American Renal Associates Holdings Stock Analysis, Valuation (NYSE:ARA)

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$15.21 $0.02 (0.13%) ARA stock closing price Sep 21, 2017 (Closing)
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American Renal Associates Holdings
Updated on : Sep 21, 2017
previous close
ARA 15.2 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
12.6%
Sector Average:
-2.2%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
562.2M
Debt/Equity Ratio:
 4.01
Compared to the industry
Cash Flow
Operating cash flow:
$35.8M
Net Income:
-$2.1M
PROS      CONS
Operating Margins
PE Valuation
PS Valuation
ROIC
FCF Margin
Net Margins
High Debt Burden
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ARA PS :
0.6
Industry PS :
5.6
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8%
Return on Equity:
-6.7%
Free Cash Flow Margin:
15.2%
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ARA Stock Analysis

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View American Renal Associates Holdings stock analysis video. This is our analyst opinion covering the buy and sell arguments for ARA stock.

American Renal Associates Holdings Inc Stock Rating 3/5

Our American Renal Associates Holdings stock opinion is based on fundamentals of the company. This American Renal Associates Holdings stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy ARA stock?

  • American Renal Associates Holdings's average operating margin of 12.6% was exceptional.
  • The American Renal Associates Holdings stock currently trades at a price to earnings ratio of 20. We rate this as a positive, compared to the industry average of 23.
  • ARA stock is trading at a favorable price to sales multiple of 0.6 as against the Medical-Outpatient-Home care industry average multiple of 5.6.
  • American Renal Associates Holdings's return on invested capital of 8% is good.
  • American Renal Associates Holdings has a healthy FCF (Free Cash Flow) margin of 15.2%.

Should you sell ARA stock?

  • Over the last 12 months, American Renal Associates Holdings had an average Net loss of -1.2%.
  • American Renal Associates Holdings has a debt/equity ratio of  4.01, which is worse than the average in the Medical sector.
  • American Renal Associates Holdings has a negative return on equity of -6.7%. This indicates that the firm is inefficient at generating profits.

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