HMS Holdings Stock Analysis, Valuation (NASDAQ:HMSY)

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$16.89 $0.33 (1.92%) HMSY stock closing price Mar 20, 2018 (Closing)
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HMS Holdings
Updated on : Mar 20, 2018
previous close
HMSY 17.2 (0%)
S&P 500 2712.9 (0%)
Closing Price On: Mar 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Information Systems
Sector :
5 Quarter Revenue
Revenue Growth
Compared to the industry
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5 Year CAGR:
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Operating Margins
Net Margins
PS Valuation
FCF Margin
Long Term Growth
High Debt Burden
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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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 2017 Q3 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 9.7% for HMS Holdings.
  • Net margins stood at a healthy 7.6% (average) for HMS Holdings in the Trailing Twelve Months.
  • HMSY stock is trading at a favorable price to sales multiple of 2.8 as against the Medical-Information Systems industry average multiple of 4.2.
  • HMS Holdings generates a high return on invested capital of 4.7%.
  • The LTM ROE of 6.8% for HMS Holdings is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 13.9%.

Should you sell HMSY stock?

  • Long term revenue growth of 2% over the past 5 years has been disappointing.
  • HMS Holdings is debt laden and has a high debt/equity ratio of  0.4.
  • Trading at a PE ratio of 35.6, HMSY stock is overvalued in comparison to industry average multiple of 24.

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.