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Performant Healthcare (PHLT)
NASDAQ:PHLT
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Performant Healthcare
(NASDAQ:PHLT)
52Neutral
Positive Factors
Business Strategy
Performant's decision to wind down the customer care business is a positive overall as it simplifies the Company's story and should increase margins in the long run.
Contract Growth
Several contracts are ramping and new RAC region RFPs are coming to market, supporting confidence in the company’s ability to achieve 15% revenue growth in 2025.
Government Alignment
Performant Healthcare is well-positioned to benefit from changing tides in payment integrity, supported by a close alignment with the current administration's focus on Medicare waste, fraud, and abuse.
Revenue Performance
The company's Q4 revenue exceeded expectations, indicating strong performance across all segments and end markets.
Negative Factors
Claims Volume
Performant reported a solid Q3, with in line revenue and adj. EBITDA ahead of expectations while maintaining its 2024 guidance despite lower claims volumes in a pre-election environment.
Performant Healthcare (PHLT) vs. S&P 500 (SPY)
Market Cap
$209.08M
Dividend YieldN/A
Average Volume (3M)148.08K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth11.76%
EPS Growth19.71%
CountryUS
Employees964
SectorIndustrials
Sector Strength91
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding78,308,640
10 Day Avg. Volume163,012
30 Day Avg. Volume148,079
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)2.47
Price to Sales (P/S)0.00
P/FCF Ratio-228.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside159.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Performant Healthcare Business Overview & Revenue Model
Company DescriptionPerformant Healthcare (PHLT) is a company that specializes in providing technology-enabled recovery and related analytics services primarily to the healthcare industry. Its core services include identifying and recovering improper payments for healthcare programs, which helps clients enhance their operational and financial performance. The company operates within the sectors of healthcare, government, and commercial markets, offering solutions that leverage its proprietary technology and data analytics capabilities.
How the Company Makes MoneyPerformant Healthcare makes money by offering recovery and analytics services that help clients identify and recover improper payments, primarily within the healthcare sector. The company's revenue model is based on contingency fees, where it earns a percentage of the funds it successfully recovers for its clients. This performance-based model aligns Performant Healthcare's incentives with those of its clients, as both parties benefit from maximizing recoveries. Additionally, the company may engage in significant partnerships with government agencies and commercial clients, further contributing to its revenue streams.
Performant Healthcare Financial Statement Overview
Summary
Performant Healthcare shows inconsistent revenue and profitability with manageable but concerning leverage levels and erratic cash flow performance. Strategic improvements are needed to stabilize and enhance financial health.Income Statement
Performant Healthcare has shown inconsistent revenue performance with significant fluctuations in profitability. The gross profit margin improved from negative to positive in 2024, yet EBIT and net profit margins remain negative, indicating ongoing operational challenges and a need for cost management improvements.40
Negative
Balance Sheet
The balance sheet reflects moderate stability with a relatively low debt-to-equity ratio, indicating manageable leverage levels. However, declining stockholder equity and a decreasing equity ratio suggest potential financial challenges that need addressing.55
Neutral
Cash Flow
Cash flow analysis reveals erratic free cash flow performance, with recent years showing negative free cash flow figures. The company has improved operating cash flow, but the free cash flow to net income ratio remains weak, indicating cash generation issues relative to earnings.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 122.98M | 113.74M | 109.18M | 124.39M | 155.94M | Gross Profit |
| 122.98M | -6.13M | -6.90M | -1.32M | 55.28M | EBIT |
| -9.50M | -6.13M | -6.90M | -1.32M | 13.06M | EBITDA |
| -2.21M | 828.00K | 304.00K | 5.68M | -6.97M | Net Income Common Stockholders |
| -9.89M | -7.52M | -6.54M | -10.29M | -13.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.29M | 7.25M | 23.38M | 17.35M | 16.04M | Total Assets |
| 101.77M | 99.03M | 118.83M | 121.98M | 126.23M | Total Debt |
| 8.85M | 5.54M | 21.47M | 23.24M | 65.73M | Net Debt |
| -447.00K | -1.71M | -1.91M | 5.89M | 49.68M | Total Liabilities |
| 25.27M | 18.32M | 34.35M | 39.56M | 84.25M | Stockholders Equity |
| 76.50M | 80.71M | 84.48M | 82.42M | 41.98M |
| Cash Flow | Free Cash Flow | |||
| -832.00K | -283.00K | -6.46M | -2.50M | 17.02M | Operating Cash Flow |
| 6.18M | 3.86M | -2.88M | 916.00K | 20.81M | Investing Cash Flow |
| -7.01M | -4.14M | 1.73M | -270.00K | -3.79M | Financing Cash Flow |
| 2.79M | -15.85M | 5.06M | 608.00K | -3.72M |
Performant Healthcare Technical Analysis
Positive
2.70
Price Trends
2.61
Positive
2.59
Positive
3.06
Negative
Market Momentum
0.02
Negative
61.01
Neutral
75.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHLT, the sentiment is Positive. The current price of 2.7 is above the 20-day moving average (MA) of 2.46, above the 50-day MA of 2.61, and below the 200-day MA of 3.06, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHLT.
Performant Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $416.82M | 9.33 | 7.21% | ― | -2.75% | 65.38% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
54 Neutral | $202.26M | ― | -45.64% | ― | -9.61% | -18170.36% | |
52 Neutral | $209.08M | ― | -7.65% | ― | 11.76% | 19.71% | |
49 Neutral | $176.92M | ― | -31.18% | 10.37% | -16.27% | -589.83% | |
47 Neutral | $179.18M | ― | -36.98% | ― | -16.76% | -1127.93% | |
42 Neutral | $178.38M | ― | 17.49% | ― | -5.34% | -125.18% |
* Industrials Sector Average
Performance Comparison
PHLT
Performant Healthcare
2.70
-0.40
-12.90%
FORR
Forrester Research
10.60
-8.22
-43.68%
MTW
Manitowoc Company
11.58
-1.04
-8.24%
RGP
Resources Connection
5.35
-5.43
-50.37%
TBI
Trueblue
6.00
-5.24
-46.62%
AZUL
Azul SA
0.54
-5.46
-91.00%
Performant Healthcare Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 20.00%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter with significant revenue growth and a return to positive EBITDA, driven by successful commercial implementations and increased efficiency. Despite the loss of the CMS RAC Region 5 contract, the company remains optimistic about future growth and has raised its full-year guidance. The overall sentiment is positive with more highlights than lowlights.Q1-2025 Updates
Positive Updates
Healthcare Revenue Growth
Healthcare revenue grew by 29% year-over-year, reflecting strong growth across both government and commercial clients.
Positive Adjusted EBITDA
The company reported a positive adjusted EBITDA of over $3 million, a significant improvement from a $1.2 million loss in the same quarter last year.
Record Commercial Implementations
Implemented 13 commercial programs in the quarter, the highest number for a single quarter, expected to contribute $4.5 to $5 million in annualized revenue.
Revenue and Profitability Guidance Increase
Full-year revenue guidance raised to $133 - $135 million with adjusted EBITDA guidance increased to $9 - $10 million.
Strong Claims-Based Revenue Growth
Claims-based business revenue grew by 38% year-over-year, contributing significantly to overall company revenue growth.
Negative Updates
Loss of CMS RAC Region 5 Contract
The company was not selected for CMS RAC regions three through five, including region five which primarily involved low-margin claims.
Expected Mid-Year EBITDA Decline
Guidance implies a decline in adjusted EBITDA in the middle of the year due to investments in the New York RAC implementation and the wind-down of RAC Region 5.
Company Guidance
During Performant Healthcare, Inc.'s first quarter 2025 earnings call, the company reported a 29% growth in healthcare revenue compared to the same quarter in 2024, and a positive adjusted EBITDA of $3.3 million, improving from a $1.2 million loss in the previous year. Total company revenues reached $33.3 million, marking a 22% increase year-over-year, with claims-based revenue leading at $17.1 million, reflecting a 38% growth. The company implemented 13 commercial programs, expected to contribute $4.5 to $5 million in annualized revenue. Performant increased its full-year revenue guidance to $133-$135 million and adjusted EBITDA guidance to $9-$10 million, citing strong first-quarter results and a promising outlook. The company also emphasized strategic investments, particularly in technology and client partnerships, to further drive growth and efficiency.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.