| Company name | HMS Holdings Corp |
| Stock ticker | HMSY |
| Live stock price | [stckqut]HMSY[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Fair |
| EPS growth | Fair |
| P/E growth | Good |
| EBIT growth | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $11.07 |
| Target stock price (averages with growth) | $17.6 |
| Target stock price (averages with no growth) | $17.81 |
| Target stock price (manual assumptions) | $23.01 |
The following company description is from Google Finance: http://www.google.com/finance?q=hmsy
HMS Holdings Corp. (HMS) provides cost containment services to Government and private healthcare payers and sponsors. Its services ensure that healthcare claims are paid correctly, and its coordination of benefits services ensure that they are paid by the responsible party. Together, these services help clients recover amounts from liable third parties; prevent future improper payments; reduce fraud, waste and abuse; and ensure regulatory compliance. Its clients are the Centers for Medicare & Medicaid Services (CMS); state Medicaid agencies; commercial health plans, including Medicaid managed care, Medicare Advantage, and group health lines of business; government and private employers; Pharmacy Benefit Managers (PBMs); child support agencies; the Veterans Health Administration (VHA); and other healthcare payers and sponsors. In December 2012, the Company acquired the assets and liabilities of MRM, which provides Workers’ Compensation recovery services for commercial health plans.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in HMS Holdings Corp as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am going to remove HMS Holdings from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of HMS Holdings Corp calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $16.31
Growth: 0.18
Current EPS (TTM): $0.45
P/E: 36
Future EPS Calc: $1.02
Future Stock Price Calc: $37.06
Target stock price: $23.01
I hope that this makes you a better investor. [/s2If]