Cross Country Healthcare provides both retained and contingent placement services for physicians, as well as retained search services for healthcare executives. The company operates through three segments: Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The company was founded in 1996 and is based in Boca Raton, Florida.
CCRN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CCRN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cross Country Healthcare Inc ranked in the 54th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 9.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Cross Country Healthcare Inc ended up being:
Cross Country Healthcare Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.77. This coverage rate is greater than that of only 12.5% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Cross Country Healthcare Inc experienced a tax rate of about 1% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than just 19.86% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CCRN, try HY, HQI, PKOH, WNS, and BAH.
North America is expected to contribute to the largest share in the healthcare staffing market in the coming years, owing to strategic decisions undertaken by market players in the region as well as presence of major players in the market.
With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter. One of these stocks was Cross Country Healthcare, Inc. (NASDAQ:CCRN). Is CCRN a good stock […]