CorVel (CRVL) AI Stock Analysis

• Market Cap: $2.72B
• Dividend Yield: N/A
• Average Volume (3M): 163.23K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.70
• Revenue Growth: 10.43%
• EPS Growth: 29.22%
• Country: US
• Employees: 4,870
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.47
• Shares Outstanding: 51,152,435
• 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: 0.93
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 11.13
• Enterprise Value/Ebitda: 15.12
• 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: 71 Outperform
• Price Target: $58.00 ▼(-19.44% Downside)
• Action: Upgraded Date: 02/12/26
• Date: Action: Upgraded 02/12/26

Overall score reflects strong financial quality (growth, improving margins, low leverage, high ROE) and a constructive earnings-call outlook centered on AI/technology efficiency gains and disciplined capital return. These positives are tempered by very weak technicals (deep downtrend across moving averages with negative momentum) and only moderate valuation support based on the provided P/E.

Positive Factors

Revenue & Margin Expansion

Sustained multi-year revenue growth with rising net margins indicates enduring demand for CorVel's managed-care services and improving operating leverage. This foundation supports reinvestment in technology, resilience to cyclical swings, and a structurally stronger profit base over the next 2–6 months.

Conservative Balance Sheet & High ROE

Very low leverage and historically high returns on equity provide strategic flexibility to fund acquisitions, technology spend, and buybacks without risking solvency. This durable capital structure helps absorb industry shocks and supports long-term value creation even as the equity base grows.

Technology, AI & Acquisition Momentum

Focused investment in AI, software and an accretive tech acquisition provides structural productivity gains and differentiated capabilities in claims and payment integrity. If sustained, these investments can lower unit costs, scale services and protect margins amid competitive pricing pressure.

Negative Factors

Cash Conversion Weakness

Cash generation in dollar terms is improving, but persistent below‑earnings cash conversion signals working-capital or timing volatility. Over months this can constrain discretionary investments or buybacks if earnings swing, reducing financial predictability and optionality.

Medical Inflation & Severity Headwinds

Structural medical cost inflation and growing claim severity increase client payor costs and pressure margins for service providers. These industry dynamics can force pricing adjustments or compress profitability absent commensurate efficiency gains or stronger negotiating leverage.

Revenue Volatility / Recent Deceleration

Intermittent decelerations and past revenue variability reduce visibility on sustainable growth rates. For a business investing heavily in scalable tech, uneven top‑line momentum complicates ROI timelines and could delay expected margin expansion from recent initiatives.

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

Strong multi-year revenue growth and expanding profitability, supported by low leverage and consistently high ROE. Main risk is cash-flow conversion/volatility, with operating cash flow running well below earnings in recent periods.

Income Statement

Results show a strong multi-year growth profile with revenue rising from $553M (FY2021) to $896M (FY2025) and further to $941M in TTM (Trailing-Twelve-Months). Profitability has improved alongside growth: net margin increased from 8.4% (FY2021) to 10.6% (FY2025) and 11.2% in TTM (Trailing-Twelve-Months), with operating profitability also expanding versus earlier years. A key watch-out is growth volatility—FY2021 posted a revenue decline, and the TTM growth rate appears unusually high versus the annual run-rate, suggesting potential non-recurring uplift or timing effects.

Balance Sheet

The balance sheet looks conservatively levered, with debt to equity low across periods (about 0.09 in TTM (Trailing-Twelve-Months) and FY2025), supporting financial flexibility. Equity has expanded meaningfully (from $220M in FY2021 to $322M in FY2025 and $376M in TTM (Trailing-Twelve-Months)), and returns on equity are consistently strong (~30%+ in most years), indicating efficient capital use. The main drawback is that high returns can sometimes be harder to sustain as the equity base grows, and debt ticked up in TTM (Trailing-Twelve-Months) versus FY2025 (though still modest).

Cash Flow

Cash generation is solid and improving in dollars, with operating cash flow rising from $127M (FY2025) to $149M in TTM (Trailing-Twelve-Months) and free cash flow increasing from $91.6M to $104.3M. However, cash conversion is only moderate: operating cash flow is well below reported earnings (about 0.60x in TTM (Trailing-Twelve-Months)), and free cash flow runs at ~0.70x of net income, suggesting working-capital needs or timing effects. Free cash flow growth is also uneven over time (notably negative in FY2022), which is a consistency risk despite strong recent momentum.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	941.49M	895.59M	795.31M	718.56M	646.23M	552.64M
Gross Profit	227.82M	209.73M	171.69M	158.26M	152.11M	123.62M
EBITDA	167.61M	150.36M	121.35M	109.67M	108.43M	82.61M
Net Income	105.73M	95.17M	76.25M	66.36M	66.41M	46.36M
Balance Sheet
Total Assets	644.78M	545.98M	454.68M	393.92M	415.25M	424.76M
Cash, Cash Equivalents and Short-Term Investments	230.03M	170.58M	105.56M	71.33M	97.50M	139.72M
Total Debt	44.56M	28.08M	31.40M	33.76M	43.14M	54.66M
Total Liabilities	269.06M	223.99M	207.03M	191.75M	202.85M	204.36M
Stockholders Equity	375.72M	321.99M	247.65M	202.18M	212.40M	220.40M
Cash Flow
Free Cash Flow	104.25M	91.56M	70.00M	55.97M	37.40M	77.14M
Operating Cash Flow	149.09M	127.31M	99.24M	82.29M	67.22M	94.38M
Investing Cash Flow	-44.84M	-35.76M	-29.24M	-26.32M	-29.82M	-17.24M
Financing Cash Flow	-37.16M	-26.54M	-35.76M	-82.14M	-79.61M	-20.64M

CorVel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 72 is above the 20-day moving average (MA) of 49.41, above the 50-day MA of 61.23, and below the 200-day MA of 80.70, indicating a neutral trend. The MACD of -2.84 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 89.45 is Negative, 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
TWFG	72 Outperform	$1.13B	40.69	8.79%	―	18.54%	-67.02%
CRVL	71 Outperform	$2.72B	35.99	32.63%	―	10.43%	29.22%
BRO	70 Outperform	$24.46B	23.44	10.98%	0.77%	17.87%	-9.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CRD.A	58 Neutral	$500.91M	28.40	18.72%	2.47%	4.39%	61.61%
CRD.B	56 Neutral	$500.91M	28.40	18.72%	2.47%	4.39%	61.61%
BWIN	50 Neutral	$3.15B	-48.28	-4.63%	―	10.69%	32.74%