HMS Holdings Stock Analysis, Valuation (NASDAQ:HMSY)

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$24.09 $0.09 (0.37%) HMSY stock closing price Jul 18, 2018 (Closing)

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 3.7/5

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?

  • HMS Holdings had a healthy average operating margin of 10.64 over the last 4 quarters.
  • Net margins came in at average 8.2% for HMS Holdings over the last twelve months.
  • HMSY stock is trading at a favorable price to sales multiple of 3.7 as against the Medical sector average multiple of 6.4.
  • HMS Holdings has an attractive ROIC (Return on Invested Capital) of 7.5
  • HMS Holdings has a good Return On Equity (ROE) of 7.6.
  • HMS Holdings has a healthy FCF (Free Cash Flow) margin of 6.3.

Should you sell HMSY stock?

  • Long term revenue growth of 2.6 over the past 5 years has been disappointing.
  • HMS Holdings is debt laden and has a high debt/equity ratio of 0.39.
  • HMSY stock is trading at a PE ratio of 43.8, which is worse than the sector average multiple of 25.2.

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.