Providence Story

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PRSC -- USA Stock  

USD 89.71  0.60  0.67%

Providence Service Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 254.00. The current year Revenue Per Employee is expected to grow to about 428.7 K, whereas Free Cash Flow is forecasted to decline to (20.2 M). In this article, we will go over Providence Service as a potential position in addition to your existing holdings. We will analyze why it could be a game-changer for Providence Service investors.
Published over a month ago
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Are Providence (NASDAQ:PRSC) investors starting to hold back?
This firm has a beta of 0.1341. Let's try to break down what Providence's beta means in this case. As returns on the market increase, Providence Service returns are expected to increase less than the market. However, during the bear market, the loss on holding Providence Service will be expected to be smaller as well. The beta indicator helps investors understand whether Providence Service moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Providence deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as The Providence Service. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Providence Service


How important is Providence Service's Liquidity

Providence Service financial leverage refers to using borrowed capital as a funding source to finance The Providence Service ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Providence Service 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 Providence Service's total debt and its cash.

How Providence utilizes its cash?

To perform a cash flow analysis of Providence Service, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Providence Service is receiving and how much cash it distributes out in a given period. The Providence Service cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Providence Service Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 60.94 Million

Conversion by Coliseum Capital Management Llc of 167 shares of Providence Service

Legal trades by Providence Service 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:
Providence insider trading alert for conversion of series a convertible preferred stock by Coliseum Capital Management Llc, the corporate stakeholder, on 8th of September 2020. This event was filed by Providence Service Corp with SEC on 2020-09-08. 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.

Going after Providence Financials

The Providence Service has relatively low volatility with skewness of 0.7 and kurtosis of 0.88. However, we advise all investors to independently investigate The Providence Service to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Margin Breakdown

2.4
Operating Margin
3.29
EBITDA Margin
Operating Margin2.4
EBITDA Margin3.29
Gross Margin9.05
Profit Margin0.0657

Some Providence technical indicators suggest correction

The treynor ratio is down to 4.13 as of today. The Providence Service has relatively low volatility with skewness of 0.7 and kurtosis of 0.88. However, we advise all investors to independently investigate The Providence Service to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Providence Service

Whereas many of the other players within the medical care facilities industry are still a little expensive, even after the recent corrections, Providence Service may offer a potential longer-term growth to investors. While some short-term oriented investors may not share our view, we believe it may be a good time to trade new shares of Providence.

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 The Providence Service. Please refer to our Terms of Use for any information regarding our disclosure principles.

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