Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Healthcare Facilities & Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Healthcare Facilities & Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Healthcare Facilities & Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Healthcare Facilities & Services industry for Monday, March 25, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Healthcare Facilities & Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Americann Inc’s Value Grade

Value Grade:

AmeriCann, Inc. is a cannabis company that develops cultivation, processing and product manufacturing facilities. It has provisional licenses to produce cannabis-infused products, including beverages, edibles, topicals and concentrates. It designs GMP-certified cannabis extraction and product manufacturing infrastructure. Its flagship project is the Massachusetts Cannabis Center (MCC), which is being developed on a 52-acre parcel. MCC project is permitted for over 800,000 square feet of cannabis cultivation and processing infrastructure which is being developed in phases to support both the existing medical cannabis and the emerging adult-use cannabis marketplace. The Company, through a 100% owned subsidiary, AmeriCann Brands, Inc., has received two licenses from the Massachusetts Cannabis Control Commission to cultivate cannabis and provide extraction and product manufacturing support to the entire MCC project, as well as to other licensed cannabis farmers throughout regulated market.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Americann Inc has a Value Score of 87, which is considered to be undervalued.

When you look at Americann Inc’s price-to-sales ratio at 0.64 compared to the industry median at 1.24, this company has a lower price relative to revenue compared to its peers. This could make Americann Inc’s stock more attractive for value investors.

Now, let’s assess Americann Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.8, when compared to the industry median of 13.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Americann Inc’s shareholder yield is higher than its industry median ratio of (1.61%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Americann Inc’s price-to-book ratio is lower than its industry median ratio of 2.28. This could make Americann Inc more attractive to investors looking for a new addition to their portfolio.

Caremax Inc’s Value Grade

Value Grade:

CareMax, Inc. is a technology-enabled care platform providing value-based care and chronic disease management through physicians and health care professionals committed to the overall health and wellness continuum of care for its patients. It operates over 56 centers and managed affiliated providers across 10 states that offer a suite of healthcare and social services, and a proprietary software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States. Its CareOptimize is an end-to-end technology platform that aggregates and analyzes data using proprietary algorithms and machine learning to support more informed care delivery decisions and to focus care decisions on preventative chronic disease management and the social determinants of health. The Company offers 24/7 access to care through employed providers and provides a comprehensive suite of high-touch health care and social services for its patients.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Caremax Inc has a Value Score of 84, which is considered to be undervalued.

Caremax Inc’s price-to-book ratio is higher than its peers. This could make Caremax Inc less attractive for value investors when compared to the industry median at 2.28.

You can read more about Caremax Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Flora Growth Corp’s Value Grade

Value Grade:

Flora Growth Corp. is a global cannabis company. The Company is a manufacturer, distributor and all-outdoor cultivator of global cannabis and pharmaceutical products and brands, building a connected, design-led collective of plant-based wellness and lifestyle brands. Its segments include Commercial & Wholesale, House of Brands and Pharmaceuticals. Its Commercial & Wholesale segment is engaged in the cultivation, transformation, and movement of cannabis and the distribution of pharmaceutical products to international markets. Its Pharmaceuticals segment is focused on developing pharmaceutical grade products and providing scientific-based research connected to molecules found in the cannabis plant. Its House of Brands include JustCBD, Vessel, Nocap, Mind Naturals, Stardog and Mambe. JustCBD is a consumer-packaged goods (CPG) brand consisting of over 350 products across 15 categories, including cannabidiol (CBD) gummies, topicals, tinctures, and vape products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Flora Growth Corp has a Value Score of 64, which is considered to be undervalued.

Flora Growth Corp’s price-to-book ratio is higher than its peers. This could make Flora Growth Corp less attractive for value investors when compared to the industry median at 2.28.

You can read more about Flora Growth Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Selectis Health Inc’s Value Grade

Value Grade:

Selectis Health, Inc. acquires, develops, leases, manages, and disposes of healthcare real estate, provides financing to healthcare providers, and provides healthcare operations through its wholly owned subsidiaries. Its portfolio is comprised of investments in three healthcare segments: senior housing, including independent and assisted living; post-acute/skilled nursing facilities; and bonds securing senior housing communities. The Company owns and operates, through wholly owned subsidiaries, Assisted Living Facilities, Independent Living Facilities, and Skilled Nursing Facilities across the South and Southeastern portions of the United States. Assisted Living Facilities are licensed care facilities that provide personal care services, support, and housing for those who need help with activities of daily living yet require limited medical care. Independent Living Facilities are designed to meet the needs of seniors who choose to live in an environment surrounded by their peers.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Selectis Health Inc has a Value Score of 96, which is considered to be undervalued.

You can read more about Selectis Health Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Inspire Veterinary Partners Inc’s Value Grade

Value Grade:

Inspire Veterinary Partners, Inc. owns and operates veterinary hospitals throughout the United States. The Company specializes in small animal general practice hospitals that serve all manner of companion pets, emphasizing canine and feline breeds. Services provided at the Company?s hospitals include preventive care for companion animals consisting of annual health exams that include parasite control, dental health, nutrition and body condition counseling, neurological examinations, radiology, bloodwork, skin and coat health, and many breed-specific preventive care services. Surgical offerings include all soft tissue procedures such as spays and neuters, mass removals, splenectomies and also include gastropexies, orthopedic procedures, and other types of surgical offerings based on a doctor?s training. In many locations, additional means of care and alternative procedures are also offered, such as acupuncture, chiropractic, and various other health and wellness offerings.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Inspire Veterinary Partners Inc has a Value Score of 100, which is considered to be undervalued.

Inspire Veterinary Partners Inc’s price-to-book ratio is higher than its peers. This could make Inspire Veterinary Partners Inc less attractive for value investors when compared to the industry median at 2.28.

You can read more about Inspire Veterinary Partners Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Psychemedics Corp.’s Value Grade

Value Grade:

Psychemedics Corporation is a hair drug testing company. The Company provides testing services for the detection of drugs of abuse through the analysis of hair samples. Its testing methods utilize a patented technology that digests the hair and releases drugs trapped in the hair without destroying the drugs. The Company customizes its enzyme immunoassay (EIA) procedures to drug test hair samples. It provides screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, phenylcyclohexyl piperidine (PCP), amphetamines (including ecstasy, eve, and Adderall), opiates (including heroin, hydrocodone, hydromorphone, oxycodone and codeine), synthetic cannabinoids (including K2, Spice, Blaze), benzodiazepines (Xanax, Valium, and Ativan), nicotine, Fentanyl, and alcohol. The Company markets its corporate drug testing services through its own sales force, distributors, and webinars. It markets its home drug testing service, PDT-90, through the Internet.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Psychemedics Corp. has a Value Score of 78, which is considered to be undervalued.

Psychemedics Corp.’s price-to-book ratio is lower than its peers. This could make Psychemedics Corp. fairly attractive for value investors when compared to the industry median at 2.28.

You can read more about Psychemedics Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Healthcare Facilities & Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Healthcare Facilities & Services stocks as well as other industrys.

Choosing Which of the 6 Best Healthcare Facilities & Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Americann Inc stock has a Value Grade of A.
• Caremax Inc stock has a Value Grade of A.
• Flora Growth Corp stock has a Value Grade of B.
• Selectis Health Inc stock has a Value Grade of A.
• Inspire Veterinary Partners Inc stock has a Value Grade of A.
• Psychemedics Corp. stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Healthcare Facilities & Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Healthcare Facilities & Services Stocks

Want to learn more about Healthcare Facilities & Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Healthcare Facilities & Services Stocks for Monday, March 25
• Is American Oncology Network Inc (AONC) Stock a Good Investment?
• 3 Undervalued Healthcare Facilities & Services Stocks for Friday, March 22
• Why Agilon Health Inc’s (AGL) Stock Is Down 9.94%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.