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CorVel Corporation (CRVL)
NASDAQ:CRVL
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CorVel
(NASDAQ:CRVL)
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Rating:75Outperform
Price Target:
$84.00
▲(16.67% Upside)
CorVel's strong financial performance and positive earnings call are the most significant factors contributing to the stock's score. The company's robust profitability, effective financial management, and technological advancements position it well for future growth. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation, which tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Technological Advancements
Integration of AI enhances operational efficiency and competitive edge, positioning CorVel for sustained growth and innovation.
Strong Financial Management
Effective financial management ensures robust profitability and cash flow, enabling strategic investments and shareholder returns.
Negative Factors
Labor Market Challenges
Recruitment and retention challenges may impact service quality and operational efficiency, affecting long-term growth potential.
Pricing Pressure
Pricing pressures could compress margins and necessitate cost efficiencies, impacting profitability if not managed effectively.
Moderated Revenue Growth
Slowing revenue growth may indicate market saturation or increased competition, potentially limiting future expansion opportunities.
CorVel (CRVL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.61B
Dividend YieldN/A
Average Volume (3M)163.23K
Price to Earnings (P/E)35.5
Beta (1Y)0.67
Revenue Growth10.43%
EPS Growth29.22%
CountryUS
Employees4,870
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.54
Shares Outstanding51,246,950
10 Day Avg. Volume168,294
30 Day Avg. Volume163,227
Financial Highlights & Ratios
PEG Ratio2.42
Price to Book (P/B)17.87
Price to Sales (P/S)6.42
P/FCF Ratio62.84
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CorVel Business Overview & Revenue Model
Company DescriptionCorVel Corporation provides workers' compensation, auto, liability, and health solutions for employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement services, retrospective utilization review, facility claim review, professional review, pharmacy services, directed care services, Medicare solutions, clearinghouse services, independent medical examinations, and inpatient medical bill review. It also provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company was incorporated in 1987 and is headquartered in Fort Worth, Texas.
How the Company Makes MoneyCorVel generates revenue primarily through its claims management services, which involve processing and managing workers' compensation claims for insurance companies and employers. The company charges fees for its services, including bill review, utilization management, and case management. Key revenue streams also include its network solutions, where CorVel partners with healthcare providers to offer cost-effective treatment options for injured workers, earning revenue through referral fees and negotiated rates. Additionally, CorVel benefits from long-term contracts with insurance companies, which provide a stable source of income. The company's focus on technology-driven solutions enhances its value proposition, allowing it to capture a larger market share and drive growth in its revenue streams.
CorVel Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant revenue and EPS growth, and successful integration of AI technologies to enhance productivity and efficiency. However, the company faces challenges in the workers' compensation labor market and pricing pressures in the commercial health segment. Overall, the positive financial results and technological advancements outweigh the noted challenges.Q2-2026 Updates
Positive Updates
Revenue Growth and Increased EPS
The September quarter revenues were $240 million, a 7% increase from the $224 million in the September 2024 quarter. The earnings per share for the quarter ending September 30, 2025, were $0.54, marking a 20% increase over the previous year's EPS of $0.45.
AI Integration and Technological Advancements
CorVel is leveraging Agentic AI to enhance productivity, reduce costs, and accelerate decision-making. AI-driven enhancements have improved capacity and precision in identifying medical bills and claims with potential savings.
Strong Financial Management
CorVel reported improved gross margin and net income, reaching $28 million, up from $23 million in the previous year. The company repurchased 143,774 shares at a cost of $12.8 million, maintaining a strong and debt-free balance sheet with a cash balance of $207 million.
Organic Growth and Operational Efficiency
The company reported significant organic growth, driven by expanded activity with existing partners. Network Solutions increased by $12 million, primarily reflecting higher utilization of CERiS, Ancillary Care, and Bill Review Solutions.
Negative Updates
Challenges in the Workers' Compensation Labor Market
The industry is losing experienced professionals faster than it's attracting replacements, creating challenges in recruiting and retaining experienced claims management and underwriting professionals.
Pricing Pressure in the Commercial Health Segment
The CERiS division faces elevated pricing pressure from payer partners, necessitating an increased focus on delivering savings and operational efficiencies.
Company Guidance
During the call, CorVel Corporation provided guidance on its financial and operational performance for the September quarter. The company reported revenue of $240 million, a 7% increase from $224 million in the same quarter of the previous year, with earnings per share rising by 20% to $0.54, despite a reduction of approximately 9 percentage points due to onetime events. The net income for the quarter was $28 million, up from $23 million the previous year. CorVel highlighted significant advancements in AI, particularly Agentic AI, to enhance productivity and efficiency across its operations. The company also addressed industry challenges, such as demographic shifts in the workers' compensation labor market, by investing in training programs like CorVel University. Additionally, CorVel's balance sheet remains strong and debt-free, with a cash balance of $207 million, allowing for continued product expansion and acquisition opportunities. The quarter also saw CorVel repurchasing 143,774 shares worth $12.8 million, bringing the total shares repurchased to 69% of the total outstanding.CorVel Financial Statement Overview
Summary
CorVel exhibits a strong financial profile with consistent revenue growth, robust profitability, and a stable balance sheet. The company's low leverage and high return on equity indicate effective financial management. Cash flow generation remains strong, supporting ongoing operations and growth. While revenue growth has moderated, the overall financial health of the company is solid, positioning it well for future opportunities.Income Statement
CorVel's income statement shows strong performance with consistent revenue growth and improving profit margins. The TTM data indicates a gross profit margin of 23.77% and a net profit margin of 10.98%, reflecting efficient cost management and profitability. The EBIT and EBITDA margins are also robust at 13.94% and 17.25%, respectively, indicating strong operational efficiency. The revenue growth rate of 1.66% in the TTM period suggests steady expansion, although it has slowed compared to previous years.Balance Sheet
The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.08, indicating low leverage and financial risk. The return on equity is impressive at 32.31%, showcasing effective use of shareholders' equity to generate profits. The equity ratio stands at 59.31%, suggesting a strong equity base relative to total assets. Overall, the company maintains a stable and low-risk financial structure.Cash Flow
CorVel's cash flow statement highlights strong cash generation capabilities. The free cash flow growth rate of 2.90% in the TTM period indicates positive cash flow trends. The operating cash flow to net income ratio of 0.60 and free cash flow to net income ratio of 0.69 suggest efficient conversion of income into cash. The company demonstrates solid cash flow management, supporting its operational and strategic initiatives.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 933.84M | 895.59M | 795.31M | 718.56M | 646.23M | 552.64M |
| Gross Profit | 225.76M | 209.73M | 171.69M | 158.26M | 152.11M | 123.62M |
| EBITDA | 165.83M | 150.36M | 121.35M | 109.67M | 108.43M | 82.61M |
| Net Income | 105.33M | 95.17M | 76.25M | 66.36M | 66.41M | 46.36M |
Balance Sheet | ||||||
| Total Assets | 611.68M | 545.98M | 454.68M | 393.92M | 415.25M | 424.76M |
| Cash, Cash Equivalents and Short-Term Investments | 207.45M | 170.58M | 105.56M | 71.33M | 97.50M | 139.72M |
| Total Debt | 25.89M | 28.08M | 31.40M | 33.76M | 43.14M | 54.66M |
| Total Liabilities | 248.90M | 223.99M | 207.03M | 191.75M | 202.85M | 204.36M |
| Stockholders Equity | 362.78M | 321.99M | 247.65M | 202.18M | 212.40M | 220.40M |
Cash Flow | ||||||
| Free Cash Flow | 101.19M | 91.56M | 70.00M | 55.97M | 37.40M | 77.14M |
| Operating Cash Flow | 144.60M | 127.31M | 99.24M | 82.29M | 67.22M | 94.38M |
| Investing Cash Flow | -43.41M | -35.76M | -29.24M | -26.32M | -29.82M | -17.24M |
| Financing Cash Flow | -32.09M | -26.54M | -35.76M | -82.14M | -79.61M | -20.64M |
CorVel Technical Analysis
Positive
72.00
Price Trends
71.68
Positive
76.22
Negative
90.40
Negative
Market Momentum
-0.55
Negative
57.85
Neutral
92.67
Negative
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 72 is above the 20-day moving average (MA) of 69.28, above the 50-day MA of 71.68, and below the 200-day MA of 90.40, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 92.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRVL.
CorVel Risk Analysis
CorVel disclosed 32 risk factors in its most recent earnings report. CorVel reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CorVel Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $26.91B | 24.19 | 10.47% | 0.77% | 17.87% | -9.35% | |
75 Outperform | $3.61B | 35.48 | 32.63% | ― | 10.43% | 29.22% | |
72 Outperform | $1.55B | 63.36 | 8.79% | ― | 18.54% | -67.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $521.66M | 16.33 | 18.72% | 2.47% | 4.39% | 61.61% | |
67 Neutral | $521.66M | 16.86 | 18.72% | 2.47% | 4.39% | 61.61% | |
50 Neutral | $3.54B | -61.01 | -4.63% | ― | 10.69% | 32.74% |
* Financial Sector Average
CRVL
CorVel
72.00
-34.01
-32.08%
BRO
Brown & Brown
80.59
-21.28
-20.89%
CRD.A
Crawford & Company A
11.00
0.51
4.86%
CRD.B
Crawford & Company B
10.66
0.40
3.90%
BWIN
Baldwin Insurance Group
26.21
-9.51
-26.62%
TWFG
TWFG, Inc. Class A
28.02
-0.82
-2.84%
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.