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Privia Health Group (PRVA)
NASDAQ:PRVA
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Privia Health Group
(NASDAQ:PRVA)
76Outperform
Positive Factors
Business Model
Privia Health Group, Inc. has a solid business model with good margins, cash flow, and high-quality total addressable market.
Earnings
Privia Health Group, Inc. reported total revenue and adjusted EBITDA exceeding estimates, indicating strong financial performance.
Operational Performance
PRVA delivers strong 4Q results and exceeded street expectations on all key metrics.
Negative Factors
Financial Performance
Care margin targeted at $435M-$445M was below the estimate of $466.6M.
Guidance
2025 guidance for practice collections and revenue falls slightly below consensus by 1% and 2%, respectively.
Program Termination
Four experimental Medicare payment models, including one Privia participates in, will be shutting down by the end of 2025.
Privia Health Group (PRVA) vs. S&P 500 (SPY)
Market Cap
$2.86B
Dividend YieldN/A
Average Volume (3M)838.55K
Price to Earnings (P/E)207.6
Beta (1Y)0.88
Revenue Growth4.74%
EPS Growth-39.28%
CountryUS
Employees1,102
SectorHealthcare
Sector Strength76
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding120,513,180
10 Day Avg. Volume951,915
30 Day Avg. Volume838,547
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.65
Price to Cash Flow (P/CF)9.60
P/FCF Ratio9.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.07Price Target Upside26.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Privia Health Group Business Overview & Revenue Model
Company DescriptionPrivia Health Group Inc is a technology-driven, national physician-enablement company. It collaborates with medical groups, health plans, and health systems to optimize physician practices, improve patient experiences, and reward doctors for delivering high-value care in both in-person and virtual care settings.
How the Company Makes MoneyPrivia Health Group makes money primarily through a revenue-sharing model with its partner medical groups and healthcare providers. The company generates income by offering a platform that helps physicians transition to value-based care models, which focus on patient outcomes rather than the volume of services provided. Privia Health earns fees from administrative services, technology solutions, and performance-based incentives tied to cost savings and quality improvements. Key revenue streams include management services fees, shared savings from value-based care contracts, and technology platform subscriptions. Additionally, the company benefits from partnerships with insurance companies and health systems that seek to leverage Privia's platform to improve care delivery and reduce costs.
Privia Health Group Financial Statement Overview
Summary
Privia Health Group demonstrates strong financial performance with significant revenue growth, efficient cost management, and robust equity backing. Despite fluctuations in EBIT margins and free cash flow growth, the company maintains a solid financial position with low leverage and consistent operating cash flow growth.Income Statement
Privia Health Group has shown impressive revenue growth over the years, with the latest figure reaching $1.74 billion, a significant increase from previous years. The gross profit margin is robust, indicating efficient cost management. Despite a slight decline in EBIT and EBITDA margins in the latest year, the company maintains a positive net profit margin, showcasing profitability. However, the fluctuation in EBIT margins could be a point of concern.85
Very Positive
Balance Sheet
The company exhibits a strong equity base, with a healthy debt-to-equity ratio indicating low leverage, which is favorable for stability. The return on equity has improved over the years, reflecting effective utilization of shareholder funds. A high equity ratio further underscores financial robustness, though continuous monitoring of debt levels is advised.80
Positive
Cash Flow
Privia Health Group has demonstrated consistent growth in operating cash flow, which is a positive indicator of cash-generating efficiency. The operating cash flow to net income ratio is strong, suggesting effective conversion of earnings into cash. However, the free cash flow growth rate has experienced some volatility, signaling potential fluctuations in cash availability.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.74B | 1.66B | 1.36B | 966.22M | 817.08M | Gross Profit |
| 176.85M | 161.50M | 134.78M | 63.66M | 82.58M | EBIT |
| 16.98M | 20.65M | -19.12M | -217.44M | 25.38M | EBITDA |
| 24.25M | 27.18M | -14.55M | -214.97M | 27.22M | Net Income Common Stockholders |
| 14.38M | 23.08M | -12.06M | -190.65M | 31.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 491.15M | 389.51M | 347.99M | 320.58M | 84.63M | Total Assets |
| 1.14B | 999.90M | 792.81M | 686.37M | 328.97M | Total Debt |
| 5.59M | 8.29M | 11.50M | 46.50M | 33.66M | Net Debt |
| -485.56M | -381.22M | -336.49M | -274.08M | -50.97M | Total Liabilities |
| 452.34M | 392.51M | 273.76M | 236.19M | 185.32M | Stockholders Equity |
| 635.18M | 561.44M | 499.09M | 426.87M | 146.75M |
| Cash Flow | Free Cash Flow | |||
| 109.28M | 80.67M | 47.09M | 54.51M | 38.51M | Operating Cash Flow |
| 109.28M | 80.78M | 47.20M | 55.06M | 38.89M | Investing Cash Flow |
| -11.98M | -42.97M | -104.00K | -32.77M | -380.00K | Financing Cash Flow |
| 4.33M | 3.71M | -19.68M | 213.66M | -767.00K |
Privia Health Group Technical Analysis
Positive
23.75
Price Trends
23.18
Positive
21.80
Positive
20.11
Positive
Market Momentum
0.17
Positive
46.47
Neutral
13.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRVA, the sentiment is Positive. The current price of 23.75 is below the 20-day moving average (MA) of 24.73, above the 50-day MA of 23.18, and above the 200-day MA of 20.11, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 13.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRVA.
Privia Health Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.86B | 207.60 | 2.40% | ― | 4.74% | -39.28% | |
73 Outperform | $7.36B | 61.97 | 30.71% | ― | 69.33% | ― | |
69 Neutral | $3.31B | ― | 2.80% | ― | 56.54% | ― | |
59 Neutral | $1.67B | ― | -44.20% | ― | 33.00% | -18.81% | |
49 Neutral | $6.86B | 0.01 | -55.93% | 2.48% | 24.36% | -2.88% | |
45 Neutral | $1.50B | ― | -52.46% | ― | -1.26% | -338.56% | |
43 Neutral | $124.26M | ― | -54.13% | ― | -1.81% | 70.88% |
* Healthcare Sector Average
Performance Comparison
PRVA
Privia Health Group
23.24
3.10
15.39%
TDOC
Teladoc
8.87
-6.25
-41.34%
HIMS
Hims & Hers Health
34.69
19.01
121.24%
AMWL
American Well
8.20
-9.16
-52.76%
OSCR
Oscar Health
13.45
-0.38
-2.75%
AGL
Agilon Health
4.20
-1.20
-22.22%
Privia Health Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -1.29% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Privia Health demonstrated strong financial and operational performance in 2024, with significant growth in provider network and value-based care outcomes. The company maintains a robust financial position with substantial cash reserves and no debt. However, challenges in the Medicare Advantage environment and flat shared savings guidance present potential headwinds. Overall, the positive aspects of growth and financial health outweigh the challenges faced.Highlights
Strong 2024 Financial Performance
Privia Health exceeded the high end of all guidance metrics for 2024, with adjusted EBITDA up 25.2% and free cash flow reaching a record $109.3 million, converting 121% of adjusted EBITDA.
Expansion and Growth in Provider Network
Implemented providers increased by 11.2% year-over-year, leading to fee-for-service collections growth of 13.6%. The provider retention rate was 98%, and the patient Net Promoter Score was 87.
Robust Financial Position
The company ended 2024 with $491 million in cash and no debt, providing significant financial flexibility for future growth opportunities.
Positive Value-Based Care Outcomes
Despite a challenging Medicare Advantage environment, the company reported better-than-expected value-based results and positive contribution margin in Medicare Advantage contracts.
Guidance for Continued Growth in 2025
Privia Health expects implemented providers to increase by 9.6% and practice collections growth of approximately 7.8% in 2025, with adjusted EBITDA growth of approximately 19% at the midpoint.
Lowlights
Challenges in the Medicare Advantage Environment
The company anticipates ongoing headwinds in Medicare Advantage due to elevated utilization trends, phase-in of V28, and changes in Star Scores.
Flat Shared Savings Guidance
Privia Health expects minimal increase in shared savings accruals year-over-year due to challenges in the Medicare Advantage environment, impacting care margin growth.
Company Guidance
During the Privia Health Fourth Quarter Conference Call, the company reported exceeding the high end of all 2024 guidance metrics, highlighting a 25.2% increase in adjusted EBITDA and a 13.6% growth in fee-for-service collections. Implemented providers grew by 11.2% year-over-year, contributing to a 230 basis point margin expansion and a record $109.3 million in free cash flow, which represented 121% of adjusted EBITDA conversion. Privia ended the year with $491 million in cash and no debt, positioning them for disciplined growth. The company served over 1.26 million attributed lives, with commercial attributed lives increasing by 15.2%. Despite challenges in the Medicare Advantage environment, Privia anticipates continued strong EBITDA growth in 2025, with expectations of a 19% increase at the midpoint of their guidance, and plans to maintain capital expenditures at minimal levels.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.