Allscripts Healthcare Solutions (NASDAQ: MDRX) presents an intriguing investment opportunity, backed by solid fundamentals. The company maintains a healthy current ratio of
3.23X, indicating a strong ability to meet short-term obligations. Furthermore, the company's net asset value stands at a substantial
$2.43B, providing a robust financial backbone. Despite the company's reported loss of
$154M in free cash flow, the EPS estimate for the current year is positive at $0.81, suggesting potential profitability. However, investors should be aware of the company's relatively high probability of bankruptcy at
15.36%, which may pose a risk in the current volatile market environment.
Advanced assessment of Allscripts
Our trade advice tool can cross-verify the current
analyst consensus on Allscripts Healthcare and analyze the company's potential for growth in the current economic cycle. The company's dividend policy can provide insight into the current value of the stock. Allscripts Healthcare is not expected to issue dividends this year as it aims to preserve or reinvest any available funds for distribution to stakeholders. Investing in stocks that do not pay dividends can still offer the potential for capital appreciation. Investors in such stocks depend on the increase in the stock's price over time to generate returns. When the company performs well and its stock price rises, investors can sell their shares at a higher price to realize a profit.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Allscripts Healthcare income statement, its balance sheet, and the statement of cash flows. Potential Allscripts Healthcare investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Allscripts Healthcare investors may use each financial statement separately, they are all related. The changes in Allscripts Healthcare's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Allscripts Healthcare's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Allscripts Healthcare
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Allscripts Healthcare performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Allscripts Healthcare shares is the value that is considered the true value of the share. If
the intrinsic value of Allscripts is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Allscripts Healthcare. Please read more on our
fundamental analysis page.
How important is Allscripts Healthcare's Liquidity
Allscripts Healthcare
financial leverage refers to using borrowed capital as a funding source to finance Allscripts Healthcare Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Allscripts Healthcare 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 Allscripts Healthcare'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 Allscripts Healthcare'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 Allscripts Healthcare'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 | 2.52 |
| Institutions | 97.48 |
| 2020 | 2021 | 2022 | 2023 (projected) |
Interest Expense | 34.1 M | 13.17 M | 15.14 M | 15.54 M | Gross Profit | 565.7 M | 619.57 M | 712.5 M | 717.65 M |
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 (NASDAQ: MDRX), a key player in the Health Care Technology sector, has shown robust
financial health with a net income of
$133.9M and EBITDA of
$362.9M. The company's total assets stand at a healthy $2.4B, backed by a strong book value of $10.773 per share. The firm's operating margin and profit margin stand at 0.0472% and 0.0397% respectively, indicating a sound operational efficiency. The company's PE Ratio of 14.7674 and Price to Earnings to Growth ratio of 2.42X reflect a fair valuation in the current market scenario. The company has a beta of 0.94, suggesting that it's less volatile than the market. This resilience is further reinforced by the 97.48% of shares owned by institutions, indicating strong confidence among savvy investors. However, the company has a total debt of $434.5M, which is manageable given its strong cash flow of $190.5M. Despite the
market volatility expected in August, Allscripts Healthcare Solutions seems well-positioned to weather the storm, thanks to its solid
fundamentals and institutional backing.
Analysis of Allscripts Healthcare
Allscripts Healthcare Solutions (NASDAQ: MDRX) currently represents a somewhat risky investment proposition. The stock's Value at Risk (VaR) stands at -3.07, suggesting a potential downside risk. This implies that there is a chance of a 3.07% decline in the value of the investment over a specified period. Therefore, investors should exercise caution and thoroughly assess their risk tolerance before deciding to include this stock in their portfolio. Despite Allscripts' strong portfolio of healthcare technology solutions, the negative VaR indicates that market uncertainties could adversely affect its stock price. As of July 7th, Allscripts Healthcare reports a Standard Deviation of 1.81, a risk-adjusted performance of -0.008319, and a Mean Deviation of 1.4. With respect to fundamental indicators, the
technical analysis model provides tools to examine existing technical drivers of Allscripts Healthcare, as well as their interrelationships. In other words, this information can be used to determine whether the company will mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to interpolate data for thirteen technical drivers for Allscripts Healthcare Solutions, which can be compared to its
competitors. Please verify Allscripts Healthcare's variance and skewness to determine if the stock is priced correctly, assuming the market reflects its regular price of $12.63 per share. Given that Allscripts Healthcare has an information ratio of -0.038392, we recommend you validate Allscripts Healthcare Solutions' current market performance to ensure the company can sustain itself in the future.
Our Final Takeaway
When is the right time to buy or sell Allscripts Healthcare Solutions? Buying stocks such as Allscripts Healthcare isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Allscripts Healthcare.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Allscripts Healthcare Solutions. Please refer to our
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