Last Updated: 03 Nov 2024
Executive Summary
agilon health Inc. (AGL) is a healthcare technology and services company that provides value-based care solutions to healthcare providers. The company's latest stock price is $2.7, with a market capitalization of $1.11 billion. Despite strong revenue growth, agilon health continues to face profitability challenges, with a negative EBITDA and EPS. The company's financial performance and analyst ratings suggest a cautious approach to investment.
Company Overview
agilon health is headquartered in Long Beach, California, and provides technology-enabled care management services to healthcare providers. The company's services include population health management, care coordination, and data analytics. agilon health aims to improve patient outcomes and reduce healthcare costs by leveraging data and technology.
Fundamental Analysis
Revenue: agilon health has experienced consistent revenue growth, with TTM revenue reaching $5.28 billion. Quarterly revenue growth YOY is at 0.387%.
Profitability: The company's profitability remains a concern, with a negative EBITDA of -$230.45 million and an EPS of -$0.54. The profit margin is -0.0566%, indicating that the company is not efficiently converting revenue into profit.
Valuation: agilon health trades at a forward PE of 178.57, indicating a high valuation relative to its earnings. The price-to-sales ratio of 0.21 and the price-to-book ratio of 1.642 suggest that the stock may be overvalued based on traditional valuation metrics.
Technical Analysis
Trend: The stock has been in a downtrend since reaching a 52-week high of $15.12 in February 2023.
Moving Averages: The stock is trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: The stock has support at $2.355 (52-week low) and resistance at $3.432 (50-day moving average).
Short Term Outlook
In the short term, agilon health faces challenges in improving its profitability and addressing its high valuation. The stock's downtrend and technical indicators suggest that a further decline is possible. Investors should exercise caution and consider waiting for more favorable market conditions before investing.
Long Term Outlook
The long-term outlook for agilon health depends on the company's ability to execute its growth strategy and improve its financial performance. If the company can successfully scale its operations and improve its profitability, it could potentially create value for investors. However, the competitive nature of the healthcare industry and the company's current financial challenges pose risks to its long-term success.
Analyst Recommendations
Analysts have mixed views on agilon health. The consensus analyst rating is "Hold," with 13 analysts recommending a hold, 4 recommending a buy, 2 recommending a strong buy, 1 recommending a sell, and 0 recommending a strong sell. The average analyst target price is $6.23, suggesting a potential upside of 130.74%.
