Claritev (CTEV) AI Stock Analysis

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Claritev

(NYSE:CTEV)

52Neutral

CTEV's overall stock score is 52, reflecting a challenging financial position with declining revenues and high leverage. While the company faces profitability issues, strategic initiatives like debt refinancing and product innovation offer potential. Technical indicators are mixed, showing moderate momentum. The valuation is weak due to negative earnings, but the optimistic earnings call guidance provides some positive outlook.

Claritev (CTEV) vs. S&P 500 (SPY)

Market Cap

$330.00M

Dividend YieldN/A

Average Volume (3M)113.75K

Price to Earnings (P/E)―

Beta (1Y)1.61

Revenue Growth-3.21%

EPS Growth-1695.35%

CountryUS

Employees2,700

SectorHealthcare

Sector Strength78

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-101.95

Shares Outstanding16,726,007

10 Day Avg. Volume64,419

30 Day Avg. Volume113,745

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.36

Price to Cash Flow (P/CF)1.20

P/FCF Ratio2.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$20.00

Price Target Upside5.26% Upside

Rating ConsensusHold

Number of Analyst Covering2

Claritev Business Overview & Revenue Model

Company DescriptionMultiPlan (MPLN) is a leading provider of data analytics and technology-enabled solutions for healthcare payers. The company operates within the healthcare sector, focusing on offering cost management solutions that help clients manage healthcare costs by reducing out-of-network claims and improving the efficiency of payment processes. MultiPlan's core products and services include analytics-driven network-based solutions, payment integrity services, and cost management tools that facilitate better healthcare outcomes for its clients.

How the Company Makes MoneyMultiPlan makes money primarily through service fees charged to healthcare payers, such as insurance companies and government programs, for using its cost management and payment integrity solutions. The company generates revenue by providing access to its extensive healthcare provider networks, which helps clients reduce costs through negotiated discounts. Additionally, MultiPlan earns money by offering analytics and insights that enhance payment accuracy and efficiency. Significant partnerships with insurance companies and healthcare providers are crucial to its business model, allowing MultiPlan to leverage its network to deliver value-added services that drive cost savings for its clients.

Claritev Financial Statement Overview

Summary

CTEV faces significant financial challenges with declining revenues, high leverage, and negative profitability. The income statement reveals a negative net profit margin and deteriorating EBIT/EBITDA margins. The balance sheet highlights high debt levels and financial instability, while cash flow shows mixed signals with positive operating cash flow but negative free cash flow.

Income Statement

Negative

The company's income statement shows a challenging financial position. The gross profit margin is essentially 100%, as total revenue equals gross profit, indicating potential misclassification or unique revenue recognition practices. Net profit margin is negative due to significant net losses in the latest year. Revenue has declined consistently over the past years, with a notable drop from 2022 to 2023. Both EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies and challenges.

Balance Sheet

Negative

The balance sheet reveals high leverage, with a debt-to-equity ratio significantly exceeding 1, indicating reliance on debt financing. Return on equity is negative due to net losses, showing poor profitability. The equity ratio is low, suggesting potential financial risk. Overall, the balance sheet indicates financial instability and high risk with minimal equity buffer against liabilities.

Cash Flow

Neutral

Cash flow metrics offer mixed insights. While operating cash flow remains positive, free cash flow has turned negative, reflecting capital expenditure challenges. The operating cash flow to net income ratio is positive, showing some level of cash earnings despite net losses. However, the free cash flow to net income ratio is concerning, as the company is unable to generate free cash flow proportional to its income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
930.62M	961.52M	1.08B	1.12B	937.76M
	Gross Profit
691.22M	306.04M	875.62M	942.31M	619.09M
	EBIT
-1.39B	173.40M	302.99M	386.12M	-105.17M
	EBITDA
-1.01B	651.93M	158.32M	814.99M	192.41M
	Net Income Common Stockholders
-1.65B	-91.70M	-572.91M	102.08M	-529.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.85M	71.55M	334.05M	185.33M	126.75M
	Total Assets
5.15B	6.96B	7.37B	8.22B	8.28B
	Total Debt
4.54B	4.57B	4.78B	4.93B	4.61B
	Net Debt
4.52B	4.50B	4.45B	4.74B	4.49B
	Total Liabilities
5.07B	5.26B	5.58B	5.88B	5.69B
	Stockholders Equity
84.02M	1.71B	1.79B	2.34B	2.59B
Cash Flow		Free Cash Flow
-10.51M	62.87M	282.63M	320.10M	306.56M
	Operating Cash Flow
107.62M	171.72M	372.36M	404.69M	377.37M
	Investing Cash Flow
-118.12M	-249.79M	-104.45M	-228.38M	-210.84M
	Financing Cash Flow
-41.31M	-180.99M	-115.74M	-114.68M	-61.60M

Claritev Technical Analysis

Technical Analysis Sentiment

Negative

Last Price19.00

Price Trends

50DMA

21.69

Negative

100DMA

16.00

Positive

200DMA

13.64

Positive

Market Momentum

MACD

0.02

Negative

RSI

48.87

Neutral

STOCH

37.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTEV, the sentiment is Negative. The current price of 19 is below the 20-day moving average (MA) of 20.54, below the 50-day MA of 21.69, and above the 200-day MA of 13.64, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 37.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTEV.

Claritev Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTX	58 Neutral	$298.57M	―	40.36%	―	13.57%	89.73%
ETON	56 Neutral	$317.79M	―	-19.16%	―	23.29%	-309.12%
BNTC	54 Neutral	$307.07M	―	-46.85%	―	-100.00%	72.73%
CTEV	52 Neutral	$330.00M	―	-183.57%	―	-3.21%	-1695.35%
Sector *	48 Neutral	$6.27B	1.17	-48.19%	2.68%	17.28%	1.24%
ABSI	41 Neutral	$295.46M	―	-58.04%	―	-20.71%	22.25%
TECX	34 Underperform	$289.83M	―	-42.09%	―	―	-343.40%

* Healthcare Sector Average

Performance Comparison

CTEV

Claritev

19.00

-13.06

-40.74%

HRTX

Heron Therapeutics

1.88

-0.85

-31.14%

BNTC

Benitec Biopharma

12.17

6.18

103.17%

TECX

Tectonic Therapeutic

14.67

-0.33

-2.20%

ETON

Eton Pharmaceuticals

11.47

8.04

234.40%

ABSI

AbSci

2.27

-3.81

-62.66%

Claritev Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -34.93% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant strategic advancements, including successful debt refinancing, major contract wins, and product launches, which are offset by challenges such as a decline in revenue and dependence on a single client's performance. Overall, the company is optimistic about its future growth and transformation efforts, although it faces headwinds in its core business segments.

Highlights

Successful Debt Refinancing

Claritev successfully refinanced its entire debt structure, extending maturities by approximately three years with a 99.75% participation outcome, demonstrating commitment to investors and confidence in the company's Vision 2030.

Record Contract Booking

Closed the largest-ever single contract booking of $34 million in total contract value, with 12 similar enterprise sale opportunities in the pipeline, indicating strong market demand and a new innovative business model.

New Product Launches and Market Expansion

Launched CompleteVue for providers and BenInsights for employers, with 39 new opportunities in the pipeline for 2025, contributing to market expansion and increased addressable market size.

Chief AI Officer Appointment

Appointed the first Chief AI Officer, underlining the company's commitment to technology and talent, with plans to leverage AI for product innovation and operational efficiencies.

Positive Client Renewal

Successfully renewed a major client for three additional years at the current value, reflecting the ongoing strength of core services and client relationships.

Lowlights

Revenue Decline

FY 2024 revenue was $930.6 million, down 3.2% from FY 2023, primarily due to the impact of one large client, impacting overall financial performance.

Pressure on Core Business

Network-based revenues declined by 17.1%, and payment and revenue integrity revenues decreased by 1.6%, demonstrating challenges in maintaining growth in core segments.

Single-Client Impact

Continued challenges with a single client significantly affected revenue, with expectations for stabilization only by 2025, highlighting dependency on key clients.

Company Guidance

During the Claritev Corporation Fourth Quarter 2024 Earnings Call, CEO Travis Dalton and CFO Doug Garis provided guidance for 2025, highlighting a strategic focus on transformation and growth. They announced a revenue projection that is expected to be slightly down to flat for 2025, with an adjusted EBITDA margin target between 62.5% and 63.5%. The company anticipates a net revenue retention rate of approximately 97% for its core segments, despite the anticipated decline of one large client. Claritev expects strong double-digit growth in its HST and Data and Decision Science business areas, driven by a 20% growth in bookings. The company is also pursuing a Rule of 70 target, combining adjusted EBITDA margin and revenue growth percentage, as a medium- to long-term goal. With a focus on modernizing operations, Claritev aims to achieve a 10% to 15% cost reduction and improve its technology platform and business processes. The guidance reflects a strategy to balance cost efficiencies while pursuing new market opportunities and enhancing product offerings.

Claritev Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance

Claritev to Release Investor Presentation on March 2025

Neutral

Mar 5, 2025

Claritev Corporation announced that starting March 5, 2025, it will provide a slide presentation on its website for investors. This initiative aims to comply with Regulation FD and is part of the company’s efforts to maintain transparency with stakeholders. The presentation will include forward-looking statements about the company’s transformation plan, debt refinancing, and future prospects. However, these statements involve risks and uncertainties that may impact actual results.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.