AMN - Embedded Expectations Analysis - 2020 02 24
ï€ AMN Healthcare Services, Inc. (AMN:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 21.3x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and while management's concerns about supply constraints, nursing demand, and their platform suggest the potential for near-term headwinds, industry tailwinds and the firm's positioning in a niche market support long-term outperformance and equity upsideï€ Specifically, management may be concerned about supply constraints in their Travel business, the continued impact of reimbursement changes on nursing demand, and their liquidity position. Furthermore, they may lack confidence in their ability to manage capital expenditures, sustain Technology Workforce Solutions growth, and improve margins in their technology businesses. In addition, they may be exaggerating the ability of their Medefis platform to support multiple client solutions and services
ï€ That said, given industry tailwinds and AMN's strong positioning in a niche market, market expectations are overly bearish, and longer-term equity upside remains warranted
AMN Healthcare Services provides talent solutions for the healthcare sector. The company's talent solutions provides management, staffing, recruitment, technology, analytics, and related services to manage healthcare workforce needs. The company provides its healthcare personnel, from nurses, doctors, and allied health personnel to healthcare leaders and executives. The company's workforce solutions and staffing services include: travel nurse staffing; rapid response nurse staffing and labor disruption services; local, or per diem, staffing; locum tenens staffing; allied staffing; physician permanent placement services; interim leadership staffing and executive search services; and recruitment process outsourcing.
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