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

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$19.58 $0.57 (3%) ARA stock closing price Feb 16, 2018 (Closing)
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American Renal Associates Holdings
Updated on : Feb 16, 2018
previous close
ARA 19.6 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13%
Sector Average:
-5.2%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
559M
Debt/Equity Ratio:
 3.88
Compared to the industry
Cash Flow
Operating cash flow:
$45M
Net Income:
$8M
PROS      CONS
Operating Margins
ROIC
FCF Margin
PS Valuation
Net Margins
High Debt Burden
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ARA PS :
0.8
Industry PS :
6.1
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.2%
Return on Equity:
-11.4%
Free Cash Flow Margin:
18.3%
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ARA Stock Analysis

7 5 2

Watch the robo advisor video of American Renal Associates Holdings stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for ARA stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

American Renal Associates Holdings Inc Stock Rating 3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ARA stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for American Renal Associates Holdings valuation analysis. Our American Renal Associates Holdings stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ARA stock?

  • American Renal Associates Holdings's average operating margin of 13% was exceptional.
  • When compared with the Medical-Outpatient-Home care industry average PS ratio of 6.1, the price-to-sales ratio of 0.8 for ARA stock is attractive.
  • American Renal Associates Holdings's return on invested capital of 8.2% is good.
  • The company has a good Free Cash Flow (FCF) margin of 18.3%.

Should you sell ARA stock?

  • American Renal Associates Holdings registered an average TTM Net loss of -2.1%.
  • With a debt/equity ratio of  3.88, American Renal Associates Holdings is highly leveraged in comparison to Medical peers.
  • A negative ROE of -11.4% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and American Renal Associates Holdings stock

Investors can make use of the Amigobulls American Renal Associates Holdings stock analysis to ascertain how ARA stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

American Renal Associates Holdings revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about ARA stock.