Cross Country Healthcare, Inc. – Value Analysis (NASDAQ:CCRN) : November 6, 2017

Capitalcube gives Cross Country Healthcare, Inc. a score of 50.

Our analysis is based on comparing Cross Country Healthcare, Inc. with the following peers – On Assignment, Inc., AMN Healthcare Services, Inc., ManpowerGroup Inc. and Kelly Services, Inc. Class B (ASGN-US, AMN-US, MAN-US and KELYB-US).

Investment Outlook

Cross Country Healthcare, Inc. has a fundamental score of 50 and has a relative valuation of NEUTRAL.

Fundamental Score

Access our research and ratings on Cross Country Healthcare, Inc.

Company Overview

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • It trades at a lower Price/Book multiple (2.11) than its peer median (3.09).
  • The market expects faster earnings growth from CCRN-US than from its peers and also a turnaround in its current ROE.
  • CCRN-US has relatively low profit margins and median asset efficiency.
  • Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
  • CCRN-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
  • Compared with the peers chosen, CCRN-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company seems to be over-investing in a business with median returns.
  • CCRN-US has the financial and operating capacity to borrow quickly.

Access our research and ratings on Cross Country Healthcare, Inc.

Leverage & Liquidity

CCRN-US has the financial and operating capacity to borrow quickly.

  • With debt at a relatively low 15.22% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 15.22%), and a well-cushioned interest coverage level of 6.75x, CCRN-US can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
  • All 4 peers for the company have an outstanding debt balance.

CCRN-US has maintained its Quick & Able profile from the recent year-end.

  • CCRN-US‘s interest coverage is its highest relative to the last five years and compares to a low of -2.47x in 2012.
  • While its interest coverage increased to 6.75x from 5.26x (in 2016), its peer median decreased during this period to 9.82x from 12.58x.
  • Interest coverage rose 4.25 points relative to peers.
  • CCRN-US‘s debt-EV is greater than (but within one standard deviation of) its five-year average debt-EV of 13.70%.
  • Compared to 2016, debt-EV has remained relatively stable for both the company (15.22%) and the peer median (15.22%).

Access the detailed analysis for Cross Country Healthcare, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
On Assignment, Inc. 21.77 2.57 7.36 30.86
AMN Healthcare Services, Inc. 16.78 1.81 9.82 48.89
ManpowerGroup Inc. 11.33 1.29 20.89 73.27
Kelly Services, Inc. Class B 0.09 1.55 25.81 24742.86
Cross Country Healthcare, Inc. 15.22 2.14 6.75 48.14
Peer Median 15.22 1.81 9.82 48.89
Best In Class 0.09 2.57 25.81 24742.86

Looking for more metrics and analysis for Cross Country Healthcare, Inc.?

Company Profile

Cross Country Healthcare, Inc. engages in the provision of healthcare staffing and workforce management solutions. It operates through the following segments: Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Nurse and Allied Staffing segment involves in traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, and branch based local nurses and allied staffing. The Physician Staffing segment provides physicians in specialties as independent contractors on temporary assignments at healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The Other Human Capital Management Services segment offers education and training programs to the healthcare industry and retained search services for physicians and healthcare executives. The company was founded on July 29, 1999 and is headquartered in Boca Raton, FL.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website