Providence Service Stock Analysis, Valuation (NASDAQ:PRSC)

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$72.03 $0.11 (0.15%) PRSC stock closing price Jul 19, 2018 (Closing)

Take a look at Amigobulls Providence Service stock analysis video. Our PRSC analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

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.

The Providence Service Corporation Stock Rating 2.4/5

Amigobulls PRSC stock analysis relies on business fundamentals such as Providence Service 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 Providence Service valuation analysis. Based on a company's historical fundamentals we arrive at Providence Service stock rating which is indicative of the company's financial performance.

Should you buy PRSC stock?

  • With a debt/equity ratio of 0.01, Providence Service is comparatively less leveraged than its peers in the Consumer Discretionary sector.
  • The lower PS ratio 0.6 for PRSC stock versus Consumer Discretionary sector average of 1.6 is a positive for the company.
  • Providence Service generates a high return on invested capital of 11.3.

Should you sell PRSC stock?

  • 2018-03 revenue growth of 1.6% YoY was meagre.
  • Providence Service had an unimpressive average operating margin of 2.38 during the Last Twelve Months (LTM).
  • Providence Service's Net margins were poor at 3.1% in the last twelve months.
  • Trading at a PE ratio of 37.3, PRSC stock is overvalued in comparison to sector average multiple of 22.9.

Comments on this video and Providence Service stock

Amigobulls Providence Service stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Providence Service revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Providence Service stock.