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Claritev (CTEV)
NYSE:CTEV
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Claritev
(NYSE:CTEV)
Rating:55Neutral
Price Target:
$50.00
▲(3.46%Upside)
Claritev (CTEV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$794.37M
Dividend YieldN/A
Average Volume (3M)152.14K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth-3.33%
EPS Growth-86.58%
CountryUS
Employees2,700
SectorHealthcare
Sector Strength39
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-4.38
Shares Outstanding16,436,369
10 Day Avg. Volume238,209
30 Day Avg. Volume152,137
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)16.41
Price to Sales (P/S)0.00
P/FCF Ratio103.99
Enterprise Value/Market Cap42.60
Enterprise Value/Revenue9.01
Enterprise Value/Gross Profit49.21
Enterprise Value/Ebitda-11.87
Forecast
1Y Price Target
$34.50Price Target Upside-28.62% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Claritev Business Overview & Revenue Model
Company DescriptionClaritev (CTEV) is a technology company specializing in advanced data analytics and artificial intelligence solutions. Operating within the tech sector, Claritev develops software platforms that enable businesses to optimize their data management, derive actionable insights, and enhance decision-making processes across various industries.
How the Company Makes MoneyClaritev generates revenue primarily through the sale of its software products and services. The company offers subscription-based pricing models for its software platforms, which include tiered plans catering to different business needs and sizes. In addition to subscriptions, Claritev also earns income from professional services, such as consulting, implementation, and training services, provided to help clients maximize the value of their data analytics solutions. Strategic partnerships with other technology firms and enterprise clients further contribute to Claritev's earnings by expanding its market reach and integrating its platforms into broader tech ecosystems.
Claritev Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 127.65%|
Next Earnings Date:Jul 31, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview
Summary
Claritev faces financial challenges with declining revenue, negative profitability, high leverage, and cash flow issues. The company needs to improve operational efficiency, reduce leverage, and enhance cash flow for sustainable growth and financial stability.Income Statement
Over the TTM period, the company has experienced a significant decline in profitability, with EBIT and EBITDA margins deeply negative. Revenue has declined slightly by 0.34% from the previous annual report, indicating challenges in sustaining growth. Historical data shows a trend of decreasing revenue and profit margins, making it imperative for the company to address operational inefficiencies and pursue growth initiatives.45
Neutral
Balance Sheet
The company's balance sheet reveals a high level of leverage, with a Debt-to-Equity ratio that has increased significantly due to declining equity. The Equity Ratio has deteriorated to a concerning level of 0.29%. This high leverage poses a financial risk if not managed carefully. The company needs to improve its equity position and manage debt levels to enhance its financial stability.30
Negative
Cash Flow
The company's cash flow position is challenging, with negative free cash flow in the TTM period. The Operating Cash Flow has decreased significantly, and the Free Cash Flow to Net Income Ratio is negative, indicating cash flow issues. The company needs to focus on improving cash generation from operations and optimizing capital expenditures.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 927.45M | 930.62M | 961.52M | 1.08B | 1.12B | 937.76M |
| Gross Profit | 687.68M | 691.22M | 726.06M | 875.62M | 942.31M | 619.09M |
| EBITDA | -523.35M | -1.01B | 651.93M | 158.32M | 814.99M | 192.41M |
| Net Income | -1.18B | -1.65B | -91.70M | -572.91M | 102.08M | -520.56M |
Balance Sheet | ||||||
| Total Assets | 5.08B | 5.15B | 6.96B | 7.37B | 8.22B | 8.28B |
| Cash, Cash Equivalents and Short-Term Investments | 23.13M | 16.85M | 71.55M | 334.05M | 185.33M | 126.75M |
| Total Debt | 4.63B | 4.54B | 4.57B | 4.78B | 4.93B | 4.61B |
| Total Liabilities | 5.07B | 5.07B | 5.26B | 5.58B | 5.88B | 5.73B |
| Stockholders Equity | 14.82M | 84.02M | 1.71B | 1.79B | 2.34B | 2.56B |
Cash Flow | ||||||
| Free Cash Flow | -98.60M | -10.51M | 62.87M | 282.63M | 320.10M | 306.56M |
| Operating Cash Flow | 27.84M | 107.62M | 171.72M | 372.36M | 404.69M | 377.37M |
| Investing Cash Flow | -126.44M | -118.12M | -249.79M | -104.45M | -228.38M | -210.84M |
| Financing Cash Flow | 63.32M | -41.31M | -180.99M | -115.74M | -114.68M | -61.60M |
Claritev Technical Analysis
Positive
48.33
Price Trends
33.32
Positive
27.51
Positive
19.22
Positive
Market Momentum
3.80
Negative
76.32
Negative
84.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTEV, the sentiment is Positive. The current price of 48.33 is above the 20-day moving average (MA) of 41.81, above the 50-day MA of 33.32, and above the 200-day MA of 19.22, indicating a bullish trend. The MACD of 3.80 indicates Negative momentum. The RSI at 76.32 is Negative, neither overbought nor oversold. The STOCH value of 84.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTEV.
Claritev Risk Analysis
Claritev disclosed 60 risk factors in its most recent earnings report. Claritev reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our ability to issue equity awards to our employees is limited currently due to the lack of sufficient shares approved by our stockholders as part of our 2020 Omnibus Incentive Plan. Q4, 2024
2.
We have previously been, and may in the future be, subject to securities or other stockholder litigation, which is expensive and could divert management's attention. Q4, 2024
3.
Our charter designates a state court within the State of Delaware, to the fullest extent permitted by law, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit the ability of our stockholders to obtain a favorable judicial forum for disputes with us or with our directors, officers or employees and may discourage stockholders from bringing such claims. Q4, 2024
Claritev Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $385.90M | ― | -22.95% | ― | 40.88% | -579.73% | |
61 Neutral | $328.01M | ― | 40.36% | ― | 12.43% | 91.67% | |
55 Neutral | $794.37M | ― | -198.69% | ― | -3.33% | -86.58% | |
52 Neutral | $329.10M | ― | -48.98% | ― | -9.95% | 20.78% | |
52 Neutral | $7.45B | 0.27 | -61.87% | 2.30% | 16.62% | 1.04% | |
42 Neutral | $388.01M | ― | -30.10% | ― | ― | -343.40% | |
42 Neutral | $354.12M | ― | -48.57% | ― | -100.00% | 83.98% |
* Healthcare Sector Average
Performance Comparison
CTEV
Claritev
49.57
34.82
236.07%
HRTX
Heron Therapeutics
2.20
-1.11
-33.53%
BNTC
Benitec Biopharma
12.62
3.13
32.98%
TECX
Tectonic Therapeutic
20.61
4.17
25.36%
ETON
Eton Pharmaceuticals
15.80
12.37
360.64%
ABSI
AbSci
2.64
-1.39
-34.49%
Claritev Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Claritev Shareholders Approve Omnibus Incentive Plan Amendment
Positive
May 1, 2025
On April 30, 2025, Claritev Corporation’s stockholders approved an amendment to the 2020 Omnibus Incentive Plan, increasing the shares reserved for issuance by 1,750,000. At the same annual meeting, stockholders elected three Class II directors, ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved executive compensation, indicating strong shareholder support for the company’s governance and strategic decisions.
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.