NextGen Healthcare (formerly Quality Systems) develops and markets computer-based practice management, electronic health records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices and small hospitals. The company was founded in 1974 and is based in Irvine, California.
NXGN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Nextgen Healthcare Inc. To summarize, we found that Nextgen Healthcare Inc ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 42%. As for the metrics that stood out in our discounted cash flow analysis of Nextgen Healthcare Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 9.68 -- which is good for besting 70.32% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.04%; that's greater than only 23.02% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 11% of the company's capital (with equity being the remaining amount). Approximately only 23.42% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NXGN, try ADSK, FARO, KEYS, MEI, and SLAB.
NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of ambulatory-focused healthcare technology solutions, announced today its fiscal 2020 fourth quarter and year end March 31, 2020 operating results.