Allscripts Healthcare Solutions (MDRX), a key player in the Health Information Services industry, has shown mixed financial performance
. The company reported a net income of $133.9M, which is commendable considering the challenging healthcare landscape. However, a negative free cash flow of $154M and a decrease in working capital by $23.5M are areas of concern. The company's profit margin stands at 3.97%, and its operating margin is slightly higher at 4.72%. Allscripts has a substantial amount of intangible assets valued at $408M, but its net tangible assets are significantly lower at $25.6M. The company's retained earnings total $767.6M, contributing to a book value per share of 10.77X. Despite these figures, the company's valuation market value is at a modest $12.62. With 8.5M shares short in the prior month, it may be a risky bet to go against Allscripts at this time. The company's EPS estimate for the next year is $0.87, indicating potential for growth. However, investors should carefully consider the company's financial health
and industry trends before making a decision. The Accounts Payable Turnover for Allscripts Healthcare Solutions is currently fairly stable, showing little change compared to the previous year. In 2022, Allscripts reported an Accounts Payable Turnover of 51.30. It is projected that the Accrued Expenses Turnover will likely increase to 9.96 in 2023. Meanwhile, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to slightly decrease, landing just above $359.1 million in 2023.
If you have been tracking Allscripts, you might be contemplating making a purchase. It's worth examining whether robust fundamental indicators will continue to drive a price increase for Allscripts Healthcare's investors. Allscripts Healthcare is responsive to market trends, making it a potential investment option for your portfolio.
Typically, a company's financial statements
are the reports that show the financial position
of the company. There are three main documents that fall into the category of financial statements. These documents include Allscripts Healthcare income statement, its balance sheet, and the statement of cash flows. Potential Allscripts Healthcare investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Allscripts Healthcare investors may use each financial statement separately, they are all related. The changes in Allscripts Healthcare's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Allscripts Healthcare's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis
and fundamental analysis
The goal of Allscripts Healthcare fundamental analysis
is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Allscripts Healthcare performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Allscripts Healthcare shares is the value that is considered the true value of the share. If the intrinsic value
of Allscripts is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Allscripts Healthcare. Please read more on our fundamental analysis
How effective is Allscripts Healthcare in utilizing its assets?
Allscripts Healthcare Solutions reports assets on its Balance Sheet. It represents the amount of Allscripts resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Allscripts Healthcare aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Health Care Technology space. To get a better handle on how balance sheet or income statements item affect Allscripts volatility, please check the breakdown of all its fundamentals
Are Allscripts Healthcare Earnings Expected to grow?
The future earnings
power of Allscripts Healthcare involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Allscripts Healthcare factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Allscripts Healthcare stock prices
adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Allscripts expected earnings
Allscripts Healthcare Gross Profit
Allscripts Healthcare Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Allscripts Healthcare previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Allscripts Healthcare Gross Profit growth over the last 10 years. Please check Allscripts Healthcare's gross profit
and other fundamental indicators
for more details.
A Deeper Perspective
Institutional investor usually refers to an organization that invests money in Allscripts Healthcare on behalf of clients or other money managers. Buying and selling of large positions of Allscripts Healthcare stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Allscripts Healthcare stock. Let's take a look at how the ownership of Allscripts is distributed among investors.
Allscripts Healthcare retains a total of 109.26 Million outstanding shares. The majority of Allscripts Healthcare Solutions outstanding shares
are owned by other corporate entities
. These outside corporations are usually referred to as non-private investors looking to acquire positions in Allscripts Healthcare to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Allscripts Healthcare. Please pay attention to any change in the institutional holdings of Allscripts Healthcare Solutions as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
|Retail Investors||0.0 |
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Allscripts Healthcare has an asset utilization ratio of 61.97 percent. This suggests that the company is making $0.62 for each dollar of assets. An increasing asset utilization means that Allscripts Healthcare Solutions is more efficient with each dollar of assets it utilizes for everyday operations.
|Current Assets878.5 M||Assets Non Current1.7 B||Goodwill675.2 M|
|Current Assets||878.47 Million||26.46 |
|Assets Non Current||1.74 Billion||52.51 |
|Goodwill||675.2 Million||20.33 |
|Tax Assets||23.23 Million||0.7 |
Allscripts Healthcare Solutions (MDRX) is a significant player in the Health Information Services industry. With a current ratio of 3.23X, the company has a healthy balance sheet, capable of meeting short-term obligations. However, there is a significant short interest in the stock, with 8.32M shares shorted, indicating that some investors are betting against the company's success. The company's financial performance
shows mixed results. The company's EBIT stands at $186.8M, with a net asset value of $2.43B
. However, it reported a free cash flow of -$154M, indicating that the company is spending more cash than it is generating. The company also recorded a significant sale purchase of stock amounting to -$417.5M. Despite these challenges, Allscripts has robust revenue figures. The company's total revenue is $1.5B
, with a cost of revenue of $883.4M. This suggests that the company is efficiently managing its cost of sales relative to its revenue. The company's EPS estimate for the current quarter is $0.19, indicating a potential for earnings growth. In conclusion, while there are some concerning signs in Allscripts' financials, it is not necessarily time to bet against the company. Investors should monitor the company's cash flow situation and the high short interest, but the strong revenue figures and healthy current ratio indicate that the company has strengths to leverage.
Allscripts showing appearance of lower volatility
The expected shortfall indicator for Allscripts Healthcare Solutions has recently fallen to -1.31, suggesting a decrease in the stock's volatility. This reduced risk could potentially make the stock more appealing to conservative investors. While this diminished volatility does not necessarily indicate a price increase, it does suggest a more stable environment for the stock. Investors should monitor Allscripts closely, as this reduced volatility, combined with other positive market signals, could pave the way for potential upward price movement. Allscripts Healthcare Solutions exhibits relatively low volatility, with a skewness of 0.81 and a kurtosis of 3.08. Nonetheless, we advise all investors to conduct independent research on Allscripts Healthcare Solutions to ensure that all available information aligns with their expectations about its upside potential and future expected returns. Understanding different market volatility
trends can often assist investors in timing the market. Proper utilization of volatility indicators allows traders to measure the risk of Allscripts Healthcare's stock against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Allscripts Healthcare's stock price
, adding stress to investors as they watch the value of their shares decrease.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices decline. In conclusion, Allscripts Healthcare Solutions (MDRX) presents a compelling investment opportunity. With a current market valuation of 12.62
and a real value of 14.63
, there is a potential upside to the stock. The company's fiscal year ends in December, providing ample time for the stock to realize its potential. Analysts' consensus is a 'Hold' with 4 holds, 3 strong buys, and an estimated target price of 19.214, indicating a possible upside price of 14.45. However, investors should also consider the possible downside price of 10.95. With the naive expected forecast value at 12.7, the stock is rising slowly but surely. While the valuation hype value of 12.59 suggests caution, the analyst's highest estimated target price of 26 offers a promising outlook for Allscripts. .
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