R1 RCM Inc (RCM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
R1 RCM Inc stock (RCM) is currently trading at $14.31. R1 RCM Inc PS ratio (Price-to-Sales) is 2.45. Analyst consensus price target for RCM is $15.47. WallStSmart rates RCM as Sell.
- RCM PE ratio analysis and historical PE chart
- RCM PS ratio (Price-to-Sales) history and trend
- RCM intrinsic value — DCF, Graham Number, EPV models
- RCM stock price prediction 2025 2026 2027 2028 2029 2030
- RCM fair value vs current price
- RCM insider transactions and insider buying
- Is RCM undervalued or overvalued?
- R1 RCM Inc financial analysis — revenue, earnings, cash flow
- RCM Piotroski F-Score and Altman Z-Score
- RCM analyst price target and Smart Rating
R1 RCM Inc
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Smart Analysis
R1 RCM Inc (RCM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in institutional own.. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.
R1 RCM Inc (RCM) Key Strengths (2)
86.91% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
R1 RCM Inc (RCM) Areas to Watch (8)
Company is destroying shareholder value
Earnings declining -99.30%, profits shrinking
Company is losing money with a negative profit margin
Near-zero operating margins, business under pressure
Paying a premium for growth, expensive relative to earnings expansion
Revenue is fairly priced at 2.45x sales
Fairly priced relative to book value
Solid revenue growth at 14.70% per year
Supporting Valuation Data
R1 RCM Inc (RCM) Detailed Analysis Report
Overall Assessment
This company scores 39/100 in our Smart Analysis, earning a F grade. Out of 10 metrics analyzed, 2 register as strengths (avg 8.5/10) while 8 fall into concern territory (avg 2.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap.
The Bear Case
The primary concerns are Return on Equity, EPS Growth, Profit Margin. Some valuation metrics including PEG Ratio (2.06), Price/Sales (2.45), Price/Book (2.15) suggest expensive pricing. Growth concerns include Revenue Growth at 14.70%, EPS Growth at -99.30%, which may limit upside. Profitability pressure is visible in Return on Equity at -2.20%, Operating Margin at 3.78%, Profit Margin at -2.48%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -2.20% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 14.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RCM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RCM's Price-to-Sales ratio of 2.45x trades at a deep discount to its historical average of 5.12x (11th percentile). The current valuation is 74% below its historical high of 9.54x set in Sep 2018, and 46% above its historical low of 1.68x in Jan 2017.
WallStSmart Analysis Synopsis
Data-driven financial summary for R1 RCM Inc (RCM) · HEALTHCARE › HEALTH INFORMATION SERVICES
The Big Picture
R1 RCM Inc is in a turnaround phase, with management focused on restoring profitability. Revenue reached 2.5B with 15% growth year-over-year. The company is currently unprofitable, posting a -248.0% profit margin.
Key Findings
Generating 60M in free cash flow and 89M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -248.0% profit margin. The path to breakeven will be the key catalyst.
Earnings fell 99% YoY while revenue grew 15%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Sector dynamics: monitor HEALTH INFORMATION SERVICES industry trends, competitive moves, and regulatory changes that could impact R1 RCM Inc.
Bottom Line
R1 RCM Inc is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About R1 RCM Inc(RCM)
NASDAQ
HEALTHCARE
HEALTH INFORMATION SERVICES
USA
R1 RCM Inc (RCM) is a leading provider of technology-enabled revenue cycle management services, specializing in optimizing the financial performance of healthcare organizations. By leveraging advanced analytics and industry expertise, R1 RCM delivers comprehensive solutions that streamline patient billing processes and enhance operational efficiencies across a diverse portfolio of clients, including hospitals and outpatient facilities. The company's innovative approach not only improves revenue capture but also elevates the patient experience, positioning R1 RCM as a key player in the evolving healthcare landscape. With a robust growth strategy focused on expanding its service offerings and market reach, R1 RCM is poised to capitalize on the increasing demand for effective revenue cycle solutions in the healthcare sector.