MedAssets - I/S, Balance Sheet, Valuation and Trading Fundamentals Flashcards
As of June 2014, MDAS stated long-term goal to grow non-GAAP EPS at x% on revenue growth of x% in CY2016.
Source: Greg Bolan, Sterne Agee (6/11/2014)
Long-term goal: to grow non-GAAP EPS 15%
CY 2016 revenue growth: 10%
Source: Greg Bolan, Sterne Agee (6/11/2014)
As of June 2014, how is MDAS trading on a EV/NTM EBITDA basis relative to its HCIT peer group?
Source: Greg Bolan, Sterne Agee (6/11/2014)
40% discount to the HCIT peer group, the lowest since MDAS’ 2008 IPO.
Source: Greg Bolan, Sterne Agee (6/11/2014)
As of June 2014, Sterne Agee analyst Greg Bolan values the RCM business at $x per share, which is equal to what conceptually?
$21 a share. This is equal to what MDAS paid for the business when it bought Dallas-based Accuro Healthcare in 2008.
To get to $21/share, Bolan assumed:
- 5.0x TTMSales
- 20.0x TTM EBITDA
- He ignored the debt burden on RCM and assigned it all to SCM (questionable)
If you back out what SCM is worth after making this assumption, then SCM is worth so little that it disproves the $21/share valuation of RCM. But it may be directionally correct as an indicator that the value of the business may be less than what MDAS paid for it in 2008.
Source: Greg Bolan, Sterne Agee (6/11/2014)
Since CY 2009, RCM revenue CAGR was x%, although EBITDA margins have gone from x% to x%.
Why have margins changed?
RCM revenue CAGR since 2009: 11%
Margins have declined: 31% to 25%
RCM consulting services have lowered margin mix
As of June 2014, what is RCM’s:
EV/Sales multiple?
EV/EBITDA multiple?
What does Bolan think RCM is worth on a per share basis and how did he arrive at this number?
Source: Greg Bolan, Sterne Agee (6/11/2014)
EV/Sales: 5.0x
EV/EBITDA: 20.0x
Bolanaveraged the results obtained from applying each multiple to TTM EBITDA for the RCM segment of $63.4mm and TTM sales of $254.9mm to arrive attwo estimatesfor EV, and then took an average. Then divided this by 61.7mm shares outstanding.
As of June 2014, according to Sterne Agree analyst Greg Bolan, what is RCM’s TTM Sales and TTM EBITDA ($ mm)?
TTM Sales: $255 mm
TTM EBITDA: $63mm
Source: Greg Bolan, Sterne Agee (6/11/2014)
As of June 2014, according to Sterne Agree analyst Greg Bolan, what is SCM’s EBITDA margin (TTM)?
45%
Source: Greg Bolan, Sterne Agee (6/11/2014)
As of June 2014, what is SCM’s TTM Sales and TTM EBITDA ($ mm)?
Source: Greg Bolan, Sterne Agee (6/11/2014)
TTM Sales: $424 mm
TTM EBITDA: $187mm
Source: Greg Bolan, Sterne Agee (6/11/2014)
As of Aug 2014, what is MDAS number of shares outstanding?
~60 million shares
2014E 60.9 million shares
Source: Barclays, Eric Percher (8/14/2014)
EPS estimates
2013 A: $x.xx
Consensus 2014E: $x.xx
Consensus 2015E: $x.xx
2015 EPS change (% Y-O-Y): x%
Source: Eric Percher, Barclays, 08/14/14
EPS estimates
2013 A: $1.32
Consensus 2014E: $1.34
Consensus 2015E: $1.52
2015 EPS change (% Y-O-Y): 17%
Source: Eric Percher, Barclays, 08/14/14
2013A Revenue, EBITDA, NI
Revenue: $x mm
EBITDA:$x mm
NI: $x mm
Source: Eric Percher, Barclays, 08/14/14
Approx $850 / $200 / $80
Revenue: $863 mm
EBITDA: $221 mm
NI: $81 mm
Source: Eric Percher, Barclays, 08/14/14
2013A Margins: EBITDA, EBIT, Net Income
EBITDA:x%
EBIT: x%
NI: x%
Source: Eric Percher, Barclays, 08/14/14
2013A Margins: EBITDA, EBIT, Net Income
Approx25% / 20% / 12%
EBITDA:25.6%
EBIT: 20.6%
NI: 11.9%
Source: Eric Percher, Barclays, 08/14/14
2013A
P/E: ?
EV/EBITDA: ?
EV/sales: ?
Source: Eric Percher, Barclays, 08/14/14
2013A
Generally: 16x /9.5x / 2.5x
P/E: 16.1x
EV/EBITDA: 9.5x
EV/sales: 2.4x
Source: Eric Percher, Barclays, 08/14/14
The GPO has to give back a % of its revenue to the hospitals. What is this called?
What was this number as a % of net revenue in 2012 & 2013?
Source: Eric Percher, Barclays, 08/14/14
Revenue Share Obligation (RSO)
2012: 25.1%
2013: 26.8%
Source: Eric Percher, Barclays, 08/14/14
