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

• Market Cap: $2.91B
• Dividend Yield: 1.13%
• Average Volume (3M): 950.54K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.55
• 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): 0.35
• Shares Outstanding: 128,170,960
• 10 Day Avg. Volume: 978,224
• 30 Day Avg. Volume: 950,541
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 7.94
• Enterprise Value/Ebitda: 12.67
• 1Y Price Target: $27.40
• Price Target Upside: 23.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $22.00 ▼(-0.86% Downside)

Concentra Group Holdings Parent, Inc. shows solid financial performance with strong revenue growth and operational efficiency. However, high leverage poses a financial risk. The stock's technical indicators suggest a neutral to slightly bearish trend, while recent corporate events indicate positive strategic moves. The valuation appears fair, with a reasonable P/E ratio and modest dividend yield. Overall, the company is well-positioned for growth, but financial leverage remains a concern.

Positive Factors

Earnings

Q2 results were ahead of expectations with improvement in organic visit-per-day growth in both workers comp and employer services.

Financial Guidance

2025 revenue guidance has been raised, reflecting confidence in future growth and recent strategic acquisitions.

Strategic Acquisitions

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

Negative Factors

Employer Services Volume

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 of ~2.995mm, slightly below consensus of ~3.000mm, and visits per day of 46.8k, a -2.1% decrease y/y.

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 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. 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	2.01B	1.90B	1.84B	1.72B
Gross Profit	600.18M	527.98M	439.38M	408.19M
EBITDA	376.12M	368.26M	360.15M	330.20M
Net Income	149.32M	166.54M	179.95M	166.73M
Balance Sheet
Total Assets	2.84B	2.52B	2.49B	2.30B
Cash, Cash Equivalents and Short-Term Investments	73.87M	183.25M	31.37M	37.66M
Total Debt	527.64M	1.95B	905.00M	1.04B
Total Liabilities	2.47B	2.22B	1.16B	1.30B
Stockholders Equity	342.64M	275.67M	1.16B	973.32M
Cash Flow
Free Cash Flow	186.91M	210.35M	164.98M	228.35M
Operating Cash Flow	259.70M	274.68M	234.32M	274.34M
Investing Cash Flow	-407.91M	-71.27M	-75.31M	-50.93M
Financing Cash Flow	171.41M	-51.53M	-165.29M	-216.68M

Concentra Group Holdings Parent, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CON, the sentiment is Positive. The current price of 22.19 is below the 20-day moving average (MA) of 23.16, above the 50-day MA of 21.34, and above the 200-day MA of 21.36, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 16.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	$23.16B	30.73	9.27%	1.04%	7.98%	72.22%
NVST	73 Outperform	$3.51B	66.40	1.76%	―	0.76%	―
CON	69 Neutral	$2.91B	19.49	18.79%	1.13%	―	―
Sector *	56 Neutral	$13.44B	18.26	10.03%	0.94%	7.13%	-12.93%
NEUE	49 Neutral	$60.28M	―	84.03%	―	-13.83%	87.09%

Concentra Group Holdings Parent, Inc. Corporate Events

Concentra Group Reports Strong Q2 2025 Financial Results

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.

Concentra Group Appoints New Board Members for Growth

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.