| 2020 | 2021 | 2022 | 2023 (projected) | Interest Expense | 34.1 M | 13.17 M | 15.14 M | 15.54 M | Gross Profit | 565.7 M | 619.57 M | 712.5 M | 717.65 M |
Ownership Breakdown
| Institutions97.48% |
| Retail Investors | 0.0 | |
| Insiders | 2.52 | |
| Institutions | 97.48 |
Should you hold on to your Allscripts Healthcare position?
 | By Raphi Shpitalnik | Macroaxis Story |
Allscripts Healthcare Solutions (NASDAQ: MDRX) is a leading player in the Health Care Technology sector, with a market capitalization of $1.4B and a workforce of 8,000 full-time employees. The company's net income stands at a healthy $133.9M, with an operating income of $186.8M. Despite a slight quarterly earnings decline of 1.8%, the company's EPS estimate for the current year is $0.81, indicating a positive outlook. The company's PEG ratio of 2.4237 and PE ratio of 15.1628 suggest a fair valuation, although the Wall Street target price of $18.44 and the analyst target price estimated value of $19.687 indicate potential for growth. The company's book value of $10.773 further strengthens its financial position. However, the company's return on assets of 0.0216 and return on equity of 0.0893 could be a cause for concern, indicating a need for better asset and equity management. The company's revenue per share is $13.288, with a quarterly revenue growth of 0.05. In conclusion, while Allscripts Healthcare Solutions has a strong market presence and positive earnings outlook, investors may need to reevaluate their investment considering the company's return on assets and equity. The company's potential for growth, as indicated by Wall Street and analyst target prices, may make it a worthwhile investment for those with a higher risk tolerance. Allscripts Healthcare Solutions' Accounts Payable Turnover has remained relatively stable recently, 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 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to fall slightly above $359.1 million in 2023.
While many traders are currently more focused on capital preservation rather than market returns, Allscripts Healthcare Solutions could be an exception. In August, we will explore the potential of transforming Allscripts Healthcare into a consistent growth stock.
This article aims to highlight some fundamental factors impacting Allscripts Healthcare's products and services. Additionally, it will provide insights into how these factors might influence the investment outlook for Allscripts Healthcare in August.
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Reviewed by Rifka Kats
Allscripts Healthcare Solutions, a prominent player in the Health Information Services industry, has been exhibiting a positive trend with a profit margin of 3.97% and a net income from continuing operations of 134M. The company has a healthy EPS estimate for the current quarter at 0.19, suggesting a potential for increased profitability. However, investors should take note of the high PEG ratio of 2.42, which may indicate that the stock is overvalued relative to its earnings growth. Furthermore, the company's fiscal year-end financials showed a change to net income reporting a loss of 370M, which could be a cause for concern. Despite these mixed signals, Wall Street's target price for Allscripts stands at 18.44, considerably higher than its current last price of 12.92, indicating a potential upside.
Advanced assessment of Allscripts
More than 97.0% of Allscripts Healthcare shares are held by institutional investors. Institutional ownership of Allscripts Healthcare signifies the percentage of Allscripts Healthcare's equity that is owned by large financial organizations such as mutual funds, pension funds, insurance companies, investment firms, foundations, or other entities that manage funds on behalf of others. Please refer to our most recent analysis of Allscripts, which includes its current ownership diagnostics.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
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.
In the Health Information Services industry, Allscripts Healthcare Solutions, listed on NASDAQ, has been a notable player with a market capitalization of 1.42B. Despite the global challenges, the company reported a net income of 133.9M and an operating income of 186.8M. However, the company has a Probability of Bankruptcy at 15.00%, which should be considered by investors.Allscripts has a current ratio of 3.23X, which indicates a strong ability to meet short-term obligations. The company's book value stands at 10.773, which may be appealing to value investors. The PEG Ratio of 2.4237 and PE Ratio of 15.1628 could suggest that the stock is overvalued, but this should be weighed against the company's growth potential. The company's shares are largely held by institutions, with 97.48% of shares owned by institutional investors. This could indicate confidence in the company's long-term prospects. However, the company's downside deviation of 2.34 and beta of 0.95 suggest a moderate level of risk. The company's financial health is further indicated by its net assets of 2.43B and retained earnings of 767.56M. Despite the risks, Allscripts' potential upside of 2.58 and target price of 18.44 could make it an attractive investment. However, investors should carefully consider the company's financials and market conditions before making a decision. .
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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 Raphi Shpitalnik do not own shares of Allscripts Healthcare Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.