Privia Health Group (PRVA) AI Stock Analysis

• Market Cap: $2.63B
• Dividend Yield: N/A
• Average Volume (3M): 948.64K
• Price to Earnings (P/E): 183.0
• Beta (1Y): 0.82
• Revenue Growth: 12.05%
• EPS Growth: -2.46%
• Country: US
• Employees: 1,140
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.02
• Shares Outstanding: 122,729,930
• 10 Day Avg. Volume: 679,085
• 30 Day Avg. Volume: 948,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 14.04
• Enterprise Value/Ebitda: 86.99
• 1Y Price Target: $29.09
• Price Target Upside: 33.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $24.00 ▲(10.34% Upside)

Privia Health Group's strong financial performance and positive earnings call are the most significant factors driving the score. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term volatility.

Positive Factors

Financial Performance

Privia Health's strong second-quarter results highlight the strength of its flexible payer-, patient-, and reimbursement-agnostic operating model.

Market Strategy

The Arizona market entry is expected to be EBITDA positive faster than historical partnerships, driving further conviction into earnings growth.

Revenue Growth

The company continues to successfully expand its platform with significant growth in implemented providers and attributed lives.

Negative Factors

Guidance Communication

The lack of providing specific updated guidance ranges to some extent prevents Privia from getting the full credit of its strong 1H performance and management's confidence in business in 2H.

Industry Environment

Despite the challenging macro environment for the industry, PRVA continues to show consistent performance given the natural hedges within the business.

Privia Health Group Business Overview & Revenue Model

Company Description

Privia Health Group (PRVA) is a national physician organization that partners with medical groups, health plans, and health systems to optimize physician practices, improve patient experiences, and reduce healthcare costs. The company operates in the healthcare services sector, offering a comprehensive platform that integrates technology, team-based care, and a value-based care model to support physicians and enhance clinical outcomes. Privia Health's services include practice management, revenue cycle management, and population health management, aiming to deliver high-quality, coordinated care across various settings.

How the Company Makes Money

Privia Health Group primarily generates revenue through a mix of management services agreements and shared savings from value-based care arrangements. The company partners with independent physician practices, providing them with a suite of services such as practice management, billing, and technology solutions in exchange for a percentage of practice revenue. Additionally, Privia Health engages in value-based care contracts with payers, earning performance-based incentives when they achieve specific healthcare quality and cost-efficiency metrics. These value-based arrangements often involve shared savings mechanisms, where Privia Health and its partners share in the cost savings achieved through improved care coordination and patient outcomes. Key factors contributing to Privia Health's earnings include its ability to scale its platform, expand its network of affiliated physicians, and effectively manage patient populations to generate shared savings.

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. However, attention is needed on fluctuations in EBIT margins and free 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.90B	1.74B	1.66B	1.36B	966.22M	817.08M
Gross Profit	186.74M	176.85M	161.50M	134.78M	63.66M	82.58M
EBITDA	30.14M	24.25M	27.18M	-14.55M	-214.97M	27.22M
Net Income	14.84M	14.38M	23.08M	-12.06M	-190.65M	31.24M
Balance Sheet
Total Assets	1.27B	1.14B	999.90M	792.81M	686.37M	328.97M
Cash, Cash Equivalents and Short-Term Investments	390.13M	491.15M	389.51M	347.99M	320.58M	84.63M
Total Debt	6.64M	5.59M	8.29M	11.50M	46.50M	33.66M
Total Liabilities	539.00M	452.34M	392.51M	273.76M	236.19M	185.32M
Stockholders Equity	682.86M	635.18M	561.44M	499.09M	426.87M	146.75M
Cash Flow
Free Cash Flow	96.87M	109.28M	80.67M	47.09M	54.51M	38.51M
Operating Cash Flow	91.86M	109.28M	80.78M	47.20M	55.06M	38.89M
Investing Cash Flow	-96.32M	-11.98M	-42.97M	-104.00K	-32.77M	-380.00K
Financing Cash Flow	7.24M	4.33M	3.71M	-19.68M	213.66M	-767.00K

Privia Health Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 21.75 is above the 20-day moving average (MA) of 20.64, above the 50-day MA of 20.89, and below the 200-day MA of 22.29, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRVA.

Privia Health Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTSG	76 Outperform	$4.25B	81.09	1.60%	―	20.60%	―
PRVA	73 Outperform	$2.63B	182.98	2.32%	―	12.05%	-2.46%
PHR	71 Outperform	$1.83B	―	-15.97%	―	16.29%	66.01%
OMCL	66 Neutral	$1.50B	67.36	1.87%	―	6.39%	―
PINC	61 Neutral	$2.13B	116.55	3.56%	3.20%	-24.79%	-78.38%
EVH	55 Neutral	$1.09B	―	-13.38%	―	-6.71%	-71.40%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%

Privia Health Group Corporate Events

Privia Health Group Approves Key Proposals at Meeting

On May 21, 2025, Privia Health Group held its 2025 Annual Meeting of Stockholders via live webcast, where all three proposals were approved. The election of three Class III directors, approval of executive compensation on a non-binding basis, and ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 were confirmed, indicating strong shareholder support and stability in corporate governance.