6 Analysts Assess R1 RCM: What You Need To Know

R1 RCM RCM underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $17.33, along with a high estimate of $20.00 and a low estimate of $15.00. Observing a downward trend, the current average is 0.4% lower than the prior average price target of $17.40.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive R1 RCM. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to R1 RCM. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of R1 RCM compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of R1 RCM's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of R1 RCM's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on R1 RCM analyst ratings.

All You Need to Know About R1 RCM

R1 RCM Inc is a provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. Its services help healthcare providers generate sustainable improvements in their operating margins and cash flows while also enhancing patient, physician, and staff satisfaction for the customers, Its service offering consists of end-to-end RCM services for health systems, hospitals, and physician groups that provide comprehensive revenue cycle infrastructure to providers, including all revenue cycle personnel, technology solutions, and process workflow. The majority of the revenue comes from the operating fees received.

Breaking Down R1 RCM's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining R1 RCM's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.69% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: R1 RCM's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -5.81%, the company may face hurdles in effective cost management.

Return on Equity (ROE): R1 RCM's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.26% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.65%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.85.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.