity ratio of 10.93% indicates a relatively low proportion of equity financing, suggesting potential vulnerability to financial shocks.

Cash Flow

Free cash flow grew by 27.47%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.65, highlighting efficient cash operations. Free cash flow to net income ratio also improved, showing the company's ability to generate cash relative to its earnings. Continued positive cash flow trends contribute to financial stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
1.90B	1.84B	1.72B
	Gross Profit
527.98M	439.38M	408.19M
	EBIT
304.76M	287.38M	258.22M
	EBITDA
368.26M	360.15M	330.20M
	Net Income Common Stockholders
166.54M	179.95M	166.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.25M	31.37M	37.66M
	Total Assets
2.52B	2.33B	2.30B
	Total Debt
482.45M	905.00M	1.04B
	Net Debt
299.19M	873.63M	1.00B
	Total Liabilities
2.22B	1.16B	1.30B
	Stockholders Equity
275.67M	1.16B	973.32M
Cash Flow		Free Cash Flow
210.35M	164.98M	228.35M
	Operating Cash Flow
274.68M	234.32M	274.34M
	Investing Cash Flow
-71.27M	-75.31M	-50.93M
	Financing Cash Flow
-51.53M	-165.29M	-216.68M

Concentra Group Holdings Parent, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CON	68 Neutral	$2.61B	15.69	15.57%	0.31%	―	―
LH	68 Neutral	$18.17B	24.56	9.37%	1.33%	0.83%	89.55%
Sector *	58 Neutral	$984.85M	9.38	0.12%	3.42%	11.77%	-81.99%
NVST	52 Neutral	$2.61B	―	-31.47%	―	-2.18%	-1073.00%
NEUE	50 Neutral	$57.14M	―	84.03%	―	-42.06%	85.00%