MODV - Embedded Expectations Analysis - 2021 05 12
ModivCare Inc. (MODV:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 26.4x Uniform P/E. Even at these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about the personal care services market, utilization rates, and the impact of the pandemic on their patient populationSpecifically, management may lack confidence in their ability to provide safe and reliable transportation to patients' homes, capitalize on opportunities in the personal care services market, and continue funding all areas of their business. Additionally, they may be overstating the ride servicing capabilities of their network digitization. Furthermore, management may lack confidence in their ability to sustain increases in utilization, maintain EBITDA levels, and expand their strong footprint in existing markets. Finally, they may have concerns about the sustainability of beneficial bipartisan legislation, the impact of the pandemic on their patients, and waste from BPO businesses
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.