ANCI  American Caresource Holdings I...

Exchange

NASDAQ

Sector

Health Care

Industry

Hospital/Nursing Management

Market Cap.

8.09M

Vuru Grade

14.83/100

Current Price

$1.20
+0.00 (+0.00%)

Stability Price

$0.42
Overvalued by 64.93%

Company Metrics

  • P/E 61.67
  • P/S 0.25
  • P/B 28.2
  • EPS -1.74
  • Cash ROIC -22.42%
  • Cash Ratio 0.13
  • Dividend 0 / N/A %
  • Avg. Vol. 275.00
  • Shares 7.53M
  • Market Cap. 8.09M

Company Description

American CareSource Holdings, Inc. operates as an ancillary benefits management company that offers access to a national network of ancillary healthcare service providers in the United States. Its ancillary healthcare services include an array of services that supplement or support the care provided by hospitals and physicians, including the non-hospital, non-physician services associated with sur... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

American CareSource Holdings, Inc. to Transfer Its Ancillary Network Business ...
GlobeNewswire (press release) - Jun 17, 2016
ATLANTA, June 17, 2016 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (OTCQB:GNOW) (the "Company"), an urgent and primary care company operating under the name GoNow Doctors ("GoNow"), announced today that it has entered into ...
American CareSource Announces Closing of Sale of Ancillary Care Network ...
GlobeNewswire (press release) - Jan 6, 2017
ATLANTA, Jan. 06, 2017 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (OTCQB:GNOW), an urgent and primary care company operating under the names GoNow Doctors and Medac, announced today that it has completed its previously ...
American Caresource Holdings/GoNow Doctors: Textbook Example Of Fundamental ...
Seeking Alpha - Mar 28, 2016
GoNow Doctors (parent American Caresource Holdings) (NASDAQ:GNOW), a small-cap healthcare provider, has been on my radar for a long time.
Adam Winger Promoted to President and Chief Executive Officer of American ...
GlobeNewswire (press release) - Jan 19, 2016
ATLANTA, Jan. 19, 2016 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (Nasdaq:GNOW), an urgent and primary care company operating under the name GoNow Doctors (the "Company"), has promoted Adam Winger, Vice President of ...
American CareSource Announces New Ticker Symbol "GNOW"
GlobeNewswire (press release) - Sep 17, 2015
ATLANTA, Sept. 17, 2015 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (NASDAQ:ANCI), a high-growth, urgent and primary care company operating under the name GoNow Doctors, announced today that its NADSAQ ticker will change to ...
American Caresource Becomes GoNow Doctors: It Was A Short, Is It Still A Short?
Seeking Alpha - Sep 25, 2015
I have covered American CareSource Holdings (ANCI) in the past where I considered the small healthcare provider twice a short opportunity and both times results were positive.
American CareSource Completes Urgent Care Asset Acquisition of Medac in North ...
GlobeNewswire (press release) - Dec 17, 2015
ATLANTA, Dec. 17, 2015 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (Nasdaq:GNOW), operating under the tradename GoNow Doctors (the “Company”), has closed an asset acquisition of Medac Health Services, P.A.
American CareSource Announces the Engagement of Norman Winland, Urgent Care ...
GlobeNewswire (press release) - May 4, 2015
ATLANTA, May 4, 2015 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (Nasdaq:ANCI), operator of urgent and primary care centers and a national network of ancillary health care providers, announced today the engagement of urgent care ...
American CareSource Announces the Death of Chairman, President, and Chief ...
GlobeNewswire (press release) - Apr 13, 2015
ATLANTA, April 13, 2015 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (Nasdaq:ANCI) sadly announced today that Richard W. Turner, PhD, its President, Chief Executive Officer and Chairman of the Board of Directors, died unexpectedly on ...
American CareSource and Harbert Realty Services To Partner to Develop 10 GoNow ...
GlobeNewswire (press release) - Mar 15, 2016
ATLANTA, March 15, 2016 (GLOBE NEWSWIRE) -- American CareSource Holdings, Inc. (NASDAQ:GNOW), an urgent and primary care company operating under the name GoNow Doctors (“GoNow”), announced today that it has entered into a development ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ANCI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ANCI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.20 Current Price

$-5.14 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.42 Stability Price (EPV)

Overvalued by 64.93%


Discount Rate: 15.0%

$-0.57 Book Price

Overvalued by 147.15%


Very Poor Cash Return on Invested Capital over the past 5 years

ANCI has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ANCI has lost $22.42 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -3.14M -602,000.00 -4.50M -4.81M -6.53M
divided by
Invested Capital 2.93M 884,000.00 1.90M 13.13M -1.94M
Cash ROIC -107.02% -68.10% -236.88% -36.63% 336.51%

Very Poor Return on Equity over the past 5 years

ANCI has shown an inability to deliver results for shareholders. This could be due to poor management, ANCI operating in a highly competitive industry, or having a weak business in general.

ANCI has generated a $59.18 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -7.24M -3.09M -3.79M -6.76M -12.52M
divided by
Stockholders' Equity 14.25M 11.59M 8.11M 3.94M -1.81M
Return on Equity -50.79% -26.67% -46.68% -171.78% -

Poor Business Performance over the past 10 years

ANCI's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

ANCI has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -621,530.00 -462,306.00 6.16M 1.27M 2.89M -3.14M -602,000.00 -4.50M -4.81M -6.53M

Very Weak Balance Sheet

ANCI is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of ANCI's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 5.03M 4.27M 10.58M 11.87M 14.51M 11.32M 10.71M 6.21M 1.02M 2.63M
Current Assets 6.39M 8.33M 16.86M 20.74M 20.79M 16.20M 13.43M 8.55M 5.77M 7.16M
Total Assets 12.87M 15.16M 24.55M 28.99M 28.95M 19.16M 16.03M 11.03M 21.11M 21.09M
Current Liabilities 2.19M 4.72M 9.08M 9.68M 8.16M 4.92M 4.44M 2.92M 6.95M 20.40M
Total Liabilities 2.29M 4.77M 9.08M 9.70M 8.16M 4.92M 4.44M 2.92M 17.17M 22.89M
Stockholder' Equity 10.58M 10.39M 15.47M 19.29M 20.79M 14.25M 11.59M 8.11M 3.94M -1.81M
Current Ratio 2.92 1.77 1.86 2.14 2.55 3.30 3.02 2.93 0.83 0.35
TL-to-TA 0.18 0.31 0.37 0.33 0.28 0.26 0.28 0.26 0.81 1.09

Low or No Reinvestment of Profits over the past 10 years

ANCI has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to ANCI operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -6.55M -7.37M -3.73M -1.47M -985,000.00 -8.22M -11.31M -15.10M -21.86M -35.17M
Retained Earnings Growth - -12.52% 49.36% 60.60% 33.04% -734.72% -37.59% -33.46% -44.79% -60.88%

Loss Making Entity over the past 10 years

ANCI has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$19.22 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -1.31M -820,230.00 3.64M 2.32M 486,000.00 -7.24M -3.09M -3.79M -6.76M -12.52M
divided by
Revenue 11.42M 23.49M 58.29M 68.31M 61.20M 48.91M 34.90M 26.75M 27.05M 10.02M
Net Profit Margin -11.51% -3.49% 6.24% 3.40% 0.79% -14.80% -8.86% -14.15% -25.00% -124.86%

Inconsistent Gross Profit Margins over the past 10 years

ANCI has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$32.82 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 2.07M 2.89M 9.04M 9.52M 7.45M 48.91M 4.11M 3.20M 8.78M 10.02M
divided by
Revenue 11.42M 23.49M 58.29M 68.31M 61.20M 48.91M 34.90M 26.75M 27.05M 10.02M
Gross Margin 18.14% 12.29% 15.50% 13.94% 12.17% 100.00% 11.78% 11.97% 32.46% 100.00%

Medium Capital Intensity over the past 10 years

ANCI has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

41.66% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 234,376.00 181,153.00 292,469.00 1.28M 300,000.00 669,000.00 528,000.00 315,000.00 776,000.00 456,000.00
divided by
Net Income -1.31M -820,230.00 3.64M 2.32M 486,000.00 -7.24M -3.09M -3.79M -6.76M -12.52M
Capital Expenditure Ratio -17.84% -22.09% 8.04% 55.22% 61.73% -9.24% -17.08% -8.32% -11.47% -3.64%

No Dividend History over the past 10 years

ANCI has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 14.13M 14.55M 17.74M 17.76M 17.18M 17.01M 5.71M 5.72M 6.41M 7.53M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - - 6.55 2.38 1.39 0.43 1.45 1.54 2.70 1.20
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

ANCI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 14.13M 14.55M 17.74M 17.76M 17.18M 17.01M 5.71M 5.72M 6.41M 7.53M
Stock Bought Back - -2.86% -17.98% -0.16% 3.42% 1.01% 197.97% -0.14% -10.80% -14.86%
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