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

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$14.1 $0 (0%) ARA stock closing price Aug 18, 2017 (Closing)
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American Renal Associates Holdings
Updated on : Aug 18, 2017
previous close
ARA 14.1 (0%)
S&P 500 2425.6 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13.5%
Sector Average:
-0.4%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
565.9M
Debt/Equity Ratio:
 3.98
Compared to the industry
Cash Flow
Operating cash flow:
$16.5M
Net Income:
-$12.3M
PROS      CONS
Operating Margins
ROIC
FCF Margin
PE Valuation
PS Valuation
Net Margins
High Debt Burden
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ARA PS :
0.6
Industry PS :
5.1
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.6%
Return on Equity:
-13.6%
Free Cash Flow Margin:
5.7%
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American Renal Associates Holdings Analysis Video

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View American Renal Associates Holdings stock analysis video. This is our ARA 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 13.5% was exceptional.
  • The price to earnings multiple of 18.6 is attractive when compared with the industry average PE ratio of 22.9.
  • When compared with the Medical-Outpatient-Home care industry average PS ratio of 5.1, the price-to-sales ratio of 0.6 for ARA stock is attractive.
  • American Renal Associates Holdings generates a high return on invested capital of 8.6%.
  • American Renal Associates Holdings has a healthy FCF (Free Cash Flow) margin of 5.7%.

Should you sell ARA stock?

  • American Renal Associates Holdings registered an average TTM Net loss of -2.1%.
  • With a debt/equity ratio of  3.98, American Renal Associates Holdings is highly leveraged in comparison to Medical peers.
  • American Renal Associates Holdings has a negative ROE (Return On Equity) of -13.6%, indicating the company is not profitable.

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