HMS Holdings Story

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HMSY -- USA Stock  

USD 32.27  0.22  0.69%

HMS Holdings Corp is scheduled to announce its earnings today. The next earnings report is expected on the 19th of February 2021. The stock experiences an active downward rally. HMS Holdings Net Current Assets as percentage of Total Assets are fairly stable at the moment as compared to the past year. HMS Holdings reported Net Current Assets as percentage of Total Assets of 23.80 in 2019. Asset Turnover is likely to rise to 0.54 in 2020, whereas Net Income Per Employee is likely to drop slightly above 22.3 K in 2020. While many traders are getting carried away by overanalyzing healthcare space, it is reasonable to break down HMS Holdings Corp as an investment alternative.
Published over two weeks ago
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Is HMS Holdings (NASDAQ:HMSY) having difficulty to pay out its debt?
The company currently holds 259 M in liabilities with Debt to Equity (D/E) ratio of 0.29, which may suggest the entity is not taking enough advantage from borrowing. The company retains a Market Volatility (i.e. Beta) of 0.2389, which attests to not very significant fluctuations relative to the market. Let's try to break down what HMS Holdings's beta means in this case. As returns on the market increase, HMS Holdings returns are expected to increase less than the market. However, during the bear market, the loss on holding HMS Holdings will be expected to be smaller as well. Even though it is essential to pay attention to HMS Holdings Corp current price history, it is always good to be careful when utilizing equity current price movements. Our approach towards determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. HMS Holdings Corp exposes twenty-eight different technical indicators, which can help you to evaluate its performance. HMS Holdings Corp has an expected return of -0.16%. Please be advised to check out HMS Holdings potential upside, as well as the relationship between the accumulation distribution and price action indicator to decide if HMS Holdings Corp stock performance from the past will be repeated at future time.
HMS Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of HMS Holdings, including all of HMS Holdings's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of HMS Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall HMS Holdings debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding HMS Holdings Total Debt

HMS Holdings Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. HMS Holdings Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on HMS Holdings balance sheet include debt obligations and money owed to different HMS Holdings vendors, workers, and loan providers. Below is the chart of HMS Holdings main long-term debt accounts currently reported on its balance sheet.
You can use HMS Holdings Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is HMS Holdings's Liquidity

HMS Holdings financial leverage refers to using borrowed capital as a funding source to finance HMS Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HMS Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between HMS Holdings's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for HMS Holdings, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Richard Stowe of 3530 shares of HMS Holdings subject to Rule 16b-3

Legal trades by HMS Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
HMS Holdings insider trading alert for exercise of nonqualified stock option (right to buy) by Richard Stowe, the corporate stakeholder, on 20th of October 2020. This event was filed by Hms Holdings Corp with SEC on 2020-10-20. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for HMS Holdings Investors

HMS Holdings price slide over the last few months may raise some interest from investors. The stock closed today at a share price of 25.21 on slow start in trading volume. The company management teams were not very successful in positioning the firm resources to exploit market volatility in October. However, diversifying your holdings with HMS Holdings Corp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.61. The current volatility is consistent with the ongoing market swings in October 2020 as well as with HMS Holdings Corp unsystematic, company-specific events.

Asset Breakdown

757.8 M
Assets Non Current
637.6 M
Goodwill
382 M
Current Assets
Total Assets1.14 Billion
Current Assets381.95 Million
Assets Non Current757.85 Million
Goodwill637.57 Million
Tax Assets3.29 Million

Will HMS Holdings turn the corner in December?

Current maximum drawdown is at 15.76. As of the 6th of November, HMS Holdings retains the market risk adjusted performance of (1.02), and Risk Adjusted Performance of (0.10). HMS Holdings technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We have analyze and collected data for nineteen technical drivers for HMS Holdings Corp, which can be compared to its competitors. Please check out HMS Holdings Corp variance and potential upside to decide if HMS Holdings is priced correctly, providing market reflects its last-minute price of 25.21 per share. Given that HMS Holdings Corp has jensen alpha of (0.26), we strongly advise you to confirm HMS Holdings Corp's regular market performance to make sure the company can sustain itself at some point in the future.

Our Final Take On HMS Holdings

While few other entities in the health information services industry are either recovering or due for a correction, HMS Holdings may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 6th of November 2020, our primary 30 days buy-hold-sell recommendation on the company is Strong Hold. We believe HMS Holdings is undervalued with low probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of HMS Holdings Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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