Privia Health Group (PRVA) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 746.64K
• Price to Earnings (P/E): 183.3
• Beta (1Y): 0.78
• Revenue Growth: 6.79%
• EPS Growth: -18.52%
• Country: US
• Employees: 1,140
• Sector: Healthcare
• Sector Strength: 59
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.03
• Shares Outstanding: 121,919,510
• 10 Day Avg. Volume: 736,556
• 30 Day Avg. Volume: 746,638
• PEG Ratio: 2.22
• Price to Book (P/B): 5.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.38
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 11.98
• Enterprise Value/Ebitda: 23.32
• 1Y Price Target: $29.13
• Price Target Upside: 28.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: $26.00 ▲(14.79%Upside)

Privia Health Group's overall stock score is driven by its strong financial performance and positive earnings call outcomes. While technical analysis and valuation present challenges, the company's strategic growth and solid corporate governance contribute to a favorable outlook. However, high valuation metrics and sector-specific challenges warrant cautious optimism.

Positive Factors

Earnings Growth

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

Financial Performance

Privia Health Group's 1Q25 results show strong performance with beats in practice collections, revenues, care margin, and adjusted EBITDA compared to consensus.

Market Expansion

PRVA announced entry into Arizona with IMS, a high-performing multi-specialty practice, highlighting the strength of its model and ability to partner with bigger practices.

Negative Factors

Market Entry Costs

PRVA expects to continue targeting +20% EBITDA growth despite absorbing new market entry costs for AZ.

Regulatory Changes

Four experimental Medicare payment models, including one Privia participates in, will be shutting down by the end of 2025.

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 impressive revenue growth and a robust equity base. The company's cost management efficiency and positive net profit margin are commendable. However, attention is needed on fluctuating 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
1.80B	1.74B	1.66B	1.36B	966.22M	817.08M
	Gross Profit
181.76M	176.85M	161.50M	134.78M	63.66M	82.58M
	EBIT
21.38M	16.98M	20.65M	-19.12M	-217.44M	25.38M
	EBITDA
28.73M	24.25M	27.18M	-14.55M	-214.97M	27.22M
	Net Income Common Stockholders
15.62M	14.38M	23.08M	-12.06M	-190.65M	31.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
469.33M	491.15M	389.51M	347.99M	320.58M	84.63M
	Total Assets
1.18B	1.14B	999.90M	792.81M	686.37M	328.97M
	Total Debt
5.43M	5.59M	8.29M	11.50M	46.50M	33.66M
	Net Debt
-463.90M	-485.56M	-381.22M	-336.49M	-274.08M	-50.97M
	Total Liabilities
474.01M	452.34M	392.51M	273.76M	236.19M	185.32M
	Stockholders Equity
659.44M	635.18M	561.44M	499.09M	426.87M	146.75M
Cash Flow		Free Cash Flow
123.36M	109.28M	80.67M	47.09M	54.51M	38.51M
	Operating Cash Flow
118.36M	109.28M	80.78M	47.20M	55.06M	38.89M
	Investing Cash Flow
-6.26M	-11.98M	-42.97M	-104.00K	-32.77M	-380.00K
	Financing Cash Flow
6.10M	4.33M	3.71M	-19.68M	213.66M	-767.00K

Privia Health Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRVA, the sentiment is Negative. The current price of 22.65 is below the 20-day moving average (MA) of 23.27, below the 50-day MA of 23.38, and above the 200-day MA of 21.65, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRVA.

Privia Health Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINC	76 Outperform	$1.86B	39.53	6.05%	3.72%	-17.69%	-10.24%
PRVA	73 Outperform	$2.76B	183.25	2.53%	―	6.79%	-18.52%
BTSG	70 Outperform	$3.80B	75.27	2.30%	―	23.40%	―
OMCL	67 Neutral	$1.37B	64.37	1.73%	―	3.00%	―
PHR	58 Neutral	$1.55B	―	-15.97%	―	16.29%	66.01%
EVH	54 Neutral	$970.90M	―	-10.99%	―	10.24%	2.63%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%

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.

The most recent analyst rating on (PRVA) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Privia Health Group stock, see the PRVA Stock Forecast page.