R1 RCM Return On Equity vs. Current Valuation
| RCMDelisted Stock | USD 14.31 0.01 0.07% |
For R1 RCM profitability analysis, we use financial ratios and fundamental drivers that measure the ability of R1 RCM to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well R1 RCM Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between R1 RCM's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of R1 RCM Inc over time as well as its relative position and ranking within its peers.
RCM |
R1 RCM Inc Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining R1 RCM's current stock value. Our valuation model uses many indicators to compare R1 RCM value to that of its competitors to determine the firm's financial worth. R1 RCM Inc is rated below average in return on equity category among its peers. It is rated second in current valuation category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value R1 RCM by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.RCM Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
R1 RCM |
| = | -0.022 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
R1 RCM |
| = | 8.19 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
RCM Current Valuation vs Competition
R1 RCM Inc is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is at this time estimated at about 32.4 Billion. R1 RCM totals roughly 8.19 Billion in current valuation claiming about 25% of equities under Health Care industry.
R1 RCM Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in R1 RCM, profitability is also one of the essential criteria for including it into their portfolios because, without profit, R1 RCM will eventually generate negative long term returns. The profitability progress is the general direction of R1 RCM's change in net profit over the period of time. It can combine multiple indicators of R1 RCM, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
R1 RCM Inc. provides technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups. The company was founded in 2003 and is headquartered in Murray, Utah. R1 Rcm operates under Health Information Services classification in the United States and is traded on NASDAQ Exchange. It employs 20800 people.
RCM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on R1 RCM. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of R1 RCM position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the R1 RCM's important profitability drivers and their relationship over time.
Use R1 RCM in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if R1 RCM position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in R1 RCM will appreciate offsetting losses from the drop in the long position's value.R1 RCM Pair Trading
R1 RCM Inc Pair Trading Analysis
The ability to find closely correlated positions to R1 RCM could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace R1 RCM when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back R1 RCM - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling R1 RCM Inc to buy it.
The correlation of R1 RCM is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as R1 RCM moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if R1 RCM Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for R1 RCM can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your R1 RCM position
In addition to having R1 RCM in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Consideration for investing in RCM Stock
If you are still planning to invest in R1 RCM Inc check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the R1 RCM's history and understand the potential risks before investing.
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