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Radnet Inc (RDNT)
NASDAQ:RDNT
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Radnet
(NASDAQ:RDNT)
62Neutral
Positive Factors
Acquisition Strategy
With a $740MM cash balance, management's disciplined acquisition strategy should translate to EBITDA and growth boosts not currently reflected in the stock.
AI and Technology Integration
There is a strong interest in the newly introduced DeepHealth OS software suite, with expectations for expansion and a potential hospital win.
Revenue Growth
RDNT saw strong revenue growth in its Digital Health segment with a 29% year-over-year increase.
Negative Factors
EBITDA Guidance
FY25 EBITDA guidance fell short of Street expectations primarily due to the Q1 impact on revenues and EBITDA from fires and winter storms.
Wage Inflation
Wage inflation remains elevated, with expectations for further increases in the radiology space.
Radnet (RDNT) vs. S&P 500 (SPY)
Market Cap
$3.76B
Dividend YieldN/A
Average Volume (3M)986.29K
Price to Earnings (P/E)1551.1
Beta (1Y)1.42
Revenue Growth13.18%
EPS Growth401.41%
CountryUS
Employees11,021
SectorHealthcare
Sector Strength66
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)0.03
Shares Outstanding74,041,720
10 Day Avg. Volume1,063,705
30 Day Avg. Volume986,292
Financial Highlights & Ratios
PEG Ratio3.86
Price to Book (P/B)N/A
Price to Sales (P/S)2.06
Price to Cash Flow (P/CF)15.90
P/FCF Ratio60.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$67.00Price Target Upside32.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Radnet Business Overview & Revenue Model
Company DescriptionRadNet, Inc. (RDNT) is a leading provider of outpatient diagnostic imaging services in the United States. It operates a network of imaging centers offering a comprehensive range of imaging services, including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), ultrasound, X-ray, and other related healthcare services. The company primarily serves patients, healthcare providers, and hospitals, focusing on delivering high-quality, cost-effective diagnostic imaging solutions.
How the Company Makes MoneyRadNet makes money primarily through the provision of diagnostic imaging services at its network of outpatient imaging centers. The company's revenue model is based on fees for imaging services provided to patients, which are typically paid by private insurers, government programs such as Medicare and Medicaid, or directly by patients. Key revenue streams include charges for various imaging procedures like MRI, CT scans, and X-rays. RadNet also benefits from partnerships and affiliations with hospitals and healthcare providers, which often refer patients to RadNet's facilities for imaging services. Additionally, RadNet may engage in joint ventures or strategic acquisitions to expand its network and enhance its service offerings, thus contributing to its revenue growth.
Radnet Financial Statement Overview
Summary
Radnet demonstrates strong growth with increasing revenues and improved operational efficiency. The balance sheet shows significant equity growth, though high debt levels remain a risk. Cash flow is robust but with potential concerns from investing cash flows.Income Statement
Radnet has shown a positive trajectory with consistent revenue growth over the years, highlighted by a significant revenue increase from $1.43 billion in 2022 to $1.83 billion in 2024. The EBIT margin has improved, reflecting better operational efficiency. However, the net profit margin remains modest, suggesting room for improvement in cost management.78
Positive
Balance Sheet
The company exhibits a strong equity growth, with stockholders' equity increasing significantly from $332.9 million in 2022 to $902.3 million in 2024. The debt-to-equity ratio has improved, indicating better leverage management, though the debt level remains relatively high, posing a risk in fluctuating interest rate environments.70
Positive
Cash Flow
Radnet's operating cash flow has shown stability, and there is a notable improvement in free cash flow, indicating better capital expenditure management. The free cash flow to net income ratio suggests a healthy conversion of earnings into cash, although the volatility in investing cash flows could be a concern for future liquidity.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.83B | 1.62B | 1.43B | 1.32B | 1.07B | Gross Profit |
| 1.83B | 221.39M | 165.72M | 191.80M | 105.94M | EBIT |
| 104.62M | 98.70M | 46.36M | 82.55M | 53.23M | EBITDA |
| 323.10M | 292.79M | 278.53M | 278.37M | 199.74M | Net Income Common Stockholders |
| 2.79M | 3.04M | 33.61M | 44.32M | -1.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 740.02M | 342.57M | 127.83M | 134.61M | 102.02M | Total Assets |
| 3.29B | 2.69B | 2.43B | 2.06B | 1.79B | Total Debt |
| 1.73B | 1.49B | 1.51B | 1.40B | 1.18B | Net Debt |
| 988.84M | 1.15B | 1.39B | 1.26B | 1.08B | Total Liabilities |
| 2.15B | 1.88B | 1.94B | 1.71B | 1.53B | Stockholders Equity |
| 902.31M | 630.70M | 333.00M | 228.90M | 165.74M |
| Cash Flow | Free Cash Flow | |||
| 1.29M | 44.26M | -103.00M | -71.20M | 108.32M | Operating Cash Flow |
| 233.02M | 220.86M | 146.42M | 149.49M | 233.76M | Investing Cash Flow |
| -233.07M | -201.47M | -246.95M | -221.51M | -126.24M | Financing Cash Flow |
| 397.95M | 195.63M | 93.65M | 104.67M | -45.56M |
Radnet Technical Analysis
Neutral
50.67
Price Trends
57.79
Negative
66.78
Negative
65.16
Negative
Market Momentum
-2.31
Negative
43.13
Neutral
67.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNT, the sentiment is Neutral. The current price of 50.67 is above the 20-day moving average (MA) of 50.06, below the 50-day MA of 57.79, and below the 200-day MA of 65.16, indicating a neutral trend. The MACD of -2.31 indicates Negative momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDNT.
Radnet Risk Analysis
Radnet disclosed 44 risk factors in its most recent earnings report. Radnet 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
Radnet Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.99B | 11.05 | 17.82% | 0.43% | 10.82% | 65.64% | |
72 Outperform | $83.04B | 15.29 | -230.22% | 0.78% | 8.67% | 15.32% | |
72 Outperform | $12.44B | 4.13 | 110.75% | ― | 0.57% | 440.71% | |
62 Neutral | $3.76B | 1,551.07 | 0.36% | ― | 13.18% | 401.41% | |
62 Neutral | $12.06B | 14.09 | 159.08% | ― | 5.56% | 45.02% | |
52 Neutral | $387.48M | ― | 39.18% | ― | 1.16% | -278.41% | |
49 Neutral | $6.88B | 0.82 | -52.97% | 2.48% | 20.92% | 1.17% |
* Healthcare Sector Average
Performance Comparison
RDNT
Radnet
50.67
2.01
4.13%
CYH
Community Health
2.78
-0.72
-20.57%
DVA
DaVita
152.50
14.45
10.47%
HCA
HCA Healthcare
337.29
6.41
1.94%
THC
Tenet Healthcare
133.04
27.93
26.57%
UHS
Universal Health
184.46
2.74
1.51%
Radnet Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -12.03% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
RadNet's earnings call highlighted robust financial growth, especially in digital health and imaging revenues, with strategic expansions and a strong cash position. However, severe weather and labor shortages posed challenges, affecting short-term performance. Despite these challenges, the company's strong underlying performance and strategic initiatives indicate a positive outlook.Highlights
Record-Breaking Quarterly Revenue and Growth
RadNet reported its strongest quarter in history, with total company revenue increasing 13.5% to $477.1 million and adjusted EBITDA increasing 14% from last year's fourth quarter to $75 million.
Significant Growth in Digital Health Segment
Digital health revenues increased by 28.1% to $18.9 million, with adjusted EBITDA growing 61.6% to $4.5 million from last year's fourth quarter.
Expansion of Imaging Centers and Partnerships
RadNet opened nine new facilities in 2024 and increased its hospital and health system joint ventures to 153 centers, representing 38.4% of total centers.
Successful Financial Management and Cash Position
RadNet ended 2024 with a cash balance of $740 million and a net debt to adjusted EBITDA leverage ratio below one times, with strategic refinancing efforts lowering interest costs.
Lowlights
Weather and Wildfire-Related Impacts on Revenue
Severe winter weather and Southern California wildfires in early 2025 resulted in an estimated $22 million revenue and $15 million adjusted EBITDA loss.
Ongoing Labor Challenges
RadNet continues to face significant challenges due to labor shortages, particularly in technologists and radiologists, impacting operational efficiency.
Company Guidance
During the RadNet, Inc. Fourth Quarter 2024 Financial Results Conference Call, the company provided an optimistic outlook for 2025 despite challenges faced in early 2025 due to severe winter weather and wildfires. For the fourth quarter of 2024, RadNet reported a 13.5% increase in total company revenue to $477.1 million and a 14% increase in adjusted EBITDA to $75 million. The digital health segment showed robust growth with revenues rising by 28.1% to $18.9 million and adjusted EBITDA surging 61.6% to $4.5 million. Advanced imaging accounted for 26.8% of procedural volume, an increase of 137 basis points year-over-year. The company ended 2024 with a strong financial position, boasting a cash balance of $740 million and maintaining a net debt to adjusted EBITDA leverage ratio below one. For 2025, RadNet anticipates 30% revenue growth in its digital health segment, despite planning $20 million in infrastructure investments. The company aims to enhance operational efficiencies through technology, focusing on building sales, marketing, and customer support capabilities, while also considering strategic acquisitions to expand their offerings.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.