Claritev (CTEV) AI Stock Analysis

• Market Cap: $650.22M
• Dividend Yield: N/A
• Average Volume (3M): 90.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: -3.33%
• EPS Growth: -86.58%
• Country: US
• Employees: 2,700
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -4.38
• Shares Outstanding: 16,436,369
• 10 Day Avg. Volume: 127,261
• 30 Day Avg. Volume: 90,128
• PEG Ratio: 0.06
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.49
• Enterprise Value/Market Cap: 7.64
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: -1.74
• 1Y Price Target: $34.50
• Price Target Upside: -12.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $39.00 ▼(-1.42%Downside)

Claritev's stock score is influenced primarily by its financial struggles, with negative profitability and high leverage posing significant risks. The technical analysis is positive, showing strong momentum, but caution is advised due to overbought conditions. Valuation remains a concern with negative profitability, and corporate support adds some positive sentiment.

Claritev Business Overview & Revenue Model

Company Description

Claritev Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. The company was formerly known as MultiPlan Corporation and changed its name to Claritev Corporation in February 2025. Claritev Corporation was founded in 1980 and is headquartered in New York, New York.

How the Company Makes Money

MultiPlan 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

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.

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.

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.

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
	EBIT
-893.75M	-1.39B	161.98M	-362.73M	386.12M	-131.82M
	EBITDA
-523.35M	-1.01B	651.93M	158.32M	814.99M	192.41M
	Net Income Common Stockholders
-1.18B	-1.65B	-91.70M	-572.91M	102.08M	-520.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
126.75M	16.85M	71.55M	334.05M	185.33M	126.75M
	Total Assets
8.28B	5.15B	6.96B	7.37B	8.22B	8.28B
	Total Debt
4.61B	4.54B	4.57B	4.78B	4.93B	4.61B
	Net Debt
4.49B	4.52B	4.50B	4.45B	4.74B	4.49B
	Total Liabilities
5.73B	5.07B	5.26B	5.58B	5.88B	5.73B
	Stockholders Equity
2.56B	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

• Technical Analysis Sentiment: Positive
• Last Price: 39.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 39.56 is above the 20-day moving average (MA) of 31.34, above the 50-day MA of 25.13, and above the 200-day MA of 16.15, indicating a bullish trend. The MACD of 4.20 indicates Negative momentum. The RSI at 73.28 is Negative, neither overbought nor oversold. The STOCH value of 85.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTEV.

Claritev Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETON	64 Neutral	$451.61M	―	-22.95%	―	40.88%	-579.73%
HRTX	54 Neutral	$320.38M	―	40.36%	―	12.43%	91.67%
BNTC	54 Neutral	$420.01M	―	-48.57%	―	-100.00%	83.98%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
ABSI	51 Neutral	$386.50M	―	-48.98%	―	-9.95%	20.78%
CTEV	50 Neutral	$650.22M	―	-198.69%	―	-3.33%	-86.58%
TECX	42 Neutral	$430.59M	―	-30.10%	―	―	-343.40%

Claritev Corporate Events

Claritev Shareholders Approve Omnibus Incentive Plan Amendment

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.