CorVel (CRVL) AI Stock Analysis

• Market Cap: $5.72B
• Dividend Yield: N/A
• Average Volume (3M): 154.03K
• Price to Earnings (P/E): 65.6
• Beta (1Y): 0.71
• Revenue Growth: 12.64%
• EPS Growth: 17.74%
• Country: US
• Employees: 4,870
• Sector: Financial
• Sector Strength: 86
• Industry: Insurance - Brokers
• EPS (TTM): 1.70
• Shares Outstanding: 51,359,140
• 10 Day Avg. Volume: 206,004
• 30 Day Avg. Volume: 154,026
• PEG Ratio: 3.72
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 32.94
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

CorVel's overall stock score reflects its strong financial performance with solid profitability, low leverage, and effective cash flow management. However, the technical indicators are mixed, and the high P/E ratio suggests potential overvaluation. The absence of a dividend yield adds to valuation concerns, though the company maintains a stable financial foundation. The score indicates a balanced outlook with considerations for both strengths and potential risks.

CorVel Business Overview & Revenue Model

Company Description

CorVel Corporation is a provider of risk management solutions, specializing in workers' compensation, auto, liability, and health solutions for employers, third-party administrators, insurance companies, and government agencies. The company integrates technology with its services to deliver comprehensive claims management, medical cost containment, and disability management services. Founded in 1987 and headquartered in Irvine, California, CorVel operates throughout the United States, offering a suite of services designed to reduce the cost and complexity of claims management.

How the Company Makes Money

CorVel Corporation generates revenue primarily through the provision of its risk management services, which include claims management, medical bill review, and network solutions. The company's revenue streams are largely derived from service agreements with employers, insurance carriers, and government entities. CorVel utilizes its proprietary software and data analytics to increase efficiency and reduce costs for its clients, thus driving demand for its services. Additionally, the company benefits from strategic partnerships with healthcare providers and technology vendors, enhancing its service offerings and expanding its market reach.

CorVel Financial Statement Overview

Summary

Overall, CorVel demonstrates a solid financial position with strong profitability, low leverage, and effective cash flow management. The company has a robust foundation to support future growth, though it may face challenges in accelerating revenue growth. Continued focus on operational efficiency and market expansion could enhance its financial performance further.

Income Statement

CorVel's income statement reflects strong profitability with a consistent upward trend in revenue and net income over the years. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of approximately 19.93% and a net profit margin of 10.23%, indicating efficient cost management and profitability. However, the revenue growth rate has slowed, suggesting potential challenges in market expansion.

Balance Sheet

The balance sheet of CorVel indicates stability with a low debt-to-equity ratio of 0.07, suggesting minimal leverage risk. The equity ratio stands at 55.83%, highlighting a strong financial foundation. Return on equity (ROE) is 21.89%, reflecting efficient use of equity. Despite these strengths, the company's asset base is growing modestly, which may limit further expansion.

Cash Flow

CorVel's cash flow statement exhibits strong cash generation, with a significant increase in free cash flow over the periods. The operating cash flow to net income ratio is 1.82, indicating robust cash conversion. The free cash flow to net income ratio of 1.25 suggests effective capital expenditure management, supporting the company's growth and operational initiatives.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
795.31M	718.56M	646.23M	552.64M	592.23M
	Gross Profit
171.69M	158.26M	152.11M	123.62M	125.92M
	EBIT
95.10M	59.43M	60.60M	35.74M	38.20M
	EBITDA
121.35M	109.67M	108.43M	82.61M	83.23M
	Net Income Common Stockholders
76.25M	66.36M	66.41M	46.36M	47.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.56M	71.33M	97.50M	139.72M	83.22M
	Total Assets
454.68M	393.92M	415.25M	424.76M	416.26M
	Total Debt
31.40M	23.86M	43.14M	41.90M	85.10M
	Net Debt
-74.17M	-47.47M	-54.36M	-97.82M	1.87M
	Total Liabilities
207.03M	191.75M	202.85M	204.36M	226.55M
	Stockholders Equity
247.65M	202.18M	212.40M	220.40M	189.71M
Cash Flow		Free Cash Flow
70.00M	55.97M	37.40M	77.14M	48.47M
	Operating Cash Flow
99.24M	82.29M	67.22M	94.38M	80.83M
	Investing Cash Flow
-29.24M	-26.32M	-29.82M	-17.24M	-32.36M
	Financing Cash Flow
-35.76M	-82.14M	-79.61M	-20.64M	-56.96M

CorVel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRVL, the sentiment is Positive. The current price of 110.52 is below the 20-day moving average (MA) of 112.41, above the 50-day MA of 110.12, and above the 200-day MA of 109.44, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 30.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRVL.

CorVel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRVL	72 Outperform	$5.72B	65.64	33.01%	―	12.64%	17.74%
CRD.A	65 Neutral	$527.02M	18.21	19.94%	2.51%	4.44%	33.61%
CRD.B	64 Neutral	$527.02M	17.31	19.94%	2.64%	4.44%	33.61%
Sector *	64 Neutral	$12.52B	9.82	7.95%	16985.69%	12.70%	-4.60%
EHTH	57 Neutral	$141.93M	―	1.10%	―	17.56%	48.73%
SLQT	57 Neutral	$426.92M	―	-4.16%	―	25.67%	72.08%
GOCO	47 Neutral	$165.83M	―	-1.24%	―	8.74%	89.80%

CorVel Corporate Events

CorVel Announces Leadership Transition as Founder Retires

CorVel Corporation announced the retirement of its founder and long-serving Chairman, V. Gordon Clemons, effective November 26, 2024. Clemons, who has been with the company since its inception, will be succeeded by Michael G. Combs, the current CEO and President. Clemons’ leadership and vision have been pivotal in shaping CorVel’s success, and he will continue to support the company as an outside consultant. This leadership transition marks a new chapter for CorVel, promising ongoing innovation and growth.