Astrana Health Inc (ASTH, Financial), a key player in the Healthcare Providers & Services industry, has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has seen a decline of 11.82%, yet it has gained an impressive 21.96% over the last three months. Currently, the stock is fairly valued with a GF Value of $51.81, aligning closely with its current price of $50.95. This valuation marks a significant shift from three months ago when it was considered significantly undervalued.
Introduction to Astrana Health Inc
Astrana Health Inc operates within the healthcare delivery segment, focusing on integrated population health management. The company aims to provide coordinated, outcomes-based medical care in a cost-effective manner. It specializes in serving senior patients and those with multiple chronic conditions, emphasizing high-quality medical care and population health management. With a market capitalization of $2.32 billion, Astrana Health is a significant entity in its sector.
Assessing Profitability
Astrana Health holds a Profitability Rank of 6/10, indicating a moderate level of profitability within its industry. The company's operating margin stands at 6.36%, which is better than 59% of its peers. Additionally, its Return on Equity (ROE) of 10.45% and Return on Assets (ROA) of 5.94% are also commendable, surpassing 64.27% and 75.41% of industry counterparts, respectively. The Return on Invested Capital (ROIC) at 8.42% further underscores its efficient capital utilization. Historically, Astrana Health has been profitable for five out of the past ten years.
Growth Trajectory
The company's Growth Rank is currently 5/10. It has demonstrated strong growth metrics, particularly in revenue growth per share over the past three years, which stands at an impressive 44.00%, ranking better than 91.23% of 593 companies in the same industry. The five-year revenue growth rate per share is also robust at 18.20%, surpassing 80.7% of its peers. These figures highlight Astrana Health's capacity to expand its operations and revenue streams effectively.
Investor Confidence
Notable investors have taken positions in Astrana Health, reflecting confidence in its market strategy and growth potential. Steven Cohen (Trades, Portfolio) is the top holder with 141,500 shares, representing 0.31% of shares outstanding. Following him are Ray Dalio (Trades, Portfolio) and Jim Simons, holding 38,920 and 32,500 shares, respectively. Their investments underscore a positive outlook towards the company's future.
Competitive Landscape
Astrana Health competes with several firms in the Healthcare Providers & Services industry. Close competitors include Addus HomeCare Corp (ADUS, Financial) with a market cap of $2.23 billion, National Healthcare Corp (NHC, Financial) at $1.89 billion, and US Physical Therapy Inc (USPH, Financial) with $1.37 billion. These companies represent the competitive environment in which Astrana Health operates, each bringing unique strategies and market focuses to the table.
Conclusion
Astrana Health Inc has demonstrated a solid track record in profitability, growth, and investor confidence. Despite recent price volatility, its overall performance and strategic focus on high-quality, cost-effective healthcare for vulnerable populations position it well for future success. The company's ability to maintain a competitive edge in a challenging industry landscape, coupled with its fair valuation and growth prospects, makes it a noteworthy consideration for investors looking at the healthcare sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
