Performant Healthcare (PHLT) AI Stock Analysis

• Market Cap: $328.11M
• Dividend Yield: N/A
• Average Volume (3M): 201.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 11.76%
• EPS Growth: 19.71%
• Country: US
• Employees: 964
• Sector: Industrials
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 0.02
• Shares Outstanding: 78,308,640
• 10 Day Avg. Volume: 279,405
• 30 Day Avg. Volume: 201,090
• PEG Ratio: -2.88
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -850.36
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: -432.09
• 1Y Price Target: $8.00
• Price Target Upside: 90.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $4.00 ▼(-4.53%Downside)

Performant Healthcare's stock score is primarily driven by strong technical momentum and a positive earnings call outlook. However, inconsistent financial performance and poor valuation metrics detract from the overall score.

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 Business Overview & Revenue Model

Company Description

Performant 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 Money

Performant 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 faces significant financial challenges, with inconsistent revenue, negative profitability, and erratic cash flow performance. While the balance sheet shows manageable leverage, declining equity and negative free cash flow highlight the need for strategic improvements.

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.

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.

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.

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	-9.50M	113.74M	109.18M	124.39M	55.28M
EBITDA	-2.21M	828.00K	304.00K	8.08M	-6.94M
Net Income	-9.89M	-7.52M	-6.54M	-10.29M	-13.99M
Balance Sheet
Total Assets	101.77M	99.03M	118.83M	121.98M	126.23M
Cash, Cash Equivalents and Short-Term Investments	9.29M	7.25M	23.38M	17.35M	16.04M
Total Debt	8.85M	5.54M	21.47M	23.24M	65.73M
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

• Technical Analysis Sentiment: Positive
• Last Price: 4.19
• 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 PHLT, the sentiment is Positive. The current price of 4.19 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.00, and above the 200-day MA of 3.03, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 83.91 is Negative, neither overbought nor oversold. The STOCH value of 93.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHLT.

Performant Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTW	72 Outperform	$456.51M	10.22	7.21%	―	-2.75%	65.38%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
PHLT	67 Neutral	$328.11M	―	-7.65%	―	11.76%	19.71%
TBI	50 Neutral	$198.60M	―	-36.98%	―	-16.76%	-1127.93%
RGP	50 Neutral	$199.41M	―	-31.18%	4.64%	-16.27%	-589.83%
FORR	46 Neutral	$206.45M	―	-45.64%	―	-9.61%	-18170.36%
AZULQ	45 Neutral	$158.61M	―		―	-5.34%	-125.18%

Performant Healthcare Corporate Events

Performant Healthcare Holds Annual Stockholders Meeting

On June 18, 2025, Performant Healthcare, Inc. held its Annual Meeting of Stockholders in Weston, Florida, where 86.58% of the company’s shares were represented. During the meeting, stockholders elected three Class I directors and ratified the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (PHLT) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Performant Healthcare stock, see the PHLT Stock Forecast page.