RadNet Stock Analysis, Valuation (NASDAQ:RDNT)
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 2.7/5
Amigobulls RDNT stock analysis uses latest quarter 2018 Q1 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's average operating margin of 4.59 was exceptional.
- The lower PS ratio 0.7 for RDNT stock versus Medical sector average of 6.5 is a positive for the company.
Should you sell RDNT stock?
- 2018-03 revenue growth of 1% YoY was meagre.
- Over the last 5 years, the company registered a poor revenue growth of 6.4.
- RadNet registered an average TTM Net loss of -0.7%.
- RadNet has a debt/equity ratio of 5.19, which is worse than the average in the -sectordesc- sector.
- Trading at a PE ratio of 44.7, RDNT stock is overvalued in comparison to sector average multiple of 25.1.
- -0.8's negative ROIC of -0.8 indicates operational inefficiency.
- RadNet has a negative return on equity of -8.1. This indicates that the firm is inefficient at generating profits.
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.