Concentra Group Holdings Parent, Inc. (CON) stock analysis

P/E above its 5-year median

Concentra Group Holdings Parent's P/E of 25.9 is above its own 5-year median of 16.4.

P/E above the industry

Concentra Group Holdings Parent's P/E of 25.9 is above the Health Services median of 23.9.

EV/EBITDA above its 5-year median

Concentra Group Holdings Parent's EV/EBITDA of 14.7 is above its 5-year median of 11.0.

P/B above the industry

Concentra Group Holdings Parent's price-to-book of 10.93 is above the Health Services median of 5.14.

Trading above fair value

The share price of $43.45 is above our fair value estimate of $36.45.

Margin of safety under 20%

The price is 19.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -6.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 11.8% over the last twelve months; the Health Services median is 2.0%.

Guidance raised

Concentra Group Holdings Parent raised its 2026 Revenue outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 29.9% over the last twelve months, against 28.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 15.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Concentra Group Holdings Parent's return on equity of 48.5% is above the Health Services median of 3.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 9.3% over the last twelve months, against a 5-year average of 9.0%.

Net margin above the industry

Concentra Group Holdings Parent's net margin of 9.3% is above the Health Services median of -1.0%.

High debt

Debt is 300% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.5% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.30 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.74; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Concentra Group Holdings Parent paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Concentra Group Holdings Parent yields 0.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 14.8% of net income.

Covered by free cash flow

Dividends take 12.4% of free cash flow.