| 2018 | 2023 (projected) | Long Term Debt to Equity | 0.42 | 0.32 | Interest Coverage | 5.86 | 6.92 |
Is Allscripts Healthcare (USA Stocks:MDRX) undervalued?
 | By Aina Ster | Macroaxis Story |
Allscripts Healthcare Solutions (NASDAQ: MDRX), a leading player in the Health Care Equipment & Services industry, has been a consistent performer in the stock market, generating a net income of $133.9M and operating income of $186.8M. The company's revenue stands at $1.5B, driven by its robust Health Care Technology services. Despite a loss of $13.2M in net interest income, the firm's EBITDA stands at $115.4M, indicating strong operational efficiency. The company's PE Ratio is 14.7356, and it has a PEG Ratio of 2.4237, suggesting that it is reasonably valued given its earnings growth. The Wall Street target price is $18.44, with the analyst overall consensus being 'Buy'. However, the company has a possible downside price of $11.69, suggesting potential risks. The company's return on equity is 0.0893, indicating a reasonable return for investors. With a workforce of 8K full-time employees, Allscripts continues to be a significant player in the Healthcare sector. The company's future looks promising with an EPS estimate for the next year of $0.86. Despite a quarterly earnings growth of -0.018, the company's profit margin stands at 0.0397, showing a healthy profitability level. The Accounts Payable Turnover for Allscripts Healthcare Solutions is currently fairly stable, showing little variation compared to the previous year. In 2022, Allscripts Healthcare reported an Accounts Payable Turnover of 51.30. The Accrued Expenses Turnover is projected to increase to 9.96 in 2023, while the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to slightly exceed $359.1 million in the same year.
As interest in the healthcare technology sector grows, it is beneficial to delve deeper into the details of Allscripts Healthcare Solutions. In this analysis, I will scrutinize this stock and the current investor sentiment surrounding it. Additionally, I will examine key factors influencing Allscripts Healthcare's product line and demonstrate how these elements may affect the company's outlook for active traders this year.
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Reviewed by Gabriel Shpitalnik
Allscripts Healthcare Solutions has a performance score of 2 out of 100. The company's Beta, a measure of market volatility, stands at 1.3951, indicating a somewhat significant risk relative to the market. In simpler terms, if the market rises, Allscripts is expected to outperform it. Conversely, if the market yields negative returns, Allscripts is likely to underperform.
While it's crucial to consider Allscripts Healthcare's historical returns, it's equally important to be pragmatic about the equity's current trend patterns. The approach to predicting the future performance of any stock involves a comprehensive evaluation of the business as a whole, its past performance, and all available fundamental and technical indicators.
By examining Allscripts Healthcare's technical indicators, you can currently assess whether the anticipated return of 0.0624% will be sustainable in the future. At present, Allscripts Healthcare exhibits a risk of 1.84%. Please verify Allscripts Healthcare's maximum drawdown, as well as the relationship between the skewness and price action indicator, to determine if Allscripts Healthcare will continue to follow its price patterns.
Advanced assessment of Allscripts
Allscripts Healthcare Solutions (NASDAQ: MDRX) operates in the burgeoning Health Care Equipment & Services industry, providing essential health information services. The company's EPS estimate for the current year stands at 0.81, indicating a potentially robust earning capacity. However, the firm reported a change to net income of a 370M loss, reflecting a challenging financial performance. Despite this, the company maintains a healthy gross profit of 738.3M on a revenue of 1.5B. With a Wall Street target price of 18.44, there is a potential upside of 2.58, suggesting that MDRX could continue to fuel portfolio growth, albeit with some risk. The performance of Allscripts Healthcare Solutions in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Allscripts Healthcare's stock prices. When investing in Allscripts Healthcare, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Allscripts Pink Sheet can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Allscripts Healthcare carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.How important is Allscripts Healthcare's Liquidity
Allscripts Healthcare financial leverage refers to using borrowed capital as a funding source to finance Allscripts Healthcare Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Allscripts Healthcare 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. Financial leverage can amplify the potential profits to Allscripts Healthcare's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Allscripts Healthcare's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Allscripts Healthcare's total debt and its cash.
A Deeper Perspective
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.
Allscripts Healthcare Solutions (NASDAQ: MDRX), a key player in the Health Information Services industry, continues to show promising signs for portfolio growth. The company's solid financial health is evident in its current ratio of 3.23X, indicating a strong ability to cover short-term liabilities. Additionally, the company's net assets stand at a robust $2.43B, further underscoring its financial stability.The company's EPS estimate for the current year is 0.81, while the EPS estimate for the next quarter is 0.32, suggesting a potential for continued growth. Moreover, Allscripts' price to earnings to growth (PEG) ratio is 2.42X, which may indicate that the stock is undervalued given its earnings growth. Allscripts' operating margin is 0.0472%, and the company posted a net income of $133.9M, demonstrating its profitability. The company also has a healthy book value of 10.773, which may be attractive to investors looking for undervalued stocks. The company's shares are primarily owned by institutions, at 97.48%, which could suggest confidence in the company's long-term strategy. Finally, with a target price of $18.44, there is a potential upside of 2.58, making Allscripts a potentially attractive option for investors seeking to fuel portfolio growth. .
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