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

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

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Concentra Group Holdings Parent, Inc.

(NYSE:CON)

Rating:65Neutral
Price Target:
$22.00
▲(7.00%Upside)
Concentra's robust financial performance and strategic corporate events are significant strengths, although technical analysis shows bearish trends. The fair valuation supports a stable investment outlook, while recent corporate initiatives position the company for growth. Investors should monitor operational efficiency improvements to ensure continued profitability.
Positive Factors
Earnings Performance
Q1 results were ahead of consensus estimates, showcasing strong performance despite market challenges.
Strategic Acquisitions
The integration of the Nova acquisition is progressing well and exceeding synergy targets, contributing positively to revenue.
Negative Factors
Macroeconomic Concerns
The company has not yet seen any change in fundamentals due to macro uncertainty.
Volume Challenges
CON continues to face volume pressures, with total patient visits slightly below consensus and a decrease in visits per day.

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 Group Holdings Parent, Inc. generates revenue through multiple streams primarily centered around its healthcare services. The company earns income by providing occupational health services such as workplace injury care, drug testing, and employment physicals to employers. It operates a network of clinics that offer urgent care services, which are billed to patients and their insurance providers. Additionally, Concentra offers physical therapy and wellness programs, generating further revenue from both individual patients and corporate clients who seek to enhance employee health and productivity. Partnerships with businesses, insurers, and other healthcare providers play a crucial role in driving Concentra's revenue.

Concentra Group Holdings Parent, Inc. Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q3-2024)
|
% Change Since: -5.73%|
Next Earnings Date:Jul 31, 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 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.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue1.93B1.90B1.84B1.72B
Gross Profit523.15M527.98M439.38M408.19M
EBITDA317.72M368.26M360.15M330.20M
Net Income156.50M166.54M179.95M166.73M
Balance Sheet
Total Assets2.73B2.52B2.33B2.30B
Cash, Cash Equivalents and Short-Term Investments52.11M183.25M31.37M37.66M
Total Debt517.97M1.95B905.00M1.04B
Total Liabilities2.40B2.22B1.16B1.30B
Stockholders Equity307.12M275.67M1.16B973.32M
Cash Flow
Free Cash Flow178.93M210.35M164.98M228.35M
Operating Cash Flow241.75M274.68M234.32M274.34M
Investing Cash Flow-343.66M-71.27M-75.31M-50.93M
Financing Cash Flow104.47M-51.53M-165.29M-216.68M

Concentra Group Holdings Parent, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.56
Price Trends
50DMA
21.46
Negative
100DMA
21.54
Negative
200DMA
21.30
Negative
Market Momentum
MACD
-0.25
Positive
RSI
41.25
Neutral
STOCH
37.46
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 20.56 is below the 20-day moving average (MA) of 21.21, below the 50-day MA of 21.46, and below the 200-day MA of 21.30, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LHLH
77
Outperform
$21.91B30.218.98%1.10%7.13%74.73%
COCON
65
Neutral
$2.64B16.6920.83%1.22%
57
Neutral
$3.46B-31.33%-2.30%-854.21%
54
Neutral
$1.93B-6.646.82%2.77%10.18%-64.59%
51
Neutral
$61.33M84.03%-17.91%83.17%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CON
Concentra Group Holdings Parent, Inc.
20.56
-2.10
-9.27%
LH
Labcorp Holdings
261.89
61.33
30.58%
NVST
Envista Holdings
20.39
3.98
24.25%
NEUE
NeueHealth Inc
6.87
1.86
37.13%

Concentra Group Holdings Parent, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Concentra Group Appoints New Board Members for Growth
Positive
Jun 26, 2025

On June 26, 2025, Concentra Group Holdings Parent, Inc. announced the appointment of Vipin Gopal and Brigid Bonner to its Board of Directors, effective July 1, 2025. This strategic move is aimed at enhancing the company’s growth and shareholder value by leveraging the new directors’ expertise in data, technology, and business transformation. Vipin Gopal brings extensive experience in data and AI strategy from roles at major companies like Eli Lilly and Walgreens Boots Alliance, while Brigid Bonner offers a wealth of knowledge in strategic planning and digital transformation from her leadership roles in various sectors. The appointments are expected to strengthen Concentra’s position in the healthcare industry as it navigates technological advancements and complex market dynamics.

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.

M&A TransactionsBusiness Operations and Strategy
Concentra Completes Acquisition of Onsite Innovations
Positive
Jun 2, 2025

On June 1, 2025, Concentra Health Services, a subsidiary of Concentra Group Holdings Parent, Inc., completed the acquisition of Onsite Innovations for $55 million. This acquisition doubles the size of Concentra’s Onsite Health segment and aligns with its growth strategy, expanding its reach to approximately 350 onsite health clinics across over 40 states. The integration aims to enhance service offerings and maintain high-quality care, with key leaders from Onsite Innovations joining Concentra to ensure business continuity and growth.

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.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Concentra Group Reports Q1 2025 Financial Results
Positive
May 7, 2025

On May 7, 2025, Concentra Group Holdings Parent, Inc. announced its financial results for the first quarter ended March 31, 2025, reporting a revenue increase of 7.1% to $500.8 million and an adjusted EBITDA growth of 6.8% to $102.7 million. The company declared a cash dividend of $0.0625 per share and completed the acquisition of Nova Medical Centers, enhancing its network with 67 additional centers. Concentra also signed an agreement to acquire Pivot Onsite Innovations, which will expand its onsite health clinic footprint significantly. Despite a decrease in net income due to higher interest expenses, the company raised its financial guidance for 2025, expecting revenue between $2.1 billion and $2.15 billion.

M&A TransactionsBusiness Operations and Strategy
Concentra Group Acquires Pivot Onsite for $55 Million
Positive
Apr 21, 2025

On April 21, 2025, Concentra Group Holdings Parent, Inc. announced that its subsidiary, Concentra Health Services, Inc., entered into an agreement to acquire Pivot Onsite Innovations for $55 million. This acquisition is expected to double the size of Concentra’s Onsite Health segment, expanding its reach to approximately 350 onsite health clinics in over 40 states. The transaction is anticipated to close in the second quarter of 2025, subject to customary conditions, and aims to enhance Concentra’s mission of improving workforce health by leveraging combined resources and expertise.

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: Jun 27, 2025