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Change Healthcare

Nasdaq:CHNG
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHNG
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

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 50 days ago. More info.


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  • Change Healthcare has significant price volatility in the past 3 months.
CHNG Share Price and Events
7 Day Returns
-8.3%
NasdaqGS:CHNG
2.4%
US Healthcare Services
-4.1%
US Market
1 Year Returns
-
NasdaqGS:CHNG
16.3%
US Healthcare Services
-14.9%
US Market
CHNG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Change Healthcare (CHNG) -8.3% -34.3% -41.2% - - -
US Healthcare Services 2.4% -4.3% -2.4% 16.3% 61.9% 36.3%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • No trading data on CHNG.
  • No trading data on CHNG.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Change Healthcare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Change Healthcare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Change Healthcare.

NasdaqGS:CHNG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CHNG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 21%) (1.4%))
0.99
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.99 * 5.44%)
7.13%

Discounted Cash Flow Calculation for NasdaqGS:CHNG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Change Healthcare 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 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.13%)
2020 269.44 Analyst x5 251.52
2021 447.90 Analyst x7 390.30
2022 467.06 Analyst x5 379.92
2023 556.95 Analyst x2 422.91
2024 616.70 Analyst x2 437.13
2025 678.95 Analyst x2 449.24
2026 724.53 Est @ 6.71% 447.51
2027 762.37 Est @ 5.22% 439.56
2028 794.21 Est @ 4.18% 427.46
2029 821.58 Est @ 3.45% 412.78
Present value of next 10 years cash flows $4,058.00
NasdaqGS:CHNG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $821.58 × (1 + 1.74%) ÷ (7.13% – 1.74%)
$15,520.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,520.66 ÷ (1 + 7.13%)10
$7,797.91
NasdaqGS:CHNG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,058.00 + $7,797.91
$11,855.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,855.91 / 301.42
$39.33
NasdaqGS:CHNG Discount to Share Price
Calculation Result
Value per share (USD) From above. $39.33
Current discount Discount to share price of $9.25
= -1 x ($9.25 - $39.33) / $39.33
76.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Change Healthcare is available for.
Intrinsic value
>50%
Share price is $9.25 vs Future cash flow value of $39.33
Current Discount Checks
For Change Healthcare 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 Change Healthcare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Change Healthcare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CHNG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-0.77
NasdaqGS:CHNG Share Price ** NasdaqGS (2020-04-02) in USD $9.25
United States of America Healthcare Services Industry PE Ratio Median Figure of 12 Publicly-Listed Healthcare Services Companies 39.64x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Change Healthcare.

NasdaqGS:CHNG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CHNG Share Price ÷ EPS (both in USD)

= 9.25 ÷ -0.77

-12.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Change Healthcare is loss making, we can't compare its value to the US Healthcare Services industry average.
  • Change Healthcare is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Change Healthcare's expected growth come at a high price?
Raw Data
NasdaqGS:CHNG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -12.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
28.1%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 11 Publicly-Listed Healthcare Services Companies 3.11x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Change Healthcare, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Change Healthcare's assets?
Raw Data
NasdaqGS:CHNG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $15.60
NasdaqGS:CHNG Share Price * NasdaqGS (2020-04-02) in USD $9.25
United States of America Healthcare Services Industry PB Ratio Median Figure of 38 Publicly-Listed Healthcare Services Companies 3.36x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqGS:CHNG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CHNG Share Price ÷ Book Value per Share (both in USD)

= 9.25 ÷ 15.60

0.59x

* Primary Listing of Change Healthcare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Change Healthcare is good value based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess Change Healthcare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare Services industry average (and greater than 0)? (1 check)
  5. Change Healthcare has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Change Healthcare expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Change Healthcare expected to grow at an attractive rate?
  • Change Healthcare's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Change Healthcare's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Change Healthcare's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CHNG Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CHNG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 28.1%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 23.8%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CHNG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CHNG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2025-03-31 4,267 1,041 632 2
2024-03-31 4,039 936 539 2
2023-03-31 3,774 839 448 4
2022-03-31 3,549 702 334 13
2021-03-31 3,403 664 265 15
2020-04-03
2020-03-31 3,280 532 163 14
NasdaqGS:CHNG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 0 -84
2019-09-30 0 -147
2019-06-30 3 -72
2019-03-31 3 -52
2018-12-31 4 -70
2018-09-30 4 71
2018-06-30 0 67
2018-03-31 0 61
2017-03-31 0 -35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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.
Raw Data
NasdaqGS:CHNG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Change Healthcare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CHNG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2025-03-31 2.14 2.14 2.14 1.00
2024-03-31 1.76 1.76 1.76 1.00
2023-03-31 1.42 1.42 1.42 1.00
2022-03-31 0.97 1.13 0.69 6.00
2021-03-31 0.88 1.58 0.50 8.00
2020-04-03
2020-03-31 0.67 1.72 0.48 8.00
NasdaqGS:CHNG Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -0.77
2019-09-30 -1.60
2019-06-30 -0.95
2019-03-31 -0.69
2018-12-31 -0.93
2018-09-30 0.94
2018-06-30 0.88
2018-03-31 0.81
2017-03-31 -4.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Change Healthcare is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Change Healthcare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Change Healthcare has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Change Healthcare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Change Healthcare's growth in the last year to its industry (Healthcare Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Change Healthcare does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Change Healthcare's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Change Healthcare's 1-year growth to the US Healthcare Services industry average as it is not currently profitable.
Earnings and Revenue History
Change Healthcare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Change Healthcare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CHNG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 -84.25 3.48
2019-09-30 -147.37 2.49
2019-06-30 -72.03 1.38
2019-03-31 -52.01 1.16
2018-12-31 -69.98 0.23
2018-09-30 71.04 0.15
2018-06-30 66.54 0.17
2018-03-31 60.96 0.18
2017-03-31 -35.06 1.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Change Healthcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Change Healthcare has efficiently used its assets last year compared to the US Healthcare Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Change Healthcare improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Change Healthcare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Change Healthcare 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.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Change Healthcare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

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.
Net Worth
  • 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.
Balance sheet
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 checks below.
Assets
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.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Change Healthcare Company Filings, last reported 3 months ago.

NasdaqGS:CHNG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,950.13 39.02 18.77
2019-09-30 1,886.11 42.54 18.56
2019-06-30 1,131.42 0.00 3.41
2019-03-31 1,132.49 0.00 3.41
2018-12-31 1,129.24 0.00 3.63
2018-09-30 1,142.48 0.00 3.63
2018-06-30 1,176.57 0.00
2018-03-31 1,176.57 0.00
2017-03-31 1,088.24 0.00
  • Change Healthcare's level of debt (2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Change Healthcare's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Change Healthcare has sufficient cash runway for more than 3 years based on current free cash flow.
  • Unable to confirm if Change Healthcare has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Change Healthcare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Change Healthcare has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Change Healthcare's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Change Healthcare dividends. Estimated to be 0% next year.
If you bought $2,000 of Change Healthcare shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Change Healthcare's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Change Healthcare's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CHNG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 0.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CHNG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2025-03-31
2024-03-31
2023-03-31
2022-03-31
2021-03-31 0.00 2.00
2020-04-03
2020-03-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Change Healthcare has not reported any payouts.
  • Unable to verify if Change Healthcare's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Change Healthcare's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Change Healthcare has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Change Healthcare's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Change Healthcare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Change Healthcare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Change Healthcare has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Change Healthcare's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Neil de Crescenzo
COMPENSATION $2,435,910
AGE 58
CEO Bio

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.

CEO Compensation
  • 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.
Management Team

Neil de Crescenzo

TITLE
President
COMPENSATION
$2M
AGE
58

Fredrik Eliasson

TITLE
Executive VP & CFO
COMPENSATION
$8M
AGE
48
TENURE
2.1 yrs

August Calhoun

TITLE
Executive VP and President of Sales & Operations
COMPENSATION
$3M
AGE
47

Thomas Laur

TITLE
Executive VP & President of Technology Enabled Services
COMPENSATION
$4M
AGE
43

Rod O’Reilly

TITLE
Executive VP & President of Software & Analytics
COMPENSATION
$3M
AGE
57

Evan Smith

TITLE
Senior Vice President of Investor Relations

Loretta Cecil

TITLE
Executive VP & General Counsel
AGE
61

W. McEnery

TITLE
Executive VP of Corporate Affairs & Chief Marketing Officer
AGE
57

Ryan Miller

TITLE
Senior Vice President of Corporate Development
TENURE
0.4 yrs

Linda Whitley-Taylor

TITLE
Chief People Officer & Executive VP
AGE
55
Board of Directors Tenure

Average tenure and age of the Change Healthcare board of directors in years:

0.8
Average Tenure
58
Average Age
  • The average tenure for the Change Healthcare board of directors is less than 3 years, this suggests a new board.
Board of Directors

Howard Lance

TITLE
Independent Chairman
COMPENSATION
$210K
AGE
63
TENURE
0.3 yrs

Neil de Crescenzo

TITLE
President
COMPENSATION
$2M
AGE
58
TENURE
0.8 yrs

Bob Zollars

TITLE
Independent Director
COMPENSATION
$183K
AGE
62
TENURE
0.8 yrs

Philip Pead

TITLE
Independent Director
COMPENSATION
$198K
AGE
66
TENURE
0.8 yrs

Phil Roe

TITLE
Independent Director
COMPENSATION
$198K
AGE
58
TENURE
0.8 yrs

Nick Kuhar

TITLE
Independent Director
AGE
32
TENURE
0.8 yrs

Neil Simpkins

TITLE
Director
AGE
53
TENURE
0.8 yrs

Diana McKenzie

TITLE
Independent Director
AGE
54
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Aug 19 Buy Neil de Crescenzo Individual 15. Aug 19 15. Aug 19 75,000 $14.17 $1,062,750
19. Aug 19 Buy Fredrik Eliasson Individual 15. Aug 19 15. Aug 19 40,000 $13.73 $549,200
03. Jul 19 Buy Bansi Nagji Individual 01. Jul 19 01. Jul 19 5,000 $13.00 $65,000
03. Jul 19 Buy Roderick O’Reilly Individual 01. Jul 19 01. Jul 19 2,000 $13.00 $26,000
03. Jul 19 Buy W. McEnery Individual 01. Jul 19 01. Jul 19 1,000 $13.00 $13,000
03. Jul 19 Buy Fredrik Eliasson Individual 01. Jul 19 01. Jul 19 30,000 $13.00 $390,000
03. Jul 19 Buy August Calhoun Individual 01. Jul 19 01. Jul 19 1,000 $13.00 $13,000
X
Management checks
We assess Change Healthcare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Change Healthcare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Change Healthcare Inc.
CHNG
Exchange: NasdaqGS
Founded: 2016
$2,788,118,461
301,418,212
Website: http://www.changehealthcare.com
Address: Change Healthcare Inc.
3055 Lebanon Pike,
Suite 1000,
Nashville,
Tennessee, 37214,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CHNG Common Stock Nasdaq Global Select US USD 27. Jun 2019
MUN 1CB Common Stock Boerse Muenchen DE EUR 27. Jun 2019
BMV CHNG * Common Stock Bolsa Mexicana de Valores MX MXN 27. Jun 2019
Number of employees
Current staff
Staff numbers
0
Change Healthcare employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 05:06
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.