One-glance verdict
Undervalued
$192.68 our estimate vs market $47.11
Wall Street consensus: $36.57 (-81.0% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
AMN Healthcare Services, Inc.
AMN · NYQ · Healthcare · Medical Care Facilities
Current price
$47.11
52-week range
$14.97 - $49.62
Market cap
$1.82B
Balance sheet
Distressed
0.73x Concerning
Net debt $413.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 25.8% last year.
- Reward Returns 15.6% on equity, ahead of 66% of its peers.
- Risk Forward P/E (50.2x) is higher than trailing (17.6x) - earnings are expected to drop.
- Risk Stock trades 44.3% above its 5-year average P/E.
What this company does
AMN Healthcare Services, Inc.
AMN Healthcare Services helps hospitals and other medical places find the staff they need, like nurses and doctors, especially when there's a shortage or a crisis. Their main income comes from providing these temporary and permanent staffing services, which matters because it ensures patients continue to receive care even when facilities are short-handed.
How the company got here
AMN Healthcare was founded in 1985, starting as a regional company focused on providing travel nurses to hospitals. Over the years, it has grown significantly by both expanding its services and acquiring other companies. This expansion has moved AMN beyond just nursing to include staffing for physicians, allied health professionals, and leadership roles. They've also invested in technology to manage healthcare workforces more efficiently. Today, AMN is a major player in the U.S. healthcare staffing and workforce solutions industry, serving a wide range of healthcare facilities.
What it actually does
AMN Healthcare acts as a bridge between healthcare professionals and the organizations that need them. Think of them as a specialized recruitment agency for the healthcare world. They help hospitals, clinics, and other healthcare facilities find and hire the staff they need, whether it's for short-term needs like covering a vacationing nurse or for filling permanent positions. They also offer services to help these organizations manage their own staffing processes more effectively.
Nurse and Allied Solutions
This is AMN Healthcare's largest business segment, focusing on providing nurses and other healthcare professionals, often called 'allied health professionals.' These allied professionals include roles like physical therapists, respiratory therapists, and medical technologists. AMN helps facilities find these workers through various arrangements, including travel nursing assignments (where a professional works at a facility temporarily, often for about 13 weeks), local staffing, and even international recruitment to bring in nurses from other countries. They also provide staff during critical times, like labor disruptions or emergencies.
Physician and Leadership Solutions
This segment focuses on finding doctors and healthcare leaders for temporary or permanent roles. This includes 'locum tenens' staffing, which means providing doctors to fill in for a short period, like when a regular doctor is on leave. They also handle permanent physician recruitment, helping hospitals find doctors to join their staff long-term. Additionally, this segment provides interim leadership staffing, placing experienced professionals in temporary management or executive roles during transitions or vacancies.
Technology and Workforce Solutions
This part of AMN Healthcare offers services and technology to help healthcare organizations manage their workforce more efficiently. This includes 'vendor management systems' (VMS), which are software platforms that help facilities track and manage all their temporary staffing needs from different agencies in one place. They also provide 'workforce optimization' tools, which use data to help plan staffing, manage schedules, and improve how staff are utilized. This segment also includes language services to help healthcare providers communicate with patients who speak different languages.
What management is betting on now
AMN Healthcare's strategy is to move beyond just being a staffing agency to becoming a comprehensive 'workforce partner' for healthcare organizations. They are focusing on technology-enabled solutions and managed services, which tend to be more stable and recurring revenue streams compared to traditional staffing. The goal is to offer integrated services that help clients manage their entire workforce, from recruitment and staffing to optimizing labor costs and improving operational efficiency, thereby becoming an indispensable part of their clients' long-term success.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$47.44M
FY2024 Q4
$56.59M
FY2025 Q1
$82.70M
FY2025 Q2
$68.75M
FY2025 Q3
$14.76M
FY2025 Q4
$67.63M
FY2026 Q1
$555.21M
FY2026 Q2
$-198.46M
Revenue
$673.24M
Net income
$21.16M
Diluted EPS
0.53
Operating cash flow
$-189.93M
Free cash flow
$-198.46M
Fetching…
Sources
Revenue
$1.38B
Net income
$62.17M
Diluted EPS
1.59
Operating cash flow
$562.45M
Free cash flow
$555.21M
Fetching…
Sources
Revenue
$748.23M
Net income
$-7.70M
Diluted EPS
-0.19
Operating cash flow
$75.57M
Free cash flow
$67.63M
Fetching…
Sources
Revenue
$634.50M
Net income
$29.29M
Diluted EPS
0.76
Operating cash flow
$22.67M
Free cash flow
$14.76M
Fetching…
Sources
Revenue
$658.17M
Net income
$-116.20M
Diluted EPS
-3.02
Operating cash flow
$78.55M
Free cash flow
$68.75M
Fetching…
Sources
Revenue
$689.53M
Net income
$-1.09M
Diluted EPS
-0.03
Operating cash flow
$92.67M
Free cash flow
$82.70M
Fetching…
Sources
Revenue
$734.71M
Net income
$-187.53M
Diluted EPS
-4.90
Operating cash flow
$72.81M
Free cash flow
$56.59M
Fetching…
Sources
Revenue
$687.51M
Net income
$6.99M
Diluted EPS
0.18
Operating cash flow
$66.70M
Free cash flow
$47.44M
Fetching…
Sources
Is it cheap or expensive?
Fair value $192.68 vs current price $47.11
Wall Street consensus is the average analyst price target: $36.57 (-81.0% lower than our fair-value estimate).
Our most-likely fair value is $192.68 a share — about 309.0% above today's price of $47.11, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $414.0M. Interest coverage 0.7x.
Net debt
$413.97M
Interest coverage
0.73x
AMN Healthcare Services, Inc.'s profit covers its interest bill about 0.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AMN
BASELINE
AMN Healthcare Services, Inc.
Total debt $775.81M Interest coverage 0.73x This is the baseline the peer rows are being compared against.
Total debt $597.77M Interest coverage 18.74x +2,476% vs AMN Carries about 25.8x more debt cushion than AMN.
Total debt $240.81M Interest coverage 6.48x +791% vs AMN Carries about 8.9x more debt cushion than AMN.
Total debt $475.00M Interest coverage -0.42x -100% vs AMN This peer has almost no interest-payment cushion compared with AMN.
What you should know
The case for and against AMN
3 Rewards
3 Risks
Rewards
-
Revenue grew 25.8% last year.
-
Returns 15.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (50.2x) is higher than trailing (17.6x) - earnings are expected to drop.
-
Stock trades 44.3% above its 5-year average P/E.
-
Operating margin compressed from 12.3% to 4.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.58x
Forward P/E
50.18x
P/B
2.46x
P/S
0.53x
EV/EBITDA
7.29x
PEG ratio
1.22x
Profitability
How much profit each dollar creates
Gross margin
27.8%
Operating margin
4.0%
Net margin
3.1%
ROE
15.6%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
1.13x
Quick ratio
1.03x
Total debt
$775.81M
Total cash
$361.84M
Growth
How the business has been compounding
Revenue TTM
$3.43B
Revenue 5Y CAGR
-9.0%
EPS TTM
2.68
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$470.76M
Free CF TTM
$233.83M
FCF margin
6.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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