Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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.

Latest Healthcare Facilities & Services Stock News

Before choosing which top Healthcare Facilities & Services stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

Our fundamental outlook for health care facilities (primarily hospitals) industry over the next 12 months is neutral. Widespread distribution of vaccines in the first half of 2021 is helping Covid-19 counts come down. This is likely to alleviate some of the pressure’s hospitals have been facing with staffing difficulties and PPE shortages. In addition, elective procedure volumes, a key source of profitability, are likely to continue to recover as hospitals as patients become more comfortable returning to postponed doctors’ appointments and get diagnoses again. At the same time, the combination of Covid-19 and the global response to it also recently led to a massive increase in U.S. unemployment. We expect the elevated unemployment (5.8% as of May 2021) to negatively impact health facilities, primarily by 1) increasing bad debt expense and charity care as well as by 2) lowering elective procedure volumes for the uninsured. Yet, demand for hospital services will likely remain relatively insulated in a recession when compared to many other industries. On the negative side, however, the Hospital Price Transparency rule went into effect January 1, 2021, which releases competitive information about payer-negotiated rates for common services and has led to negative headlines as many health care facilities try to make finding this data on their websites difficult. The federal government has passed a series of stimulus bills to address Covid-19’s impact. The bills provided $178 billion to health care providers through the Provider Relief Fund, in addition to Medicare and Medicaid provisions. This includes payments for uninsured patients, a 20% boost to Medicare rates on Covid-19 cases, and sweeping reimbursement increases, which should significantly aide hospitals.

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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5 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 5 undervalued stocks in the Healthcare Facilities & Services industry for Monday, May 08, 2023. 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 specialized cannabis company. The Company is developing product manufacturing and greenhouse cultivation facilities. Its flagship project is the Massachusetts Cannabis Center. The Massachusetts Cannabis Center (MCC) is being developed on an approximately 52-acre parcel located in Southeastern Massachusetts. Its MCC project is permitted for approximately 987,000 square feet of cannabis cultivation and processing infrastructure, which is being developed in phases to support both the existing medical cannabis and the newly emerging adult-use cannabis marketplace. Its first phase of the million square feet project, Building 1, is about 30,000 square feet. The Company through its 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 markets.

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 71, which is considered to be undervalued.

When you look at Americann Inc’s price-to-sales ratio at 1.74 compared to the industry median at 1.26, this company has a higher price relative to revenue compared to its peers. This could make Americann Inc’s stock less attractive for value investors.

Americann Inc’s price-earnings ratio is 13.70 compared to the industry median at 22.91. This means it has a lower share price relative to earnings compared to its peers. This could make Americann Inc more attractive for value investors.

Now, let’s assess Americann Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 3.9, when compared to the industry median of 11.9, 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 (1.59%). 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 2.10. This could make Americann Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Americann Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Americann Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.29. This could make Americann Inc more attractive because the lower P/FCF ratio indicates that Americann Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Clearday Inc’s Value Grade

Value Grade:

Clearday, Inc. is a non-acute health care services company, which is focused on servicing older Americans, who are 50 or more years of age. The Company operates four residential care facilities and a day care center, which serves primarily older Americans, and person facing cognitive issues, such as Alzheimers and other forms of dementia. Its Clearday at Home is a digital service offering to the multi-billion home care industry with care products and services, which enables seniors to stay in their homes longer and delay the need for residential care. The Company's residential care communities are facilities that have been built to suit using architecture, designs and furniture that elevate the residential care of persons suffering from dementia or other cognitive issues. There are 26 diagnoses of dementia, including Alzheimers disease. 25 of these diagnoses may be treated in a community setting and its residential care communities treat each of these 25 diagnoses.

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.

Clearday Inc has a Value Score of 62, which is considered to be undervalued.

You can read more about Clearday 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.

OrganiGram Holdings Inc’s Value Grade

Value Grade:

OrganiGram Holdings Inc. operates through its subsidiaries, Organigram Inc (Organigram) and Laurentian Organic Inc. The Company is focused on producing indoor-grown cannabis for patients and adult recreational consumers in Canada. Organigram is a licensed producer of cannabis and extract-based products. It also manufactures cannabis-infused soft chews in Canada. The Company produces cannabis for patients and adult recreational consumers. Organigram has developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Big Bag O? Buds, SHRED, SHRED?ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Superieur, Quebec, with an edibles manufacturing facility in Winnipeg, Manitoba. Its Quebec?s brand portfolio includes Tremblant Cannabis, artisanal craft brand, and Laurentian. Laurentian Organic Inc. is a licensed producer of cannabis and cannabis-derived products in Canada.

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.

OrganiGram Holdings Inc has a Value Score of 76, which is considered to be undervalued.

OrganiGram Holdings Inc’s price-to-book ratio is higher than its peers. This could make OrganiGram Holdings Inc less attractive for value investors when compared to the industry median at 2.10.

You can read more about OrganiGram Holdings 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.

Skylight Health Group Inc’s Value Grade

Value Grade:

Skylight Health Group Inc. is a Canada-based healthcare services and technology company. The Company operates a United States multi-state health network that comprises physical multi-disciplinary medical clinics, providing a range of services from primary care, sub-specialty, allied health and diagnostic testing. Its segments include the United States and Canada. The United States segment include its medical services and the Canada segment includes its software and corporate businesses. The Company is focused on helping small and independent practices shift from a traditional fee-for-service (FFS) model to value-based care (VBC) through tools, including its own technology, data analytics and infrastructure.

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.

Skylight Health Group Inc has a Value Score of 92, which is considered to be undervalued.

Skylight Health Group Inc’s price-to-book ratio is higher than its peers. This could make Skylight Health Group Inc less attractive for value investors when compared to the industry median at 2.10.

You can read more about Skylight Health Group 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.

Oncology Institute Inc’s Value Grade

Value Grade:

The Oncology Institute, Inc. is a value-based oncology company. The Company manages community-based oncology practices that serve patients at approximately 76 clinic locations across 15 markets and five states throughout the United States. The Company's segment includes dispensary, patient care, and clinical trials & other. Its managed clinics provide a range of medical oncology services, including physician services, in-house infusion and dispensary, clinical trial services, radiation, programs like outpatient blood product transfusions, along with 24/7 patient support. The Company, through TOI Clinical Research, LLC (TCR), provides and manages clinical trial services and research for the benefit of cancer patients. The Company also provides management services to 14 clinic locations owned by independent oncology practices. The Company's managed clinics primarily serve adult and senior cancer patients in markets that have Medicare Advantage (MA) plans.

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.

Oncology Institute Inc has a Value Score of 97, which is considered to be undervalued.

Oncology Institute Inc’s price-to-book ratio is higher than its peers. This could make Oncology Institute Inc less attractive for value investors when compared to the industry median at 2.10.

You can read more about Oncology Institute 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.

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 5 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 B.
• Clearday Inc stock has a Value Grade of B.
• OrganiGram Holdings Inc stock has a Value Grade of B.
• Skylight Health Group Inc stock has a Value Grade of A.
• Oncology Institute Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Healthcare Facilities & Services Stocks for Monday, May 08
• 3 Undervalued Healthcare Facilities & Services Stocks for Friday, May 05
• Why AMN Healthcare Services, Inc.’s (AMN) Stock Is Up 6.80%
• Why Fulgent Genetics Inc’s (FLGT) Stock Is Up 18.97%

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