HMS Holdings Stock Analysis, Valuation (NASDAQ:HMSY)

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$21.19 $0.06 (0.28%) HMSY stock closing price May 23, 2018 (Closing)
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HMS Holdings
Updated on : May 23, 2018
previous close
HMSY 21.2 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Information Systems
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.6%
Operating Profit
Operating Margin:
10.6%
Sector Average:
-12.2%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
240M
Debt/Equity Ratio:
 0.39
Compared to the industry
Cash Flow
Operating cash flow:
$14.7M
Net Income:
$6.4M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PS Valuation
Long Term Growth
High Debt Burden
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HMSY PS :
3.2
Industry PS :
6.6
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.5%
Return on Equity:
7.6%
Free Cash Flow Margin:
6.4%
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HMS Holdings Stock Analysis

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Watch the robo advisor video of HMS Holdings stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for HMSY 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.

HMS Holdings Corp Stock Rating 3.5/5

Amigobulls HMSY stock analysis relies on business fundamentals such as HMS Holdings revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for HMS Holdings valuation analysis. Based on a company's historical fundamentals we arrive at HMS Holdings stock rating which is indicative of the company's financial performance.

Should you buy HMSY stock?

  • The TTM operating margin was good at 10.6% for HMS Holdings.
  • Net margins came in at average 8.2% for HMS Holdings over the last twelve months.
  • When compared with the Medical-Information Systems industry average PS ratio of 6.6, the price-to-sales ratio of 3.2 for HMSY stock is attractive.
  • HMS Holdings's return on invested capital of 7.5% is good.
  • The LTM ROE of 7.6% for HMS Holdings is attractive.
  • HMS Holdings has a healthy FCF (Free Cash Flow) margin of 6.4%.

Should you sell HMSY stock?

  • Over the last 5 years, the company registered a poor revenue growth of 2.6%.
  • With a debt/equity ratio of  0.39, HMS Holdings is highly leveraged in comparison to Medical peers.
  • HMSY stock is trading at a PE ratio of 38.5, which is worse than the industry average multiple of 23.7.

Comments on this video and HMS Holdings stock

Amigobulls HMS Holdings stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of HMSY stock. The fundamentals of a company are vital to identify long-term investment opportunities.

HMS Holdings revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.