| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $592,225 | $552,644 | $646,230 | $718,562 | $795,311 | $895,589 |
| Interest Income (k) | n/a | $77 | $98 | $92 | $86 | $80 |
| Operating Margins | 10% | 11% | 13% | 12% | 12% | 13% |
| Net Margins | 8% | 8% | 10% | 9% | 10% | 11% |
| Net Income (k) | $47,377 | $46,356 | $66,410 | $66,365 | $76,252 | $95,165 |
| Depreciation & Amort. (k) | $22,081 | $23,001 | $23,481 | $24,696 | $25,829 | $29,152 |
| Diluted Shares (k) | 18,180 | 18,211 | 17,487 | 51,978 | 52,038 | 51,582 |
| Earnings Per Share | $2.61 | $2.55 | $3.8 | $1.28 | $1.47 | $1.84 |
| EPS Growth | n/a | -2.3% | 49.02% | -66.32% | 14.84% | 25.17% |
| Avg. Price | $75.91 | $77.76 | $142.45 | $162.02 | $247.21 | $111.8 |
| P/E Ratio | 28.86 | 29.91 | 37.49 | 41.87 | 55.55 | 60.43 |
| Free Cash Flow (k) | $48,466 | $77,136 | $37,403 | $55,968 | $69,997 | $91,560 |
| CAPEX (k) | $32,360 | $17,243 | $29,819 | $26,320 | $29,240 | $35,755 |
| Current Ratio | 1.63 | 1.58 | 1.38 | 1.56 | 1.77 | 1.85 |
CorVel Corp. may be overvalued based on various financial metrics. The company has been experiencing a decline in earnings per share over the last 6 years, with an annualized growth rate of -5.7%. Additionally, the PEG ratio is not meaningful due to a negative earnings growth rate. However, the company has shown stable levels of re-investment into the business, with a flat capital expenditure trend and an annualized revenue growth rate of 9.4%.
CorVel's operating margins of 13.5% are in line with the Specialty Insurance industry average of 15.28%, with margins growing at an average yearly rate of 4.4%. On the downside, the Price to Book Ratio of 8.31 is higher than the sector average of 1.78, indicating potential overvaluation. Similarly, the P/E ratio of 28.5 is higher than the Finance sector average of 15.92.
On the positive side, CorVel's current ratio of 1.85 shows that its current assets exceed its current liabilities, providing some financial stability. Additionally, the firm's free cash flows have averaged $63.42 million over the last 5 years, with a compounded average growth rate of 7.8%.
