CorVel Corporation (CRVL)
NASDAQ:CRVL
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CorVel
(NASDAQ:CRVL)
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Rating:76Outperform
Price Target:
$70.00
▼(-2.78% Downside)
Action:Reiterated
Date:06/02/26
Score is driven primarily by strong fundamentals (rising margins, high ROE, and low leverage) and a favorable earnings call highlighting accelerating bookings/pipeline and continued operational leverage. Technicals are moderately supportive but not fully in a long-term uptrend (below the 200-day), while valuation is a notable headwind with a higher P/E and no dividend yield provided.
Positive Factors
Conservative balance sheet
Very low and declining debt gives CorVel durable financial flexibility to fund implementations, invest in AI/platforms, pursue M&A or sustain buybacks without stressing liquidity. Strong equity growth and high ROE underpin long‑term solvency and capital efficiency as the business scales.
Negative Factors
Timing-related CERIS benefits
Portions of reported CERIS upside were timing‑related recoveries that boosted near‑term EPS. If such spike items do not recur, baseline organic growth and margin improvement may be lower than headline figures, complicating forecasts and masking the pace of sustainable profit expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low and declining debt gives CorVel durable financial flexibility to fund implementations, invest in AI/platforms, pursue M&A or sustain buybacks without stressing liquidity. Strong equity growth and high ROE underpin long‑term solvency and capital efficiency as the business scales.
Read all positive factors
CorVel (CRVL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.13B
Dividend YieldN/A
Average Volume (3M)163.23K
Price to Earnings (P/E)28.6
Beta (1Y)0.60
Revenue Growth7.03%
EPS Growth16.18%
CountryUS
Employees4,870
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)2.15
Shares Outstanding50,691,185
10 Day Avg. Volume168,294
30 Day Avg. Volume163,227
Financial Highlights & Ratios
PEG Ratio1.57
Price to Book (P/B)7.11
Price to Sales (P/S)2.92
P/FCF Ratio0.03
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue3.04
Enterprise Value/Gross Profit12.53
Enterprise Value/Ebitda17.53
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 Description
CorVel 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 qualit...
How the Company Makes Money
CorVel primarily makes money by providing fee-based services and technology that support the administration and medical cost management of insurance claims. Key revenue streams generally include: (1) Claims administration/TPA services: CorVel is p...
CorVel Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: revenue and EPS growth (quarterly and fiscal), improved margins, robust new bookings (+56%) and pipeline expansion (RFPs +20%), cash generation, a debt-free balance sheet and aggressive share repurchases. Strategic wins for CERIS, expansion of prepaid solutions and continued AI/automation investments position the company for scalable growth. Offset risks include a higher effective tax rate, some one-time/timing-driven CERIS benefits that may not fully recur, only low single-digit growth in patient management, near-term staffing costs, and industry headwinds including rising claims severity and cybersecurity risks. Overall, the favorable results, expanding bookings and strong cash/return-of-capital program materially outweigh the noted challenges.Positive Updates
Quarterly Revenue Growth
March quarter revenues were $249 million, up 7% year-over-year from $232 million in March 2025.
Negative Updates
Higher Effective Tax Rate
Effective tax rate increased compared to the prior year because the prior year included a discrete benefit from stock option exercises that did not recur, which tempered EPS growth.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Growth
March quarter revenues were $249 million, up 7% year-over-year from $232 million in March 2025.
Read all positive updates
Company Guidance
The company guided that momentum from CERIS and recently signed enterprise programs—4 large payer implementations in 2026, including 2 new multiyear partnerships with top‑10 national payers—should drive ongoing revenue and profit tailwinds, with new bookings up 56% year‑over‑year and RFP activity up 20%, and those multiyear bookings expected to contribute meaningfully to revenue and profit growth in the back half of the calendar year as implementations scale; management also said a timing‑related CERIS benefit added $0.02 to EPS in the period. They expect prepaid solutions (revenue realization in about 1–2 months versus ~6+ months for postpaid) and expanded automation/AI to deliver sustained productivity gains, normalize elevated personnel levels as deployments mature, reduce manual work and improve operating leverage through the remainder of the year and into 2027. Supporting this push, CorVel pointed to a strong, debt‑free balance sheet with $233M cash, $66M free cash flow for FY2026, and ongoing share repurchases (872,744 shares repurchased for $56M in FY2026; 366,306 for $20M in Q4; 115.3M total repurchased to date for $868M, ~69% of shares outstanding at an average $7.70), which management said funds continued investment in technology, product expansion and M&A optionality.CorVel Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 958.53M | 895.59M | 795.31M | 718.56M | 646.23M |
| Gross Profit | 232.86M | 209.73M | 171.69M | 158.26M | 152.11M |
| EBITDA | 143.13M | 150.36M | 121.35M | 109.67M | 108.43M |
| Net Income | 110.34M | 95.17M | 76.25M | 66.36M | 66.41M |
Balance Sheet | |||||
| Total Assets | 642.99M | 545.98M | 454.68M | 393.92M | 415.25M |
| Cash, Cash Equivalents and Short-Term Investments | 233.07M | 170.58M | 105.56M | 71.33M | 97.50M |
| Total Debt | 20.69M | 28.08M | 31.40M | 33.76M | 43.14M |
| Total Liabilities | 248.75M | 223.99M | 207.03M | 191.75M | 202.85M |
| Stockholders Equity | 394.23M | 321.99M | 247.65M | 202.18M | 212.40M |
Cash Flow | |||||
| Free Cash Flow | 110.28B | 91.56M | 70.00M | 55.97M | 37.40M |
| Operating Cash Flow | 155.64B | 127.31M | 99.24M | 82.29M | 67.22M |
| Investing Cash Flow | -45.36B | -35.76M | -29.24M | -26.32M | -29.82M |
| Financing Cash Flow | -47.80B | -26.54M | -35.76M | -82.14M | -79.61M |
CorVel Technical Analysis
Positive
72.00
Price Trends
56.68
Positive
57.29
Positive
67.04
Negative
Market Momentum
1.42
Negative
58.44
Neutral
56.32
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 72 is above the 20-day moving average (MA) of 59.08, above the 50-day MA of 56.68, and above the 200-day MA of 67.04, indicating a neutral trend. The MACD of 1.42 indicates Negative momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 56.32 is Neutral, 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 | $3.13B | 28.62 | 29.92% | ― | 7.03% | 16.18% | |
71 Outperform | $19.07B | 16.32 | 9.35% | 0.77% | 29.22% | -2.51% | |
68 Neutral | $1.02B | 33.13 | 10.80% | ― | 24.76% | -27.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
55 Neutral | $501.39M | 28.53 | 10.01% | 2.47% | -3.23% | -41.71% | |
53 Neutral | $501.39M | 28.53 | 10.01% | 2.47% | -3.23% | -41.71% | |
44 Neutral | $2.77B | -29.53 | -6.45% | ― | 14.18% | -31.38% |
* Financial Sector Average
CRVL
CorVel
61.75
-49.33
-44.41%
BRO
Brown & Brown
56.25
-56.14
-49.95%
CRD.A
Crawford & Company A
10.45
0.20
1.99%
CRD.B
Crawford & Company B
10.03
-0.04
-0.41%
BWIN
Baldwin Insurance Group
19.42
-19.28
-49.82%
TWFG
TWFG, Inc. Class A
18.77
-16.48
-46.75%
CorVel Corporate Events
Business Operations and StrategyExecutive/Board Changes
CorVel Announces CEO Transition to Sarah Scott
Positive
Jun 1, 2026
On June 1, 2026, CorVel announced a planned leadership transition under which long-time executive Michael G. Combs will step down as CEO and president effective July 1, 2026, to become executive chair, focusing on advising his successor, supportin...
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.