EVHC

Envision Healthcare Holdings Inc

Healthcare


Presented:09/26/2017
Price:$43.27
Cap:$5.17B
Current Price:$45.99
Cap:$5.58B

Presented

Date09/26/2017
Price$43.27
Market Cap$5.17B
Ent Value$14.15B
P/E RatioN/A
Book Value$53.59
Div Yield0%
Shares O/S119.58M
Ave Daily Vol1,858,029
Short Int11.86%

Current

Price$45.99
Market Cap$5.58B
Envision Healthcare Corp. specializes in healthcare services. It provides a range of services including physician-led services, ambulatory surgery services, postacute care and medical transportation. It operates through the following segments: Physician Services, Medical Transportation, and Ambulatory Services. The Physician Services segment provides hospital-based and non-hospital-based physician services business. The Medical Transportation segment refers to community-based medical transportation services, including emergency 911, non-emergency, managed transportation, air ambulance and disaster response services. The Ambulatory segment is responsible to the ambulatory surgery business, which acquires, develops, owns, and operates ambulatory surgery centers and surgical hospitals in partnership with physicians and health systems. The company was founded in December 2016 and is headquartered in Nashville, TN.

Please note, this is an update to Envision Healthcare Corp (EVHC) – Long, which was originally presented on 12/28/14 ($34.58).

Publicly traded companies mentioned herein: Envision Healthcare Corp (EVHC)

Highlights

After peaking in the low $70s, shares of Envision (EVHC) have come under pressure and the stock is now down ~30% year-to-date. The presenter views the selloff as overblown, and likes the risk/ reward and entry point in the low $40s. While he had sold the position and was not an owner when the deal to sell AMR to KKR for $2.4bn was announced, he did repurchase EVHC stock recently and has absorbed the most recent leg lower. Regardless of his numbers, the market is “decidedly negative” on EVHC at this time, most likely due to weak utilization numbers, a challenging payer mix, recent management departures, and seemingly high leverage. Having said that, he explained how EBITDA could come in at $1.1+ billion in 2018 and leverage will come down once AMR is removed from the equation. At just 8x his forward EBITDA estimate (9.2x Street EV/EBITDA for 2018) the risk/ reward is favorable, and if the multiple can expand to a fairer 10-11.5x EVHC would be worth low-to-mid-$60s.

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Idea Discussion

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