Cotiviti Holdings Stock Analysis, Valuation (NYSE:COTV)

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$44.19 $0.09 (0.2%) COTV stock closing price Jun 22, 2018 (Closing)

View the Cotiviti Holdings stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for COTV stock is shown in the video.

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.

Cotiviti Holdings Inc Stock Rating 3.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for COTV stock analysis. We compare Cotiviti Holdings valuation with its sector peers to gauge relative attractiveness of COTV stock. Cotiviti Holdings stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy COTV stock?

  • The Year Over Year (YoY) revenue growth for Cotiviti Holdings was 36.8% in 2018-03.
  • The TTM operating margin was good at 28.05 for Cotiviti Holdings.
  • Net margins stood at a healthy 22.4% (average) for Cotiviti Holdings in the Trailing Twelve Months.
  • Cotiviti Holdings's return on invested capital of 12 is good.
  • The company has a healthy free cash flow margin of 10.2.

Should you sell COTV stock?

  • The company has an operating cash flow which is 0.6434 times the net income. This is not a healthy sign.
  • The COTV stock currently trades at a PE of 30.3, which is expensive, compared to the sector average of 23.5.
  • The company is trading at a price to sales multiple of 5.6, which is higher in comparison to the Business Services sector average of 1.6, making COTV stock expensive.

Comments on this video and Cotiviti Holdings stock

Investors can use Amigobulls Cotiviti Holdings stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Cotiviti Holdings revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of COTV technical analysis to check whether the fundamental story is reflected in the market sentiment.