CorVel (CRVL) AI Stock Analysis

• Market Cap: $3.81B
• Dividend Yield: N/A
• Average Volume (3M): 163.23K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 0.72
• Revenue Growth: 10.43%
• EPS Growth: 29.22%
• Country: US
• Employees: 4,870
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.54
• Shares Outstanding: 51,246,950
• 10 Day Avg. Volume: 168,294
• 30 Day Avg. Volume: 163,227
• PEG Ratio: 2.42
• Price to Book (P/B): 17.87
• Price to Sales (P/S): 6.42
• P/FCF Ratio: 62.84
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 4.09
• Enterprise Value/Gross Profit: 16.93
• Enterprise Value/Ebitda: 23.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $84.00 ▲(14.61% 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 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 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 Money

CorVel 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 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	18.57M	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

• Technical Analysis Sentiment: Negative
• Last Price: 73.29
• 50DMA: Negative
• 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 CRVL, the sentiment is Negative. The current price of 73.29 is below the 20-day moving average (MA) of 74.30, below the 50-day MA of 74.89, and below the 200-day MA of 96.00, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 42.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRVL.

CorVel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRVL	75 Outperform	$3.81B	36.63	32.63%	―	10.43%	29.22%
TWFG	72 Outperform	$1.61B	64.65	8.79%	―	18.54%	-67.02%
BRO	71 Outperform	$27.47B	24.14	10.47%	0.76%	17.87%	-9.35%
CRD.A	71 Outperform	$525.01M	16.90	18.72%	2.56%	4.39%	61.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CRD.B	67 Neutral	$525.01M	15.48	18.72%	2.51%	4.39%	61.61%
BWIN	49 Neutral	$2.73B	-80.03	-4.63%	―	10.69%	32.74%

CorVel Corporate Events

CorVel’s Earnings Call Highlights Strong Growth and AI Advancements

CorVel’s recent earnings call conveyed a generally positive sentiment, underscored by robust financial performance and significant advancements in AI technology. Despite facing challenges in the workers’ compensation labor market and pricing pressures in the commercial health segment, the company’s strong financial results and technological progress were the focal points of the discussion.

CorVel Corporation Reports Strong Quarterly Growth

CorVel Corporation is a company specializing in risk management solutions, primarily within the healthcare and insurance sectors, known for leveraging technology to enhance service delivery.