Claritev (CTEV) AI Stock Analysis

• Market Cap: $373.83M
• Dividend Yield: N/A
• Average Volume (3M): 72.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -3.21%
• EPS Growth: -1695.35%
• Country: US
• Employees: 2,700
• Sector: Healthcare
• Sector Strength: 57
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -101.95
• Shares Outstanding: 16,726,007
• 10 Day Avg. Volume: 56,796
• 30 Day Avg. Volume: 72,351
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 12.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: -10.51% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Claritev's overall score reflects significant financial challenges with declining revenues and high leverage. Strategic initiatives and positive corporate events provide some support, but valuation concerns and reliance on a single client weigh heavily on the outlook.

Claritev Business Overview & Revenue Model

Company Description

MultiPlan (MPLN) is a leading provider of data analytics and technology-enabled solutions for healthcare payers. The company operates within the healthcare sector, focusing on offering cost management solutions that help clients manage healthcare costs by reducing out-of-network claims and improving the efficiency of payment processes. MultiPlan's core products and services include analytics-driven network-based solutions, payment integrity services, and cost management tools that facilitate better healthcare outcomes for its clients.

How the Company Makes Money

MultiPlan makes money primarily through service fees charged to healthcare payers, such as insurance companies and government programs, for using its cost management and payment integrity solutions. The company generates revenue by providing access to its extensive healthcare provider networks, which helps clients reduce costs through negotiated discounts. Additionally, MultiPlan earns money by offering analytics and insights that enhance payment accuracy and efficiency. Significant partnerships with insurance companies and healthcare providers are crucial to its business model, allowing MultiPlan to leverage its network to deliver value-added services that drive cost savings for its clients.

Claritev Financial Statement Overview

Summary

CTEV faces significant financial challenges with declining revenues, high leverage, and negative profitability. The income statement reveals a negative net profit margin and deteriorating EBIT/EBITDA margins. The balance sheet highlights high debt levels and financial instability, while cash flow shows mixed signals with positive operating cash flow but negative free cash flow.

Income Statement

The company's income statement shows a challenging financial position. The gross profit margin is essentially 100%, as total revenue equals gross profit, indicating potential misclassification or unique revenue recognition practices. Net profit margin is negative due to significant net losses in the latest year. Revenue has declined consistently over the past years, with a notable drop from 2022 to 2023. Both EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies and challenges.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio significantly exceeding 1, indicating reliance on debt financing. Return on equity is negative due to net losses, showing poor profitability. The equity ratio is low, suggesting potential financial risk. Overall, the balance sheet indicates financial instability and high risk with minimal equity buffer against liabilities.

Cash Flow

Cash flow metrics offer mixed insights. While operating cash flow remains positive, free cash flow has turned negative, reflecting capital expenditure challenges. The operating cash flow to net income ratio is positive, showing some level of cash earnings despite net losses. However, the free cash flow to net income ratio is concerning, as the company is unable to generate free cash flow proportional to its income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
930.62M	961.52M	1.08B	1.12B	937.76M
	Gross Profit
691.22M	306.04M	875.62M	942.31M	619.09M
	EBIT
-1.39B	173.40M	302.99M	386.12M	-105.17M
	EBITDA
-1.01B	651.93M	158.32M	814.99M	192.41M
	Net Income Common Stockholders
-1.65B	-91.70M	-572.91M	102.08M	-529.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.85M	71.55M	334.05M	185.33M	126.75M
	Total Assets
5.15B	6.96B	7.37B	8.22B	8.28B
	Total Debt
4.54B	4.57B	4.78B	4.93B	4.61B
	Net Debt
4.52B	4.50B	4.45B	4.74B	4.49B
	Total Liabilities
5.07B	5.26B	5.58B	5.88B	5.69B
	Stockholders Equity
84.02M	1.71B	1.79B	2.34B	2.59B
Cash Flow		Free Cash Flow
-10.51M	62.87M	282.63M	320.10M	306.56M
	Operating Cash Flow
107.62M	171.72M	372.36M	404.69M	377.37M
	Investing Cash Flow
-118.12M	-249.79M	-104.45M	-228.38M	-210.84M
	Financing Cash Flow
-41.31M	-180.99M	-115.74M	-114.68M	-61.60M

Claritev Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTEV, the sentiment is Positive. The current price of 22.35 is above the 20-day moving average (MA) of 21.06, above the 50-day MA of 21.05, and above the 200-day MA of 14.24, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 74.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTEV.

Claritev Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETON	61 Neutral	$465.02M	―	-19.16%	―	23.29%	-309.12%
HRTX	57 Neutral	$351.88M	―	40.36%	―	13.57%	89.73%
BNTC	54 Neutral	$384.47M	―	-46.85%	―	-100.00%	72.73%
CTEV	53 Neutral	$373.83M	―	-183.57%	―	-3.21%	-1695.35%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
ABSI	48 Neutral	$385.88M	―	-58.04%	―	-20.71%	22.25%
TECX	42 Neutral	$406.01M	―	-42.09%	―	―	-343.40%

Claritev Corporate Events

Claritev Shareholders Approve Omnibus Incentive Plan Amendment

On April 30, 2025, Claritev Corporation’s stockholders approved an amendment to the 2020 Omnibus Incentive Plan, increasing the shares reserved for issuance by 1,750,000. At the same annual meeting, stockholders elected three Class II directors, ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved executive compensation, indicating strong shareholder support for the company’s governance and strategic decisions.

Spark’s Take on CTEV Stock

According to Spark, TipRanks’ AI Analyst, CTEV is a Neutral.

Claritev’s stock score reflects significant financial challenges, marked by declining revenues and high leverage. Despite positive strategic initiatives highlighted in the earnings call, including growth in new business areas and successful debt refinancing, the negative valuation and mixed technical signals weigh heavily on the overall score.

To see Spark’s full report on CTEV stock, click here.

Claritev to Release Investor Presentation on March 2025

Claritev Corporation announced that starting March 5, 2025, it will provide a slide presentation on its website for investors. This initiative aims to comply with Regulation FD and is part of the company’s efforts to maintain transparency with stakeholders. The presentation will include forward-looking statements about the company’s transformation plan, debt refinancing, and future prospects. However, these statements involve risks and uncertainties that may impact actual results.