Allscripts Healthcare Solutions (USA Stocks: MDRX) operates in the competitive Healthcare sector, specifically within the Health Information Services industry. The company, which has its fiscal year end in December, has been navigating through a challenging financial landscape. Allscripts' current valuation stands at approximately
$1.16 billion, with net invested capital amounting to $1.8 billion. The company's total current assets are valued at $761.3 million, which includes a significant $118.8 million in inventory. However, it's worth noting that the company's total current liabilities are significantly higher, standing at $547.1 million. In terms of income, Allscripts reported an operating income of $186.8 million and EBITDA of $115.4 million. However, the company has been grappling with a loss in net interest income, which was reported at $13.2 million. This is largely due to an interest expense of the same amount. The company's
financial health is further strained by a negative free cash flow of $154 million and a change in working capital amounting to a loss of $23.5 million. The company's capital expenditures stand at $78.6 million, while it has reported a significant sale purchase of stock amounting to a loss of $417.5 million. On the balance sheet, Allscripts holds net tangible assets worth $25.6 million and intangible assets valued at $408 million. However, the company also has other liabilities amounting to $55.1 million and deferred long-term liabilities of $16.6 million. The company's price to sales ratio stands at 1.30X, and it has reported earnings per share of 0.84X. Despite the financial challenges, the analyst overall consensus for Allscripts is a 'Hold'. In conclusion, while Allscripts has significant assets and operates in a growing industry, it is also grappling with substantial liabilities and a negative cash flow. Investors should carefully consider these factors when evaluating the investment potential of Allscripts Healthcare Solutions. The company's 52-week high stands at
$19.77, indicating some potential for growth if it can effectively manage its financial challenges. Allscripts Healthcare Solutions' Accounts Payable Turnover is relatively stable at present, compared to the previous year. In 2022, the company 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 slightly exceed $359.1 million in the same year.
Allscripts Healthcare is set to announce its earnings today, with the subsequent financial report due on November 2, 2023. While many traders who focus on fundamentals may get overwhelmed by in-depth analysis of balance sheets and income statements, it's practical to assess Allscripts Healthcare Solutions against its basic efficiency ratios.
We will explore reasons why the company could potentially generate above-average returns. Currently, Allscripts Healthcare's probability of distress is less than 2 percent. The question remains: will investors maintain their optimism, or should we anticipate a sell-off?
How important is Veradigm's Liquidity
Veradigm
financial leverage refers to using borrowed capital as a funding source to finance Veradigm ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Veradigm 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 Veradigm'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 Veradigm'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 Veradigm's total debt and its cash.
A Deeper Perspective
Institutional investors typically avoid acquiring a high percentage of Allscripts Healthcare stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Allscripts is distributed among investors.
Ownership Allocation
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.
| Retail Investors | 0.0 |
| Insiders | 2.47 |
| Institutions | 97.53 |
| 2018 | 2023 (projected) |
Long Term Debt to Equity | 0.42 | 0.32 | Interest Coverage | 5.86 | 6.92 |
Asset Utilization
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.
| Current Assets878.5 M | Assets Non Current1.7 B | Goodwill675.2 M | |
| Current Assets | 878.47 Million | 26.46 |
| Assets Non Current | 1.74 Billion | 52.51 |
| Goodwill | 675.2 Million | 20.33 |
| Tax Assets | 23.23 Million | 0.7 |
Allscripts Healthcare Solutions (MDRX) operates in the Health Information Services sector, specifically in Health Care Technology. The company's
fundamentals reveal a strong
financial position with a robust Current Ratio of
3.23X, indicating the company's ability to meet its short-term obligations. It also boasts a healthy Book Value of 10.773 and an EBITDA of $362.9M, demonstrating its profitability. However, it's important to note that the company had a Net Interest Income loss of $13.2M. The company's Total Stockholder Equity stands at
$1.4B, with a PE Ratio of 15.6429, which is slightly lower than the industry average, indicating that the stock may be undervalued. The company's Net Income stands at $133.9M, further supporting its profitability. However, the company's Cash and Cash Equivalents Changes show a decrease of $346.5M, which could indicate some liquidity concerns. The company's Forward PE is 19.3798, suggesting that investors are expecting higher earnings in the future. Considering these factors, Allscripts Healthcare Solutions (MDRX) could be a smart trade for investors looking for exposure in the Health Information Services sector. However, investors should closely monitor the company's cash flow situation and
future earnings growth.
Our take on Allscripts Healthcare small slide
The current Information Ratio of Allscripts Healthcare Solutions has increased to 0.09, indicating a marginal rise in the potential for higher returns. However, this could also be a precursor to another price decline for the stock, so investors should proceed with caution. The company has seen its fair share of volatility, and current market indicators suggest another downward adjustment may be on the horizon. Therefore, investors should take this into account when deciding on their next course of action with Allscripts Healthcare Solutions stock. Allscripts Healthcare Solutions has a relatively low volatility, with a skewness of 0.91 and a kurtosis of 3.11. Nevertheless, we recommend that all investors conduct independent research on Allscripts Healthcare Solutions to ensure all available information aligns with their expectations about its upside potential and future returns. Understanding various
market volatility trends can often assist investors in timing the market. Utilizing volatility indicators correctly allows traders to compare Allscripts Healthcare's stock risk against market volatility during both bullish and bearish trends. The heightened volatility that accompanies bear markets can directly affect
Allscripts Healthcare's stock price, causing stress to investors as they see the value of their shares decline.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Allscripts Healthcare Solutions stock presents a complex investment opportunity. The analyst overall consensus is a 'Hold', with 4 holds, 2 strong buys, and a total of 6 estimates. The analyst target price estimated value stands at
$19.583, with the highest estimated target price reaching up to
$26. However, the possible downside price is $11.84, indicating a potential risk. The valuation real value is $15.32, slightly above the current market value of $13.14, suggesting some undervaluation. Therefore, while there is potential for upside with a possible upside price of $15.38, investors should also be prepared for possible downsides. As always, potential investors should consider their risk tolerance and investment goals before making a decision. .
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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