RadNet Stock Analysis, Valuation (NASDAQ:RDNT)

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$8.35 $0.1 (1.21%) RDNT stock closing price Aug 18, 2017 (Closing)
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RadNet
Updated on : Aug 18, 2017
previous close
RDNT 8.4 (0%)
S&P 500 2425.6 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
6.7%
Operating Profit
Operating Margin:
5.3%
Sector Average:
-2.2%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
629.1M
Debt/Equity Ratio:
 9.88
Compared to the industry
Cash Flow
Operating cash flow:
$19.3M
Net Income:
$5.3M
PROS      CONS
Operating Margins
ROIC
ROE
PS Valuation
Long Term Growth
High Debt Burden
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RDNT PS :
0.4
Industry PS :
5
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.4%
Return on Equity:
19.2%
Free Cash Flow Margin:
3%
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RadNet Analysis Video

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View RadNet stock analysis video. This is our RDNT analyst opinion covering the buy and sell arguments for RDNT stock.

RadNet Inc. Stock Rating (3.3/5)

Our RadNet stock opinion is based on fundamentals of the company. This RadNet stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy RDNT stock?

  • RadNet's average operating margin of 5.3% was exceptional.
  • The lower PS ratio 0.4 for RDNT stock versus Medical-Outpatient-Home care industry average of 5 is a positive for the company.
  • RadNet generates a high return on invested capital of 4.4%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for RadNet at 19.2%.

Should you sell RDNT stock?

  • Revenue growth of 6.7% has been weak over the last 5 years.
  • RadNet has a debt/equity ratio of  9.88, which is worse than the average in the Medical sector.
  • Trading at a PE ratio of 38, RDNT stock is overvalued in comparison to industry average multiple of 22.8.

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