RadNet Stock Analysis, Valuation (NASDAQ:RDNT)

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$10.2 $0.1 (0.99%) RDNT stock closing price Feb 23, 2018 (Closing)
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RadNet
Updated on : Feb 23, 2018
previous close
RDNT 10.2 (0%)
S&P 500 2747.3 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
6.3%
Operating Profit
Operating Margin:
5.1%
Sector Average:
-5.2%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
609.7M
Debt/Equity Ratio:
 8.25
Compared to the industry
Cash Flow
Operating cash flow:
$25.4M
Net Income:
$3.2M
PROS      CONS
Operating Margins
ROIC
ROE
FCF Margin
PS Valuation
Long Term Growth
High Debt Burden
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RDNT PS :
0.5
Industry PS :
6
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.6%
Return on Equity:
19.4%
Free Cash Flow Margin:
10.6%
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RadNet Stock Analysis

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Watch the robo advisor video of RadNet stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for RDNT 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.

RadNet Inc. Stock Rating 3.5/5

Amigobulls RDNT stock analysis uses latest quarter 2017 Q3 financial data like RadNet revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for RadNet valuation analysis. Based on a company's historical fundamentals we arrive at RadNet stock rating which is indicative of the company's financial performance.

Should you buy RDNT stock?

  • RadNet had a healthy average operating margin of 5.1% over the last 4 quarters.
  • When compared with the Medical-Outpatient-Home care industry average PS ratio of 6, the price-to-sales ratio of 0.5 for RDNT stock is attractive.
  • RadNet's return on invested capital of 4.6% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for RadNet at 19.4%.
  • RadNet has a healthy FCF (Free Cash Flow) margin of 10.6%.

Should you sell RDNT stock?

  • Long term revenue growth of 6.3% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  8.25, RadNet is highly leveraged in comparison to Medical peers.
  • The RDNT stock currently trades at a PE of 34, which is expensive, compared to the industry average of 23.5.

Comments on this video and RadNet stock

Amigobulls RadNet 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.

RadNet 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. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.