Company name HMS Holdings Corp
Stock ticker HMSY
Live stock price [stckqut]HMSY[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Fair
EPS growth Fair
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $11.07
Target stock price (averages with growth) $17.6
Target stock price (averages with no growth) $17.81
Target stock price (manual assumptions) $23.01

The following company description is from Google Finance: http://www.google.com/finance?q=hmsy

HMS Holdings Corp. (HMS) provides cost containment services to Government and private healthcare payers and sponsors. Its services ensure that healthcare claims are paid correctly, and its coordination of benefits services ensure that they are paid by the responsible party. Together, these services help clients recover amounts from liable third parties; prevent future improper payments; reduce fraud, waste and abuse; and ensure regulatory compliance. Its clients are the Centers for Medicare & Medicaid Services (CMS); state Medicaid agencies; commercial health plans, including Medicaid managed care, Medicare Advantage, and group health lines of business; government and private employers; Pharmacy Benefit Managers (PBMs); child support agencies; the Veterans Health Administration (VHA); and other healthcare payers and sponsors. In December 2012, the Company acquired the assets and liabilities of MRM, which provides Workers’ Compensation recovery services for commercial health plans.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in HMS Holdings Corp as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am going to remove HMS Holdings from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of HMS Holdings Corp calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $16.31

Growth: 0.18

Current EPS (TTM): $0.45

P/E: 36

Future EPS Calc: $1.02

Future Stock Price Calc: $37.06

Target stock price: $23.01

I hope that this makes you a better investor. [/s2If]

Company name Herbalife Ltd.
Stock ticker HLF
Live stock price [stckqut]HLF[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $95.25
Target stock price (averages with growth) $101.04
Target stock price (averages with no growth) $49.22
Target stock price (manual assumptions) $84.21

The following company description is from Google Finance: http://www.google.com/finance?q=hlf

Herbalife Ltd. is a global nutrition company. The Company sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. It distributes and sells its products through a network of independent distributors, using the direct selling channel. The Company categorizes its science-based products into four principal groups: weight management, targeted nutrition, energy, sports & fitness and Outer Nutrition. As of December 31, 2012, it sold its products in 88 countries to and through a network of approximately 3.2 million independent distributors. In China, in order to comply with local laws and regulations, it sells its products through, sales representatives, sales officers, independent service providers and in retail stores. On December 31, 2012, the Company acquired a manufacturing facility in Winston-Salem, North Carolina.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Herbalife Ltd. as long as the price is correct. Most of the fundamentals of Herbalife Ltd. are good, in fact the company ranks as a Good company, but there are some concerns with the legal problems with the company. For this reason, I am removing the stock from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Herbalife Ltd. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $61.63

Growth: 0.18

Current EPS (TTM): $4.56

P/E: 13

Future EPS Calc: $10.43

Future Stock Price Calc: $135.61

Target stock price: $84.2

I hope that this makes you a better investor. [/s2If]