Stock on Focus: Envision Healthcare Holdings, Inc. (EVHC)

Company Profile:

Envision Healthcare Holdings, Inc. provides physician-led outsourced medical services to consumers, hospitals, healthcare systems, health plans, and government entities in the United States. It offers a range of hospital-based physician staffing and related management services, including contract management, staffing, recruiting, scheduling, operational improvement assessment, practice support, and practice improvement services for emergency departments, anesthesiology, hospitalist/inpatient care, radiology, tele-radiology, and surgery programs; and physician-led care management solutions to patients outside the hospital. The company also provides community based medical transportation services, such as emergency response services; non-emergency medical transportation services, such as critical care transfers, and wheelchair and other inter-facility transport services; and other services comprising managed transportation, dispatch, event medical, paramedic training, fixed-wing air ambulance, and onsite and offshore emergency medical services. It markets its services primarily under the EmCare and AMR brands. The company was formerly known as CDRT Holding Corporation and changed its name to Envision Healthcare Holdings, Inc. in June 2013. Envision Healthcare Holdings, Inc. is headquartered in Greenwood Village, Colorado.

Recent News:

On June 15, 2016, Envision Healthcare Holdings Inc. and AmSurg Corp. agreed to merge, in a deal that will create a company providing a range of hospital-related services worth some $10 billion.

The company reported first-quarter earnings of $26.9 million that beat Wall Street expectations. On a per-share basis, the company said it had net income of 14 cents. Earnings, adjusted for amortization costs and costs related to mergers and acquisitions, came to 28 cents per share.

On April 7, 2016, it has completed the acquisition of Emergency Physicians Medical Group (EPMG), based in Ann Arbor, MI. The group is expected to generate annualized revenue of approximately $140 million, which is expected to be immediately accretive to Envision’s earnings.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EVHC’s strengths can be seen in its strong growth, better profitability and better efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochatic oscillator and RSI is in bull territory, which stands at 53.08 with positive bias. The current P/BV ratio indicates it is highly undervalued compared to the average P/BV ratio of the industry and the sector. We rate Envision Healthcare Holdings, Inc. (EVHC) a STRONG BUY.