NextGen Healthcare Inc's Meteoric Rise: Unpacking the 24% Surge in Just 3 Months

Article's Main Image

NextGen Healthcare Inc (NXGN, Financial), a leading provider of healthcare solutions, has seen a significant surge in its stock price over the past week and three months. The company's stock price has gained 7.69% over the past week and a whopping 23.99% over the past three months. This impressive performance has been reflected in the company's GF Value, which has increased from $19.56 three months ago to $20.52 today. According to GuruFocus.com's valuation, the stock is currently fairly valued, compared to being modestly undervalued three months ago.

Introduction to NextGen Healthcare Inc (NXGN, Financial)

NextGen Healthcare Inc is a United States-based company that operates in the Healthcare Providers & Services industry. The company offers a comprehensive technology and services platform that supports ambulatory and specialty practices of all sizes. Through its software, services, and analytics solutions, NextGen Healthcare Inc is committed to improving patient care and enhancing medical and dental group practices. The company's market capitalization stands at $1.3 billion, with a current stock price of $19.33. 1698716465571561472.png

Profitability Analysis of NXGN

NextGen Healthcare Inc's profitability has been relatively stable, with a Profitability Rank of 6/10 as of June 30, 2023. The company's Operating Margin stands at 1.41%, better than 43.89% of 647 companies in the same industry. The company's ROE and ROA are 0.56% and 0.30% respectively, while its ROIC is 0.34%. Over the past decade, the company has demonstrated consistent profitability, with 9 years of profitability, better than 72.8% of 522 companies in the same industry. 1698716484664033280.png

Growth Analysis of NXGN

NextGen Healthcare Inc's growth has been steady, with a Growth Rank of 5/10. The company's 3-Year Revenue Growth Rate per Share is 5.80%, better than 41.51% of 571 companies in the same industry. Its 5-Year Revenue Growth Rate per Share is 2.90%, better than 32.88% of 444 companies. The company's future Total Revenue Growth Rate and EPS without NRI Growth Rate are estimated to be 8.00% and 7.00% respectively, indicating a positive outlook for the company's growth. 1698716501294448640.png

Major Holders of NXGN Stock

Steven Cohen (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Ray Dalio (Trades, Portfolio) are the top three holders of NXGN stock. Steven Cohen (Trades, Portfolio) holds the largest number of shares, with 672,050 shares, representing 1% of the total shares. Paul Tudor Jones (Trades, Portfolio) holds 171,250 shares, representing 0.26% of the total shares, while Ray Dalio (Trades, Portfolio) holds 103,934 shares, representing 0.16% of the total shares.

Competitor Analysis

NextGen Healthcare Inc faces competition from Agiliti Inc (AGTI, Financial), Definitive Healthcare Corp (DH, Financial), and National Research Corp (NRC, Financial). Agiliti Inc has a market capitalization of $1.32 billion, slightly higher than NextGen Healthcare Inc's $1.3 billion. Definitive Healthcare Corp and National Research Corp have market capitalizations of $1.04 billion and $1.03 billion respectively, slightly lower than NextGen Healthcare Inc.

Conclusion

In conclusion, NextGen Healthcare Inc's stock performance, profitability, and growth have been impressive over the past three months. The company's stock price has surged by 23.99%, and its GF Value has increased from $19.56 to $20.52. The company's profitability and growth ranks are 6/10 and 5/10 respectively, indicating stable profitability and steady growth. Despite facing competition from Agiliti Inc, Definitive Healthcare Corp, and National Research Corp, NextGen Healthcare Inc has managed to maintain a competitive edge in the Healthcare Providers & Services industry.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.