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

• Market Cap: $2.74B
• Dividend Yield: 0.28%
• Average Volume (3M): 670.07K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.41
• 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): 0.30
• Shares Outstanding: 128,171,950
• 10 Day Avg. Volume: 638,536
• 30 Day Avg. Volume: 670,065
• PEG Ratio: 0.44
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.16
• 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: $27.00
• Price Target Upside: 26.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $25.00 ▲( 16.77% Upside)

Concentra Group's overall stock score of 73 reflects strong financial performance and strategic corporate events, like acquisitions, which bolster growth prospects. Despite fair valuation and stable technicals, profitability challenges limit the score.

Positive Factors

Acquisitions

Integration of the Nova deal is progressing well and is ahead of synergy targets.

Earnings

Q1 results were ahead of consensus estimates, showcasing strong performance despite market challenges.

Negative Factors

Employer Services

CON continues to face challenges from lower employer services volumes, as hiring and quitting rates remain low.

Volume Pressures

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 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. 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. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 21.41 is below the 20-day moving average (MA) of 21.74, above the 50-day MA of 21.25, and below the 200-day MA of 21.55, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 45.96 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LH	74 Outperform	$20.98B	28.93	8.98%	1.19%	7.13%	74.73%
CON	73 Outperform	$2.74B	17.38	20.83%	0.28%	―	―
Sector *	58 Neutral	$936.00M	6.72	2.42%	3.91%	10.54%	-75.09%
NVST	56 Neutral	$2.86B	―	-31.33%	―	-2.30%	-854.21%
NEUE	51 Neutral	$61.42M	―	84.03%	―	-17.91%	83.17%

Concentra Group Holdings Parent, Inc. Corporate Events

Concentra Group Reports Q1 2025 Financial Results

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.

Concentra Group Acquires Pivot Onsite for $55 Million

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.