MultiPlan Sees Uptick In Utilization But Revenue Growth Is A Challenge>
Seeking Alpha –
MultiPlan Corporation (MPLN) is a New York-based company that provides data analytics and technology-enabled services to various healthcare-related segments in the United States.
It offers services such as surprise billing, data and decision science, payment and revenue integrity, network-based services, and analytics-based services.
According to a market research report by Grand View Research, the global market for healthcare analytics is expected to grow at a CAGR of 21.4% from 2023 to 2030, reaching $166.5 billion.
This growth is driven by the increasing demand for healthcare analytics solutions, higher costs, challenging patient engagement, and difficulty in hiring and retaining qualified personnel.
However, MultiPlan has been experiencing a decline in total revenue and operating income in recent quarters.
The company’s financial position shows little cash compared to high debt, but it has reasonably strong free cash flow.
MPLN’s stock price has fallen 33.85% in the past 12 months.
The valuation metrics for MultiPlan show an enterprise value/sales ratio of 5.9, enterprise value/EBITDA ratio of 9.1, and a price/sales ratio of 1.1.
The net income margin is -69.0%, and the revenue growth rate is -17.8%.
In terms of outlook, MultiPlan is expecting a continued contraction in top-line revenue in 2023.
The company aims to launch a range of new products in 2023 and expects tailwinds from capacity increases and medical inflation in 2024.
However, it may face margin headwinds in 2024.
The full-year revenue for 2023 is expected to decline by 9.6% compared to 2022.
Considering the expected revenue contraction and the apparent full valuation of the stock, the outlook on MultiPlan Corporation remains a neutral Hold.
Link: https://seekingalpha.com/article/4644577-multiplan-sees-uptick-in-utilization-but-revenue-growth-is-a-challenge