Concentra Group Holdings Parent Inc. Common Stock (CON)

FairStock Score: 67/100 — STEADY

Key Financials

Strengths

• Generates $127 million in annual free cash flow (4.3% yield on market cap)
• High return on equity of 48.1% demonstrating efficient capital deployment
• Revenue growth of 15.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($9) with negative 141% margin of safety—limited downside protection
• High leverage at 5.01x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Concentra Group Holdings Parent Inc. Common Stock is a small-cap healthcare company valued at $2.9 billion. The business generates $2.2 billion in annual revenue with a 1.6% net margin and $127 million in free cash flow. From a quality standpoint, Concentra shows distressed Altman Z-Score of 1.1 warrants caution and extraordinary 48% return on equity. On valuation, the stock is reasonably priced at 17.7x earnings, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 15.9% and profit growth of 61.2%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 67/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Concentra's 16% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $127 million in annual free cash flow (4.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 5.0x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer