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Privia Health Group (PRVA)
NASDAQ:PRVA
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Privia Health Group
(NASDAQ:PRVA)
Rating:78Outperform
Price Target:
$29.00
▲( 18.27% Upside)
Positive Factors
Earnings
Privia Health Group's 1Q25 results show strong performance with beats in practice collections, revenues, care margin, and adjusted EBITDA compared to consensus.
Expansion
The Arizona market entry is expected to be EBITDA positive faster than historical partnerships, driving further conviction into earnings growth.
Financial Outlook
The company's strong free cash flow generation is considered best-in-class, which is a significant component of the positive outlook for PRVA.
Negative Factors
Regulatory Changes
Four experimental Medicare payment models, including one Privia participates in, will be shutting down by the end of 2025.
Privia Health Group (PRVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.05B
Dividend YieldN/A
Average Volume (3M)767.05K
Price to Earnings (P/E)198.4
Beta (1Y)0.73
Revenue Growth6.79%
EPS Growth-18.52%
CountryUS
Employees1,140
SectorHealthcare
Sector Strength44
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding121,919,510
10 Day Avg. Volume882,234
30 Day Avg. Volume767,046
Financial Highlights & Ratios
PEG Ratio11.49
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio27.77
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit14.42
Enterprise Value/Ebitda29.51
Forecast
1Y Price Target
$30.38Price Target Upside23.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Privia Health Group Business Overview & Revenue Model
Company DescriptionPrivia Health Group, Inc. (PRVA) is a healthcare services company that collaborates with medical groups, health plans, and healthcare systems to optimize physician practices and improve patient care. Operating primarily in the United States, Privia Health integrates technology, physician expertise, and a value-based care approach to enhance the delivery of healthcare services. The company supports independent physicians and larger medical groups by providing tools and resources that enable better clinical and financial outcomes.
How the Company Makes MoneyPrivia Health Group makes money primarily through a revenue-sharing model with its partner medical groups and healthcare providers. The company generates income by offering a platform that helps physicians transition to value-based care models, which focus on patient outcomes rather than the volume of services provided. Privia Health earns fees from administrative services, technology solutions, and performance-based incentives tied to cost savings and quality improvements. Key revenue streams include management services fees, shared savings from value-based care contracts, and technology platform subscriptions. Additionally, the company benefits from partnerships with insurance companies and health systems that seek to leverage Privia's platform to improve care delivery and reduce costs.
Privia Health Group Financial Statement Overview
Summary
Privia Health Group demonstrates strong financial performance marked by substantial revenue growth, effective cost management, and a solid equity foundation. The income statement shows a positive net profit margin despite slight fluctuations in EBIT margins. The balance sheet reflects low leverage and improved return on equity. Cash flow analysis reveals consistent operating cash flow growth, although there is some volatility in free cash flow growth.Income Statement
Privia Health Group has shown impressive revenue growth over the years, with the latest figure reaching $1.74 billion, a significant increase from previous years. The gross profit margin is robust, indicating efficient cost management. Despite a slight decline in EBIT and EBITDA margins in the latest year, the company maintains a positive net profit margin, showcasing profitability. However, the fluctuation in EBIT margins could be a point of concern.85
Very Positive
Balance Sheet
The company exhibits a strong equity base, with a healthy debt-to-equity ratio indicating low leverage, which is favorable for stability. The return on equity has improved over the years, reflecting effective utilization of shareholder funds. A high equity ratio further underscores financial robustness, though continuous monitoring of debt levels is advised.80
Positive
Cash Flow
Privia Health Group has demonstrated consistent growth in operating cash flow, which is a positive indicator of cash-generating efficiency. The operating cash flow to net income ratio is strong, suggesting effective conversion of earnings into cash. However, the free cash flow growth rate has experienced some volatility, signaling potential fluctuations in cash availability.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.74B | 1.66B | 1.36B | 966.22M | 817.08M | Gross Profit |
| 176.85M | 161.50M | 134.78M | 63.66M | 82.58M | EBIT |
| 16.98M | 20.65M | -19.12M | -217.44M | 25.38M | EBITDA |
| 24.25M | 27.18M | -14.55M | -214.97M | 27.22M | Net Income Common Stockholders |
| 14.38M | 23.08M | -12.06M | -190.65M | 31.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 491.15M | 389.51M | 347.99M | 320.58M | 84.63M | Total Assets |
| 1.14B | 999.90M | 792.81M | 686.37M | 328.97M | Total Debt |
| 5.59M | 8.29M | 11.50M | 46.50M | 33.66M | Net Debt |
| -485.56M | -381.22M | -336.49M | -274.08M | -50.97M | Total Liabilities |
| 452.34M | 392.51M | 273.76M | 236.19M | 185.32M | Stockholders Equity |
| 635.18M | 561.44M | 499.09M | 426.87M | 146.75M |
| Cash Flow | Free Cash Flow | |||
| 109.28M | 80.67M | 47.09M | 54.51M | 38.51M | Operating Cash Flow |
| 109.28M | 80.78M | 47.20M | 55.06M | 38.89M | Investing Cash Flow |
| -11.98M | -42.97M | -104.00K | -32.77M | -380.00K | Financing Cash Flow |
| 4.33M | 3.71M | -19.68M | 213.66M | -767.00K |
Privia Health Group Technical Analysis
Neutral
24.52
Price Trends
23.46
Positive
23.20
Positive
21.39
Positive
Market Momentum
0.34
Negative
48.36
Neutral
34.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRVA, the sentiment is Neutral. The current price of 24.52 is above the 20-day moving average (MA) of 23.95, above the 50-day MA of 23.46, and above the 200-day MA of 21.39, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 34.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRVA.
Privia Health Group Risk Analysis
Privia Health Group disclosed 55 risk factors in its most recent earnings report. Privia Health Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Privia Health Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.05B | 198.38 | 2.53% | ― | 6.79% | -18.52% | |
76 Outperform | $1.90B | 40.48 | 6.05% | 3.64% | -17.69% | -10.24% | |
70 Outperform | $4.20B | 84.65 | 2.30% | ― | 23.40% | ― | |
61 Neutral | $1.30B | 63.34 | 1.73% | ― | 3.00% | ― | |
58 Neutral | $1.51B | ― | -22.67% | ― | 17.83% | 59.64% | |
54 Neutral | $1.01B | ― | -10.99% | ― | 10.24% | 2.63% | |
53 Neutral | $5.24B | 3.07 | -43.58% | 2.80% | 16.87% | -0.11% |
* Healthcare Sector Average
Performance Comparison
PRVA
Privia Health Group
23.80
7.36
44.77%
OMCL
Omnicell
27.34
-4.90
-15.20%
PINC
Premier
23.06
4.54
24.51%
EVH
Evolent Health
8.00
-15.27
-65.62%
PHR
Phreesia
24.49
1.80
7.93%
BTSG
BrightSpring Health Services, Inc.
23.74
12.26
106.79%
Privia Health Group Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 5.15%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Privia Health demonstrated strong growth and financial performance, with significant increases in provider signings, practice collections, and EBITDA. The strategic entry into the Arizona market and increased guidance for 2025 further highlight the company's positive trajectory. However, challenges in the Medicare Advantage space and potential headwinds in value-based care present areas of concern.Q1-2025 Updates
Positive Updates
Strong Growth in Provider Signings and Practice Collections
Implemented Provider growth of 11.7% year-over-year and Practice Collections growth of 12.8% to $798.6 million.
Significant EBITDA Increase
Adjusted EBITDA increased by 35.1% year-over-year, with EBITDA margin expanding 460 basis points.
Strategic Entry into Arizona Market
Partnership with IMS, one of the largest independent multi-specialty practices, with 70 providers and 28,000 attributed lives, valued at $95 million.
Increased 2025 Guidance
Raised full-year 2025 guidance due to strong first-quarter performance and visibility throughout the remainder of the year.
Healthy Balance Sheet
Ended the first quarter with $469 million in cash and no debt, providing significant financial flexibility.
Negative Updates
Challenges in Medicare Advantage (MA) Environment
Acknowledgment of a challenging environment for MA over the next three to four years, with no plans to enter new fully capitated MA contracts.
Potential Headwinds in Value-Based Care
Value-based care shared savings flat year-over-year, with pressures in the MA book due to V28 impacts and other regulatory challenges.
Company Guidance
In the first quarter of 2025, Privia Health reported strong financial performance and raised its full-year outlook as a result of robust operating execution and growth across its markets. The company achieved an 11.7% increase in implemented provider growth and an 11.1% rise in value-based attribution, contributing to a 12.8% growth in total practice collections. Adjusted EBITDA surged by 35.1%, with the EBITDA margin expanding by 460 basis points year-over-year. Privia Health's strategic entry into Arizona, through a $95 million partnership with IMS, is expected to be EBITDA positive by the fourth quarter of 2025 and make a meaningful contribution to adjusted EBITDA in 2026. The company now operates across 15 states and the District of Columbia, serving 1.27 million attributed lives, with a diversified mix of commercial and government value-based care programs. As a result of this strong start, Privia Health has raised its 2025 guidance to the mid to high end of its initial range, while maintaining its guidance for attributed lives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.