Providence Story

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PRSC -- USA Stock  

USD 136.82  1.31  0.97%

As many millenniums are excited about healthcare space, it is only fair to go over The Providence Service. We will evaluate why we are still confident in anticipation of a recovery. Is The Providence Service valuation sustainable? Here I will cover a perspective on valuation of Providence to give you a better outlook on taking a position in this stock.
Published over two weeks ago
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Will Providence Service (NASDAQ:PRSC) price increase in December 2020?
This firm currently holds 21.1 M in liabilities with Debt to Equity (D/E) ratio of 0.06, which may suggest the firm is not taking enough advantage from borrowing. Macroaxis provides advice on The Providence Service to complement and cross-verify current analyst consensus on The Providence Service. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of The Providence Service using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of The Providence Service based exclusively on its fundamental and basic technical indicators. By analyzing Providence Service's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Providence Service's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Providence Service. We calculate exposure to Providence Service's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Providence Service's related companies.

The Providence Service Investment Alerts

Providence investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring The Providence Service performance across your portfolios.Please check all investment alerts for Providence

Providence Service Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Providence value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Providence Service competition to find correlations between indicators driving the intrinsic value of Providence.

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

Sale by Coliseum Capital Management Llc of 253021 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 sale of common stock par value $0.001 per share ("common stock") by Coliseum Capital Management Llc, the corporate stakeholder, on 12th of November 2020. This event was filed by Providence Service Corp with SEC on 2020-11-12. 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 company reported the previous year's revenue of 1.43 B. Net Loss for the year was (2.65 M) with profit before overhead, payroll, taxes, and interest of 108.79 M.
 2019 2020 (projected)
Consolidated Income74.87 M80.79 M
Direct Expenses1.4 B1.25 B

Margins Breakdown

Providence profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Providence Service itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Providence Service profit margins.
2.4
Operating Margin
3.29
EBITDA Margin
Operating Margin2.4
EBITDA Margin3.29
Gross Margin9.05
Profit Margin0.0657


Providence Service Revenue Per Employee is increasing over the last 8 years. Also, Providence Service Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.

Providence Service implied volatility may change after the rise

Current sortino ratio is at 0.42. The Providence Service has relatively low volatility with skewness of 0.94 and kurtosis of 2.19. 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 Final Take On Providence Service

Whereas many other companies 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. The inconsistency in the assessment between current Providence valuation and our trade advice on Providence Service is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Providence Service.

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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