Education
About Us
Working with TipRanks
Follow Us
Concentra Group Holdings Parent, Inc. (CON)
NYSE:CON
RESEARCH TOOLSreports
Top Page
Concentra Group Holdings Parent, Inc.
(NYSE:CON)
69Neutral
Positive Factors
Acquisition
The acquisition of Nova Medical Centers closed successfully, aligning with Concentra's expectations and reinforcing their strategic growth plans.
Financial Performance
Concentra's free cash flow was stronger than estimated, indicating robust financial health.
Revenue Growth
Revenue from Onsite Health Clinics increased by 7.3% year over year, showcasing growth in this segment.
Negative Factors
Employer Services
Employer Services revenues missed estimates due to declining volumes.
Patient Visits
Patient visits in Employer Services declined by 3.3% year over year, reflecting a decrease in demand.
Volume Pressures
CON continues to face volume pressures, with total patient visits slightly below consensus.
Concentra Group Holdings Parent, Inc. (CON) vs. S&P 500 (SPY)
Market Cap
$2.75B
Dividend Yield0.29%
Average Volume (3M)786.73K
Price to Earnings (P/E)16.5
Beta (1Y)0.32
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,758
SectorServices
Sector StrengthN/A
IndustryMedical - Equipment & Services
Share Statistics
EPS (TTM)1.31
Shares Outstanding128,171,950
10 Day Avg. Volume759,978
30 Day Avg. Volume786,733
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.42
Price to Cash Flow (P/CF)10.10
P/FCF Ratio13.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.86Price Target Upside25.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Concentra Group Holdings Parent, Inc. Business Overview & Revenue Model
Company DescriptionConcentra Group Holdings Parent, Inc. (CON) is a healthcare company specializing in occupational health services. The company offers a range of services designed to improve the health and wellness of employees, including urgent care, physical therapy, and wellness programs. Concentra operates a network of medical centers across the United States, serving employers and their workforce with a focus on reducing work-related injuries and improving employee productivity.
How the Company Makes MoneyConcentra generates revenue primarily through the provision of occupational health services to businesses and their employees. The company operates a network of medical centers that offer services such as urgent care, physical therapy, drug testing, and preventive wellness programs. Revenue streams include fees from employers for health services provided to their employees, as well as payments from insurance providers. Concentra may also enter into partnerships with corporations to deliver tailored healthcare solutions, further contributing to its earnings. Additionally, the company may receive income from ancillary services and products offered at its medical centers.
Concentra Group Holdings Parent, Inc. Financial Statement Overview
Summary
Concentra Group demonstrates robust revenue growth and strong cash flow generation, contributing to a stable financial position. However, the decline in net profit margin and equity ratio suggests challenges in maintaining profitability and financial resilience. Improved debt management is a positive sign, yet the company should focus on enhancing operational efficiency to sustain growth.Income Statement
Concentra Group has shown consistent revenue growth over the past three years, with the latest annual increase of 3.38%. The gross profit margin improved to 27.78% in 2024, indicating effective cost management. However, the net profit margin decreased to 8.76% from 9.79% in 2023, suggesting challenges in controlling operational expenses. The EBIT margin dropped significantly due to lower EBIT, but EBITDA margin remains strong at 14.28%, reflecting healthy cash profitability.75
Positive
Balance Sheet
The company's debt-to-equity ratio improved to 1.75 from 0.78 last year, signifying reduced leverage and financial risk. Return on equity decreased to 60.42% from 15.57%, largely due to a decrease in net income. The equity ratio of 10.93% indicates a relatively low proportion of equity financing, suggesting potential vulnerability to financial shocks.70
Positive
Cash Flow
Free cash flow grew by 27.47%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.65, highlighting efficient cash operations. Free cash flow to net income ratio also improved, showing the company's ability to generate cash relative to its earnings. Continued positive cash flow trends contribute to financial stability.80
Positive
| Breakdown | ||
| Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 1.90B | 1.84B | 1.72B | Gross Profit |
| 527.98M | 439.38M | 408.19M | EBIT |
| 304.76M | 287.38M | 258.22M | EBITDA |
| 368.26M | 360.15M | 330.20M | Net Income Common Stockholders |
| 166.54M | 179.95M | 166.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 183.25M | 31.37M | 37.66M | Total Assets |
| 2.52B | 2.33B | 2.30B | Total Debt |
| 482.45M | 905.00M | 1.04B | Net Debt |
| 299.19M | 873.63M | 1.00B | Total Liabilities |
| 2.22B | 1.16B | 1.30B | Stockholders Equity |
| 275.67M | 1.16B | 973.32M |
| Cash Flow | Free Cash Flow | |
| 210.35M | 164.98M | 228.35M | Operating Cash Flow |
| 274.68M | 234.32M | 274.34M | Investing Cash Flow |
| -71.27M | -75.31M | -50.93M | Financing Cash Flow |
| -51.53M | -165.29M | -216.68M |
Concentra Group Holdings Parent, Inc. Risk Analysis
Concentra Group Holdings Parent, Inc. disclosed 62 risk factors in its most recent earnings report. Concentra Group Holdings Parent, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Concentra Group Holdings Parent, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.10B | 11.07 | 17.82% | 0.43% | 10.82% | 65.64% | |
69 Neutral | $2.75B | 16.49 | 15.57% | 0.29% | ― | ― | |
64 Neutral | $760.60M | 19.40 | 8.25% | ― | 2.65% | 3.34% | |
62 Neutral | $12.02B | 13.98 | 159.08% | ― | 5.56% | 45.02% | |
61 Neutral | $2.80B | 10.85 | 8.73% | ― | 7.69% | ― | |
58 Neutral | $492.19M | ― | -3.26% | ― | -33.46% | -121.07% | |
50 Neutral | $1.68B | 33.85 | -6.36% | 0.22% | 1.34% | -8297.75% |
* Services Sector Average
Performance Comparison
CON
Concentra Group Holdings Parent, Inc.
21.44
-1.28
-5.63%
ACHC
Acadia Healthcare
30.12
-45.95
-60.40%
CCRN
Cross Country Healthcare
15.00
-3.44
-18.66%
DVA
DaVita
150.22
12.38
8.98%
HCSG
Healthcare Services
10.35
-2.14
-17.13%
UHS
Universal Health
186.18
11.68
6.69%
Concentra Group Holdings Parent, Inc. Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -3.90% | Next Earnings Date: Jul 31, 2025
Earnings Call Sentiment Neutral
Concentra's Q3 2024 earnings call reflected moderate growth with key achievements such as revenue increase, expansion of locations, and improvement in cash flow metrics. However, challenges included declines in employer services visits, a slight decrease in total visits, and external impacts from hurricanes and cyber outages. The sentiment is mixed with both positive and negative elements.Highlights
Revenue Growth
Revenue for Q3 2024 was $489.6 million, up 3.3% year-over-year from $474.0 million in Q3 2023.
Adjusted EBITDA Increase
Adjusted EBITDA grew by 2.7% to $101.6 million in Q3 2024 compared to $98.9 million in Q3 2023.
Expansion of Locations
Concentra added 21 more locations, totaling 705, compared to the end of Q3 2023.
Cash Flow and Leverage Improvement
Operating activities generated $65.9 million in cash flow, with the net leverage ratio improving from 3.9x at IPO to 3.7x at September 30, 2024.
Dividend Announcement
Concentra's Board declared a cash dividend of $0.0625 per share, payable on November 22, 2024.
New Business Development
More than 10 new on-site health clinics, including advanced primary care services, are set to open in the coming months.
Lowlights
Decline in Employer Services Visits
Employer services visits decreased by 2.6% year-over-year in Q3 2024, continuing a multi-quarter trend.
Decrease in Total Visits
Total patient visits decreased by 0.7% in Q3 2024 compared to the prior year.
Slight Decrease in EBITDA Margin
EBITDA margin decreased slightly to 20.7% in Q3 2024 from 20.9% in Q3 2023.
Impact of External Factors
Hurricanes and a cyber outage contributed to a softer July, impacting revenue by approximately $1.7 million and EBITDA by $600,000.
Higher Interest Expense
Net income and EPS were lower compared to the prior year due to recapitalization and associated higher interest expenses.
Company Guidance
During the third quarter 2024 earnings call, Concentra Group Holdings Parent, Inc. provided guidance for the full year, projecting revenue of approximately $1.9 billion and adjusted EBITDA in the range of $370 million to $375 million. The company reported a 3.3% year-over-year revenue growth for Q3, reaching $489.6 million, and a 2.7% increase in adjusted EBITDA to $101.6 million. Despite a slight decline in EBITDA margin from 20.9% to 20.7%, Concentra maintained robust cash flow, generating $65.9 million from operating activities and reducing its net leverage ratio to 3.7x. They also declared a cash dividend of $0.0625 per share. The company saw a 0.7% decrease in total visits, with employer services visits down by 2.6% but workers' compensation visits increasing by 1.7%. Revenue per visit rose by 3.9%, driven by higher reimbursement rates and a favorable visit mix. Looking ahead, Concentra anticipates continued growth, aided by strategic initiatives, including the separation from Select Medical and expansion efforts, such as new center openings and acquisitions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.