Latest news with #CorVel
Yahoo
24-05-2025
- Business
- Yahoo
CorVel Full Year 2025 Earnings: EPS: US$1.85 (vs US$1.48 in FY 2024)
Revenue: US$895.6m (up 13% from FY 2024). Net income: US$95.2m (up 25% from FY 2024). Profit margin: 11% (up from 9.6% in FY 2024). The increase in margin was driven by higher revenue. EPS: US$1.85 (up from US$1.48 in FY 2024). We check all companies for important risks. See what we found for CorVel in our free report. All figures shown in the chart above are for the trailing 12 month (TTM) period In the last 12 months, the only revenue segment was Managed Care contributing US$895.6m. Notably, cost of sales worth US$685.9m amounted to 77% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$88.9m (78% of total expenses). Explore how CRVL's revenue and expenses shape its earnings. CorVel shares are down 2.9% from a week ago. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. See our latest analysis on CorVel's balance sheet health. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
05-05-2025
- Business
- Yahoo
If EPS Growth Is Important To You, CorVel (NASDAQ:CRVL) Presents An Opportunity
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. In contrast to all that, many investors prefer to focus on companies like CorVel (NASDAQ:CRVL), which has not only revenues, but also profits. While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. CorVel managed to grow EPS by 14% per year, over three years. That's a good rate of growth, if it can be sustained. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note CorVel achieved similar EBIT margins to last year, revenue grew by a solid 13% to US$871m. That's a real positive. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Check out our latest analysis for CorVel While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check CorVel's balance sheet strength, before getting too excited. Since CorVel has a market capitalisation of US$5.8b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth US$417m. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalisations between US$4.0b and US$12b, like CorVel, the median CEO pay is around US$8.8m. The CorVel CEO received total compensation of just US$967k in the year to March 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. As previously touched on, CorVel is a growing business, which is encouraging. The fact that EPS is growing is a genuine positive for CorVel, but the pleasant picture gets better than that. With company insiders aligning themselves considerably with the company's success and modest CEO compensation, there's no arguments that this is a stock worth looking into. Before you take the next step you should know about the 1 warning sign for CorVel that we have uncovered. Although CorVel certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
We Like CorVel's (NASDAQ:CRVL) Returns And Here's How They're Trending
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. And in light of that, the trends we're seeing at CorVel's (NASDAQ:CRVL) look very promising so lets take a look. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on CorVel is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.34 = US$110m ÷ (US$539m - US$217m) (Based on the trailing twelve months to December 2024). Thus, CorVel has an ROCE of 34%. That's a fantastic return and not only that, it outpaces the average of 10% earned by companies in a similar industry. Check out our latest analysis for CorVel While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how CorVel has performed in the past in other metrics, you can view this free graph of CorVel's past earnings, revenue and cash flow . CorVel has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 58% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking. On a separate but related note, it's important to know that CorVel has a current liabilities to total assets ratio of 40%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. In summary, we're delighted to see that CorVel has been able to increase efficiencies and earn higher rates of return on the same amount of capital. And a remarkable 487% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. One more thing to note, we've identified 1 warning sign with CorVel and understanding this should be part of your investment process. High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
CorVel Corp (CRVL) Q3 2025 Earnings Call Highlights: Record Revenue Growth and Strategic Challenges
Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CorVel Corp (NASDAQ:CRVL) reported a 9% increase in revenue for the December quarter, reaching $179 million compared to $165 million in the same quarter of the previous year. Earnings per share increased by 25% to $0.96 from $0.76 in the prior year, indicating strong financial performance. The company achieved record new sales and revenues for its Enterprise Comp claims management solution, highlighting its growing market recognition. CorVel Corp (NASDAQ:CRVL) was recognized by Business Insurance for the Innovation Award of the Year and TPA Team of the Year, showcasing its industry leadership. Investments in system enhancements for the managed care carrier business are yielding returns, with multiple new carriers being onboarded this year. CorVel Corp (NASDAQ:CRVL) experienced temporarily reduced transaction volume from key partners early in the quarter due to adjustments in the client's internal workflow processes. The company faces challenges from the unprecedented amount of M&A consolidation in the payment integrity market, which limits market options. Days sales outstanding (DSO) of receivables increased by 3.5% from a year ago, indicating potential inefficiencies in collections. Despite strong financial performance, the company had to repurchase 152,000 shares at a total cost of $22.8 million, which could impact cash reserves. The company is navigating complexities in managing order fulfillment and cash flow due to M&A activities throughout industry supply chains. Q: Can you elaborate on the impact of staffing adjustments on CorVel's operations and financial performance? A: Michael Combs, President and CEO, explained that the staffing adjustments have been crucial in addressing imbalances, leading to improved quality and consistency in service delivery. These adjustments, alongside increased automation, have optimized bottom-line results and enhanced outcomes for partners. Q: How has CERiS performed in the commercial health market despite reduced transaction volumes? A: Michael Combs noted that CERiS delivered strong results despite a temporary reduction in transaction volumes due to client workflow adjustments. This reduction is seen as deferred work, expected to be processed in upcoming quarters, contributing to future revenue. Q: What are the key drivers behind the record new sales and revenues in the Enterprise Comp claims management solution? A: Michael Combs attributed the success to increasing market recognition of the solution's effectiveness, as well as investments in system enhancements and onboarding new carriers, which have started yielding returns. Q: How is CorVel addressing the challenges posed by M&A consolidation in the payment integrity market? A: Michael Combs highlighted CorVel's strong financial foundation, which provides stability amidst industry consolidation. This allows CorVel to maintain service quality and expand its AI-powered service portfolio, including specialty care reviews. Q: Could you provide more details on CorVel's share repurchase program and its impact on financial health? A: Brandon O'Brien, CFO, stated that CorVel repurchased 152,000 shares for $22.8 million during the quarter, funded by strong operating cash flow. The program has repurchased 69% of total shares outstanding, enhancing shareholder value while maintaining a debt-free balance sheet. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
