Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system.
The last earnings update was 31 days ago.
Discounted Cash Flow Calculation for NasdaqGS:CHNG.V using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
NasdaqGS:CHNG.V DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Change Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
Change Healthcare's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Change Healthcare's earnings available for a low price, and how does
this compare to other companies in the same industry?
Change Healthcare's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Change Healthcare is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Change Healthcare's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Change Healthcare's finances.
The net worth of a company is the difference between its assets and liabilities.
Change Healthcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Change Healthcare's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Change Healthcare's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.6x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Neil E. de Crescenzo, IV serves as President and Chief Executive Officer at Change Healthcare, Inc. Mr. de Crescenzo has been a Director of Change Healthcare Inc. since June 26, 2019. He has been the Chief Executive Officer and President at Change Healthcare Corporation since September 2013 and Change Healthcare Holdings, Inc. since September 30, 2013. Mr. de Crescenzo served as a Senior Advisor at The Blackstone Group L.P. He serves as Director At-Large of Nashville Health Care Council. He advises Blackstone on current and future health care technology and services investments. Mr. de Crescenzo began his career in investment banking, working with U.S. and European clients in the areas of corporate finance and mergers and acquisitions. He served as Senior Vice President an General Manager of Health Sciences Global Business Unit of Oracle Corporation since June 2008. He was employed at NexPrise, Inc. He joined Oracle in 2006. He has experience as President and General Manager of Chemdex since January 2000. He served as Global Services Executive for IBM Global Services from August 1999 to December 1999. He served as Director of Global Strategy for IBM Corporation's Public Sector business unit from January 1999 to August 1999 and as Director of Global Marketing and Business Development for its Global Healthcare business unit from October 1996 to January 1999. From October 1994 to October 1996, he served as a Principal with New Health Ventures, an operating unit of Blue Cross Blue Shield of Massachusetts. He serves as a Director of Change Healthcare Corporation. He has been a Director at Change Healthcare Holdings, Inc.(Emdeon Inc.) since September 2013. Mr. de Crescenzo earned a B.A. in Political Science from Yale University and an M.B.A. from Northeastern University.
Neil's compensation has been consistent with company performance over the past year, both up more than 20%.
Neil's remuneration is lower than average for companies of similar size in United States of America.
Neil de Crescenzo
Executive VP & CFO
Executive VP and President of Sales & Operations
Executive VP & President of Technology Enabled Services
Executive VP & President of Software & Analytics
Senior Vice President of Investor Relations
Executive VP & General Counsel
Executive VP of Corporate Affairs & Chief Marketing Officer
Senior Vice President of Corporate Development
Chief People Officer & Executive VP
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Change Healthcare board of directors is less than 3 years, this suggests a new board.
Board of Directors
Neil de Crescenzo
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system. It operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment provides software and analytics solutions for financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.