CorVel Corporation (CRVL)
NASDAQ:CRVL
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CorVel
(NASDAQ:CRVL)
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Rating:71Outperform
Price Target:
$59.00
▼(-18.06% Downside)
Action:UpgradedDate: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
Conservative balance sheet / low leverage
Low leverage and a debt-free posture provide durable financial flexibility: supports continued tech investment, tuck-in acquisitions, and sustained capital return programs without stressing liquidity. This structural strength reduces refinancing risk and preserves optionality through cycles.
Negative Factors
Weak cash conversion vs. earnings
Persistent cash conversion below reported earnings indicates timing or working-capital strain and makes earnings less reliable for funding investment or buybacks. Uneven FCF history raises risk that growth or returns could be constrained if cash cycles worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Low leverage and a debt-free posture provide durable financial flexibility: supports continued tech investment, tuck-in acquisitions, and sustained capital return programs without stressing liquidity. This structural strength reduces refinancing risk and preserves optionality through cycles.
Read all positive factors
CorVel (CRVL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.74B
Dividend YieldN/A
Average Volume (3M)163.23K
Price to Earnings (P/E)36.0
Beta (1Y)0.63
Revenue Growth10.43%
EPS Growth29.22%
CountryUS
Employees4,870
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)0.47
Shares Outstanding51,152,435
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 Cap0.93
Enterprise Value/Revenue2.71
Enterprise Value/Gross Profit11.22
Enterprise Value/Ebitda15.25
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 makes money by providing outsourced services and software-enabled solutions to employers, insurers, and third-party administrators that are involved in workers’ compensation and related liability claims. Key revenue streams generally includ...
CorVel Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: solid year-to-date revenue (+7%) and EPS growth (+16%), improved cash generation, meaningful share repurchases, progress on a technology acquisition, and accelerating AI-driven efficiency gains. Offsetting this were modest quarter results relative to expectations, a normalized (higher) effective tax rate that dampened near-term EPS, small margin expansion, and industry headwinds from rising claim severity and medical inflation. On balance, the highlights (growth, cash strength, strategic investments, AI traction, and a debt-free balance sheet) outweigh the lowlights, which are largely manageable short-term factors and industry trends.Positive Updates
Fiscal YTD Revenue Growth
Revenue for the nine months ending 12/31/2025 was $710 million, a 7% increase from $664 million for the same period in the prior fiscal year.
Negative Updates
Quarterly Results Modest vs. Expectations
Management described December-quarter results as modest relative to expectations and noted a deceleration in quarter-over-quarter revenue growth that ended a long track record of QoQ increases.
Read all updates
Q3-2026 Updates
Positive
Negative
Fiscal YTD Revenue Growth
Revenue for the nine months ending 12/31/2025 was $710 million, a 7% increase from $664 million for the same period in the prior fiscal year.
Read all positive updates
Company Guidance
Management guided that technology—particularly AI—and a June technology acquisition will drive meaningful cost efficiencies, margin expansion, and scalable growth in 2026, with productivity gains and realized ROI expected to more than offset pricing pressure; supporting metrics cited on the call include nine‑month revenue of $710M (up 7% y/y), fiscal YTD EPS $1.53 (up 16%), December-quarter revenue $236M (up 3%) and quarter EPS $0.47 (up 2%), net revenue retention of 100% and a 44% close rate on new business. They also pointed to operational improvements (G&A allocation down to 9.6% from 9.7%, margin tick from 23.2% to 23.3%, operating income $24.1M vs $23.8M), working capital and liquidity metrics (DSO 39 days, improved 3 days; quarter‑end cash $230M; fiscal YTD free cash flow $90M with $36M CapEx vs $24–$27M prior year), and continued capital return (185,559 shares repurchased this quarter for $13.4M; 114.9M shares repurchased to date for $868M at an average $7.55, ~69% of outstanding), all of which management presented as underpinning their forward outlook.CorVel Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| 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
Negative
72.00
Price Trends
55.61
Negative
63.46
Negative
75.48
Negative
Market Momentum
-0.30
Negative
49.41
Neutral
43.30
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 72 is above the 20-day moving average (MA) of 53.24, above the 50-day MA of 55.61, and below the 200-day MA of 75.48, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 43.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.74B | 35.99 | 30.14% | ― | 10.43% | 29.22% | |
70 Outperform | $21.59B | 23.44 | 9.72% | 0.77% | 17.87% | -9.35% | |
69 Neutral | $985.19M | 54.27 | 8.79% | ― | 18.54% | -67.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $469.24M | 28.40 | 11.25% | 2.47% | 4.39% | 61.61% | |
53 Neutral | $469.24M | 28.40 | 11.25% | 2.47% | 4.39% | 61.61% | |
50 Neutral | $3.01B | -48.28 | -4.63% | ― | 10.69% | 32.74% |
* Financial Sector Average
CRVL
CorVel
53.49
-58.48
-52.23%
BRO
Brown & Brown
63.43
-60.06
-48.64%
CRD.A
Crawford & Company A
9.59
-1.52
-13.64%
CRD.B
Crawford & Company B
9.72
-1.37
-12.39%
BWIN
Baldwin Insurance Group
21.09
-23.60
-52.81%
TWFG
TWFG, Inc. Class A
17.53
-13.38
-43.29%
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.