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Concentra Group Holdings Parent, Inc. (CON)
NYSE:CON
US Market
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Concentra Group Holdings Parent, Inc. (CON) AI Stock Analysis

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CON

Concentra Group Holdings Parent, Inc.

(NYSE:CON)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
$22.50
▲(7.50% Upside)
Concentra Group Holdings Parent, Inc. shows strong financial performance with robust revenue growth and operational efficiency. However, the high debt-to-equity ratio poses a financial risk. Technical indicators suggest bearish momentum, and the valuation appears fair with a moderate P/E ratio and low dividend yield. The lack of earnings call and corporate events data limits additional insights.
Positive Factors
Operational Efficiency
Improved gross profit margin indicates effective cost management, enhancing profitability and supporting long-term operational efficiency.
Cash Flow Generation
Strong cash flow growth enhances financial flexibility, allowing for reinvestment in business operations and reducing reliance on external financing.
Revenue Growth
Steady revenue growth reflects the company's ability to expand its market presence and sustain demand for its services over time.
Negative Factors
High Debt Levels
Significant leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.
Net Profit Margin Decline
A decline in net profit margin suggests rising costs or interest expenses, which could pressure profitability if not managed effectively.
Limited Financial Stability
A low equity ratio indicates heavy reliance on debt, which can constrain financial stability and increase vulnerability to market fluctuations.

Concentra Group Holdings Parent, Inc. (CON) vs. SPDR S&P 500 ETF (SPY)

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

Company DescriptionConcentra 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 MoneyConcentra generates revenue primarily through the provision of occupational health services to businesses and individuals. Key revenue streams include fees for medical consultations, treatment procedures, and physical therapy services rendered at their clinics. The company also leverages contracts with businesses to provide employee health programs, which include preventive care, injury management, and wellness initiatives. Additionally, Concentra partners with various insurance providers to offer covered services to insured patients. These strategic partnerships and contracts with corporate clients significantly contribute to its earnings.

Concentra Group Holdings Parent, Inc. Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Concentra's Q3 2024 earnings call reflected moderate growth with key achievements such as revenue increase, expansion of locations, and improvement in cash flow metrics. However, challenges included declines in employer services visits, a slight decrease in total visits, and external impacts from hurricanes and cyber outages. The sentiment is mixed with both positive and negative elements.
Q3-2024 Updates
Positive Updates
Revenue Growth
Revenue for Q3 2024 was $489.6 million, up 3.3% year-over-year from $474.0 million in Q3 2023.
Adjusted EBITDA Increase
Adjusted EBITDA grew by 2.7% to $101.6 million in Q3 2024 compared to $98.9 million in Q3 2023.
Expansion of Locations
Concentra added 21 more locations, totaling 705, compared to the end of Q3 2023.
Cash Flow and Leverage Improvement
Operating activities generated $65.9 million in cash flow, with the net leverage ratio improving from 3.9x at IPO to 3.7x at September 30, 2024.
Dividend Announcement
Concentra's Board declared a cash dividend of $0.0625 per share, payable on November 22, 2024.
New Business Development
More than 10 new on-site health clinics, including advanced primary care services, are set to open in the coming months.
Negative Updates
Decline in Employer Services Visits
Employer services visits decreased by 2.6% year-over-year in Q3 2024, continuing a multi-quarter trend.
Decrease in Total Visits
Total patient visits decreased by 0.7% in Q3 2024 compared to the prior year.
Slight Decrease in EBITDA Margin
EBITDA margin decreased slightly to 20.7% in Q3 2024 from 20.9% in Q3 2023.
Impact of External Factors
Hurricanes and a cyber outage contributed to a softer July, impacting revenue by approximately $1.7 million and EBITDA by $600,000.
Higher Interest Expense
Net income and EPS were lower compared to the prior year due to recapitalization and associated higher interest expenses.
Company Guidance
During the third quarter 2024 earnings call, Concentra Group Holdings Parent, Inc. provided guidance for the full year, projecting revenue of approximately $1.9 billion and adjusted EBITDA in the range of $370 million to $375 million. The company reported a 3.3% year-over-year revenue growth for Q3, reaching $489.6 million, and a 2.7% increase in adjusted EBITDA to $101.6 million. Despite a slight decline in EBITDA margin from 20.9% to 20.7%, Concentra maintained robust cash flow, generating $65.9 million from operating activities and reducing its net leverage ratio to 3.7x. They also declared a cash dividend of $0.0625 per share. The company saw a 0.7% decrease in total visits, with employer services visits down by 2.6% but workers' compensation visits increasing by 1.7%. Revenue per visit rose by 3.9%, driven by higher reimbursement rates and a favorable visit mix. Looking ahead, Concentra anticipates continued growth, aided by strategic initiatives, including the separation from Select Medical and expansion efforts, such as new center openings and acquisitions.

Concentra Group Holdings Parent, Inc. Financial Statement Overview

Summary
Concentra Group Holdings Parent, Inc. demonstrates strong revenue growth and operational efficiency, as evidenced by healthy EBIT and EBITDA margins. However, the high debt-to-equity ratio raises concerns about financial risk, despite strong return on equity. The company shows robust cash flow generation, but the reliance on debt financing could impact long-term stability. Overall, the company is performing well but should focus on improving its financial leverage.
Income Statement
75
Positive
Concentra Group Holdings Parent, Inc. shows a solid financial performance with a consistent revenue growth rate of 3.38% from 2023 to 2024. The gross profit margin improved to 27.78% in 2024, indicating efficient cost management. However, the net profit margin decreased slightly to 8.76%, reflecting increased expenses or interest costs. The EBIT and EBITDA margins are strong at 16.03% and 19.38%, respectively, showcasing operational efficiency.
Balance Sheet
60
Neutral
The balance sheet reveals a high debt-to-equity ratio of 7.08 in 2024, indicating significant leverage, which could pose financial risk. The return on equity (ROE) is 60.42%, demonstrating strong profitability relative to equity. However, the equity ratio is low at 10.93%, suggesting limited financial stability and reliance on debt financing.
Cash Flow
70
Positive
The cash flow statement highlights a robust free cash flow growth rate of 27.45% from 2023 to 2024, indicating improved cash generation. The operating cash flow to net income ratio is 1.65, suggesting efficient conversion of income to cash. However, the free cash flow to net income ratio is 1.26, reflecting moderate cash flow relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue2.01B1.90B1.84B1.72B
Gross Profit600.18M527.98M439.38M408.19M
EBITDA376.12M368.26M360.15M330.20M
Net Income149.32M166.54M179.95M166.73M
Balance Sheet
Total Assets2.84B2.52B2.49B2.30B
Cash, Cash Equivalents and Short-Term Investments73.87M183.25M31.37M37.66M
Total Debt527.64M1.95B905.00M1.04B
Total Liabilities2.47B2.22B1.16B1.30B
Stockholders Equity342.64M275.67M1.16B973.32M
Cash Flow
Free Cash Flow186.91M210.35M164.98M228.35M
Operating Cash Flow259.70M274.68M234.32M274.34M
Investing Cash Flow-407.91M-71.27M-75.31M-50.93M
Financing Cash Flow171.41M-51.53M-165.29M-216.68M

Concentra Group Holdings Parent, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.93
Price Trends
50DMA
21.64
Negative
100DMA
21.35
Negative
200DMA
21.36
Negative
Market Momentum
MACD
-0.40
Positive
RSI
41.10
Neutral
STOCH
55.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CON, the sentiment is Negative. The current price of 20.93 is below the 20-day moving average (MA) of 21.44, below the 50-day MA of 21.64, and below the 200-day MA of 21.36, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of 55.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CON.

Concentra Group Holdings Parent, Inc. Risk Analysis

Concentra Group Holdings Parent, Inc. disclosed 62 risk factors in its most recent earnings report. Concentra Group Holdings Parent, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Concentra Group Holdings Parent, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$23.50B31.189.01%1.00%7.98%72.22%
73
Outperform
$3.36B65.001.71%0.76%
62
Neutral
$2.66B17.7918.79%1.19%
61
Neutral
$863.10M-11.73-72.04%97.91%-34.11%
57
Neutral
$1.39B1.08%
56
Neutral
$126.99M-9.29-191.73%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CON
Concentra Group Holdings Parent, Inc.
20.84
-0.40
-1.88%
LH
Labcorp Holdings
279.06
62.53
28.88%
NVST
Envista Holdings
20.36
1.26
6.60%
SPAI
Safe Pro Group, Inc.
7.10
4.38
161.03%
FLOC
Flowco Holdings Inc Class A
15.13
-14.60
-49.11%
BBNX
Beta Bionics, Inc.
20.21
-3.60
-15.12%

Concentra Group Holdings Parent, Inc. Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures
Concentra Group Reports Strong Q2 2025 Financial Results
Positive
Aug 7, 2025

On August 7, 2025, Concentra Group Holdings Parent, Inc. announced its financial results for the second quarter ending June 30, 2025, reporting a 15.2% increase in revenue to $550.8 million compared to the previous year. The company also declared a cash dividend of $0.0625 per share and raised its financial guidance for the fiscal year 2025, reflecting strong growth in patient visits and operational efficiencies from recent acquisitions, positioning it for continued momentum.

The most recent analyst rating on (CON) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Concentra Group Holdings Parent, Inc. stock, see the CON Stock Forecast page.

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: Sep 16, 2025